Tunghsu Optoelectronic Technology Co., Ltd. 2017 Annual Report Tunghsu Optoelectronic Technology Co., Ltd.
2018 Annual Report
April 2019
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report I. Important Notice, Table of Contents and Definitions
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. Mr.Wang Lipeng, The Company leader, Ms.Feng Qiuju, Chief financial officer and the Mr.Gao Feipeng, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this annual report.
All the directors attended the board meeting for reviewing the Annual Report.
The development strategy, operation plan and other forward-looking statements involved in this report will not constitute any substantive commitment to the investors by the Company. Investors please be aware of the investment risks.
The company has already described the risk items existed in details in the report with reference to (IV) possible risks of IX Operation Conditions Discussion and Analysis.
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows: total share of 5,730,250,118 for Base on theCompany‘s total share capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 for every 10 shares(including tax), 0 bonus share (including tax) and no reserve would be converted into share capital.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV.Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Definition
||||
|-|-|-|
|Terms to be defined|Refers to|Definition|
|Company Law|Refers to|Company Law of the People’s Republic of China|
|Securities Law|Refers to|Securities Law of the People’s Republic of China|
|CSRC|Refers to|C hina Securities Regulatory Commission|
|SZSE|Refers to|Shenzhen Stock Exchange|
|Tunghsu Group|Refers to|Tunghsu Group Co., Ltd.|
|Baoshi Group|Refers to|S hijiazhuang Baoshi Electronics Group Co., Ltd|
|Tunghsu Optoelectronic , Company, The|||
||Refers to|Tunghsu Optoelectronic Technology Co., Ltd.|
|Company|||
|Tunghsu（Yingkou）Optoelectronic|Refers to|Tunghsu（Yingkou）Optoelectronic Display Co., Ltd.|
|Xuhong Optoelectronic|Refers to|Sichuan Xuhong Optoelectronic Technology Co., Ltd.|
|Wuhu Optoelectronic|Refers to|Wuhu Tunghsu Optoelectronic Technology Co., Ltd.|
|Wuhu Equipment|Refers to|W uhu Tunghsu Optoelectronic Equipment Technology Co., Ltd.|
|Xufei Optoelectronic|Refers to|Zhengzhou Xufei Opteelectronic Technology Co., Ltd.|
|Xuxin Optoelectronic|Refers to|Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd.|
|Jiangsu Jixing|Refers to|Jiangsu Jixing New Material Co., Ltd.|
|Shenzhen Xin Ying Tong|Refers to|Shenzhen Xin Ying Tong Technology Co., Ltd.|
|Tunghsu (Kunshan )|Refers to|Tunghsu（Kunshan）Display material Co., Ltd.|
|Chongqing Jihuateng|Refers to|Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.|
|Jiangsu Tunghsu Yitai|Refers to|Jiangsu Tunghsu Yitai Intelligent Equipment Co., Ltd.|
|Hunan Tunghsu Delai|Refers to|Hunan Tunghsu Delai Electronic Technology Co., Ltd.|
|Tunghsu Construction|Refers to|Tunghsu Construction Group Co., Ltd.|
|Fuzhou Xufu|Refers to|Fuzhou Xufu Optoelectronic Technology Co., Ltd.|
|Fuzhou Optoelectronic|Refers to|Fuzhou Tunghsu Optoelectronic Technology Co., Ltd.|
|Tunghsu Finance Company|Refers to|Tunghsu Group Finance Co., Ltd.|
|Shanghai Tanyuan Huigu|Refers to|Shanghai Tanyuan Huigu New Material Technology Co., Ltd.|
|Xutan New Material|Refers to|Beijing Xutan New Material Technology Co., Ltd.|
|Mingshuo Technology|Refers to|Mingshuo (Beijing) Electronic Technology Co., Ltd|
|Tengda Tengda Optical|Refers to|Suzhou Tengda Optical Technology Co., Ltd.|
|SUNLONG|Refers to|Shanghai Sunlong Bus Co., Ltd.|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|||Guangxi Sunlong Automobile Manufacturing Co., Ltd. （Former|
|Guangxi Sunlong|Refers to||
|||Guangxi Yuanzheng New Energy Automobile Co., Ltd.）|
|Sanbao Innovation|Refers to|Shenzhen Sanbao Innovation Intelligence Co., Ltd.|
|BOE|Refers to|BOE Technology Group Co., Ltd.|
|CSOT|Refers to|China Star optoelectronics Technology Co., Ltd.|
|Tianma|Refers to|Tianma Microelectronics Co Ltd|
|TFT-LCD|Refers to|Thin Film Transistor Liquid Crystal Display|
|OLED|Refers to|Organic Light-Emitting Diode, OLED|
|||A thin glass sheet with extremely smooth surface is a basic component|
|||of constituting LCD display device as well as one of the critical basic|
|Glass substrate|Refers to|materials in panel display industry. The glass sheet can be divided into|
|||various generations by its size, and the higher the generation is, the|
|||bigger the size will be.|
|G5 glass substrate|Refers to|The size of the 5th-generation glass substrate is 1100 mm×1300 mm.|
|G6 glass substrate|Refers to|The size of the 6th-generation glass substrate is 1500 mm×1850 mm.|
|G8.5 glass substrate|Refers to|The size of the 8.5th-generation glass substrate is 2300 mm×2500 mm|
|||refers to the general name of optical diaphragms such as diffusion,|
|Optical film|Refers to|reflection, prism, composite prism, etc., mainly used in TFT LCD|
|||backlights.|
|||Critical original materials of LCD panel for realizing colorization|
|CF|Refers to||
|||display|
|||Refers to two-dimensional carbon materials related to grapheme, with a|
|Grapheme materials|Refers to||
|||layer less than 10 carbon atoms|
|||In addition to mobile phones, tablet PCs and other displays, for the touch|
|Cover glass|Refers to|screen touch module, display and non-touch screen display to protect the|
|||transparent glass lens|
|||Adopting new power systems, fully or mainly rely on new energy-driven|
|New Energy Bus|Refers to||
|||passenger bus, including pure electric bus and fuel cell bus|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report II. Basic Information of the Company and Financial index
I. Company Information
|||||
|-|-|-|-|
|Stock abbreviation|Tunghsu Optoelectronic, Tunghsu B|Stock code|000413、200413|
|Stock abbreviation after||||
||Tunghsu Optoelectronic, Tunghsu B|||
|change (if any)||||
|Stock exchange for listing|Shenzhen Stock Exchange|||
|Name in Chinese|东旭光电科技股份有限公司|||
|Chinese Abbreviation|东旭光电|||
|English name (If any)|Tunghsu Optoelectronic Technology Co.,Ltd.|||
|English abbreviation (If any)|Tunghsu Optoelectronic|||
|Legal Representative|Wang Lipeng|||
||No.9, Huanghe Road, Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei|||
|Registered address||||
||Province|||
|Postal code of the Registered||||
||050035|||
|Address||||
|Office Address|No.1 Caiyuan Street, Xicheng District, Beijing|||
|Postal code of the office||||
||100053|||
|address||||
|Internet Web Site|www:dongxuguangdian.com.cn|||
|E-mail|dxgd@dong-xu.com|||

II. Contact person and contact manner
||||
|-|-|-|
||Board secretary|Securities affairs Representative|
|Name|Gong Xin|Wang Qingfei|
||No.1 Caiyuan Street, Xicheng District,|No.1 Caiyuan Street, Xicheng District,|
|Contact address|||
||Beijing|Beijing|
|Tel|010-63541061|010-63541061|
|Fax|010-63541061|010-63541061|
|E-mail|gongxin_dx@126.com|wangqingfei@dong-xu.com|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report III. Information disclosure and placed
|||
|-|-|
|Newspapers selected by the Company for information|China Securities Journal ,Shanghai Securities News,Securities Times and|
|disclosure|Hong Kong Commercial Daily|
|Internet website designated by CSRC for publishing||
||http://www.cninfo.com.cn|
|the Annual report of the Company||
|The place where the Annual report is prepared and||
||Securities Dept of the Company|
|placed||

IV. Registration changes of the Company
|||
|-|-|
|Organization Code|No Change|
|Changes in principal business activities||
||No Change|
|since listing (if any)||
|Changes is the controlling shareholder in||
||No Change|
|the past (is any)||

V. Other Relevant Information
CPAs engaged
|||
|-|-|
|Name of the CPAs|Hebei Guanghuacai Guanghua Certified public Accountants LLP.|
||24/F,A Building,Wantong New Word office Building,No.2 Fuwai Street, Xicheng District,|
|Office address||
||Beijing|
|Names of the Certified Public||
||Qi Zhenghua, Meng Xiaoguang|
|Accountants as the signatories||

The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□ Applicable√Not applicable
Independent financial advisor hired by the Company to exercise constant supervision over the Company during the Reporting period
√ Applicable□Not applicable
|||||
|-|-|-|-|
|Name|Office address|Name of sponsor|Consistent supervision period|
||Financial Area,(North), B|||
||Zhongtian Huizhan|||
|Zhongtian Guofu Securities||||
||City,Changling North Road,|Chen Dongyang, Zhang Jin|2017.10.26-2018.12.31|
|Co., Ltd.||||
||Guanshanhu District, Guiyang,|||
||Guizhou.|||

VI. Summary of Accounting Data and Financial Indicators
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
√Yes□No
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Reasons for retrospective restatements:
Business merger under the same control.
||||||||
|-|-|-|-|-|-|-|
|||||Changed over|||
|||2017|||2016||
|||||last year（％）|||
||2018||||||
|||Before|After|After|Before|After|
|||adjustment|adjustment|adjustment|adjustment|adjustment|
||28,211,700,021.12|17,336,364,158|17,276,969,039.03||7,632,049,549.|7,631,092,002.|
|Operating revenue（Yuan）||||63.29%|||
|||.13|||25|07|
|Net profit attributable to the|2,163,607,505.39||1,730,174,564.57||||
|||1,743,666,827.|||1,303,685,863.|1,301,466,332.|
|shareholders of the listed||||25.05%|||
|||25|||90|10|
|company（Yuan）|||||||
|Net profit after deducting of|||||||
|non-recurring gain/loss|2,045,875,472.|1,539,583,478.|1,534,569,793.||||
|||||33.32%|961,311,896.60|961,311,896.60|
|attributable to the shareholders|28|72|43||||
|of listed company（Yuan）|||||||
|Net Cash flow generated by|388,252,004.52|1,265,773,428.|1,253,178,511.31||||
|||||-69.02%|748,957,164.24|741,861,295.45|
|business operation（Yuan）||34|||||
|Basic earning per|0.38||0.32||||
|||0.33||18.75%|0.28|0.28|
|share(Yuan/Share)|||||||
|Diluted gains per|0.38||0.32||||
|||0.33||18.75%|0.28|0.28|
|share(Yuan/Share)(Yuan/Share)|||||||
|Net asset earning ratio（%）|6.83%|7.09%|6.95%|-0.12%|7.55%|7.54%|
|||||Changed over|||
|||End of 2017|||End of 2016||
|||||last year（％）|||
||End of 2018||||||
|||Before|After|After|Before|After|
|||adjustment|adjustment|adjustment|adjustment|adjustment|
||72,576,122,859.60|67,683,329,226|68,611,332,346.16||50,287,380,415|51,373,374,293|
|Gross assets（Yuan）||||5.78%|||
|||.91|||.68|.43|
|Net assets attributable to|32,521,130,925.14||30,941,044,388.04||||
|||30,922,796,455|||23,286,206,822|23,325,208,072|
|shareholders of the listed||||5.11%|||
|||.46|||.68|.11|
|company（Yuan）|||||||

VII.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
□Applicable□√ Not applicable
Nil
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable√Not applicable
Nil
VIII.Main Financial Index by Quarters
In RMB
||||||
|-|-|-|-|-|
||First quarter|Second quarter|Third quarter|Fourth quarter|
|Operating income|4,665,570,392.15|6,464,281,398.73|6,133,715,988.34|10,948,132,241.90|
|Net profit attributable to the|||||
||425,984,601.17|432,311,487.91|456,861,464.93|848,449,951.38|
|shareholders of the listed company|||||
|Net profit after deducting of|||||
|non-recurring gain/loss attributable|||||
||391,131,962.40|420,213,516.37|440,653,348.34|793,876,645.17|
|to the shareholders of listed|||||
|company|||||
|Net Cash flow generated by|||||
||-1,057,540,776.02|1,141,158,063.68|-599,044,017.62|903,678,734.48|
|business operation|||||

Whether significant variances exist between the above financial index or the index with its sum and the financial index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes√No
IX.Items and amount of non-current gains and losses
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|Amount (2018)|Amount (2017)|Amount (2016)|Notes|
|Non-current asset disposal|3,450,757.10||||
|gain/loss(including the write-off part for||-69,697.52|19,167.58||
|which assets impairment provision is made)|||||
|Govemment subsidies recognized in current|124,464,054.70||||
|gain and loss(excluding those closely related|||||
|||101,686,984.15|356,943,995.55||
|to the Company’s business and granted|||||
|under the state’s policies)|||||
|Income from the exceeding part between|||||
|investment cost of the Company paid for|||||
|obtaining subsidiaries , associates and|||1,804,209.86||
|joint-ventures and recognizable net assets|||||
|fair value attributable to the Company when|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|acquiring the investment|||||
|Gain/loss on entrusting others with|14,623,990.55||||
|||59,041,599.98|||
|investment or asset management|||||
|Net gain and loss of the subsidiary under the|-11,435,425.33||||
|common control and produced from|||||
|||66,046,481.62|66,680,503.61||
|enterprise consolidation from the beginning|||||
|of the period to the consolidation date|||||
|Income from custodian charge obtained|707,547.18||||
|||8,973,818.33|8,022,209.26||
|from entrusted operation|||||
|Net amount of non-operating income and|10,172,838.56||||
|||-29,905.76|-9,601,776.32||
|expense except the aforesaid items|||||
|Other non-recurring Gains/loss items|552,086.75||||
|Less :Influenced amount of income tax|20,174,896.94|22,693,220.73|52,541,535.96||
|Influenced amount of minor shareholders’|4,628,919.46||||
|||17,351,288.93|31,172,338.08||
|equity (after tax)|||||
|Total|117,732,033.11|195,604,771.14|340,154,435.50|--|

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
□Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
III. Outline of Company Business
I. Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The Company is a leading manufacturer of optoelectronic display materials and a comprehensive service provider of intelligent manufacturing. In the field of optoelectronic display materials, With a liquid crystal glass substrate production capacity ranked first in China and fourth in the world, the Company makes a horizontal layout in cover glass originals, cambered cover glass, optical films, color filters, sapphire and other key
optoelectronic display materials and stands out with an industrial cluster advantage; in high-end equipment
manufacturing, the Company takes advantage of the technology spillover effect of its independently developed
complete-set glass substrate manufacturing equipment to fulfill an in-depth exploration for high-end intelligent
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report equipment in the optoelectronic industry chain while extending the high-end equipment manufacturing business to a variety of areas and acting as its important income and profit source; in new energy automobile, the Company takes Sunlong Bus as carrier to spare no effort to promote the development of such sectors as new energy buses and logistics vehicles and work hard to build the new energy automobile business to its another important income and profit source; in addition, the Company develops its main businesses in conjunction with its building installation and electronic communication seen as value-added businesses which supplement its main businesses. I. Optoelectronic Display Materials Business System
1. LCD glass substrate business
The liquid crystal glass substrate is a core raw material to the upstream of the liquid crystal display panel, with extremely high requirements of manufacturing process. Based on the breakthrough in the field of complete-set of liquid crystal glass substrate production equipment, the company took the lead in breaking the international monopoly and achieved the home-making of liquid crystal glass substrate. The Company is the only enterprise in China that masters the two kinds of glass substrate production processes-namely overflow fusion method and the floating method-at the same time. Currently, the Company possesses four production bases of liquid crystal glass substrate respectively located in Zhengzhou, Shijiazhuang, Wuhu and Fuzhou, covering G5, G6, and G8.5 TFT-LCD liquid crystal glass substrates. The company has 20 liquid crystal glass substrate production lines (including construction-in-progress and proposed projects), with that the mass production capacity tops first in China and ranks fourth in the world.
2. Other display material business
To strengthen the competitiveness and profitability of its business of display materials and comply with the OLED flexible display development trend, the Company adopts a horizontal industry train extension strategy. Since 2015, it has laid out in cover glass originals, cambered cover glass, optical films, color filters, sapphire and other businesses, hence its business structure has been optimized and industrial cluster effect has taken shape. Cover glass is intended for protecting touch modules and display screens. The Company has a float-process high-aluminum cover glass substrate original production line with a high-aluminum cover glass substrate original production capacity ranked first in China and third in the world; cambered cover glass is also known as 3D cover glass and characterized by curving flexibility, thinness, transparency, cleanliness, fingerprint resistance, dazzle resistance, weathering resistance, etc. and can promote the touch feelings of intelligent terminal products. The cambered cover glass production line with a production capacity of nearly 5 million sheets built by the Company in 2018 has been available for production and sales in batches. Applicable to flexible display, this product is one of powerful measures taken by the Company to comply with the OLED flexible display development trend; the Company's optical film products can cover diffusion, reflection, prism, composite prism and other sub-areas and are mainly used in TFT-LCD backlight; color filter is a key component for LCD colorization and the Company's staple is G5 color filters; sapphire is extensively applied in LED substrate materials and optical elements among other fields and the Company's current staples include 2-inch and 4-inch LED substrate products.
3. Graphene preparation and industrialization business
The graphene, with excellent optical, electrical, thermal and mechanical properties, has important application prospects in the material science, energy, etc., and it is considered to be a revolutionary new material.
In recent years, the Company has highlighted laying out in one of strategic emerging industries--industrial application of graphene. In the report period, the Company successfully kept pace with University of Manchester of UK and other famous universities and scientific research institutions in the world regarding industrial
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report application of graphene and sped up improving development of its own products using graphene by internationally advanced equipment and technical reserves. Based on such four developed industrial product lines as graphene-based lithium ion battery, graphene electric heating, graphene energy-saving illumination and graphene anti-corrosion coating, the Company made breakthroughs in techniques of preparation of high-quality graphene and its derivative raw materials and kept actively exploring new techniques for preparation of graphene and other two-dimensional materials. At the moment, the Company's products of industrial application of graphene mainly cover all kinds of graphene products, graphene-clad anode materials, graphene-based lithium ion battery, graphene high-power LED series light, graphene intelligent electric heating, graphene anti-corrosion coating, graphene-based solid-state flexible lithium ion battery and other products, some of which have been supplied in batches and sold overseas.
II. High-end equipment and technical services business
By a powerful independentR&D capacity, the Company takes the lead in breaking the international comprehensive mold regarding production equipment and technology and becomes China's only company that has a complete-set liquid crystal glass substrate production process and equipment manufacturing capacity at the same time. After years of development, the Company has completed an in-depth exploration for high-end intelligent equipment in optoelectronic industry chain and kept developing the business market of high-end equipment with a high technology and additional value by the technology spillover effect of its independently developed complete-set glass substrate production equipment in the context that equipment substitutes labor and meets intelligent efficient production in national industrial manufacturing. Step by step, it has become a hi-tech equipment manufacturer that provides design,R&D, and manufacturing of high-end intelligent equipment, semiconductor equipment, and automatic production line equipment for high-end customers in TFT-LCD and OLED panel display industry. Besides, the Company reached out to intelligent platform robotics expected to render a new driver to steady development of its high-end equipment business throughM&A of Sanbao Innovation in 2018.
III. New Energy Bus Business
The Company acquired Sunlong Bus in 2017, marking that it is duly stepping into the new energy bus area. At the moment, Sunlong Bus's new energy automobile products including BEV, hybrid, and fuel cell and other new energy commercial vehicles are mainly oriented in Mainland China (save Qinghai and Tibet) and sold in batches to South Korea, Southeast Asia, Middle East, South America, and Africa among other regions. In 2018, Sunlong Bus was ranked in the eighth place for the eighth time regarding sales; by sub-area, Sunlong's new energy highway bus and bus sales were ranked in the fourth and tenth place respectively. In addition to outstanding sales, Sunlong Bus keeps developing new techniques to replace the prior ones and in hydrogen cell bus manufacturing in particular, Since the first hydrogen fuel cell bus was produced in 2007, it has accumulated years ofexperience.， In 2018, the Company made a full range of major types of hydrogen cell buses ranging from 8m to 12m, wherein 10m and 12m urban hydrogen cell buses were successfully incorporated into List of Recommended Types of New Energy Automobiles in Publicity and Application; in intelligent public transportation product manufacturing, Sunlong Bus worked together with DeepBlue Technology to jointly develop an intelligent Panda Bus, implementing scenario-based application of artificial intelligence and offering a new development function for the Company's new energy automobile business.
IV. Other businesses
1. Construction& installation business
The Company runs its building installation business supplementing its main businesses in a variety of models
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report such as integrated underground pipe gallery, municipal infrastructure, sponge city, and smart city based on other key sectors, provides infrastructure and construction engineering services in new materials, energy-saving environmental protection, bridge engineering and other areas and makes intelligent products and quality services in conjunction with each other to boost its growth.
2. Electronic communication business
The electronic communication business is a replenishment to the Company's main businesses. The Company integrates high-end equipment and liquid crystal display materials customer resources and uses its mature marketing channels to keep increasing import and export channels for liquid crystal display modules, memory chips, high-end peripheral and complete-built-unit electronic products and render quality integrated services for customers with personalized needs.
II.Major Changes in Main Assets
1.Major Changes in Main Assets
|||
|-|-|
|Main assets|Major changes|
|Equity assets|No|
|Fixed assets|No|
|Intangible assets|No|
||Since the first hydrogen fuel cell bus was produced in 2007, it has accumulated years of|
|Construction in process||
||experience.|
||The investment real estate was attributable to leasing of some properties and other fixed|
|Real estate Investment||
||assets in the current period.|
||The development disbursement increased, attributable to an increase in the sales income,|
|D velopment expenses||
||business extension and more spending on R&D.|
||The increase in development expenditure is due to the increase in sales revenue and the|
|Notes receivable & account receivable||
||expansion of business.|
|Prepayment|The expansion of sales and production increases supplies and inventory.|
||In order to expand the scale of company development, increase the construction and|
|Other non-current assets||
||acquisition of long-term assets.|

2. Main Conditions of Overseas Assets
□ Applicable√ Not applicable
Ⅲ.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 1.Strong ability of independent R& D and innovation
Based on years of industrial development and experience, Tunghsu Optoelectronic keeps strengthening its independent innovation capacity, highlights cooperation and exchange with famous national and international scientific research institutions and specialized universities and colleges, and builds an integrated
"industry-university-research" scientific research cooperation mechanism, which has founded a national
engineering lab of panel display glass technology and equipment, national enterprise technology center,
academician workstation, graphene research institute, etc. to give a powerful technical assurance andR&D support to its sustainable development.
Till this date, the Company and its holding shareholders have obtained and applied for more than 2,400
independent intellectual properties pertaining to liquid crystal glass substrate, high-aluminum float-process cover glass, high-end equipment manufacturing, complete-built-unit manufacturing, graphene product making, etc. Herein the Company's wholly-owned subsidiaries including Wuhu Equipment, Wuhu Optoelectronic, Zhengzhou Xufei, Shijiazhuang Xuxin, and Sichuan Xuhong, holding shareholder Tunghsu Group, Beijing University of Technology and Wuhan University of Technology worked together to complete projects of "key techniques for highly uniform ultra-clean glass substrate for optoelectronic display, equipment development and
industrialization" and "complete-set techniques for mass production of high-strength ultra-thin float-process aluminosilicate screen protection glass, application and development" which won the first prize regarding substrates and second prize regarding covers in the 2018 "National Award for Science and Technology Progress". 2. The scale advantages of core optoelectronic display materials
Till the end of the report period, the Company had five liquid crystal glass substrate production bases located at Zhengzhou, Shijiazhuang, Yingkou, Wuhu and Fuzhou for making a full range of G5, G6 and G8.5 TFT-LCD liquid crystal glass substrate products with a mass production capacity steadily ranked in the first place in China and fourth place in the world and production lines for such key optoelectronic display materials as high-aluminum cover glass, color filter and sapphire. As all its production lines are put into production one after another, the Company has seen a year-on-year rise of market share in national optoelectronic display materials, its scale benefit has taken shape, and all its key optoelectronic display materials have implemented a sound linkage effect, effectively reinforcing its core competitiveness in optoelectronic display materials, raising the right to say in offering downstream customers and assuring profitability of its key optoelectronic display materials.
3. The advantages of integration of endogenous and extension industrial chains
Relying on the controlling shareholder TunghsuGroup’s more-than-20years’ experience and technological accumulation, the Company, through the endogenous development method, gradually grew into a leading optoelectronic display material supplier and the comprehensive high-end equipment manufacturer in the industry. Meantime, the company, via the extension method, actively explored in the fields of new energy vehicles and graphene, striving to build the Closed Loop of Industrial Chain of “high-endmaterials— Graphene-based Lithium-ion Battery-New Energy Vehicle". Centering on the main route of utilizing the industrial synergy, directing by realizing the absolute control and advancing by capital means, the company aimed to realize the effect of“1+1>2”, and it has successively carried out the horizontal and vertical industrial chain integration for the optoelectronic display materials chains and the high-end equipment manufacturing industry chains, thus adding new vitality to the rapid development of the company.
4. Synergistic advantages& effects from various business sectors
In the field of optoelectronic display materials, the company has successively invested and established factories in provinces including Hebei, Henan, Anhui, Sichuan, Jiangsu,Fujian and Liaoning , with the industrial
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report layout having the economies of scale, and for one hand, it has contributed a large amount of tax revenue to local government and provided a large number of jobs, and for another hand, it has maintained close cooperation with major customers such as BOE. Upon theM&A of Sunlong Bus, the Company has set out to invest and build new energy automobile industry bases in Guangxi, Sichuan, Jiangsu and elsewhere and conduct profound cooperation with the preceding areas.the synergy effect between the company's photoelectric display materials and intelligent manufacturing business gradually became evident, thus gradually forming the business model with comprehensive sales and synergistic effect, so that thecompany’s overall risk resistance capacity and comprehensive competitiveness have been improved.
5. Highly-efficient management and decision-making mechanism
Since Tughsu Group became the controlling shareholder, the company's management system has achieved a thorough transition from the state-owned enterprise to a private enterprise. The company has continuously improved its incentive system and remuneration system, and the company has garnered a large number of elites and talents as the company has set up the strict and attractive assessment mechanism, rolled out two employee stock ownership plans and the stock incentives with restrictive-conditions and other flexible and efficient ways to motivate the talents. Meantime, the management accurately and incisively studied and judged the market trends and industrial development direction, quickly and flexibly seized opportunities, mobilized the talents and organized the resources by marketization means, enabling that the company efficiently entered the strategic emerging industries such as new energy vehicle and graphene and snatched the strategic high ground in time. Therefore, thecompany’s highly flexible and efficient management and decision-making mechanism has continuously spawned the productivity for the company, with the advantages becoming more obvious.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report IV.Management’s Discussion and Analysis
I. General
In 2018, Tunghsu Optoelectronic kept forging ahead despite the difficulty and challenge. In the report period, the Company's management and employees made consorted efforts to steadily push forward all its production and operation activities and advanced all the work concerning operation plans worked out by its board of directors. In 2018, the Company kept innovating based on the prior results and focused on technical innovation to proceed with upgrading and growth of the existing industry. In the context that industrial collaboration and cluster effect drove each other, the Company further optimized its industry chain layout in optoelectronic display materials, high-end intelligent manufacturing, new energy automobile and graphene and promoted production capacity and growth to implement rapid and efficient growth. In the report period, the Company took the initiative to blaze new trails in a pioneering spirit and forge ahead with determination. It implemented an operating income of RMB 28.212 billion, up63.29% compared with 2017; it implemented a net profit attributable to listed company shareholders of RMB 2.164 billion, up25.05% compared with 2017.
(1)Optoelectronic display material business
1. Ever-rising performance driven by advanced glass substrate business
In 2018, an increase in the demand for jumbo display screens at panel market drove an ever-increasing demand for display screen glass substrates. In the context, the Company's glass substrate production agreed with the demand of liquid crystal panels, leading a steady development in its glass substrate business. At the moment, the Company has five liquid crystal glass substrate production bases located at Zhengzhou, Shijiazhuang, Wuhu, Fuzhou and Yingkou and more than 20 liquid crystal glass substrate production lines covering G5, G6 and G8.5 liquid crystal glass substrate products and can provide high-quality glass substrate products for downstream panel customers with different dimension needs. In compliance with the development trend and technical reform of jumbo and multi-screen times, the Company effectively yield and output rate of jumbo liquid crystal glass substrates, lowers production cost and boosts stable growth of performance. In the report period, the Company took advantage of strengths of multiple dimensions and types of liquid crystal glass substrate products and full coverage of major panel manufacturers in Mainland China and Taiwan including BOE, Century Technology (Shenzhen) Corporation, Infovision Optoelectronics, Shenzhen Tianma, AU Optronics, etc. to implement a sales income of RMB 4.716 billion in the year. In the report period, the project of "key techniques for highly uniform ultra-clean glass substrate for optoelectronic display, equipment development and industrialization" which the Company's wholly-owned subsidiaries including Wuhu Equipment, Wuhu Optoelectronic, Zhengzhou Xufei, and Shijiazhuang Xuxin got involved in won the first prize regarding substrates in the 2018 "National Award for Science and Technology Progress" awarded by the State Council of the People's Republic of China.
2. Company's accumulation of OLED display glass substrate techniques under a horizontal layout
In the wake of breakthrough in and demand for flexible display techniques on market, it is expected that flexible display screens will boom in the future. In the context, the Company complies with the OLED flexible
display screen trend and makes an optimal horizontal layout in high-aluminum cover glass substrate, cambered
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report cover glass, optical film, color filter and other key optoelectronic display materials that apply to flexible display area. In the report period, the Company implemented bulk supply to downstream, which became a new performance growth point step by step.
In 2018, the Company's wholly-owned subsidiary Xuhong Optoelectronics built and put into production and sales a cover glass production line for cambered display with an annual capacity of nearly 5 million sheets. Its best product "Panda King" cover glass made a significant breakthrough in flexibility--implementing360° bending and breaking the international technical monopoly. Characterized by fall resistance, scratch resistance, high transmittance, high touch sensitivity, etc., "Panda King" won the first prize of 2018 Sichuan Patent Award and was successfully incorporated into the raw material supply chain of such distinguished terminal brands as Huawei, MIUI, LG, Lenovo and VIVO through finish machining of such downstream customers as Lens Technology, Biel Optoelectronics, Junda Optoelectronics, Firstar Panel Technology and Dongguan Xuhong. The cover project of "complete-set techniques for mass production of high-strength ultra-thin float-process aluminosilicate screen protection glass, application and development" which Xuhong Optoelectronics got involved in won the second prize regarding covers in the 2018 "National Award for Science and Technology Progress" awarded by the State Council of the People's Republic of China.
In the report period, the Company's first G5 color filter production line for TFT-LCD was put into trial production, effectively raising the additional value of the existing G5 liquid crystal glass substrate products. 3. Acceleration of industrialization of graphene by building an alliance of international giants for cooperation Seizing the academic commanding height and conducting international industrial cooperation and integrated linkage, the Company entered into a Manchester with British University of Manchester and UG2M to address key problems in product engineering at the current stage and accelerate improving its own product development system based on worldwide advanced equipment and top technical reserves of University of Manchester. The Company established a partnership with UG2M--a British company taking the lead in graphene to jointly drive industrialization of graphene and technical promotion in this respect and incubate products applied in the graphene industry, laying a foundation for selling products in China and around the world. The "Super Light" graphene product launched by the Company's holding subsidiaries including Huzhou Mingshuo and Mudanjiang Mingshuo won bids for roadway lighting projects at Hangzhou, Puyang, Zhangjiakou, Mudangjiang, etc., indicating that graphene high-power LED street lamp product has been recognized on market step by step by its own outstanding advantages to further promote its mass industrialization which will have a positive impact on the business performance of the Company's graphene business sector. In 2018, the Company's graphene business sector implemented an operating income of RMB 181 million.
(II)Intelligent manufacturing service system
Steady promotion of equipment and technical services with sustainable effort
Based on years of experience in electronic glass equipment manufacturing and rapid growth of China's high-end equipment manufacturing in recent years and guided by a good policy environment, the Company has completed an in-depth exploration for high-end intelligent equipment in optoelectronic industry chain and shifted its spending from traditional sectors to strategic emerging sectors and development from the equipment technology market needed to the business market of high-end equipment with a high technology and additional value. Step by step, it has become a hi-tech equipment manufacturer that provides design,R&D, and manufacturing of high-end intelligent equipment, semiconductor equipment, and automatic production line equipment for high-end customers in TFT-LCD and OLED panel display industry. The Company spares no effort to foster and develop the high-end intelligent equipment manufacturing seen as a strategic option to seize economic and technological development commanding height in the future. In the report period, the Company
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report acquired Sanbao Innovation to reach out to intelligent manufacturing service robotics from high-end equipment manufacturing. As a result of the industrial upgrading, the Company improved its competitive edge. And in the wake of ever-rising market demand, the Company took a steady flow of high-end equipment manufacturing orders. In 2018, the Company's business of high-end equipment and technical services implemented a continuously but steadily rising operating income of RMB 8.388 billion, attributable to orders for high-end equipment including optoelectronic display equipment and semiconductor equipment concluded with BOE, Yuansheng Optoelectronics, China Star Optoelectronics, Xiamen Tianma, and Shiya Technology among other companies.
(II) New Energy Bus Business
New energy automobile business complying with the situation and forging ahead despite the downturn Only the toughest grass can stand strong winds; fire is the test of gold. In review of the 2018 new energy bus market, in the context of tighter subsidy policy, restricted capacity increase and slowdown in technical updating and upgrading, emerging and booming Sunlong Bus built a new pattern by its own comprehensive strength in this round of shuffle in the industry. In 2018, Sunlong new energy bus achieved sales revenue of 4.258 billion yuan. 4.258 billion, ranked in the eighth place in the industry with an increase of69.39%. In the report period, the Company's hydrogen cell bus won the bid for the Zhangjiakou downtown bus purchase project to provide green travel services for citizens of Zhangjiakou during the 2022 Beijing-Zhangjiakou Olympic Winter Games and put into practice the philosophy of green Olympic Winter Games. Till the end of the report period, it covered 8-12m major types of hydrogen cell buses, among which, 10m and 12m hydrogen cell city buses were successfully incorporated into the List of Recommended Types of New Energy Automobiles in Publicity and Application and many hydrogen cell city buses were displayed at international exhibitions. In the corresponding period, the Company's wholly-owned subsidiary Guangxi Sunlong became a military supplier of Back Service Department of Central Military Commission, driving the Company's new products to be steadily launched on military supply market and assuring the Company's strategic development. Besides, the Company is planning a new energy automobile industry base layout covering East China, West China, South China and North China and building a Tunghsu New Energy Automobile Industry Cluster. After this project is completed and put into production, the Company's new energy automobile business sector will act in line with the situation, boosting development of China's new energy automobile industry and driving development of new energy, new materials, Internet of Things, automatic drive, artificial intelligence and other strategic emerging industries concerned.
(III) Other value-added business systems
Progress with maintained stability in conjunction with building installation business and electronic communication business
Building installation engineering business and electronic communication business supplement the Company's main businesses. In the report period, the Company run its building installation business by providing infrastructure and construction engineering services in new materials, energy-saving environmental protection, bridge engineering and other areas and making intelligent products and quality services in conjunction with each other in a variety of models such as integrated underground pipe gallery, municipal infrastructure, sponge city, and smart city based on other key sectors to boost its growth. In addition, the Company maintained an ever-rising momentum in the electronic communication business. Under the industrial collaboration effect, the Company made use of high-end equipment and liquid crystal display materials customer resources and its mature marketing channels to keep increasing import and export channels for liquid crystal display modules, memory chips, high-end peripheral and complete-built-unit electronic products and render quality services for customers with personalized needs. In 2018, the Company's building installation engineering business and electronic communication business implemented an operating income of RMB 5.28 billion and RMB 3.63 billion
respectively.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report II. Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
2. Revenue and cost
(1)Component of Business Income
In RMB
|||||||
|-|-|-|-|-|-|
||2018||2017|||
||||||Increase /decrease|
||Amount|Proportion|Amount|Proportion||
|Total operating|28,211,700,021.12||17,276,969,039.03|||
|||100%||100%|63.29%|
|revenue||||||
|On industry||||||
|Optoelectronic||||||
||4,715,995,341.60|16.72%|3,385,250,589.42|19.59%|39.31%|
|display material||||||
|Equipment and||||||
||8,388,418,369.14|29.73%|7,239,942,351.91|41.91%|15.86%|
|Technology serves||||||
|Industrial application||||||
||181,389,128.68|0.64%|67,322,912.63|0.39%|169.43%|
|of graphene||||||
|New energy vehicle|4,257,501,557.67|15.09%|2,513,425,799.56|14.55%|69.39%|
|Construction||||||
||5,280,053,280.29|18.72%|1,896,347,858.88|10.98%|178.43%|
|Installation||||||
|Electronic||||||
|communication|3,629,930,835.74|12.87%|2,141,375,356.27|12.39%|69.51%|
|products||||||
|Other|1,758,411,508.00|6.23%|33,304,170.36|0.19%|5,179.85%|
|On Products||||||
|Optoelectronic||||||
||4,715,995,341.60|16.72%|3,385,250,589.42|19.59%|39.31%|
|display material||||||
|Equipment and||||||
||8,388,418,369.14|29.73%|7,239,942,351.91|41.91%|15.86%|
|Technology serves||||||
|Industrial application||||||
||181,389,128.68|0.64%|67,322,912.63|0.39%|169.43%|
|of graphene||||||
|New energy vehicle|4,257,501,557.67|15.09%|2,513,425,799.56|14.55%|69.39%|
|Construction||||||
||5,280,053,280.29|18.72%|1,896,347,858.88|10.98%|178.43%|
|Installation||||||
|Electronic||||||
|communication|3,629,930,835.74|12.87%|2,141,375,356.27|12.39%|69.51%|
|products||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Other|1,758,411,508.00|6.23%|33,304,170.36|0.19%|5,179.85%|
|Area||||||
|China|25,855,603,599.82|91.65%|16,240,515,360.46|94.00%|59.20%|
|Hongkong,Macauan||||||
||2,005,739,741.59|7.11%|1,007,002,901.40|5.83%|99.18%|
|d Taiwan||||||
|Overseas|350,356,679.71|1.24%|29,450,777.17|0.17%|1,089.63%|

 III.Non-core business analysis
√ Applicable□Not applicable
In RMB (2)Situation of Industry, Product and District Occupying theCompany’s Business Income and Operating Profit with Profit over10%
√ Applicable□ Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|Increase/decrease|Increase/decrease|
|||||of revenue in the|of business cost|of gross profit|
||||Gross profit||||
||Turnover|Operation cost||same period of|over the same|rate over the same|
||||rate(%)||||
|||||the previous|period of|period of the|
|||||year(%)|previous year (%)|previous year (%)|
|On Industry|||||||
|Optoelectronic|||||||
||4,715,995,341.60|3,745,308,978.44|20.58%|39.31%|54.72%|-7.91%|
|display material|||||||
|Equipment and|||||||
|Technology|8,388,418,369.14|6,644,128,423.07|20.79%|15.86%|24.07%|-5.24%|
|serves|||||||
|New energy|||||||
||4,257,501,557.67|3,301,027,932.47|22.47%|69.39%|64.56%|2.27%|
|vehicle|||||||
|Construction|||||||
||5,280,053,280.29|4,774,880,498.47|9.57%|178.43%|173.49%|1.63%|
|Installation|||||||
|Electronic|||||||
|communication|3,629,930,835.74|3,542,442,721.95|2.41%|69.51%|69.52%|-0.01%|
|products|||||||
|On Products|||||||
|Optoelectronic|||||||
||4,715,995,341.60|3,745,308,978.44|20.58%|39.31%|54.72%|-7.91%|
|display material|||||||
|Equipment and|8,388,418,369.14|6,644,128,423.07|20.79%|15.86%|24.07%|-5.24%|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Technology|||||||
|serves|||||||
|New energy|||||||
||4,257,501,557.67|3,301,027,932.47|22.47%|69.39%|64.56%|2.27%|
|vehicle|||||||
|Construction|||||||
||5,280,053,280.29|4,774,880,498.47|9.57%|178.43%|173.49%|1.63%|
|Installation|||||||
|Electronic|||||||
|communication|3,629,930,835.74|3,542,442,721.95|2.41%|69.51%|69.52%|-0.01%|
|products|||||||
|Area|||||||
||25,855,603,599.8|20,954,288,505.4|18.96%|59.20%|65.10%|-2.89%|
|Chinese Mailand|||||||
||2|7|||||

Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest onyear’s scope of period-end.
□ Applicable√Not applicable
(3)Whether theCompany’s Physical Sales Income Exceeded Service Income
□ Yes√ No
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable√Not applicable
(5)Component of business cost
Product classification
In RMB
||||||||
|-|-|-|-|-|-|-|
|||2018||2017|||
||||Proportion in the||Proportion in the|Increase/Decrease|
|Industry|Items||||||
|||Amount|operating costs|Amount|operating costs|(%)|
||||(%)||(%)||
|Optoelectronic|||||||
||Operation costs|3,745,308,978.44|16.14%|2,420,764,896.51|17.70%|54.72%|
|display material|||||||
|Equipment and|||||||
|Technology|Operation costs|6,644,128,423.07|28.63%|5,354,959,245.05|39.16%|24.07%|
|serves|||||||
|Industrial|||||||
|application of|Operation costs|108,462,263.68|0.47%|27,298,093.82|0.20%|297.33%|
|graphene|||||||
|New energy|||||||
||Operation costs|3,301,027,932.47|14.23%|2,005,947,709.45|14.67%|64.56%|
|vehicle|||||||
|Construction|||||||
||Operation costs|4,774,880,498.47|20.58%|1,745,898,401.73|12.77%|173.49%|
|Installation|||||||
|Electronic|Operation costs|3,542,442,721.95|15.27%|2,089,646,020.25|15.28%|69.52%|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|communication|||||||
|products|||||||
|Other|Operation costs|1,087,827,974.30|4.69%|29,973,279.43|0.22%|3,529.33%|

 Note
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√ Yes□ No
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
|||||||||
|-|-|-|-|-|-|-|-|
|Name ofAcquirer|Time-point ofObtainedEquity|Obtained Cost ofEquity|Ratio ofObtainedEquity(100%)|Method ofObtainedEquity|PurchasingDate|DeterminationBasis on thePurchasingDate|Income ofAcquirefrom thePurchasingDate to theEnd of thePeriod|
|ShenzhenSanbaoInnovationIntelligenceCo., Ltd.|May 30,2018|157,598,587.50|67.00%|Enterpriseconsolidationnot under thesame control|May 30,2018|Acquisition ofcontrol|7,659,108.35|
|ZhongchengNationalconstructionco., Ltd.|May 30,2018|140,000,000.00|70.00%|Enterpriseconsolidationnot under thesame control|March 30,2018|Acquisition ofcontrol||
|HuaxiNanchongAutomobileCo., Ltd.|April 4,2018|56,000,000.00|100.00%|Enterpriseconsolidationnot under thesame control|April 4,2018|Acquisition ofcontrol||

(2) Consolidation Cost and Goodwill
In RMB
||||
|-|-|-|
|Consolidation Cost|ShenzhenSanbao Innovation IntelligenceCo., Ltd.|Zhongcheng Nationalconstruction co., Ltd.|
|--Cash|157,598,587.50|39,999,996.00|
|--Other account payable||100,000,004.00|
|Total consolidation cost|157,598,587.50|140,000,000.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Less：Reduction: ObtainedDefinable Net Assets FairProportion|88,710,182.00|6,730,432.38|
|Amount of merging cost whichis less than the fair valueproportion of obtained netidentifiable asset|68,888,405.50|133,269,567.62|

(3) The identifiable assets and liabilities of acquirer at purchase date
In RMB
||||
|-|-|-|
|Items|Shenzhen Sanbao Innovation Intelligence Co., Ltd||
||Book value on purchase date|Fair value on purchase date|
|Cash and bank balances|127,075,645.81|127,075,645.81|
|Account receivable|203,360.00|203,360.00|
|Inventories|26,320,943.47|18,724,138.92|
|Fixed assets|11,205,970.95|9,391,876.78|
|Intangible assets|53,241,307.46|53,849,371.07|
|Prepayments|318,723.00|318,723.00|
|Other account receivable|5,297.05|5,297.05|
|Other current assets|7,989,608.01|7,989,608.01|
|Deferred income tax asset|154,125.90|2,110.00|
|Deferred income tax Liabilities|2,352,724.68||
|Advance receipts|410,909.49|410,909.49|
|Employees’ wage payable|59,926.94|59,926.94|
|Tax payable|7,677.39|7,677.39|
|Other account payable|91,280,486.44|91,280,486.44|
|Net assets|132,403,256.71|125,801,130.38|
|Less：Minority interest|43,693,074.71|41,514,373.03|
|Acquire net assets|88,710,182.00|84,286,757.35|

Continued
Items Zhongcheng National construction co., Ltd. Huaxi Nanchong Automobile Co., Ltd.
Book value on Fair value on Book value on purchase date Fair value on purchase date
purchase date purchase date
Cash and bank balances 1,854,947.92 1,854,947.92 83.60 83.60
Fixed assets 41,040.82 44,833.14
Intangible assets 14,204,413.89
Prepayments 284,956.45 284,956.45
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Other receivable 171,120.78 171,120.78
Other current assets 28,559.54 28,559.54
Deferred income tax asset 948.08
Account payable 4,200.00 4,200.00
Deferred income tax liability 3,551,103.47
Employees’ wage payable 1,261,899.22 1,261,899.22
Other payable 2,153,881.38 2,153,881.38
Net assets 9,614,903.41 -1,035,562.77 83.60 83.60
Less：Minority interest 2,884,471.03 -310,668.83
Acquire net assets 6,730,432.38 -724,893.94 83.60 83.60
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB10,000
|||||||||
|-|-|-|-|-|-|-|-|
|Name|Proportion|Basis|Combinationdate|Recognitionbasis ofcombinationdate|income of thecombined partyfrom thebeginning of thecurrent period tothe date ofmerger|Net profit of themerged partyfrom thebeginning of thecurrent period tothe date ofmergero|Incomeof themergedpartyduringthecomparisn period|
|Tunghsu(Yingkou)OptoelectronicDisplay Co.,Ltd.|65.00% P|arentCompany|June 30,2018|Pay theconsiderationand controlthe operation|27,289,664.99|-11,435,425.33|16,069,429.21|

（2） Consolidation Cost
||
|-|
|Consolidation Cost|
|-Cash|

（3） The identifiable assets and liabilities of acquiree at purchase date
|||
|-|-|
|Items||
||Merger date|
|Cash and bank balances|49,876,382.38|
|Notes receivable & account receivable|26,247,411.94|
||25,751,148.63|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|Fixed assets|330,341,703.53|
|Intangible assets|24,988,633.63|
|Prepayments|498,425.88|
|Other receivable|32,000.00|
|Other current assets|75,603,084.09|
|Construction in process|586,201,554.22|
|Deferred Income tax assets|4,807,992.36|
|Other non-current assets|1,985,104.15|
|Notes payable & account payable|30,134,535.09|
|Advance Payments|11,593.50|
|Employees’ wage payable|296,037.13|
|Tax payable|1,840,851.65|
|Interest payable||
|Other payable|188,164,916.74|
|Non-current liabilities due 1 year|36,316,392.68|
|Long-term loans|420,000,000.00|
|Deferred Income|84,997,214.64|
|Other non-current liabilities|108,000,000.00|
|Net assets|256,571,899.38|

 3. Disposal of subsidiaries
||||||||
|-|-|-|-|-|-|-|
|Name|Equity disposalprice|Proportion|Disposal way|Time of loss ofcontrol|Basis|differencebetween thedisposal priceand the disposalof theinvestment inthe consolidatedfinancialstatements atthe level of thenet assets of thesubsidiary|
|XuyouElectronicMaterialTechnology（Wuxi) Co.,Ltd.|550million|51.00%|Sales|April 28,2018|Received theconsideration,completed thetransfer ofproperty rights,lost control|3,182,206.12|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Continued
|||||||
|-|-|-|-|-|-|
|Name|Proportionofremainingequity onthe date ofloss ofcontrol|Book value ofthe remainingequity on thedate of loss ofcontrol|Fair value ofthe remainingequity on thedate of loss ofcontrol|Re-measurethe gain or lossarising fromthe remainingequity at fairvalue|Method fordetermining thefair value of theremaining equityon the date of lossof control and mainassumptions|
|XuyouElectronicMaterialTechnology（Wuxi) Co.,Ltd.|0.00%|0.00|0.00|0.00|0.00|

4. Subsidiary increased due to new establishment in this period
（1）On March 8,2018,Shenzhen Xuhui Investment Holding Co., Ltd and Jiangxi University of Science and Technology set up a subsidiary-Beijing Xujiang Technology Co., Ltd., with the registered capital of RMB 22.7345 million and the paid-up capital of RMB 22.7345 million. Of which, Shenzhen Xuhui Investment Holding Co., Ltd.Subscribet and pays RMB 12 million, holding52.78% of the shares. Jiangxi University of Science and Technology subscribet and pays RMB 10.7345 million , holding47.22% of the shares.
（2）On March 23,2018, Mingshuo(Beingjing )Electronic Technology Co., Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB30 million and the paid-up capital of RMB 2 million.
（3）On May 17,2018, Tunghsu Constructtion Group Co., Ltd .set up a wholly-owned subsidiary- Luoyang Construction Engineering Co., Ltd ., With the registered capital of RMB 100 million and the paid-up capital of RMB 100 million.
（ 4） On July 16,2018, Mingshuo(Beijing)Electronic Technology Co., Ltd.set up a wholly-owned subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB 30 million and the paid-up capital of RMB 10,000.
（5）On July 26,2018, Jiangsu Yitai Intelligent Equipment Co., Ltd. acquired equity of Tunghsu Ruiqi (Beijing) Technology Co., Ltd. With the registered capital of RMB 20 million , Jiangsu Tunghsu Yitai Intelligent Equipment Co., Ltd. holds51% of the shares, Liu Yang holds32% of the shares, Xiajinlong holds17% of the shares.
（6）November 6,2018, Tunghsu Optoelectronic Technology Co., Ltd.set up a wholly-owned subsidiary-Anhui Xuan Optoelectronic Technology Co., Ltd., With the registered capital of RMB 1000 million and the paid-up capital of RMB10 million.
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in theCompany’s Report Period
□ Applicable√Not applicable
(8)Situation of Main Customers and Main Supplier
Information of Main Customers
|||
|-|-|
|Total sales amount to top 5 customers (Yuan)|6,241,919,653.45|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|Proportion of sales to top 5 customers in the annual||
||22.13%|
|sales(%)||
|Proportion of the sales volume to the top five customers||
||0.00%|
|in the total sales to the related parties in the year||

Information of theCompany’s top 5 customers
|||||
|-|-|-|-|
|No|Name|Amount(RMB)|Proportion(%)|
|1|Customer 1|2,009,430,965.39|7.12%|
|2|Customer 2|1,342,569,568.48|4.76%|
|3|Customer 3|1,079,622,920.16|3.83%|
|4|Customer 4|958,146,403.75|3.40%|
|5|Customer 5|852,149,795.67|3.02%|
|Total|--|6,241,919,653.45|22.13%|

 Other Notes :
□ Applicable√Not applicable
Principal suppliers
|||
|-|-|
|Total purchase of top 5 Suppliers（Yuan）|4,007,035,725.06|
|Percentage of total purchase of top 5 suppliers In total||
||19.11%|
|annual purchase(%)||
|Proportion of purchase amount from the top 5 suppliers in||
|the total purchase amount from the related parties in the|0.00%|
|year||

Information about the top 5 suppliers
|||||
|-|-|-|-|
|No|Name|Amount（Yuan）|Proportion|
|1|Supplier 1|1,148,486,354.79|5.48%|
|2|Supplier 2|1,017,794,292.80|4.85%|
|3|Supplier 3|691,932,790.49|3.30%|
|4|Supplier 4|663,319,885.26|3.16%|
|5|Supplier 5|485,502,401.72|2.31%|
|Total|--|4,007,035,725.06|19.11%|

 Notes
□ Applicable√Not applicable
3.Expenses
In RMB
|||||
|-|-|-|-|
|||Increase/D||
|2018|2017||Notes|
|||ecrease(%||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
||||)||
|Sale expenses|334,476,301.51|209,160,183.73||Mainly due to the increase in freight costs such|
||||59.91%||
|||||as business growth.|
|Administration expenses|653,479,277.58|393,125,009.94||The main reason for the increase in 2018|
||||66.23%|compared to 2017 is the increase in labor and|
|||||depreciation.|
|Financial expenses|722,695,173.66|753,977,500.45|-4.15%||
||572,089,634.30|256,991,555.91||Mainly due to business growth and R&D|
|R & D expenses|||122.61%||
|||||investment|

4. Research and Development
√ Applicable□ Not applicable
In 2018, through business combination involving enterprises under common control, Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. was acquired, hence a retroactive adjustment was made to 2017 data related toR&D spending, wherein theR&D spending on high-end manufacturing increased on account of the Company'sM&A of Shenzhen Sanbao Innovation Intelligence Co., Ltd, in June 2018.
Situation of Research and Development Input by the Company
|||||
|-|-|-|-|
||2018|2017|Increase/Decrease(%)|
|Number of Research and||||
||1,735|1,397|24.19%|
|Development persons (persons)||||
|Proportion of Research and||||
||21.98%|17.61%|4.37%|
|Development persons||||
|Amount of Research and||||
|Development Investment|596,044,201.02|385,731,049.90|54.52%|
|( Yuan)||||
|Proportion of Research and||||
|Development Investment of|2.11%|2.23%|-0.12%|
|Operation Revenue||||
|Amount of Research and||||
|Development Investment|21,724,530.97|15,397,704.97|41.09%|
|Capitalization ( Yuan)||||
|Proportion of Capitalization||||
|Research and Development||||
||3.64%|3.99%|-0.35%|
|Investment of Research and||||
|Development Investment||||

The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the Business Income Year on Year
□ Applicable√ Not applicable
Explanation of the Reason for Substantial Changes in the Research and DevelopmentInput’s Capitalization Rate
and Its Reasonableness
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report□ Applicable√ Not applicable
5.Cash Flow
In RMB
|||||
|-|-|-|-|
|Items|2018|2017|Increase/Decrease(%)|
|Subtotal of cash inflow received|25,914,974,422.73|18,081,214,780.67||
||||43.33%|
|from operation activities||||
|Subtotal of cash outflow received|25,526,722,418.21|16,828,036,269.36||
||||51.69%|
|from operation activities||||
|Net cash flow arising from|388,252,004.52|1,253,178,511.31||
||||-69.02%|
|operating activities||||
|Subtotal of cash inflow received|4,760,814,599.23|10,891,847,680.49||
||||-56.29%|
|from investing activities||||
|Subtotal of cash outflow for|11,405,238,586.80|16,644,954,442.07||
||||-31.48%|
|investment activities||||
|Net cash flow arising from|-6,644,423,987.57|-5,753,106,761.58||
||||-15.49%|
|investment activities||||
|Subtotal cash inflow received|10,927,058,792.58|16,584,610,295.08||
||||-34.11%|
|from financing activities||||
|Subtotal cash outflow for|14,874,380,555.60|12,487,573,196.50||
||||19.11%|
|financing activities||||
|Net cash flow arising from|-3,947,321,763.02|4,097,037,098.58||
||||-196.35%|
|financing activities||||
|Net increase in cash and cash|-10,198,023,465.21|-423,591,772.55||
||||-2,307.51%|
|equivalents||||

Notes to the year-on-year change of the relevant data
□Applicable√ Not applicable
Notes to the big difference between cash flow from operating activities and net profit in the reporting year□Applicable√ Not applicable
III.Analysis of Non-core Business
√ Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|||Proportion in totalprofit|||
||Amount||Explanation of cause|Sustainable (yes or no)|
||||Mainly due to the investment||
|Investment gains|80,925,191.79|2.96%||Sustainable|
||||income of the joint venture||
|Fair value change|||||
|||0.00%|||
|gains and losses|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
||||Accounts receivable and||
|Asset impairment|93,480,733.09|3.41%|||
||||impairment of inventories||
|Non-operating|||||
||19,063,270.76|0.70%|Occasional income|Not sustainable|
|incme|||||
|Non-operating|||||
||8,892,705.00|0.32%|Sporadic expenditure|Not sustainable|
|expenses|||||
|Other incme|251,303,953.08|9.18%|Government subsidy|Partially unsustainable|

 III. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of 2018||End of 2017||Proportion||
|||||||Notes to the significant|
|||Proportion in the||Proportion in the|increase/d||
||Amount||Amount|||change|
|||total assets(%)||total assets(%)|ecrease||
|Cash and bank|19,807,094,397.16||27,456,759,768.86||||
|||27.29%||40.02%|-12.73%|none|
|balances|||||||
|Accounts|14,352,781,895.39||7,873,419,684.42|||none|
|||19.78%||11.48%|8.30%||
|receivable|||||||
|Inventories|3,510,786,666.85|4.84%|4,909,570,356.36|7.16%|-2.32%|none|
|Real estate|686,993,881.02||58,229,439.86|||none|
|||0.95%||0.08%|0.87%||
|Investment|||||||
|Long-term equity|2,174,347,969.22||2,130,640,158.90|||none|
|||3.00%||3.11%|-0.11%||
|investment|||||||
|Fixed assets|9,634,463,323.77|13.27%|11,379,727,456.13|16.59%|-3.32%|none|
|Construction in|5,013,941,980.61||3,667,972,406.42|||none|
|||6.91%||5.35%|1.56%||
|process|||||||
|Short-term loans|8,361,106,651.33|11.52%|5,712,826,382.20|8.33%|3.19%|none|
|Long-term loans|2,741,589,600.00|3.78%|5,209,726,250.77|7.59%|-3.81%|none|
||5,215,414,219.51|7.19%|2,021,119,950.95|2.95%|4.24%|Expand sales and|
|Advance payment||||||production, increase|
|||||||material and inventory.|

 2.Asset and Liabilities Measured by Fair Value
□ Applicable√ Not applicable
3. Restricted asset rights as of the end of this Reporting Period
The restricted assets till the end of the report period are set out as follows:
1. Restricted monetary funds amounted to RMB 4,890,457,106.12;
2. The book value of fixed assets arranged with a mortgage or incurred by financial leasing was RMB
9,130,840,228.68 till the end of the report period;
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 3. Intangible assets arranged with a mortgage amounted to RMB 352,121,698.93;
4. Construction-in-progress arranged with a mortgage amounted to RMB 3,143,663,638.12;
5. Investment real estate as collateral amounted to RMB 678,833,230.08;
6. Account receivable as collateral amounted to RMB 455,136,717.34;
7.Inventory as collateral amounted to RMB317,769,074.78.
IV. Investment situation
1. General
√ Applicable□ Not applicable
||||
|-|-|-|
|Investment Amount in 2018(Yuan)|Investment Amount in 2017(Yuan)|Change rate|
|6,950,053,928.88|9,606,133,252.12|-27.65%|

 2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable□ Not applicable
In RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name|||||||||||Gain or||||
||||||||||Progres|||Whethe|||
|of the|||Investm||||Investm||||Less or||Date of||
||Main|Investm||Share|||||s up to|||r to||Disclos|
|Compa|||ent||Capital||ent|Product||Anticip|the||Disclos||
||Busines|ent||Proport||Partner|||Balance|||Involve||ure|
|ny|||Amoun||Source||Horizo|Type||ated|Current||ure(Not||
||s|Way||ion %|||||Sheet|||in||Index|
|Investe|||t||||n|||Income|Investm||e 5)||
||||||||||Date|||Lawsuit|||
|d|||||||||||ent||||
|||||||Lin|||||||||
|||||||Lude,|||||||||
|||||||Zhuang|||||||||
|||||||Yongju|||||||||
|||||||n,|||||||||
|Shenzh|||||||||||||||
|||||||Shenzh|||||||||
|en|||||||||||||||
||High-e|||||en||High-e|||||||
|Sanbao|||||||||||||||
||nd|||||Sanbao||nd||||||http://w|
|Innovat|||157,75||||||||||May||
||intellig|Purchas||||Innovat|Long-te|intellig|Comple|7,500,0|-8,754,|||ww.cni|
|ion|||0,000.0|67.00%|Self|||||||No|29,201||
||ent|e||||ion and|rm|ent|ted|00.00|472.52|||nfo.co|
|Intellig|||0||||||||||8||
||equipm|||||Technol||equipm||||||m.cn|
|ence|||||||||||||||
||ent|||||ogy||ent|||||||
|Co.,|||||||||||||||
|||||||Partner|||||||||
|Ltd.|||||||||||||||
|||||||ship|||||||||
|||||||(Limite|||||||||
|||||||d|||||||||
|||||||Partner|||||||||
|||||||ship)|||||||||
|Tunghs|Glass|Purchas|195,52|||Yingko|Long-te|Glass|Comple||259,10||June|http://w|
|||||65.00%|Self|||||0.00||No|||
|u|subst|e|5,500.0|||u|rm|substrat|ted||1.72||13,201|ww.cni|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|（Ying|rates||0|||Coastal||es|||||8|nfo.co|
|kou）||||||Develo||||||||m.cn|
|Optoele||||||pment|||||||||
|ctronic||||||and|||||||||
|Display||||||Constru|||||||||
|Co.,||||||ction|||||||||
|Ltd.||||||Group|||||||||
|||||||Co.,|||||||||
|||||||Ltd.,|||||||||
|||||||Minmet|||||||||
|||||||als|||||||||
|||||||(Yingk|||||||||
|||||||ou)|||||||||
|||||||Industri|||||||||
|||||||al Park|||||||||
|||||||Develo|||||||||
|||||||pment|||||||||
|||||||Co.,|||||||||
|||||||Ltd.|||||||||
|Shangh|||||||||||||||
|ai||||||||||||||http://w|
||New|Increas|2,100,0|||||New||400,00|433,30||March||
|Sunlon||||100.00|Rised||Long-te||Comple|||||ww.cni|
||energy|e|00,000.|||No||energy||0,000.0|5,590.2|No|27,201||
|g Bus||||%|funds||rm||ted|||||nfo.co|
||bus|capital|00|||||bus||0|6||8||
|Co.,||||||||||||||m.cn|
|Ltd.|||||||||||||||
|Sichua|||||||||||||||
|n|||||||||||||||
|Xuhon|||||||||||||||
|g||||||||||||||http://w|
||Glass|Increas|800,00|||||Glass|||||March||
|Optoele||||100.00|Rised||Long-te||Comple|98,000,|116,172|||ww.cni|
||cover|e|0,000.0|||No||cover||||No|27,201||
|ctronic||||%|funds||rm||ted|000.00|,589.38|||nfo.co|
||plate|capital|0|||||plate|||||8||
|Technol||||||||||||||m.cn|
|ogy|||||||||||||||
|Co.,|||||||||||||||
|Ltd|||||||||||||||
|Tunghs||||||Kunsha|||||||||
|u||||||n|||||||||
|Kunsha||||||Develo||||||||http://w|
||Glass|Increas|200,00|||||Glass|||||Decem||
|n|||||Rised|pment|Long-te||Comple||-25,748|||ww.cni|
||substrat|e|0,000.0|90.86%||||substrat||0.00||No|ber||
|Display|||||funds|Zone|rm||ted||,415.55|||nfo.co|
||e|capital|0|||||e|||||8,2018||
|Materia||||||Guotou||||||||m.cn|
|ls Co.,||||||Holdin|||||||||
|Ltd.||||||gs Co.,|||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Ltd.|||||||||
||||3,453,2|||||||505,50|515,23||||
|Total|--|--|75,500.|--|--|--|--|--|--|0,000.0|4,393.2|--|--|--|
||||00|||||||0|9||||

3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable√ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable√ Not applicable
Nil
（2）Investment in Derivatives
□ Applicable√ Not applicable
Nil
5.Application of the raised capital
√ Applicable□ Not applicable
（1）General application of the raised funds
√ Applicable□ Not applicable
In 10,000 yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||Amount of|||Total|||
|||||||Accumulat|Proportion||||
||||||raised|||Amount of||Amount of|
|||||||ive amount|of raised||Use and||
||||Total||capital of|||the||the Raised|
|||||Total||of raised|capital of||Whereabo||
|||Total|Amount of||which the|||Unused||Fund with|
|Year of|Way of|||amount of||capital of|which the||uts of the||
|||raised|the Raised||purpose|||Raised||over 2|
|Raising|Raising|||Raised||which the|purpose||Unused||
|||capital|Fund Used||was|||Fund at||Years’|
|||||Funds||purpose|has been||Raised||
||||at the||changed in|||the||Idling|
|||||||has been|changed||Fund||
||||||the report|||Current|||
|||||||changed|(%)||||
||||||period|||Period|||
||Directiona||||||||||
||l||||||||Not||
|2013||503,880|25,257.77|496,727.3|0|0|0.00%|14.79||0|
||add-issuan||||||||applicable||
||ce||||||||||
||Directiona||||||||||
||l||||||||Continue||
|2015||800,000|55,061.01|589,306.36|0|0|0.00%|210,693.64||0|
||add-issuan||||||||to invest||
||ce||||||||||
||Corporate||||||||||
|2015||100,000|0|100,000|0|0|0.00%||-|0|
||bond||||||||||
||Directiona||||||||||
||||||||||Continue||
|2016|l|695,000|153,260.89|201,682.88|0|0|0.00%|493,317.12||0|
||||||||||to invest||
||add-issuan||||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||ce||||||||||
||Directiona||||||||Continueto invest||
||l||||||||||
|2017||375,000|222,240.77|266,440.79|19,200|19,200|0.78%|108,559.21||0|
||add-issuan||||||||||
||ce||||||||||
|||||1,654,157.|||||||
|Total|--|2,473,880|455,820.44||19,200|19,200|0.78%|812,584.76|--|0|
|||||33|||||||
|Corporate bonds|||||||||||
|In 2018,The company strictly accordance with "use of funds raised management system" and "raise funds tripartite regulatory|||||||||||
|agreement" to raise funds and special accounts storage use, and timely, truely, accurately and completely disclosure of the deposit|||||||||||
|and use of proceeds, there is no violation circumstances.|||||||||||

（2）Promised projects of raised capital
√ Applicable□ Not applicable
In 10,000 yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Date||||
||||||Accumul|Investme|||||
|||Total|||||when the||||
||||||ated|nt||||Has any|
||Project|raised|Total|Amount|||project|Benefit|||
||||||amount|progress|||Has the|material|
||changed(i|capital|investme|infested|||has|realized|||
|Committed investment|||||invested|ended the|||predicted|change|
||ncluding|invested|nt after|in the|||reached|in the|||
|projects and investment|||||at the end|reporting|||result be|taken|
||partial|as|adjustme|reporting|||the|reporting|||
||||||of the|period(%|||realized|place in|
||change)|committe|nt (1)|period|||predicted|period|||
||||||reporting|)(3)=(2)(||||feasibility|
|||d|||||applicabl||||
||||||period(2)|1)|||||
||||||||e status||||
|Committed investment projects|||||||||||
|Wuhu Optoelectronic|||||||||||
||||||||||Not||
|Panel display glass|||||||Decembe||||
||No|496,106.4|496,106.4|25,257.77|496,727.3|100.13%||2,312.98|applicabl|No|
|substrate Production|||||||r 31,2019||||
||||||||||e||
|line project|||||||||||
|Project of Production|||||||||||
||||||||||Not||
|Line for the|||||||Decembe||||
||No|300,000|300,000|55,061|92,769|30.92%|||applicabl|No|
|5th-Generation CF for|||||||r 31,2019||||
||||||||||e||
|TFT-LCD|||||||||||
|Acquisition for 100%|||||||||||
||||||||Decembe||||
|share rights of Xufei|No|177,000|177,000|0|177,000|100.00%|||Yes|No|
||||||||r 31,2015||||
|Optoelectronic|||||||||||
|Acquisition for 100%|||||||||||
||||||||Decembe||||
|share rights of Xuxin|No|198,000|198,000|0|198,000|100.00%|||Yes|No|
||||||||r 31,2015||||
|Optoelectronic|||||||||||
|To supplement the|No|125,000|125,000|0|121,537|97.23%|||Not|No|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|circulating fund|||||||||applicabl||
||||||||||e||
|To supplement the|||||||||Not||
|circulating fund|No|100,000|100,000|0|100,000|100.00%|||applicabl|No|
|（Corporate bonds）|||||||||e||
|Project of Production|||||||||||
||||||||||Not||
|Line for the|||||||Decembe||||
||No|695,000|695,000|153,261|201,683|29.02%|||applicabl|No|
|8.5th-Generation CF|||||||r 31,2019||||
||||||||||e||
|for TFT-LCD|||||||||||
|New energy bus and|||||||||Not||
||||||||Decembe||||
|logistics vehicle|No|220,000|220,000|141,132|141,132|64.15%|||applicabl|No|
||||||||r 31,2019||||
|production project|||||||||e||
|Production of cover|||||||||Not||
||||||||Decembe||||
|glass for curved|No|110,000|90,800|64,138|64,138|70.64%|||applicabl|No|
||||||||r 31,2019||||
|display|||||||||e||
|High aluminum silicon|||||||||||
||||||||||Not||
|cover glass sheet|||||||Decembe||||
||Yes|0|19,200|16,170|16,170|84.22%|||applicabl|No|
|production line|||||||r 31,2019||||
||||||||||e||
|upgrade project|||||||||||
|Payment for|||||||||||
|procurement of|||||||||||
||No|40,000|40,000|0|40,000|100.00%||0|Yes|No|
|Sunlong's equity|||||||||||
|consideration|||||||||||
|Payment transaction|||||||||Not||
|fees and intermediary|No|5,000|5,000|800|5,000|100.00%|||applicabl|No|
|agency fees|||||||||e||
|Subtotal of Committed||2,466,106|2,466,106|455,819.7|1,654,156||||||
||--|||||--|--|2,312.98|--|--|
|investment projects||.4|.4|7|.3||||||
|Investment of excessive raised capital|||||||||||
|No|No||||||||||
|||2,466,106|2,466,106|455,819.7|1,654,156||||||
|Total|--|||||--|--|2,312.98|--|--|
|||.4|.4|7|.3||||||
|Reason or situation that|||||||||||
|not on schedule (on|Not applicable||||||||||
|specific project)|||||||||||
|Notes to major changes|||||||||||
||Not applicable||||||||||
|in project feasibility|||||||||||
|Amount, application|Not applicable||||||||||
|and application|||||||||||
|progress of the|||||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|uncooked proceeds||
|About the change of|Not applicable|
|the implementation site||
|of the projects invested||
|with the proceeds||
||Applicable|
||Occurred in previous years|
||The Company convened the 10th meeting of 8th Board of Directors on March 15, 2017.Pursuant to the Company's 2016 Non-public Issuance Plan of A-shares, the project funded by thisnon-public share issuance was the “project of building the 8.5th generation TFT-LCD glass substrate”, withthe company’s holding subsidiary-Fuzhou Tughsu Optoelectronic Technology Co., Ltd (hereinafterreferred to as "Fuzhou Tunghsu") as the main implementation body. According to the company's businessdevelopment needs, it’s planned to add Fuzhou Xufu Optoelectronic Technology Co., Ltd (hereinafterreferred to as "Fuzhou Xufu")-a holding subsidiary to Fuzhou Tunghsu into the main body ofimplementation of the project. Each TFT-LCD glass substrate production line is consisted by onepre-process production line and one post-processing production line. Fuzhou Xufu undertakes theinvestment and construction work of two 8.5-generation post-processing production lines in the projectfunded by the non-public share issuance, with the total amount involved is RMB 823.06 million, whichaccounts for 11.83% of the total funds raised. The total investment, the input amount of funds raised, andthe construction total funds raised. The total investment, the input amount of funds raised, and theconstruction content of the above-said project remains unchanged.|
|Adjustment of the||
|implementation way of||
|investment funded by||
|raised capital||
||Applicable|
||(1) On April 17, 2013，The 36th Meeting of the sixth Board of Directors of the Company has examinedandapproved the “Proposal on the Replacement of the Self-funancing Funds pre-put into InvestmentProject with the RAISED Funds”, and agreed the company to make arrangement for the funds-raising onthe replacement of the pre-investment based on the plan of non-public issuance of stocks, with thepre-invested self-financing funds of RMB 2077.4263 million replaced by the raised funds. The company’sindependent directors, board of supervisors and the sponsor institution-Guangzhou securities issued theclear statement of consent. A special audit report- No.5002-Zhongxin Cai Guan Hua specially Certified(2013) pertain to the item of replacing the funds pre-invested in the project which should be invested bythe funds raised was issued by Zhongxincai Guanhua Certified Public Accountants (LLP).2)On December 29, 2015, the 46th meeting of the 7th board of directors and the 18th meeting of the 7thboard of supervisors of the Company examined and adopted “Proposal on Using the Raised Fund toReplace the Self-raised Fund of the Advanced Invested Item to Raise Money for and Invest ”, Thecompany replaced the self-raising funds in amount of RMB 107.0842 million with the funds raised by thenon-public issuing pertain to the relevant projects, which had been audited and certified by by ZhongxincaiGuanhua Certified Public Accountants (special general partnership) with the report of No.5037Zhongxincai Guanhua specially Certified (2015) provided.(3) On January 25, 2017, the 9th meeting of the 8th board of directors of the Company examined andadopted “Proposal on Using the Raised Fund to Replace the Self-raised Fund of the Advanced InvestedItem to Raise Money for and Invest ”, The company replaced the self-raising funds in amount of RMB110.7478 million with the funds raised by the non-public issuing pertain to the relevant projects, which had|
|Investment projects||
|initial investment and||
|replacement||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
||been audited and certified by by Zhongxincai Guanhua Certified Public Accountants (special generalpartnership) with the report of No.105001 Zhongxincai Guanhua specially Certified (2017) provided.(4) In the 28th interim meeting of 8th Board of Directors held on January 10, 2018 of the Company, theProposal on the Use of Raised Funds to Replace the Self-raised Funds of the Investment ProjectPre-invested Raised Funds was reviewed and passed, and the Company used raised funds amounted toRMB 23.5088 million to replace the self-raised funds of the investment project pre-invested raised funds,including to replace the total self-raised funds RMB 6.6968 million of the investment project pre-investedin new energy buses, to replace the total self-raised funds RMB 881.08 million of the investment projectpre-invested in curved glass and to replace the self-raised funds RMB 8 million for the payment oftransaction fees and intermediary agency fees in advance. which had been audited and certified by byZhongxincai Guanhua Certified Public Accountants (special general partnership) with the report ofNo.105001 Zhongxincai Guanhua specially Certified (2018) provided.|
||Applicable|
||（1）On December 7, 2017, the Company convened the 24th meeting of No. 8 Board of Directors to reviewand decide that within 12 months from the date of passing the decision by the Board of Directors, it agreedthat the Company can use RMB 300,000 million idle raised funds to temporarily supplement theCompany's working capital. And would be used to supplement the company working capital temporarilyfor not less than 12 months from the approval date by Board of Directors, upon which, such amount wouldbe refunded to the special account for the raising fund,it agreed the Company can use maximum RMB 3 ,000 million (including the principal) idle raised fundsfrom the raised funds RMB 6950 million of “the 8.5th Generation TFT-LCD Glass Substrate ProductionLine Project” to invest in principal-guaranteed products with good liquidity, low risk and fixed income,.The products invested include principal-guaranteed financial products, seven-day notice deposits andone-day notice deposits, etc., using in roll within the above-mentioned capital limit; it agreed that theCompany can use RMB 300,000 million idle raised funds to temporarily supplement the Company'sworking capital. And would be used to supplement the company working capital temporarily for not lessthan 12 months from the approval date by Board of Directors, upon which, such amount would berefunded to the special account for the raising fund, The board of supervisors, independent directors andsponsor organizations have agreed on this matter. The board of supervisors, independent directors andsponsor organizations have agreed on this matter.。The preceding raised funds were returned and depositedinto the Company's special account for raised funds in full amount on December 6, 2018 (refer to theAnnouncement on Due Return of Some Idle Raised Funds to Supplement Working Capital published bythe Company at Cninf on December 7, 2018). (2) On December 7, 2018, the Company's eighth board ofdirectors convened the fifty-first meeting to deliberate and adopt a Proposal on Provisional Use of SomeIdle Raised Funds for Supplementing Working Capital. On the ground that raised funds met the financialdemand for project construction, the Company planned to use idle raised funds in the amount of RMB 3.5billion to supplement the working capital for the moment and return the funds duly in the event of anyinvestment project demand for raised funds, wherein the period of use of such funds did not exceed 12months after being deliberated and adopted by the board of directors and such funds would be returned tothe special account for raised funds upon the expiry of the use. Independent directors and board ofsupervisors approved this proposal. The Company's sponsor Guangzhou Securities Co., Ltd. inspected andapproved this proposal.|
|Using the idle proceeds||
|to supplement the||
|working capital on||
|temporary basis||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|The amount and|Not applicable|
|reasons of the fund||
|surplus in the project||
|implementation||
|About application and||
|status of the proceeds|Used for the construction of the project|
|unused||
|Problems existing in||
|application of the||
|proceeds and the|Not applicable|
|information disclosure||
|or other issues||

（3）The changed project of raised proceeds
√ Applicable□Not applicable
In RMB10,000
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||||Project|
|||||Accumulati|||||feasibility|
|||Total raised|||Investment|Predicted||||
||||Amount|ve funds||||Reach the|was|
||Correspondi|funds plans|||program till|serviceable|Profit|||
|Project after|||actually|actually||||predicted|changed|
||ng original|to invested|||the|condition|realized in|||
|changed|||invested in|invested||||interest or|hugely or|
||project|after|||period-end(|date of|this year|||
||||the period|ended as the||||not (Y/N)|not after|
|||changed (1)|||3)=(2)/(1)|project||||
|||||period(2)|||||project|
||||||||||changed|
|High||||||||||
|aluminum|Sheet glass|||||||||
|silicon|production|||||||||
|cover glass|project for|||||December||Not||
|||19,200|16,170.4|16,170.4|84.22%||0||No|
|sheet|curved|||||31,2019||applicable||
|production|surface|||||||||
|line upgrade|display|||||||||
|project||||||||||
|Total|--|19,200|16,170.4|16,170.4|--|--|0|--|--|
||||The Company convened the thirty-ninth extraordinary meeting of the eighth board of|||||||
|Explanation on reasons of the changes,|||directors, the twenty-third extraordinary meeting of the eighth board of supervisors and the|||||||
|decision-making procedures and|||2018 fourth extraordinary general meeting of shareholders on June 12, 2018 and June 28,|||||||
|information disclosure (explain by|||2018 respectively, deliberating and adopting a Proposal on Alteration of Purpose of Some|||||||
|specific project)|||Raised Funds. While implementing the "project of production of cover glass for cambered|||||||
||||display", the Company fulfilled the set efficiency in a variety of cost-efficient ways such as|||||||
||||former plant reconstruction and independent development and upgrading of some|||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
||equipment and concluded that the entire project as completed can save some raised funds|
||through a prudent demonstration and estimation. Therefore, the Company determined to use|
||raised funds in the amount of RMB 192 million for the "project of production of cover glass|
||for cambered display" to "upgrade and retrofit high aluminum-silicone alloy cover glass|
||original production line" to promote its product quality and processing yield and reinforce|
||its economic benefit.|
|Particular and reasons of fail to||
|reached the target advance or||
||Nil|
|anticipated income (explain by||
|specific project)||
|Explanation on major changes on||
|project feasibility after project|Nol|
|changed||

VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable√ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
√ Applicable□ Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Net||Proporti||||||||
||||||||||||Whether|||
|||||profits||on on of||||||||
||||||||||||execute|||
|||||contribu||the net||||||||
||||||||||||as|||
|||||ted by||profits||||Whether||||
||||||||||||schedul|||
|||||the||of the||||the||||
||||||||||||ed and|||
|||||equities||contribu||||involve||||
||||||Influenc||||||if failed,|||
||||Transact|to the||ted|Pricing|Whether|Relation|d||||
||||||e of the||||||should|||
||||ion|listed||amount|principl|was the|ship|equities|||Disclos|
|Counter|Sold|Sold|||selling||||||state the|Disclos||
||||price(R|compani||of the|es of the|related|with the|all|||ure|
|party|equities|date|||of the||||||reasons|ure date||
||||MB|es from||equities|equities|transacti|center|complet|||Index|
||||||Compan||||||and the|||
||||10,000)|the||selling|selling|on|party|e ed the||||
||||||y||||||adopted|||
|||||period-b||to the||||ownersh||||
||||||||||||measure|||
|||||egin to||listed||||ip||||
||||||||||||ments of|||
|||||the sold||compani||||transfer||||
||||||||||||the|||
|||||date||es to the||||||||
||||||||||||compan|||
|||||(RMB||total||||||||
||||||||||||y|||
|||||10,000)||amo9un||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||t of the||||||||
|||||||net||||||||
|||||||profits||||||||
||Xuyou|||||||||||||
||Electron|||||||||||||
|Tunghsu|ic|||||||||||||
||||||||Based|||||||
|Techno|Material||||||||Same||||http://w|
||||||||on|||||||
|logy|s|April||-1,487.5|||||parent|||April|ww.cnin|
||||55,000||No|-0.55%|audited|Yes||Yes|Yes|||
|Group|Technol|28,2018||7|||||compan|||14,2018|fo.com.|
||||||||net|||||||
|Co.,|ogy||||||||y||||cn|
||||||||assets|||||||
|Ltd.|(Wuxi)|||||||||||||
||Co.,|||||||||||||
||Ltd.|||||||||||||

Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable□ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over10% net profit influencing to the Company In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Company||Sectors|Registered||||Operating||
||Company type|||Total assets|Net assets|Turnover||Net Profit|
|Name||engaged in|capital||||profit||
|Wuhu|||||||||
|Tunghsu|||||||||
|||Equipment|||||||
|Optoelectroni|||||||||
|||and|1,000,000,00|13,755,386,|2,935,961,08|3,601,268,01|1,152,126,38|993,962,972.|
|c|Subsidiary||||||||
|||technology|0.00|995.54|2.24|4.77|0.88|35|
|Equipment|||||||||
|||Service|||||||
|Technology|||||||||
|Co.,Ltd.|||||||||
|Tunghsu|||||||||
|Construction||Construction|3,000,000,00|6,259,440,55|3,515,093,81|5,482,287,40|328,684,486.|271,566,512.|
||Subsidiary||||||||
|Group Co.,||、Installation|0.00|0.97|7.83|3.41|40|31|
|Ltd.|||||||||
|Beijing|||||||||
|||Building and|||||||
|Xufeng Real|||870,000,000.|1,838,373,07|755,833,828.|1,084,330,38|378,362,128.|283,758,478.|
||Subsidiary|construction|||||||
|estate Co.,|||00|7.62|16|4.90|50|29|
|||Industry|||||||
|Ltd.|||||||||
|Zhengzhou|||||||||
|Xufei|||||||||
|||Optoelectron|||||||
|Optoelectro|||1,650,000,00|4,802,479,82|2,174,401,24|1,385,295,10|106,711,140.|88,567,927.5|
||Subsidiary|ic Display|||||||
|nic|||0.00|9.41|2.30|5.07|46|9|
|||material|||||||
|Technology|||||||||
|Co., Ltd.|||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|Shijiazhuang|||||||||
|Xuxin|||||||||
|Optoelectro||Glass|1,906,000,00|3,309,605,17|2,181,522,44|368,078,577.|37,096,592.7|38,845,710.7|
||Subsidiary||||||||
|nic||substrate|0.00|5.07|8.03|55|1|5|
|Technology|||||||||
|Co., Ltd.|||||||||
|Fuzhou|||||||||
|Tunghsu|||||||||
|||Glass|2,000,000,00|4,137,331,48|2,970,732,14|1,366,699,35|66,407,612.9|49,196,247.9|
|Optoelectroni|Subsidiary||||||||
|||substrate|0.00|3.74|9.39|7.80|7|9|
|c Technology|||||||||
|Co., Ltd.|||||||||
|Shanghai|||||||||
|||New Energy|3,200,000,00|11,319,107,9|4,011,771,16|4,630,605,18|493,809,850.|433,305,590.|
|Sunlong Bus|Subsidiary||||||||
|||Bus|0.00|34.84|5.58|5.61|43|26|
|Co., Ltd.|||||||||
|Sichuan|||1,900,000,000.00||||||
|Xuhong||Optoelectron|||||||
|||||3,841,237,02|2,138,823,07|543,995,845.|125,562,733.|116,172,589.|
|Optoelectroni|Subsidiary|ic Display|||||||
|||||5.65|2.41|38|68|38|
|c Technology||material|||||||
|Co., Ltd.|||||||||

Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable□ Not applicable
||||
|-|-|-|
|Name|Mode|Influence|
|Shenzhen Sanbao Innovation IntelligenceCo., Ltd.|||
|||Business expansion|
||M & A||
|Tunghsu（Yingkou）Optoelectronic DisplayCo., Ltd.|||
||M & A|Business expansion|
|Xuyou Electronic Materials Technology(Wuxi) Co., Ltd.||Based on overall strategic layout planning|
||Disposition||
|||considerations|
|Anhui Xuan Optoelectronic TechnologyCo., Ltd.|||
||New establishment|Business expansion|
|Tunghsu Optoelectronic EU.C.V|New establishment|Business expansion|

Note
VIII.Special purpose vehicle controlled by the Company
□Applicable√ Not applicable
IProspect for future development of the Company
I. The Development Trend of the Industry
In optoelectronic display, a rising demand for the size of liquid crystal display screens in the liquid crystal
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report panel industry drove the size of glass substrate liquid crystal display screens in 2018. Studies show that if display screens are enlarged by 1.5 inches in average, capacity of a G8.5 liquid crystal panel production line will be absorbed. The Company's glass substrate production can match the demand for liquid crystal panels, leading a steady growth in the performance of glass substrate business. In 2019, it is expected that supply of G8.5 liquid crystal panels and ones with a larger size will predominate and remain major products needed on the consumer market. IHS Markit predicts that the world's panel display area demand will rise about6.4% to 228 million m2 in 2019, laying a solid foundation for the Company's development of business of optoelectronic display materials kerneled by glass substrates.
In new energy bus, the new energy automobile subsidy has plummeted and industrial pattern has been altered in the wake of variation of the general trend. Nonetheless, driven by market under the policy instruction, Sunlong Bus--a typical bus company--has emerged and boomed to build a new pattern by its own comprehensive strength in the bus industry. In 2019, the new energy subsidy policy will heavily tighten by about50% in average compared with it was in 2018. Affected by the current scale benefit and provisions pertaining to tightened subsidy policy in new energy automobile, the fittest will survive while the inferior will be eliminated in the industry. Besides, low cost, high technology and intelligence remain strengths of new energy automobile in future development, hence it will continue to play a major role in the automotive market.
Ⅱ. Development strategy of the company
In the context, the Company will take the strategic objective of "China's biggest optoelectronic display materials manufacturer and integrated intelligent manufacturing service provider" as its own responsibility, concentrate on China's display market, increase spending in science and technology, and take the lead in technical innovation to stabilize its business of optoelectronic display materials kerneled by liquid crystal glass substrate while further extending and developing its businesses of high-end intelligent manufacturing, new energy automobile and intelligent graphene application.
The Company will continue to push forward G8.5 production construction, enhance production quality and expand coverage of production process based on the market demand to lay a solid foundation for its major business of glass substrate. Besides, in compliance with the OLED flexible display screen trend, the Company will optimize and upgrade techniques in high-aluminum cover glass, cambered glass and sapphire among other businesses, speed up technical innovation, and promote its core competitive edge to further increase the economic benefit in the OLED flexible display area.
In 2019, on the ground of independent innovation, the Company will continue to enhance itsR&D and manufacturing abilities, give a play to industrial collaboration, and cover the entire intelligent manufacturing industry chain. To be specific, the Company will make ongoing effort to build a closed loop of industry chain of "high-end materials-graphene-based lithium ion battery-new energy automobile" and transfer original scientific research results to capacity to contribute to its profit.
Ⅲ. Business plan in 2019
In 2019, oriented in industrial integration and aimed at geometric growth of net profit, the Company will continue to carry forward such major efforts as "market development, cost reduction and benefit increase", mainly involving the following work:
1. The Company will improve its G8.5 liquid crystal glass substrate production line construction and effectively promote the yield of jumbo-sized liquid crystal substrates to lower the production cost and increase its economic benefit. Mainly by implementing the Fuzhou Xufu G8.5 Production Line Project and targeting at major national customers, the Company will quickly occupy the market to promote the productivity.
2. The Company will continue to work on the high-end equipment business, wherein it will give a full play to strengths of its peripheral business, increase business channels of optoelectronic display materials and equipment,
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report semiconductor equipment and other universal equipment supplied to domestic high-end customers step by step, and diversify the business development layout to guarantee a steady growth of its high-end equipment business. 3. The Company will continue to improve its new energy automobile industry layout, push forward construction of the three new energy automobile industry bases at Nanning, Mianyang and Suqian, build a "new energy bus Sci-tech industry park" integratingR&D, innovation, manufacturing, promotion and publicity and speed up completion and commissioning to ensure its sufficient capacity. In addition, the Company will comply with China's "Belt& Road" thought of development, increase international marketing channels and spending in sales, and put into practice the green value philosophy of Sunlong Bus and the state-of-the-art new energy techniques.
4. The Company will promote technicalR&D in the graphene battery and graphene-related sectors and combine the strength of internationalR&D teams to facilitate incubation of graphene-related sectors. Meanwhile, the Company will further improve and implement graphene investment projects and actively push forward such projects to seize a favorable place in the graphene industry and occupy market share.
5. Confronted with a huge market demand for OLED, the Company will on one hand, take the initiative to quickly advance all the work in cambered cover glass, color filter and sapphire production projects. On the other hand, the Company will develop its industry chain upgrading system, prepared in terms of technology andR&D for meeting the market demand for flexible display screens.
6. By its brand strength, the Company will strengthen comprehensive market development ability of each business and promote the core competitiveness of its main businesses with effort to guarantee a steady growth in its income and profit.
Ⅳ. Possible risks
1. Risk of macroeconomic cyclical fluctuations
The optoelectronic display materials business centered on glass substrate relies on the LCD panel industry, which is a cyclical industry and a downstream industry to the company. As the prosperity of the panel industry is affected by the macroeconomic fluctuations, then if the panel price fluctuates sharply due to the deterioration of the macroeconomic environment or the imbalance between the supply and the demand, the company may face the risk of industry downturn.
2. Risk of uncertainty in expected benefits of liquid crystal glass substrate project
As the company's glass substrate production line projects have the features of large investment amount and long construction period, then if there is a future risk occurred in the glass substrate industry and the company's glass substrate production line construction projects can not fully achieve the mass production on schedule, the sales revenue and the profits of glass substrates will probably be less than expected.
Affected by size of product buying demand, bargaining ability, and demand characteristics of consumers and downstream sectors in the glass substrate industry, product sales, needs, price variation, technicalR&D situation, and variation of major marketing channels in the glass substrate industry, there is still an uncertainty in whether the Company can continue to increase its market share and develop quality customers, indicating an impact on its business performance.
3. Risk of technological upgrading alternatives
The company never stops the technical research and development and technology reserves, and has made breakthroughs in many areas. However, if the downstream panel display industry undergoes major technological changes and the company fails to achieve timely corresponding technological innovation, then the company will face certain risks when the technological upgrading alternatives hit the market.
4. The risk caused by the continued fade-out of subsidy policies for new energy vehicles
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report China is decreasing its new energy automobile subsidy standard, which will bring a certain impact on new energy automobile product sales of Sunlong Bus in the future. If the new energy automobile subsidy policy is tightened or any major adverse change happens to relevant industrial policies, it will cause an unexpected risk to business development of Sunlong Bus in the future.
X.Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Reception time|Way of reception||Types of visitors|Basic index|
|||||Hebei Securities Regulatory Bureau|
|May 15,2018|Other||Individual||
|||||Online Reception Day|
|January 1,2018|By Phone||Individual|Company telephone records|
|Reception times||1,958|||
|Reception agency amount||35|||
|Reception personal number||1,932|||
|Number of other objects received||0|||
|Whether to disclose, reveal or disclose non-public|||||
|||No|||
|material information|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report V. Important Events
I. Specification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash dividend policy during the reporting period
√ Applicable□ Not applicable
In the report period, the common stock dividend distribution program of Tunghsu Optoelectronic was proposed by the board of directors and approved by the general meeting of shareholders for implementation. Subject to the Company's profitability, funding condition and future development demand among other factors, the cash dividend distribution program was worked out and approved at the general meeting of shareholders before being disclosed and implemented as planned.
|||
|-|-|
|Special cash dividend policy description||
|Whether meets the requirements of the provisions of the articles||
||Yes|
|of association or shareholders' meeting resolutions:||
|Whether dividends standard and proportion are clear|Yes|
|Whether decision making and supervision mechanism for profit||
||Yes|
|distribution are completed||
|Whether independent directors perform their duties responsibly||
||Yes|
|and play its due role:||
|Whether the Minority shareholders have adequate opportunity to||
|express their views and aspirations and Their legitimate rights|Yes|
|and interests have been fully protected||
|Whether the Cash dividend policy to adjust or change the||
||Yes|
|conditions and procedures are compliant and transparent||

The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into share capital in the past three years(with the reporting period inclusive):
1.In 2016,the company total share of 4,939,928,983 shares on December 31,2016 for base on theCompany’s total share capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For every 10 shares(including tax) , and no reserve would be converted into share capital.
2.In 2017,the company total share of 5,730,250,118 shares on December 31,2017 for base on theCompany’s total share capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For every 10 shares(including tax) , and no reserve would be converted into share capital.
3.In 2018,the company total share of 5,730,250,118 shares on December 31,2018 for base on theCompany’s total share capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For
every 10 shares(including tax) , and no reserve would be converted into share capital.
Dividend distribution of the latest three years
In RMB
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Ratio of the|
||||||Ratio of the|||
||||||||total cash|
||||||cash bonus|||
||||||||bonus (other|
||||Ratio of the||by other|||
||||||||ways|
|||Net profit|cash bonus in||ways in net|||
||||||||included) in|
|||attributable to|net profit||profit|||
|||||Proportion for|||net profit|
|||common stock|attributable to||attributable|Total cash||
||Amount for cash|||cash bonus by|||attributable|
|Year for||shareholders of|common stock||to common|bonus(other||
||bonus(tax|||other ways(i.e.|||to common|
|bonus shares||listed company|shareholders of||stock|ways||
||included)|||share|||stock|
|||in consolidation|listed company||shareholders|included)||
|||||buy-backs)|||shareholders|
|||statement for|contained in||of listed|||
||||||||of listed|
|||bonus year|consolidation||company|||
||||||||company|
||||statement||contained in|||
||||||||contained in|
||||||consolidation|||
||||||||consolidation|
||||||statement|||
||||||||statement|
|2018|401,117,508.26|2,163,607,505.39|18.54%|0.00|0.00%|401,117,508.26|18.54%|
|2017|401,117,508.26|1,730,174,564.57|23.18%|0.00|0.00%|401,117,508.26|23.18%|
|2016|345,795,028.81|1,301,466,332.10|26.57%|0.00|0.00%|345,795,028.81|26.57%|

 In the reporting period, both theCompany’s profit and the parentcompany’s retained earnings were positive however not cash dividend distribution proposal has been put forward.
□Applicable√ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable□ Not applicable
|||
|-|-|
|Bonus shares for every 10-share(share)|0|
|Dividends for every 10-share(RMB)(Tax included)|0.70|
|Equity base of distribution plan(share)|5,730,250,118|
|Cas bonus distribution(RMB)(Tax included)|401,117,508.26|
|Cash bonus distrubution n other way(i.e.share||
||0.00|
|buy-backs)(RMB)||
|Total cash bonus(including other ways((RMB)|401,117,508.26|
|Distributable profits(RMB)|467,252,231.11|
|Ratio of total cash dividend (Other ways included)||
||100%|
|in total profit distribution||
|Cash dividend distribution policy||
|When the development stage of the company is a growth period and there is a significant capital expenditure arrangement, that in||
|the profit distribution, cash dividend shall not be less than 80% in proportion.||
|Explanation on profit distribution or capitalizing of capital reserves||
|The Company formulated the 2018-2020 plan of return to shareholders as follows: 1. methods of profit distribution including cash,||
|stock, cash & stock combination, or other methods allowed by laws and regulations are set out, wherein a priority is given to the||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||
|-|
|method of profit distribution by cash dividend. 2. Provided that conditions for cash dividend distribution are met, if the Company's|
|operating income and net profit increase rapidly and the board of directors considers the Company's equity scale and structure to be|
|reasonable, a plan for stock dividend distribution may be proposed and implemented given no impact on the plan for cash dividend|
|distribution. 3. On the ground that conditions provided by the Company in the articles of association regarding distribution of cash|
|dividend and full withdrawal of surplus accumulation fund are met, the Company makes a profit distribution in every accounting|
|year in principle; if necessary, the Company may make an interim cash dividend distribution subject to the profitability and funding|
|demand. Given sufficient funds, no spending in major technical improvement plans or other investment plans, and satisfaction of|
|the Company's fund demand for regular production and operation, the Company's cumulative profit distributed by cash in the|
|following three years will be no less than 30% of the annual average distributive profit incurred in the corresponding period. 4. The|
|Company's management and board of directors will abide by relevant laws, regulations and Articles of Association and formulate|
|and submit a 2019 dividend distribution plan to the general meeting of shareholders for approval, according to which, based on the|
|total stock of 5,730,250,118 shares on December 31, 2018, the Company will distribute a cash dividend of RMB 0.7 (tax-inclusive)|
|per 10 shares to all the shareholders by undistributed profit and will not increase the stock by transfer of accumulation fund.|

 I. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior management personnel and other related parities.
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Time of|Period of||
||Commitment|||||Fulfil|
|Commitment||Type|Contents|making|commitme||
||maker|||||lment|
|||||commitment|nt||
||||If listed companies plans to sell tradable||||
||||stocks through the bid trading system of||||
||||Shenzhen Stock Exchange and sell greater||||
||Shijiazhuang|Share|than 5% of shares within six months after the|||Unde|
|Commitment on share|Baoshi|reduction|first sales, will disclose the contents specified|March|Long-term|r|
|reform|Electronics|commitme|by the Form Guide to Prompt Announcement|29,2007|effective|Fulfil|
||Group Co., Ltd|nt|of Removing Restriction on Sales of|||lment|
||||Non-tradable Stocks of Listed Companies||||
||||through the prompt announcement of||||
||||disclosing sales of listed companies.||||
|Commitment in the|||||||
|acquisition report or|||||||
|the report on equity|||||||
|changes|||||||
|||Commitm|1. As of the date of this statement and||||
|||ents on|commitment, except for trustee company, the||||
|||||||Unde|
|Commitment made|Tunghsu|horizontal|company/individual and/or other companies||||
|||||March|Long-term|r|
|upon the assets|Group,Li|competitio|that are directly or indirectly controlled by the||||
|||||20,2017|effective|Fulfil|
|replacement|Zhaoting|n, related|company/individual shall not compete with||||
|||||||lment|
|||transaction|Tunghsu Optoelectronic. 2. During the period||||
|||and capital|when the company/individual acts as the||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
||occupation|controlling shareholder/actual controller of||||
|||Tunghsu Optoelectronic, the||||
|||company/individual and other companies||||
|||controlled by the company/individual shall||||
|||not engage in any same or similar business||||
|||that is competitive with that of Tunghsu||||
|||Optoelectronic and other companies||||
|||controlled by it, nor carry out any activities||||
|||that may impinge on Tunghsu Optoelectronic||||
|||and other companies controlled by it. If||||
|||business opportunities obtained by the||||
|||company/individual and other companies||||
|||controlled by the company/individual are||||
|||within the main business scope of Tunghsu||||
|||Optoelectronic and other companies||||
|||controlled by it, the company/individual and||||
|||other companies controlled by the company/||||
|||individual shall give the opportunities to||||
|||Tunghsu Optoelectronic and other companies||||
|||controlled by it. 3. During the period when||||
|||the company/ individual acts as the||||
|||controlling shareholder/actual controller of||||
|||Tunghsu Optoelectronic, the||||
|||company/individual shall continue to strictly||||
|||perform the relevant statements and||||
|||commitments regarding avoiding competition||||
|||in the same industry previously made by the||||
|||company/individual.||||
|||1. As of the date of this statement and||||
|||commitment, the company/individual and/or||||
|||other companies that are directly or indirectly||||
|||controlled by the company/individual shall||||
|Chen||||||
||Commitm|not compete with Tunghsu Optoelectronic||||
|Dacheng,Chen||||||
||ents on|(including its subsidiaries, the same below). 2.||||
|Xicheng,||||||
||horizontal|The company/individual and other companies|||Unde|
|Shanghai||||||
||competitio|controlled by the Company/individual shall|March|Long-term|r|
|Huimao||||||
||n, related|not engage in any same or similar business|20,2017|effective|Fulfil|
|Enterprise||||||
||transaction|that is competitive with that of Tunghsu|||lment|
|Management||||||
||and capital|Optoelectronic and other companies||||
|Co., Ltd.; Wang||||||
||occupation|controlled by it, nor carry out any activities||||
|Wenxi, Yao Eqin||||||
|||that may impinge on Tunghsu Optoelectronic||||
|||and other companies controlled by it. If||||
|||business opportunities obtained by the||||
|||company/individual and other companies||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||controlled by the company/individual are||||
|||within the main business scope of Tunghsu||||
|||Optoelectronic and other companies||||
|||controlled by it, the company/individual and||||
|||other companies controlled by the company/||||
|||individual shall give the opportunities to||||
|||Tunghsu Optoelectronic and other companies||||
|||controlled by it.||||
|||1. After the transaction and during the||||
|||association relationship existence between the||||
|||Company/I and Tunghsu Optoelectronic,||||
|||without examination and approval of the||||
|||decision-making process specified by||||
|||Tunghsu Optoelectronic per the Company||||
|||Law, Securities Law and relevant regulations||||
|||as well as Articles of Association and||||
|||Connected Transaction Management System,||||
|||the Company/I and any holding enterprise||||
|||shall endeavor to avoid any connected||||
|||transaction with Tunghsu Optoelectronic, will||||
|||not, based on its own influence on the listed||||
|||company, seek any right superior to that of||||
||Commitm|any third party in the market in terms of the||||
||ents on|business cooperation with Tunghsu||||
||horizontal|Optoelectronic or any preferential right on the|||Unde|
|Tunghsu||||||
||competitio|transaction with the same. 2. If any connected|March|Long-term|r|
|Group,Li||||||
||n, related|transaction does exist necessarily and|20,2017|effective|Fulfil|
|Zhaoting||||||
||transaction|inevitably, the Company/I and any holding|||lment|
||and capital|enterprise will, together with Tunghsu||||
||occupation|Optoelectronic, enter into an agreement per||||
|||laws based on principles of equity, fairness||||
|||and valuable consideration, etc. subject to||||
|||regulations of China Securities Regulatory||||
|||Commission (CSRC), Shenzhen Stock||||
|||Exchange (SZSE) and Articles of Association||||
|||of Tunghsu Optoelectronic, implement legal||||
|||process and information disclosure obligation.||||
|||3. The Company/I undertake not to trade with||||
|||Tunghsu Optoelectronic per unfair conditions||||
|||compared with market price or act against the||||
|||legal interests of Tunghsu Optoelectronic and||||
|||shareholders thereof through such trade. 4. If||||
|||Tunghsu Optoelectronic suffers any loss due||||
|||to the trade against the commitment above,||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||the Company/I shall undertake the||||
|||compensation liability.||||
|||1. After the transaction, without examination||||
|||and approval of the decision-making process||||
|||specified by Tunghsu Optoelectronic||||
|||(including any subsidiary thereof, similarly||||
|||hereinafter) per the Company Law, Securities||||
|||Law and relevant regulations as well as||||
|||Articles of Association and Connected||||
|||Transaction Management System, the||||
|||Company/I and any holding enterprise shall||||
|||endeavor to avoid any connected transaction||||
|||with Tunghsu Optoelectronic, will not, based||||
|||on its own influence on Tunghsu||||
|||Optoelectronic, seek any right superior to that||||
|||of any third party in the market in terms of the||||
|Chen||||||
|||business cooperation with Tunghsu||||
|Dacheng,Chen|Commitm|||||
|||Optoelectronic or any preferential right on the||||
|Xicheng,|ents on|||||
|||transaction with the same. 2. If any connected||||
|Shanghai|horizontal||||Unde|
|||transaction does exist necessarily and||||
|Huimao|competitio||March|Long-term|r|
|||inevitably, the Company/I and any holding||||
|Enterprise|n, related||20,2017|effective|Fulfil|
|||enterprise will, together with Tunghsu||||
|Management|transaction||||lment|
|||Optoelectronic, enter into an agreement per||||
|Co., Ltd.;|and capital|||||
|||laws based on principles of equity, fairness||||
|Wang Wenxi,|occupation|||||
|||and valuable consideration, etc. subject to||||
|Yao Eqin||||||
|||regulations of China Securities Regulatory||||
|||Commission (CSRC), Shenzhen Stock||||
|||Exchange (SZSE) and Articles of Association||||
|||of Tunghsu Optoelectronic, implement legal||||
|||process and information disclosure obligation.||||
|||3. The Company/I undertake not to trade with||||
|||Tunghsu Optoelectronic per unfair conditions||||
|||compared with market price or act against the||||
|||legal interests of Tunghsu Optoelectronic and||||
|||shareholders thereof through such trade. 4. If||||
|||Tunghsu Optoelectronic suffers any loss due||||
|||to the trade against the commitment above,||||
|||the Company/I shall undertake the||||
|||compensation liability.||||
|Mianyang||Until the issuance of the statement, the||||
||||||Unde|
|Technology City|Other|Company has never entered into any acting in||||
||||March|Long-term|r|
|Development|Commitm|concert agreement with any shareholder of||||
||||20,2017|effective|Fulfil|
|Investment|ent|Tunghsu Optoelectronic or conducted any act||||
||||||lment|
|(Group) Co.,||possible to impel several shareholders thereof||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Ltd.;Shanghai||to exercise their respective rights jointly||||
|Huimao||resulting in the substantial control of Tunghsu||||
|Enterprise||Optoelectronic. After the asset reorganization||||
|Management||and supporting funds raising, the Company||||
|Co.,||will own shares of Tunghsu Optoelectronic||||
|Ltd.;Sichuan||directly and become one shareholder thereof;||||
|Changhong||thus, the Company undertakes hereby to||||
|Electric||exercise the shareholder’s rights||||
|Appliance Co.,||independently and not to conclude any acting||||
|Ltd.||in concert agreement or reach private||||
|||consensus on acting in concert with other||||
|||shareholders of Tunghsu Optoelectronic in the||||
|||future.||||
|||Not overstepping its authority to interfere||||
|||with the company's management activities.||||
|||(2) Not encroach the interests of the company.||||
|||(3) If the CSRC or Shenzhen Stock Exchange||||
|||has different requirements on the commitment||||
|||made by the Company / I to ensure the sound||||
|||implementation of the returns fill-up measures||||
|||for the diluted returns at the period caused by||||
|||this transaction, the Company / I shall||||
|||voluntarily and unconditionally make the||||
|||commitment in accordance with the||||
|||requirements of the CSRC or the Shenzhen||||
||||||Unde|
|Tunghsu|Other|Stock Exchange. (4) As one of the relevant||||
||||June|Long-term|r|
|Group,Li|Commitm|liability subjects to the returns fill-up||||
||||10,2017|effective|Fulfil|
|Zhaoting|ent|measures, the Company / I undertake that||||
||||||lment|
|||strictly abide by the above commitment made||||
|||by the Company / I and ensure that the returns||||
|||fill-up measures of the Company / I can be||||
|||soundly implemented. If the Company / I||||
|||violate the above commitments or refuse to||||
|||fulfill the above commitments, the Company /||||
|||I hereby agree to impose relevant penalties or||||
|||relevant management measures on the||||
|||Company / I in accordance with the relevant||||
|||regulations and rules formulated and issued||||
|||by the securities regulatory authorities such as||||
|||the CSRC and the Shenzhen Stock Exchange.||||
|Gong Xin, Han||Undertake that faithfully and diligently||||
||Other||||Unde|
|Zhiguo, Huang||perform duties and protect the lawful rights|June|Long-term||
||Commitm||||r|
|Jinliang, Li||and interests of the company and all its|10,2017|effective||
||ent||||Fulfil|
|Zhaoting, Liu||shareholders; (2) undertake that not transfer||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Wentai, Lu|benefits to other units or individuals in|lment|
|Guihua, Wang|gratuitous or unfair conditions and not take||
|Jianqiang, Wang|any other ways to damage the interests of the||
|Junming, Wang|company; (3) undertake that curb the||
|Lipeng, Wang|position-related consumption behavior; (4)||
|Zhonghui and|undertake not to use the company's assets to||
|Zhang|engage in investment or consumption||
|Shuangcai.|activities that have nothing to do with the||
||performance of the duties; (5) undertake that||
||the remuneration system established by the||
||board of directors or the remuneration and||
||assessment committee is linked to the||
||company's implementation of the returns||
||fill-up measures, and make affirmative vote||
||for the relevant motions of the board of||
||directors and the general meeting of||
||shareholders when participating in the||
||decision; (6) if the company launches the||
||equity incentive policy subsequently, then||
||undertake that the terms of exercise of the||
||company's equity incentive to be announced||
||are linked to the performance of the||
||company's measures of returns fill-up and||
||make affirmative vote for the relevant||
||motions of the board of directors and the||
||general meeting of shareholders when||
||participating in the decision; (7)If the CSRC||
||or Shenzhen Stock Exchange has different||
||requirements on the commitment made by I to||
||ensure the sound implementation of the||
||returns fill-up measures for the diluted returns||
||at the period caused by this transaction, I shall||
||voluntarily and unconditionally make the||
||commitment in accordance with the||
||requirements of the CSRC or the Shenzhen||
||Stock Exchange. (8) As one of the relevant||
||liability subjects to the returns fill-up||
||measures, I undertake that strictly abide by||
||the above commitment made by I and ensure||
||that the returns-fill-up measures of the||
||Company shall be soundly implemented. I||
||hereby agree to impose relevant penalties or||
||relevant management measures on the||
||Company / I in accordance with the relevant||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||regulations and rules formulated and issued||||
|||by the securities regulatory authorities such as||||
|||the CSRC and the Shenzhen Stock Exchange.||||
|||For subscription of the supporting raised||||
|||funds, Tunghsu Group issues Commitment||||
|||Letter for Subscription Fund Sources and||||
|||make the following commitment that: 1. all||||
|||funds used by the Company for subscription||||
|||of the supporting raised funds are owned by||||
|||the Company, which are obtained legally||||
|||other than financing through mortgage of the||||
|||||Valid|Unde|
||Other|owned shares of the listed companies with the||||
||||August|period to|r|
|Tunghsu Group|Commitm|bank and any other financial institution, etc.;||||
||||10,2017|December|Fulfil|
||ent|2. the funds used by the Company for||||
|||||31,2018|lment|
|||subscription of the supporting raised funds are||||
|||free from encumbrance within a short term||||
|||(12 months); 3. the funds used by the||||
|||Company for subscription of the supporting||||
|||raised funds never come from collection from||||
|||unspecified objects through public or||||
|||disguised public way or more than 200||||
|||specified objects.||||
|||It shall coordinate and cooperate with||||
|||Sunlong Bus positively in the ownership||||
|||certificate application formalities for the||||
|||property before registration and protect||||
|||Sunlong Bus from influence of such issue||||
|||during normal production and operation;||||
|||otherwise, for any economic loss suffered of||||
|||Sunlong Bus during operation in the future||||
|Shanghai||||||
|||due to such ownership issue (including but|||Unde|
|Huimao|Other|||||
|||not limited to the penalty on the relevant|October|Long-term|r|
|Enterprise|Commitm|||||
|||company by the governmental department,|26,2017|effective|Fulfil|
|Management|ent|||||
|||overdue fine and losses for normal production|||lment|
|Co., Ltd.||||||
|||operation interruption due to such issue||||
|||resolution and correction on relevant property||||
|||problem, etc.), Shanghai Huimao shall||||
|||compensate Sunlong Bus in full within 30||||
|||days after Tunghsu Optoelectronic||||
|||Technology Co., Ltd. confirms the actual||||
|||losses suffered by Sunlong Bus due to such||||
|||issue above per laws.||||
|Tunghsu|Share|The shares of Tunghsu Optoelectronic held by|November|November|Com|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Group,Tunghsu|limited|the Company prior to this transaction shall not|30,2017|29,2018|plete|
|Technology|commitme|be transferred in any way within 12 months|||d|
|Group Co.,|nt|after the completion of this transaction,||||
|Ltd.,||including but not limited to transfer publicly,||||
|Shjiazhuang||in block trade or by agreement in the||||
|Baoshi Group||securities market, nor be bought back by||||
|||Tunghsu Optoelectronic. The increased shares||||
|||held by Tunghsu Optoelectronic due to bonus||||
|||shares and conversion into share capital shall||||
|||also be locked up in accordance with the||||
|||above lock-in period requirements.||||
|||1. The shares of Tunghsu Optoelectronic||||
|||acquired by the company due to this asset||||
|||reorganization shall not be transferred or||||
|||entrusted to others for management within 36||||
|||months from the end of issuance of the shares,||||
|||nor be repurchased by Tunghsu||||
|||Optoelectronic upon the request of the||||
|||company. The shares derived from||||
|||distribution of stock dividends and increase in||||
|||capital reserves of the stocks issued to||||
|Tunghsu Group,||||||
|||targeted investors of Tunghsu Optoelectronic||||
|Shanghai|Share||||Unde|
|||acquired by company in this transaction shall||||
|Huimao|limited||November|November|r|
|||also meet the requirements of||||
|Enterprise|commitme||30,2017|29,2020|Fulfil|
|||above-mentioned share lockup arrangement.||||
|Management|nt||||lment|
|||2. Tunghsu Group promises that if closing||||
|Co., Ltd||||||
|||price of Tunghsu Optoelectronic’ shares is||||
|||lower than offering price for twenty||||
|||consecutive trading days within six months||||
|||after the completion of the transaction, or if||||
|||closing price at the end of six months after the||||
|||completion of the transaction is lower than||||
|||offering price, Tunghsu Group shall||||
|||automatically extend the lock-up period of||||
|||shares acquired by Tunghsu Optoelectronic||||
|||due to this asset reorganization for 6 months.||||
|Mianyang||The shares of Tunghsu Optoelectronic||||
|Technology City||acquired by the company due to this asset||||
|Development|Share|reorganization shall not be transferred or||||
||||||Com|
|Investment|limited|entrusted to others for management within 12|November|November||
||||||plete|
|（Group）Co.,|commitme|months from the end of issuance of the shares,|30,2017|29,2018||
||||||d|
|Ltd.; Sichuan|nt|nor be repurchased by Tunghsu||||
|Changhong||Optoelectronic upon the request of the||||
|Electric||company. The shares derived from||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Appliance Co.,||distribution of stock dividends and increase in||||
|Ltd.||capital reserves of the stocks issued to||||
|||targeted investors of Tunghsu Optoelectronic||||
|||acquired by company in this transaction shall||||
|||also meet the requirements of||||
|||above-mentioned share lockup arrangement.||||
|||The shares of Tunghsu Optoelectronic that are||||
|||issued for supporting fund raising subscribed||||
|||by Tunghsu Group shall not be transferred||||
|||within 36 months from the date of being||||
|||listed, and after 36 months, the shares shall be||||
||Share|transferred in accordance with the relevant|||Unde|
||limited|regulations of China Securities Regulatory|December|December|r|
|Tunghsu Group||||||
||commitme|Commission and Shenzhen Stock Exchange.|28,2017|28,2020|Fulfil|
||nt|Upon the end of the issue, Tunghsu|||lment|
|||Group shall abide by the preceding||||
|||provision while acquiring shares of the||||
|||Company through distribution of||||
|||dividend and increase of stock by||||
|||transfer.||||
|||Shares of Tunghsu Optoelectronic||||
|||subscribed by other particular target||||
|||investors except for Tunghsu Group||||
|||shall not be transferred in 12 months||||
|Minjia Silver||||||
|||after going public but afterwards, such||||
|Fund||||||
||Share|shares shall be subject to relevant||||
|Management|||||Com|
||limited|provisions of China Securities|December|December||
|Co., Ltd.; Beixin|||||plete|
||commitme|Regulatory Commission and Shenzhen|28,2017|28,2018||
|Ruifeng Fund|||||d|
||nt|Stock Exchange. Upon the end of the||||
|Management||||||
|||issue, other investors shall abide by the||||
|Co., Ltd.||||||
|||preceding provision while acquiring||||
|||shares of the Company through||||
|||distribution of dividend and increase of||||
|||stock by transfer.||||
|||1. Shanghai Huimao promises that the audited||||
||Performan|net profit of Sunlong Bus shall not be less||||
||ce|than RMB 300 million in 2017, RMB 400||||
|Shanghai||||||
||commitme|million in 2018 and RMB 550 million in|||Unde|
|Huimao||||||
||nt and|2019. 2. During the profit commitment|November|December|r|
|Enterprise||||||
||compensat|period, if the actual profit accrued as of the|30,2017|31,2019|Fulfil|
|Management||||||
||ion|end of 2017 (including the current year), 2018|||lment|
|Co., Ltd||||||
||arrangeme|(including 2017), and 2019 (including 2017||||
||nts|and 2018) of Sunlong Bus cannot reach the||||
|||cumulative promised net profit for||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
||||corresponding year, Shanghai Huimao shall||||
||||make a profit compensation for the gap by||||
||||means of shares. If shares are insufficient to||||
||||make compensation, Shanghai Huimao shall||||
||||make up for it in cash.||||
||||1. Tunghsu Group promises that if Xu Hong||||
||||Photoelectric has completed business||||
||||transaction in 2017, the audited actual net||||
||||profit of Xu Hong Photoelectric shall not be||||
||||less than RMB 75 million yuan in 2017, RMB||||
||||98 million in 2018 and RMB 115 million in||||
|||Performan|2019. If Xuhong Photoelectric has failed to||||
|||ce|complete business transaction in 2017,||||
|||commitme|Tunghsu Group further promises that net|||Unde|
|||nt and|profit of Xu Hong Photoelectric shall not be|November|December|r|
||Tunghsu Group||||||
|||compensat|less than RMB 138 million in 2020. 2. If Xu|30,2017|31,2019|Fulfil|
|||ion|Hong Photoelectric has completed business|||lment|
|||arrangeme|transaction in 2017, Tunghsu Group shall||||
|||nts|make up for the profit gap between actual||||
||||profit accrued as of the end of 2017||||
||||(including the current year), 2018 (including||||
||||2017), and 2019 (including 2017 and 2018)||||
||||within the profitability commitment period||||
||||and cumulative promised net profit for||||
||||corresponding year by means of shares.||||
||||1.From the date of commitment letter issued,||||
||||except the managed hosting company for||||
||||Baoshi , this company and majority-owned||||
||||subsidiaries do not in any way, directly or||||
||||indirectly engaged in business and Baoshi and||||
||||its subsidiaries are the same, or similar, future||||
|||Commitm|||||
||||Baoshi shares and its subsidiaries are not||||
|||en ts on|||||
||||engaged in the same or similar businesses.||||
|||horizontal||||Unde|
||||2.The company assurances against the use of||||
|Commitments made||competitio||November|Long-term|r|
||Li Zhaoting||precious stones share any act prejudicial to||||
|upon issuance||n, related||22,2011|effective|Fulfil|
||||the control relationship of Baoshi interests||||
|||transaction||||lment|
||||and its wholly-owned subsidiaries, holding, or||||
|||and capital|||||
||||causing Baoshi shares and its wholly-owned||||
|||occupation|||||
||||subsidiaries, holding form business||||
||||competition decisions. 3. The company will||||
||||not directly invest, purchase and Baoshi||||
||||identical or similar business enterprises and||||
||||projects.||||
||||4.If the assets owned by the Baoshi . compete||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||with , the company will adopt effective||||
|||measures and give up the same business. 5. If||||
|||the company has horizontal competition with||||
|||Baoshi and lead to lose to it, the company will||||
|||bear all the responsibilities. 6. Pursuant to||||
|||relevant conditions of securities supervision, I||||
|||promise to inject all my holding equity of||||
|||entrusted company under management by||||
|||Baoshi Stock into Baoshi Stock. During the||||
|||period that I am the actual controller of the||||
|||Baoshi Stock, the promise is a valid||||
|||commitment.||||
|||1.From the date of commitment letter issued,||||
|||except the managed hosting company for||||
|||Tunghsu Optoelectronic , this company and||||
|||majority-owned subsidiaries do not in any||||
|||way, directly or indirectly engaged in||||
|||business and Tunghsu Optoelectronic and its||||
|||subsidiaries are the same, or similar, future||||
|||Tunghsu Optoelectronic shares and its||||
|||subsidiaries are not engaged in the same or||||
|||similar businesses.||||
|||2.The company assurances against the use of||||
|||precious stones share any act prejudicial to||||
|Tunghsu|Commitm|the control relationship of Tunghsu||||
|Group;Shijiazh|ents on|Optoelectronic interests and its wholly-owned||||
|uang Baoshi|horizontal|subsidiaries, holding, or causing Tunghsu|||Unde|
|Group;|competitio|Optoelectronic shares and its wholly-owned|April1，1|Long-term|r|
|Tunghsu|n, related|subsidiaries, holding form business|2012|effective|Fulfil|
|Optoelectronic|transaction|competition decisions. 3. The company will|||lment|
|Investment|and capital|not directly invest, purchase and Tunghsu||||
|Co.,m Ltd.|occupation|Optoelectronic identical or similar business||||
|||enterprises and projects.||||
|||4.If the assets owned by the Tunghsu||||
|||Optoelectronic . compete with , the company||||
|||will adopt effective measures and give up the||||
|||same business. 5. If the company has||||
|||horizontal competition with Tunghsu||||
|||Optoelectronic and lead to lose to it, the||||
|||company will bear all the responsibilities.||||
|||Within the period when the company is still||||
|||the controlling shareholder of Tunghsu||||
|||Optoelectronics, the commitments are in||||
|||effect.||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||In view of:||||
|||The main business of Tunghsu Optoelectronic||||
|||is the production of TFT-LCD glass substrate,||||
|||and the company now is applying for||||
|||non-public offering of ,bonds (2) Tunghsu||||
|||Group is the controlling shareholder of||||
|||Tunghsu Optoelectronic; and during the||||
|||period of holding, Tunghsu Group has signed||||
|||patent license contracts separately with||||
|||Tunghsu Optoelectronic and its subsidiaries||||
|||including Wuhu Tunghsu Optoelectronic||||
|||Science and Technology Co., Ltd. (hereinafter||||
|||referred to as Wuhu Optoelectronic), Wuhu||||
|||Tunghsu Optoelectronic Equipment||||
|||Technology Co., Ltd. (hereinafter referred to||||
|||as Wuhu Equipment) and Shijiazhuang||||
|||Tunghsu Optoelectronic Equipment||||
|||Technology Co., Ltd. (hereinafter referred to||||
|||as Shijiazhuang Equipment). For this purpose,||||
|||Tunghsu Group has made following promises:|||Unde|
||Other|||Valid for||
|||Any patents related to panel display glass|February||r|
|Tunghsu Group|commitme|||December||
|||substrate not included in the aforesaid|8,2015||Fulfil|
||nt|||31,2020||
|||Contract on the Licensing of Patent|||lment|
|||Exploitation obtained by Tunghsu Group in||||
|||the future, Tunghsu Group shall sign a free||||
|||contract of licensing the new pertinent patents||||
|||with the company and the company’s||||
|||subsidiaries (Wuhu Optoelectronic||||
|||Technology Co.,Ltd, Wuhu Equipment||||
|||Company and Shijiazhuang Equipment||||
|||Company) with the same articles of the||||
|||former patent licensing contract. After the||||
|||company successfully completed the issuance||||
|||of corporate bonds, whether Tunghsu Group||||
|||control the company during the duration of||||
|||the bonds, Tunghsu Group shall renew the||||
|||patent licensing contract unreserved with the||||
|||company and the company’s subsidiaries||||
|||(Wuhu Optoelectronic Technology Co.,Ltd,||||
|||Wuhu Equipment Company and Shijiazhuang||||
|||Equipment Company) under the company’s||||
|||requirement until the bonds expired.||||
|Tunghsu|To raise|In view of: Tunghsu Optoelectronic|February 10,|Valid for|Unde|
|Optoelectronic|funds to|Technology Co., Ltd. is applying for public|2015|December|r|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Technology Co.,|use the|offering of corporate bonds, and the total||31,2020|Fulfil|
|Ltd.|commitme|scale of bonds will not exceed 1 billion yuan.|||lment|
||nt|After the deduction of issue expenses, all the||||
|||funds raised are planed to be used to||||
|||supplement the liquidity and support the||||
|||R&D, production and material purchase of||||
|||glass substrate and the equipment. Thus, the||||
|||demands of business operation and expansion||||
|||in the company will be satisfied. The||||
|||company promises: 1. The funds raised||||
|||through the public offering of corporate bonds||||
|||will not be directly or indirectly invested in||||
|||real estate development business, or used to||||
|||increase the capital fund or as loans in||||
|||subsidiaries engaged in real estate business; 2.||||
|||the funds raised through the public offering of||||
|||corporate bonds will not be used for real||||
|||estate development business in any form.||||
|||In view of:||||
|||(1) The main business of Tunghsu||||
|||Optoelectronic is the production of TFT-LCD||||
|||glass substrate, and the company now is||||
|||applying for non-public offering of stock; (2)||||
|||Tunghsu Group is the controlling shareholder||||
|||of Tunghsu Optoelectronic; and during the||||
|||period of holding, Tunghsu Group has signed||||
|||patent license contracts separately with||||
|||Tunghsu Optoelectronic and its subsidiaries||||
|||including Wuhu Tunghsu Optoelectronic||||
||||||Unde|
||Other|Science and Technology Co., Ltd. (hereinafter||||
||||June 17,|Long-term|r|
|Tunghsu Group|commitme|referred to as Wuhu Optoelectronic), Wuhu||||
||||2015|effective|Fulfil|
||nt|Tunghsu Optoelectronic Equipment||||
||||||lment|
|||Technology Co., Ltd. (hereinafter referred to||||
|||as Wuhu Equipment) and Shijiazhuang||||
|||Tunghsu Optoelectronic Equipment||||
|||Technology Co., Ltd. (hereinafter referred to||||
|||as Shijiazhuang Equipment). For this purpose,||||
|||Tunghsu Group has made following promises:||||
|||within the term of validity involving patent||||
|||right stated in patent license contracts,||||
|||whether Tunghsu Optoelectronic is in the||||
|||control of Tunghsu Group or not, Tunghsu||||
|||Group promises that when the above||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||mentioned patent license contracts expire, the||||
|||group will unconditionally renew the||||
|||contracts with Tunghsu Optoelectronic and its||||
|||subsidiaries (Wuhu Optoelectronic, Wuhu||||
|||Equipment, Shijiazhuang Equipment and etc)||||
|||according to the terms of original contracts||||
|||based on the requirements of Tunghsu||||
|||Optoelectronic.||||
|||To avoid the horizontal competition with the||||
|||issuer, the company’s actual||||
|||controller-Zhaoting, Li and the holding||||
|||company-Tunghsu Group promised: 1. As of||||
|||this declaration and from the date of||||
|||commitment letter issued, except the managed||||
|||hosting companies, the other companies||||
|||directly or indirectly controlled by the||||
|||controller or holding company have no||||
|||horizontal competitions with Tunghsu||||
|||Optoelectronic Technology Co., Ltd. 2. Any||||
|||other companies controlled by the actual||||
|||controller or holding company shall avoid||||
|||businesses identical or similar to the company||||
||Commitm|||||
|||may lead to a competitive relation and cannot||||
||ents on|||||
|||do any harm activities to Tunghsu||||
||horizontal||||Unde|
|Tunghsu||Optoelectronic Technology Co., Ltd and|Decembert|||
||competitio|||Long-term|r|
|Group,Li||companies controlled by Tunghsu|16,|||
||n, related|||effective|Fulfil|
|Zhaoting||Optoelectronic Technology Co., Ltd as long|2015|||
||transaction||||lment|
|||as there are no alterations of the actual||||
||and capital|||||
|||controller and the holding company. Any||||
||occupation|||||
|||businesses opportunities under the main||||
|||business scope of Tunghsu Optoelectronic||||
|||Technology Co., Ltd and its controlled||||
|||companies shall not take by the companies||||
|||controlled by the actual controller or the||||
|||holding company, and the business||||
|||opportunities shall be given to Tunghsu||||
|||Optoelectronic Technology Co., Ltd and its||||
|||controlled companies.3. As long as the actual||||
|||controller and the holding company are the||||
|||same, the actual controller and the holding||||
|||company shall continue to strictly||||
|||performance the relevant declarations and||||
|||commitments of avoiding horizontal||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||competition. If I (the company) violated the||||
|||above commitment, I (the company) will bear||||
|||all the losses of Tunghsu Optoelectronic and||||
|||its controlled enterprises arising from this.||||
|||In order to safeguard the the company's main||||
|||business of TFT-LCD glass substrate||||
|||production, the controlling||||
|||shareholder-Tunghsu Group Co. Ltd made a||||
|||commitment valid in the period of the||||
|||company’s application for non-public share||||
|||issuance: given (1) The main business of||||
|||Tunghsu Optoelectronic Technology Co., Ltd||||
|||is TFT-LCD glass substrate production, and||||
|||currently it is applying for non-public share||||
|||issuance; (2) Tunghsu Group, which is the||||
|||controlling shareholder of Tunghsu||||
|||Optoelectronic, respectively signed Patent||||
|||Licensing Contract with Tunghsu||||
|||Optoelectronic, Tunghsu Optoelectronic’s||||
|||subsidiaries of Wuhu Tunghsu Optoelectronic||||
|||Technology Co., Ltd (hereinafter referred to||||
|||as "Wuhu Optoelectronics"), Wuhu Tunghsu||||
||||||Unde|
||Other|Optoelectronic Equipment Technology Co.,||Valid for||
||||December||r|
|Tunghsu Group|commitme|Ltd (hereinafter referred to as "Wuhu||December||
||||16,2015||Fulfil|
||nt|Equipment") and Shijiazhuang Tunghsu||31,2030||
||||||lment|
|||Optoelectronic Equipment Technology Co.,||||
|||Ltd (hereinafter referred to as "Shijiazhuang||||
|||Equipment") during the control period.||||
|||Therefore, Tunghsu Group made a||||
|||commitment as follows: In the term of||||
|||validity of the patents involved in the patent||||
|||licensing contract, whether Tunghsu Group||||
|||controls Tunghsu Optoelectronic or not, after||||
|||the commitment of the above-said Patent||||
|||Licensing Contract expired, Tunghsu Group||||
|||will, according to the requirements by||||
|||Tunghsu Optoelectronic, unconditionally||||
|||renew Patent Licensing Contract with||||
|||Tunghsu Optoelectronic and Tunghsu||||
|||Optoelectronic’s subsidiaries (Wuhu||||
|||Optoelectronics, Wuhu Equipment and||||
|||Shijiazhuang Equipment) according to the||||
|||original contract terms.||||
|Tunghsu|Share|The company, one of the subscription objects,|December16|Valid for|Unde|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Group;Changjia|limited|promised that after Tunghsu Optoelectronic|,2015|December|r|
|ng Securities|commitme|Technology Co., Ltd completed the non||16,2018|Fulfil|
|(Shanghai )Asse|nt|public issuance of shares to the company and|||lment|
|t Management||specific objects for raising funds, the shares||||
|Co.,||(New shares) issued by Tunghsu||||
|Ltd.;Kunshan||Optoelectronic Technology Co., Ltd and||||
|Development||subscribed by the company shall not be||||
|Zone State||transferred to any others in 36 months||||
|Investment Co.,||commenced from the publicly listed date of||||
|Ltd.;Beijing||the new shares. As a result of the issuance of||||
|Yingfei Hailin||new shares by the Company to the Company,||||
|Investment||the shareholding of Tunghsu Optoelectronic||||
|Center (Limited||Co., Ltd. by Tunghsu Optoelectronic Co., Ltd.||||
|partnership).||will also be subject to the above||||
|||commitments.||||
|||Not act in excess of authority to interfere the||||
|Tunghsu|Other|||Valid for|Com|
|||company’s management and operating|February|||
|Group,Li|Commitm|||December|plete|
|||activities, not encroach on the interests of the|6,2016|||
|Zhaoting|ent|||31,2019|d|
|||company.||||
|||(a) Promised that not freely or unfairly||||
|||transfer interests to other units or individuals,||||
|||nor adopt other ways to jeopardize the||||
|||company’s interests. (b) Promised that restrict||||
|||the post consumer behaviors of the directors||||
|||and senior management personnel. (c)||||
|||Promised that not use the company's assets to||||
|Li Zhaoting,||engage in the investment &consuming||||
|Zhou Bo,Niu||activities which are irrelevant to perform the||||
|Jianlin, Gong||duties. (d) Promised that the salary system set||||
|Xin, Lu||up by the board of directors or the||||
||||||Unde|
|Guihua, Mu|Other|Remuneration Committee is relevant to the||Valid for||
||||February||r|
|Tiehu, Zhang|Commitm|implementation status of the company’s||December||
||||6,2016||Fulfil|
|Shuangcai, Shi|ent|fill-up return measures. (e) Promised that the||31,2019||
||||||lment|
|Zhiqiang , Liu||vesting conditions of the company’s equity||||
|Wentai,Xiao||incentive are relevant to the implementation||||
|Zhaoxiong and||status of the company’s fill-up return||||
|Zhou Bo||measures. (f) Promised the full||||
|||implementation of the relevant fill-up return||||
|||measures established by the company and any||||
|||commitment related to the fill-up return||||
|||measures, if such commitment is breached||||
|||and resulted in losses to the company or the||||
|||investors, the concerning party shall take the||||
|||responsibility for compensating the company||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
||||or the investors according to the law. As one||||
||||of the relevant responsibility bodies of the||||
||||fill-up return measures, if the oneself breaches||||
||||the above-said commitments or refuse to||||
||||fulfill the above-said commitments, the||||
||||oneself agrees the punishments or relevant||||
||||supervise measures carried out in accordance||||
||||with the regulations and rules issued or||||
||||enacted by CSRC, Shenzhen Stock Exchange||||
||||and other securities regulatory organizations.||||
||||Before June 30, 2018, the entire equity of||||
||||Tunghsu Yingkou, which is held by Tunghsu||||
||||Group and is entrusted to the company's||||
||||management, will be injected into Tunghsu||||
||||Optoelectronic through cash purchase and||||
|||Commitm|||||
||||add-directional share issuance. During the||||
|||ents on|||||
||||above-mentioned period, if external factors||||
|||horizontal||||Unde|
||||such as the decline in the overall prosperity of||Valid for||
|||competitio||December||r|
||Tunghsu Group||the industry, changes in regulatory||June30,2||
|||n, related||14,2017||Fulfil|
||||requirements, and other external factors lead||018-||
|||transaction||||lment|
||||to Tunghsu Yingkou equity not meeting the||||
|||and capital|||||
||||conditions for asset injection, the actual||||
|||occupation|||||
||||controllers Li Zhaoting and Tunghsu Group||||
||||will actively consult with relevant parties and||||
||||continue to entrust the equity and operating||||
||||right of the above-said company to Tunghsu||||
||||Optoelectronic.||||
|Equity incentive|||||||
|commitment|||||||
||||To ensure Tunghsu Optoelectronic||||
||||Technology Co., Ltd realizing expected||||
||||benefits on the M&A of Shanghai Tanyuan||||
|||Performan|Huigu New Materials Technology Co., Ltd,||||
|||ce|the promisee voluntarily promised the profits||||
||Guo Shouwu,||||||
|||commitme|of Shanghai Tanyuan Huigu New Materials|||Unde|
|Other commitments|Ma Shengjie,||||Valid for||
|||nt and|Technology Co., Ltd for the next three years|March||r|
|made to minority|Wu Haixia ,||||December||
|||compensat|as follows: (a) Business performance|8,2016||Fulfil|
|shareholders|Shen Wenzhuo||||31,2019||
|||ion|commitment: the net profits of Shanghai|||lment|
||and Shen Li||||||
|||arrangeme|Tanyuan Huigu New Materials Technology||||
|||nts|Co., Ltd in year-2016, year-2017, year-2018||||
||||shall accordingly not be less than RMB 5||||
||||million, RMB 10 million, RMB 20 million.||||
||||(b) Compensation mode: if the net profits of||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||Shanghai Tanyuan Huigu New Materials||||
|||Technology Co., Ltd in year-2016, year-2017,||||
|||year-2018 accordingly do not reach the||||
|||promised net profits, the promised party shall||||
|||fully compensate the difference by cash.||||
|||All eight shareholders of Ming Shuo (Beijing)||||
|||Electronic Technology Co., Ltd namely Chen||||
|||Wei, Zhu Lei, Wang Yingchao, Jin Xiuzhen,||||
|Beijing Heyiyou||||||
|||Jiang Wei, Li Honglei, Beijing He Yiyou||||
|Investment|Performan|||||
|||Investment Partnership (limited partnership)||||
|Partnership( LP)|ce|||||
|||and Qian Xinming voluntarily make the||||
|;Chen Wei,|commitme||||Unde|
|||commitment for the profits of the next three||Valid for||
|Jiang Wei, Jin|nt and||May||r|
|||years of Ming Shuo (Beijing) Electronic||June||
|Xiuzhen, Li|compensat||11,2017||Fulfil|
|||Technology Co., Ltd and such commitment is||30,2020||
|Honglei, Qian|ion||||lment|
|||as follows: The audited net profits after tax in||||
|Xinming, Wang|arrangeme|||||
|||2017, 2018 and 2019 (determined by the||||
|Yingchao and|nts|||||
|||lower principle after the deduction of non||||
|Zhu Lei.||||||
|||recurring gains and losses) are no less than||||
|||RMB 10.5 million, RMB 20 million and||||
|||RMB 40 million respectively.||||
|||The controlling shareholder of the company,||||
|||Tunghsu Group, has announced its plan of||||
|||increasing its holding of shares not less than||||
|||1% and not exceeding 3% of the company’s||||
|||current total share capital via buying through||||
|||the Shenzhen Stock Exchange trading system||||
||Share||||Unde|
|||(i.e. the secondary market) with not less than||Valid for||
||holdings||February||r|
|Tunghsu Group||RMB 500 million and not exceeding RMB1.5||August||
||commitme||2,2018||Fulfil|
|||billion in the next six months since the date of||2,2018||
||nt||||lment|
|||the announcement (February 2, 2018).||||
|||Tunghsu Group promised not to reduce the||||
|||holdings of the company's shares during the||||
|||implementation period of this plan of||||
|||increasing share-holding and during the||||
|||statutory period.||||
|Shenzhen|Performan|In 2018-2020, Shenzhen Sanbao Innovation||||
|Sanbao|ce|||||
|Innovation and|commitme|Intelligence Co., Ltd. (hereinafter referred to|||Unde|
|||||Valid for||
|Technology|nt and|as Sanbao Innovation) will implement a|May||r|
|||||Decemver||
|Partnership|compensat|cumulative net profit amounting to not lower|29,2018||Fulfil|
|||||31,2020||
|(limited|ion|than RMB 75 million. To avoid ambiguity,|||lment|
|partnership);|arrangeme|the preceding net profit refers to the annual||||
|Zhuang|nts|after-tax net profit promised by Sanbao||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
||Yongjun; Lin|Innovation upon deduction of non-recurring|
||Lude|income and loss, subject to what is stated in|
|||the annual audit report. If the preceding|
|||promised cumulative performance is not|
|||fulfilled, parties shall agree that the|
|||undertaker shall convert and transfer|
|||corresponding share of equity of Sanbao|
|||Innovation to the Company free of charge to|
|||offset the balance of the outstanding net|
|||profit, whereas the cumulative equity of|
|||Sanbao Innovation transferred by the|
|||undertaker free of charge for supplementing|
|||the balance of the promised performance in|
|||the performance commitment period shall not|
|||be higher than 8%.|
|Executed timely or|||
||Yes||
|not?|||
|If the commitment has|||
|not been implemented|||
|at the end of the|||
|reporting period, it is|||
|necessary to explain|Not applicable||
|the specific reason of|||
|failure in|||
|implementation and|||
|the future work plan.|||

2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the forecast period, the company has assets or projects meet the original profit forecast made and the reasons explained
√Applicable□Not applicable
|||||||||
|-|-|-|-|-|-|-|-|
|Asset or Project||||||||
||Start date of|End date of the||||Disclosure||
|Name of|||Forecast|Actual|Reason for less||Reference for the|
||the forecasting|forecasting||||date of the||
|Earnings|||earnings|earnings|than forecast||Forecast|
||period|period||||Forecast||
|Forecast||||||||
|Shanghai||||||||
|Tanyuan Huigu|||||||Disclosed on|
|||December||||March||
|New Material|March 8,2016||2,000|2,060.8|Completed||cninfo.com.cn.( 2016-0|
|||31,2018||||9,2016||
|Technology Co.,|||||||30)|
|Ltd.||||||||
|Shanghai|November|December|40,000|42,523.26||March|Tunghsu|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Sunlong Bus|30,2017|31,2019||||21,2017|Optoelectronic|
|Co., Ltd.|||||||Technology Co., Ltd.|
||||||||Issued shares, paid|
||||||||cash to buy assets and|
||||||||raised supporting funds|
||||||||and related party|
||||||||transactions as|
||||||||published on|
||||||||cninfo.com.cn|
||||||||Tunghsu|
||||||||Optoelectronic|
||||||||Technology Co., Ltd.|
|Sichuan Xuhong|||||||Issued shares, paid|
|Optoelectronic|November|December||||March|cash to buy assets and|
||||9,800|9,912.72|Completed|||
|Technology Co.,|30,2017|31,2019||||21,2017|raised supporting funds|
|Ltd.|||||||and related party|
||||||||transactions as|
||||||||published on|
||||||||cninfo.com.cn|
||||||Please refer to|||
||||||the statement on|||
||||||the 2018|||
|Mingshuo||||||||
||||||performance|||
|（Beijing）|||||||Disclosed on|
|||December|||commitment of|May||
|Electronic|May 11,2017||2,000|273.65|||cninfo.com.cn.( 2017-0|
|||31,2019|||mingshuo|11,2017||
|Technology Co.,|||||||47)|
||||||Technology|||
|Ltd.||||||||
||||||disclosed by the|||
||||||company for|||
||||||details.|||
|Shenzhen||||||||
|Sanbao|||||||Disclosed on|
|||December||||May||
|Innovation|May 28,2018||750|-875.45|Not applicable||cninfo.com.cn.( 2018-0|
|||31,2020||||29,2018||
|Intelligence Co.,|||||||69, 2018-079)|
|Ltd.||||||||

The commitments of the operating earnings made by thecompany’s shareholder and relevant transaction parties√Applicable□Not applicable
1. The Company's shareholders including Tunghsu Group and Shanghai Huimao made a performance commitment for the report year regarding suchM&A targets as Xuhong Optoelectronics and Sunlong Bus in the Company's 2017 related transactions of issuing shares, buying assets by cash and raising supporting funds. In the report period, both Xuhong Optoelectronics and Sunlong Bus fulfilled the performance commitment. Data details
are shown in the preceding table.
2. In March 2016, the Company and five natural person shareholders of Shanghai Tanyuan Huigu including
Guo Shouwu, Ma Shengjie, Wu Haixia, Shen Wenzhuo and Shen Li (hereinafter referred to as the undertaker)
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report entered into a Performance Commitment to make a commitment to the business performance of Shanghai Tanyuan Huigu in the report period. Till the end of the report period, Shanghai Tanyuan Huigu fulfilled the commitment. Data details are shown in the preceding table.
3. In May 2017, Taizhou Tunghsu Graphene Industry Investment Fund Management Center (Limited Partnership) whose funds were managed by the Company's wholly-owned subsidiary Shenzhen Xuhui Investment Holding Limited and holding subsidiary Beijing Tunghsu Huaqing Investment Co., Ltd. entered into an Agreement on Equity Transfer and Capital and Share Increase at Mingshuo (Beijing) Electronic Technology Co., Ltd. with shareholders of MS Technology including Chen Wei, Zhu Lei, Wang Yingchao, Jin Xiuzhen, Jiang Wei, Li Honglei, Beijing Heyiyou Investment Partnership (Limited Partnership) and Qian Xinming regarding matters of equity transfer and capital and share increase at MS Technology, wherein a commitment was made to the business performance in the report period: the audited after-tax net profit in 2018 (or the amount after deduction of the non-recurring income and loss, whichever lower) is not lower than RMB 20 million. In the report period, MS Technology implemented RMB 2,736,500 in the after-tax net profit upon deduction of non-recurring income and loss, indicating its failure to fulfill the 2018 business performance commitment.
4. In June 2018, the Company invested and acquired Sanbao Innovation. According to the Agreement on Equity Transfer and Capital and Share Increase at Shenzhen Sanbao Innovation Intelligence Co., Ltd. concluded with shareholders of Sanbao Innovation including Lin Lvde, Zhuang Yongjun and Shenzhen Sanbao Innovation Technology Partnership (Limited Partnership) (hereinafter referred to as the undertaker), the undertaker made a commitment to profits of Sanbao Innovation in the following three years of their own accord: Sanbao Innovation implements a cumulative net profit amounting to not lower than RMB 75 million in 2018-2020, wherein the amount of 2018 performance commitment is calculated by actual remaining months upon the completion of the transaction in the following method: amount of 2018 performancecommitment=2018 promised netprofit×(12-months of payment of the Company's equity transfer and capital increase)/12. In June-December 2018, Sanbao Innovation implemented a net profit of RMB -8,754,500 upon deduction of non-recurring income and loss, which was accumulated to the cumulative performance commitment for the following year, not indicating its failure to fulfill the performance commitment.
Fulfillment of performance commitment and impact on goodwill impairment test
By the end of the report period, the Company entrusted an external professional appraisal institution--Zhongming (Beijing) Assets Appraisal International Co., Ltd. to appraise and test the goodwill of Shanghai Sunlong, Tanyuan Huigu, Mingshuo and Sanbao Innovation set out hereinbefore through theM&A. 1. Sunlong Bus and Shanghai Tanyuan Huigu which made normal operation and met profit expectation showed no sign of goodwill impairment.
2. Mingshuo Technology failed to fulfill the 2018 business commitment. Through a judgment on the current business situation of Mingshuo Technology and its development plan and market development trend for the five years to come, no sign of impairment was found in the goodwill incurred throughM&A of Mingshuo Technology in the appraisal test.
3. The 2018 unfulfilled performance of Sanbao Innovation was accumulated to the promised cumulative performance for the following year, not indicating its failure to fulfill the performance commitment. Through a judgment on the current business situation of Sanbao Innovation and its development plan and market development trend for the five years to come, no sign of impairment was found in the goodwill incurred throughM&A of Sanbao Innovation in the appraisal test.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable√ Not applicable
Nil
V. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the QualifiedAuditor’s Report Issued by the CPAs.
□ Applicable√ Not applicable
VI. Explanation change of the accounting policy, accounting estimate and measurement methods as compared with the financial reporting of last year.
√ Applicable□Not applicable
Accounting policy changes due to the implementation of the new Accounting Standards for Business Enterprises
On June26,2018，The Ministry of Finance issued the Notice on Revising and Issuing the Format of General Enterprise Financial Statements for 2018 (Caikuai[2018] No. 15).
The impact of the implementation of this accounting policy by the Company on the presentation of the items and amounts of the prior financial statements is as follows:
|||
|-|-|
|No|Name of affected item in the statements|
|1|Notes receivable|
||Account receivable|
||Notes receivable & accountreceivable|
|2|Interest receivable|
||Other receivable|
|3|Notes payable|
||Account payable|
||Notes payable & account payable|
|4|Interest payable|
||Dividend payable|
||Other payable|
|5|Management expenses|
||R & D ecpenses|

VII. Explanation retrospective restatement due to correction of significant accounting errors in the reporting period
□Applicable√ Not applicable
Nil
VIII. Explanation change of the consolidation scope as compared with the financial reporting of last year.
√ Applicable□Not applicable
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
|||||||||
|-|-|-|-|-|-|-|-|
|Name ofAcquirer|Time-point ofObtainedEquity|Obtained Cost ofEquity|Ratio ofObtainedEquity(100%)|Method ofObtainedEquity|PurchasingDate|DeterminationBasis on thePurchasingDate|Income ofAcquirefrom thePurchasingDate to theEnd of thePeriod|
|ShenzhenSanbaoInnovationIntelligenceCo., Ltd.|May 30,2018|157,598,587.50|67.00%|Enterpriseconsolidationnot under thesame control|May 30,2018|Acquisition ofcontrol|7,659,108.35|
|ZhongchengNationalconstruction1Co., Ltd.|May 30,2018|140,000,000.00|70.00%|Enterpriseconsolidationnot under thesame control|March 30,2018|Acquisition ofcontrol||
|HuaxiNanchongAutomobileCo., Ltd.|April 4,2018|56,000,000.00|100.00%|Enterpriseconsolidationnot under thesame control|April 4,2018|Acquisition ofcontrol||

2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In 10,000 yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Name|Proportion|Basis|Combinationdate|Recognitionbasis ofcombinationdate|income of thecombined partyfrom thebeginning of thecurrent period tothe date ofmerger|Net profit of themerged partyfrom thebeginning of thecurrent period tothe date ofmerger|Incomeof themergedpartyduringthecomparison period|
|Tunghsu(Yingkou)OptoelectronicDisplay Co.,Ltd.|65.00%|ParentCompany|June 30,2018|Pay theconsiderationand controlthe operation|27,289,664.99|-11,435,425.33|16,069,429.21|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 3. Disposal of subsidiaries
||||||||
|-|-|-|-|-|-|-|
|Name|Equity disposalprice|Proportion|Disposal way|Time of loss ofcontrol|Basis|differencebetween thedisposal priceand the disposalof theinvestment inthe consolidatedfinancialstatements atthe level of thenet assets of thesubsidiary|
|XuyouElectronicMaterialTechnology（Wuxi) Co.,Ltd.|550million|51.00%|Sales|April 28,2018|Received theconsideration,completed thetransfer ofproperty rights,lost control|3,182,206.12|

Continued
|||||||
|-|-|-|-|-|-|
|Name|Proportionofremainingequity onthe date ofloss ofcontrol|Book value ofthe remainingequity on thedate of loss ofcontrol|Fair value ofthe remainingequity on thedate of loss ofcontrol|Re-measurethe gain or lossarising fromthe remainingequity at fairvalue|Method fordetermining thefair value of theremaining equityon the date of lossof control and mainassumptions|
|XuyouElectronicMaterialTechnology（Wuxi) Co.,Ltd.|0.00%|0.00|0.00|0.00|0.00|

4. The total that this period adds wants subsidiary company
（1）On March 8,2018,Shenzhen Xuhui Investment Holding Co., Ltd and Jiangxi University of Science and Technology set up a subsidiary-Beijing Xujiang Technology Co., Ltd., with the registered capital of RMB 22.7345 million and the paid-up capital of RMB 22.7345 million. Of which, Shenzhen Xuhui Investment Holding Co., Ltd.Subscribet and pays RMB 12 million, holding52.78% of the shares. Jiangxi University of Science and
Technology subscribet and pays RMB 10.7345 million , holding47.22% of the shares.
（2）On March 23,2018, Mingshuo(Beingjing )Electronic Technology Co., Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB30
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report million and the paid-up capital of RMB200.00.
（3）On May 17,2018, Tunghsu Constructtion Group Co., Ltd .set up a wholly-owned subsidiary- Luoyang Construction Engineering Co., Ltd ., With the registered capital of RMB 100 million and the paid-up capital of RMB 100 million.
（ 4） On July 16,2018, Mingshuo(Beijing)Electronic Technology Co., Ltd.set up a wholly-owned subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB 30 million and the paid-up capital of RMB 100,000;
（5）On July 26,2018, Jiangsu Yitai Intelligent Equipment Co., Ltd. acquired equity of Tunghsu Ruiqi (Beijing) Technology Co., Ltd. With the registered capital of RMB 20 million , Jiangsu Tunghsu Yitai Intelligent Equipment Co., Ltd. holds51% of the shares, Liu Yang holds32% of the shares, Xiajinlong holds17% of the shares.
（6）November 6,2018, Tunghsu Optoelectronic Technology Co., Ltd.set up a wholly-owned subsidiary-Anhui Xuan Optoelectronic Technology Co., Ltd., With the registered capital of RMB 1 million and the paid-up capital of RMB10 million.
IX.Engagement/Disengagement of CPAs
CPAs currently engaged
|||
|-|-|
|Name of the domestic CPAs|Hebei Guanghua Accounting Firms Co., Ltd.(LLP)|
|Remuneration for domestic accounting firm (RMB10,000)|350|
|Continuous life of auditing service for domestic accounting firm|6|
|Name of domestic CPA|Qi Zhenghua, Meing Xiaoguang|
|Continuous life of auditing service for domestic accounting firm|5|

Has the CPAs been changed in the current period
□ Yes√ No
CPAs firm for the internal control audit
□ Applicable√ Not applicable
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report□Applicable√ Not applicable
XI.Relevant Matters of Bankruptcy Reorganization
□Applicable√ Not applicable
Nil
XII.Matters of Important Lawsuit and Arbitration
□Applicable√ Not applicable
Nil
XIII.Situation of Punishment and Rectification
□Applicable√ Not applicable
Nil
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable√ Not applicable
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or Other Employee Incentive Measures
√Applicable□ Not applicable
1. The Company's first session of staff shareholding plan totaled RMB 495.4 million and involved full-amount subscription of 72,639,296 shares in the Company's 2015 private placement through Changjiang Xingli No.2 Directed Issue Plan at cost price of RMB 6.82/share. Going public at Shenzhen Stock Exchange on December 17, 2015, the preceding shares will sustain 48 months in total. The restriction on sales was relieved in the staff shareholding plan on December 18, 2018. The due date is December 16, 2019.
2. The Company set up the second session of its staff shareholding plan on September 5, 2017. Through the assembled fund trust plan of the Zhonghai Trust-Tunghsu Optoelectronic Staff Shareholding Plan, 52,555,280 shares of the Company were bought at the secondary market in such methods as centralized bidding and block trade, involving the amount of RMB 496,412,100, RMB 9.45/share in average; on December 28, 2017, the transaction was completed and funds earned were transferred to the account of the assembled fund trust plan. The duration is 24 months, and the duration of the Employee Stock Ownership Plan will expire on September 4, 2019. XVI.Material related transactions
1. Related transactions in connection with daily operation
√ Applicable□ Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Whethe|||||
|||||||||Trading|r over|||||
|||||Principl||||limit|the|||||
||||||||||||Market||Index|
||||Subjects|e of||Amount||||||||
|||||||||approve|approve||price of||of|
||||of the|pricing||of trade|Ratio in|||Way of||Date of||
|Related|Relation|Type of|||Price of||||||similar||informa|
||||related|the||(Ten|similar|||paymen||disclosu||
|parties|ship|trade|||trade|||d（Ten|d||trade||tion|
||||transacti|related||Thousa|trades|||t||re||
||||||||||||availabl||disclos|
||||ons|transacti||nds)||||||||
|||||||||Thousa|limited||e||ure|
|||||ons||||||||||
|||||||||nds）|or not|||||
||||||||||(Y/N)|||||
||Controll|||||||||||||
|||Selling||||||||||||
|Beijing|ed by|||||||||||||
|||goods|Constru||||||||||http://w|
|Zhonghua|the|||Referen||||||||||
|||and|ction||19,613.|19,613.||14,543.||Currenc|19,613.|January|ww.cni|
|n Xinrong|same|||ce price|||||No|||||
|||providin|Enginee||27|27||56||y|27|27,2018|nfo.co|
|Trade|actual|||setting||||||||||
|||g|ring||||||||||m.cn|
|Co., Ltd.|controll|||||||||||||
|||services||||||||||||
||er|||||||||||||
|Huidong|Controll|Selling||||||||||||
|Baoan|ed by|goods|Constru||||||||||http://w|
|||||Referen||||||||||
|Jinan|the|and|ction|ce price|31,340.|31,340.||31,340.|No|Currenc|31,340.|April|ww.cni|
|Real|same|providin|Enginee||93|93||93||y|93|20,2018|nfo.co|
|||||setting||||||||||
|estate|actual|g|ring||||||||||m.cn|
|Develop|controll|services||||||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ment Co.,|er|||||||||||||
|Ltd.||||||||||||||
|Kunming||||||||||||||
||Controll|||||||||||||
|Tunghsu||Selling||||||||||||
||ed by|||||||||||||
|Qiming||goods|Constru||||||||||http://w|
||the|||Referen|29,849.|29,849.|||||29,849.|||
|Investme||and|ction|||||||Currenc||April|ww.cni|
||same|||ce price|72|72||35,000|No||72|||
|nt||providin|Enginee|||||||y||20,2018|nfo.co|
||actual|||setting||||||||||
|Develop||g|ring||||||||||m.cn|
||controll|||||||||||||
|ment Co.,||services||||||||||||
||er|||||||||||||
|Ltd.||||||||||||||
||Controll|||||||||||||
|||Selling||||||||||||
|Shengzho|ed by|||||||||||||
|||goods|Constru||||||||||http://w|
|u Zhexu|the|||Referen||||||||||
|||and|ction||13,213.|13,213.||||Currenc|13,213.|April|ww.cni|
|Real|same|||ce price||||20,000|No|||||
|||providin|Enginee||64|64||||y|64|20,2018|nfo.co|
|Estate|actual|||setting||||||||||
|||g|ring||||||||||m.cn|
|Co., Ltd.|controll|||||||||||||
|||services||||||||||||
||er|||||||||||||
|Zhangzho||||||||||||||
||Controll|||||||||||||
|u||Selling||||||||||||
||ed by|||||||||||||
|Shenghua||goods|Constru||||||||||http://w|
||the|||Referen||||||||||
|Real||and|ction||15,910.|||||Currenc||April|ww.cni|
||same|||ce price||15,910||20,000|No||15,910|||
|Eaeste||providin|Enginee||00|||||y||20,2018|nfo.co|
||actual|||setting||||||||||
|Develop||g|ring||||||||||m.cn|
||controll|||||||||||||
|ment Co.,||services||||||||||||
||er|||||||||||||
|Ltd.||||||||||||||
|Zhongsha||||||||||||||
||Controll|||||||||||||
|n||Selling||||||||||||
||ed by|||||||||||||
|Shenzhon||goods|Constru||||||||||http://w|
||the|||Referen||||||||||
|g Real||and|ction||38,804.|38,804.||||Currenc|38,804.|April|ww.cni|
||same|||ce price||||38,804.|No|||||
|Eaeste||providin|Enginee||29|29||||y|29|20,2019|nfo.co|
||actual|||setting||||29||||||
|Develop||g|ring||||||||||m.cn|
||controll|||||||||||||
|ment Co.,||services||||||||||||
||er|||||||||||||
|Ltd.||||||||||||||
|||||||148,731|--|159,688||||||
|Total||||--|--||||--|--|--|--|--|
|||||||.85||.78||||||
|Details of any sales return of a large||||||||||||||
|||||Nil||||||||||
|amount||||||||||||||
|Give the actual situation in the report||||||||||||||
|period where a forecast had been||||||||||||||
|made for the total amounts of routine||||Nil||||||||||
|related-party transactions by type to||||||||||||||
|occur in the current period(if any)||||||||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|Reason for any significant difference||
|between the transaction price and the|Not applicable|
|market reference price (if applicable)||

2. Related-party transactions arising from asset acquisition or sale
√ Applicable□Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Valuation||||||
||||||Book|||||||
|||||||of||||||
|||||Principle|value of||||Transacti|||
||||Subjects|of pricing||transferre|Transfer||||Index of|
||||of the||assets|||Way of|on gain or|||
|Related|Relations|Type of|related|the||d assets|price（Ten|||Date of|informati|
|parties|hip|trade||related|transferre|||payment|loss（Ten|disclosure|on|
||||transactio|transactio||（Ten|thousand）||||disclosure|
||||ns||d（Ten||||thousand）|||
|||||ns||thousand）||||||
||||||thousand）|||||||
|||||||（If any）||||||
|TunghsuT||||||||||||
||||Disposal|||||||||
|echnolo||||Based on|||||||http://ww|
||Same|Equity|of|||||Monetary||April||
|gy||||audited|54,681.78|0|55,000||-318.22||w.cninfo.|
||control|transfer|subsidiari|||||funds||14,2018||
|Group||||net assets|||||||com.cn|
||||es|||||||||
|Co., Ltd.||||||||||||
|Reasons for the difference between the||||||||||||
|transfer price and the book value or||||Nil||||||||
|valuation value（If any）||||||||||||
|Impact on the company's operating results||||||||||||
|||||Nil||||||||
|and financial status||||||||||||
|If the relevant transaction involves||||||||||||
|performance agreement, the performance||||Nil||||||||
|of the report during the reporting period||||||||||||

3. Related-party transitions with joint investments
□Applicable√ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
□Applicable√ Not applicable
No such cases in the reporting period.
5. Other significant related-party transactions
□Applicable√ Not applicable
No such cases in the reporting period.
XVII.Particulars about significant contracts and their fulfillment
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable√ Not applicable
No such cases in the reporting period.
(2) Contract
□ Applicable√ Not applicable
No such cases in the reporting period.
(3) Lease
□ Applicable√ Not applicable
No such cases in the reporting period.
2.Guarantees
√Applicable□Not applicable
（1）Guarantees
In RMB10,000
||||||||||
|-|-|-|-|-|-|-|-|-|
|Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)|||||||||
||Relevant||||||||
||||Date of|||||Guarantee|
||disclosure||||||Complete||
||||happening|Actual||||for|
||date/No. of|Amount of|||||implementa||
|Name of the Company|||(Date of|mount of|Guarantee type|Guarantee term||associated|
||the|Guarantee|||||tion||
||||signing|guarantee||||parties|
||guaranteed||||||or not||
||||agreement)|||||(Yes or no)|
||amount||||||||
|Auto sales mortgagecustomers|July14,2018|150,000||42,510.39|The jointliabilityguaranty||No|No|
|||150,000||Total of external guarantee||42,510.39|||
|Total of external guarantee|||||||||
|||||actually occurred in the|||||
|approved in the report term (A1)|||||||||
|||||report term (A2)|||||
|Total of external guarantee||150,000||Total of external guarantee||42,510.39|||
|approved as of end of report term||||actually occurred as of end|||||
|(A3)||||of report term (A4)|||||
|Guarantee of the company for its subsidiaries|||||||||
||Amount of||Actual date of||||||
|||Amount of||Actual|||||
||guarantee||occurring||Type of||Complete|Related|
|Guarantee provided to||the||amount of||Term|||
||and date of||(signing date of||guarantee||d or not|guarantee|
|||guarantee||guarantee|||||
||disclosure||agreements||||||
||||||The joint||||
||June||November||||||
|Wuhu Optoelectronic||132,000||71,250|liability|96 months|No|No|
||20,2013||12,2013||||||
||||||guaranty||||
||||||The joint||||
||September||||||||
|Wuhu Optoelectronic||90,000|February 6,2014|41,250|liability|96 months|No|No|
||27,2013||||||||
||||||guaranty||||
||April||||The joint||||
|Wuhu Equipment||150,000|October 30,2014|33,000||96 months|No|No|
||11,2014||||liability||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||guaranty||||
||||||The joint||||
||November||December||||||
|Wuhu Optoelectronic||52,300||43,341.17|liability|72months|No|No|
||18,2016||2,2016||||||
||||||guaranty||||
||||||The joint||||
|Xuhong|January||||||||
|||8,000|February 9,2018|8,000|liability|12months|No|No|
|Optoelectronic|11,2018||||||||
||||||guaranty||||
||March||||||||
|Guangxi Sunlong||5,000||0|||No|No|
||10,2018||||||||
||||||The joint||||
||March||||||||
|Sunlong Bus||10,000|March 27,2018|7,000|liability|12months|No|No|
||10,2018||||||||
||||||guaranty||||
||||||The joint||||
||March||||||||
|Sunlong Bus||6,000|April 2,2018|3,000|liability|12months|No|No|
||10,2018||||||||
||||||guaranty||||
||||||The joint||||
||March||||||||
|Sunlong Bus||5,000|March 30,2018|5,000|liability|12months|No|No|
||27,2018||||||||
||||||guaranty||||
||March||||||||
|Guangxi Sunlong||10,000||0|||||
||27,2018||||||||
||||||The joint||||
||March||||||||
|Wuhu Optoelectronic||10,000|March 28,2018|10,000|liability|12months|No|No|
||27,2018||||||||
||||||guaranty||||
||||||The joint||||
||March||||||||
|Wuhu Optoelectronic||10,000|March 27,2018|10,000|liability|12months|No|No|
||27,2018||||||||
||||||guaranty||||
||||||The joint||||
||April||||||||
|Wuhu Optoelectronic||7,000|April 24,2018|5,000|liability|12months|No|No|
||14,2018||||||||
||||||guaranty||||
||||||The joint||||
||April||||||||
|Guangxi Sunlong||4,950|April 28,2018|2,500|liability|12months|No|No|
||14,2018||||||||
||||||guaranty||||
||||||The joint||||
|Zhenzhen Xin Ying|April||||||||
|||10,000||10,000|liability|12months|No|No|
|Tong|14,2018||||||||
||||||guaranty||||
|||||||The|||
||||||The joint|guarantee|||
||May||||||||
|Tunghsu （Kunshan）||38,000|May 14,2018|38,000|liability|period is|No|No|
||11,2018||||||||
||||||guaranty|from the date|||
|||||||when the|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||pledge right|||
|||||||is established|||
|||||||to the date|||
|||||||when all the|||
|||||||guaranteed|||
|||||||debts under|||
|||||||the Finance|||
|||||||Lease|||
|||||||Contract are|||
|||||||paid off.|||
||||||The joint||||
||June||||||||
|Zhengzhou Xufei||5,000|June 29,2018|5,000|liability||No|No|
||13,2018||||||||
||||||guaranty||||
||||||The joint||||
||June||||||||
|Suzhou Tengda||5,000|June 28,2018|2,000|liability||No|No|
||13,2018||||||||
||||||guaranty||||
||||||The joint||||
||June||||||||
|Wuhu Tunghsu||15,000|June 26,2018|15,000|liability||No|No|
||16,2018||||||||
||||||guaranty||||
||||||The joint||||
||June||||||||
|Wuhu Equipment||15,000|June 29,2018|15,000|liability||No|No|
||16,2018||||||||
||||||guaranty||||
||July||||||||
|Suzhou Tengda||2,000||0|||||
||14,2018||||||||
||July||||||||
|Shanghai Sunlong||20,000||0|||||
||14,2018||||||||
||July||||||||
|Zhengzhou Xufei||20,000||0|||||
||14,2018||||||||
||||||The joint||||
||July||||||||
|Tunghsu（Kunshan）||15,000|July 26,2018|4,950|liability||No|No|
||14,2018||||||||
||||||guaranty||||
||||||The joint||||
|Shenzhen Xin Ying|July||||||||
|||10,000|July 28,2014|10,000|liability||No|No|
|Tong|28,2018||||||||
||||||guaranty||||
||||||The joint||||
||July||September||||||
|Guangxi Sunlong||10,000||5,000|liability||No|No|
||28,2018||10,2018||||||
||||||guaranty||||
||||||The joint||||
|Chongqing|August||September||||||
|||2,000||1,000|liability||No|No|
|Jinghuateng|4,2018||26,2018||||||
||||||guaranty||||
|Zhengzhou Xufei|August|8,000|September|8,000|The joint||No|No|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
||31,2018||18,2018||liability|||
||||||guaranty|||
||||||The joint|||
||September||November|||||
|Shanghai Sunlong||4,000||2,000|liability|No|No|
||22,2018||5,2018|||||
||||||guaranty|||
||||||The joint|||
||September||September|||||
|Jiangsu Jixing||10,000||9,235.07|liability|No|No|
||22,2018||30,2018|||||
||||||guaranty|||
||||||The joint|||
||September||September|||||
|Zhengzhou Xufei||12,000||12,000|liability|No|No|
||22,2018||28,2018|||||
||||||guaranty|||
||||||The joint|||
|Chongqing|September||September|||||
|||2,000||2,000|liability|No|No|
|Jinghuateng|22,2018||27,2018|||||
||||||guaranty|||
||||||The joint|||
||October||December|||||
|Hunan Tunghsu Delai||12,000||2,000|liability|No|No|
||20,2018||19,2018|||||
||||||guaranty|||
||||||The joint|||
||October||November|||||
|Guangxi Sunlong||30,000||5,000|liability|No|No|
||20,2018||29,2018|||||
||||||guaranty|||
||||||The joint|||
||October|||||||
|Jingsu Tunghsu Yitai||2,000||0|liability|||
||20,2018|||||||
||||||guaranty|||
||||||The joint|||
||October|||||||
|Suzhou Tengda||2,000|October 31,2018|2,000|liability|No|No|
||31,2018|||||||
||||||guaranty|||
||||||The joint|||
|Chongqing|October||November|||||
|||2,500||2,500|liability|No|No|
|Jinghuateng|31,2018||20,2018|||||
||||||guaranty|||
||||||The joint|||
||October||December|||||
|Guangxi Sunlong||30,000||11,000|liability|No|No|
||31,2018||28,2018|||||
||||||guaranty|||
||||||The joint|||
||November||December|||||
|Suzhou Tengda||2,500||2,500|liability|No|No|
||24,2018||3,2018|||||
||||||guaranty|||
||||||The joint|||
||November||December|||||
|Tunghsu （Kunshan）||30,000||10,000|liability|No|No|
||24,2018||11,2018|||||
||||||guaranty|||
|Zhengzhou Xufei|December|||||||
|||202,400||||||
|Optoelectronic|26,2018|||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|Technology Co., Ltd.,|||||||||
|Sichuan Xuhong|||||||||
|Optoelectronic|||||||||
|Technology Co., Ltd.,|||||||||
|Wuhu Tunghsu|||||||||
|Optoelectronic|||||||||
|Equipment|||||||||
|Technology Co., Ltd.,|||||||||
|Chenzhou Xuhong|||||||||
|Transportation|||||||||
|Construction Co.,Ltd.,|||||||||
|Shenzhen Wuyulunbi|||||||||
|Technology Co., Ltd,|||||||||
|Hunan Tunghsu Delai|||||||||
|Electric Technology|||||||||
|Co., ltd., Chongqing|||||||||
|Jinghuateng|||||||||
|Optoelectronic|||||||||
|Technology and|||||||||
|Fuzhou Xufu|||||||||
|Optoelectronic|||||||||
|Technology Co., Ltd.|||||||||
||||||The joint||||
||December||||||||
|Shanghai Sunlong||2,500||0|liability||No|No|
||26,2018||||||||
||||||guaranty||||
|||||Total of actual guarantee|||||
|Total of guarantee for subsidiaries|||||||||
|||594,850||for subsidiaries in the||264,500|||
|approved in the Period (B1)|||||||||
|||||Period (B2)|||||
|||||Total of actual guarantee|||||
|Total of guarantee for subsidiaries|||||||||
|||1,104,150||for subsidiaries at||224,685|||
|approved at Period-end (B3)|||||||||
|||||Period-end (B4)|||||
|Guarantee of the subsidiaries for the controlling subsidiaries|||||||||
|||||||||Guarante|
||Relevant|||||||e|
||||Date of||||Complete||
||disclosure|||||||for|
|Name of the||Amount|happening|Actual|||implemen||
||date/No. of||||Guarantee|Guarantee||associate|
|Company||of|(Date o|mount of|||tation||
||the||||type|term||d|
|guaranteed||guarantee|signing|guarantee|||or||
||guaranteed|||||||parties|
||||agreement)||||not||
||amount|||||||(Yes or|
|||||||||no)|
|The Company’s total guarantee(i.e.total of the first three main items)|||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|||Total amount of guarantee||
|Total guarantee quota approved in||actually incurred in the||
||744,850||307,010.39|
|the reporting period（A1+B1+C1）||reporting period||
|||（A2+B2+C2）||
|||Total balance of the actual||
|Total guarantee quota already||||
|||guarantee at the end of the||
|approved at the end of the|1,254,150||267,195.39|
|||reporting period||
|reporting period（A3+B3+C3）||||
|||（A4+B4+C4）||
|The proportion of the total amount of actually guarantee in the net||||
|||8.22%||
|assets of the Company (that is A4+B4+C4）%||||
|Including：||||
|Amount of guarantee for shareholders, actual controller and its||||
|||0||
|associated parties（D||||
|The debts guarantee amount provided for the Guaranteed parties||||
|||0||
|whose assets-liability ratio exceed 70% directly or indirectly（E）||||
|Proportion of total amount of guarantee in net assets of the||||
|||0||
|Company exceed 50% (F)||||
|Total guarantee Amount of the abovementioned guarantees||||
|||0||
|（D+E+F）||||
|Explanations on possibly bearing joint and several liquidating||||
|||No||
|responsibilities for undue guarantees (if any)||||
|Explanations on external guarantee against regulated procedures||||
|||No||
|(if any)||||

Description of the guarantee with complex method
（2）Illegal providing of external guarantees
□ Applicable√ Not applicable
No illegal providing of external guarantees in the report period.
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
Nil
(2)Situation of Entrusted Loans
□ Applicable√ Not applicable
Nil
4. Other significant contract
□ Applicable√ Not applicable
Nil
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report XVIII. Social responsibilities
1. Performance of poverty relieving responsibilities
See the Corporate Social Responsibility Report disclosed by the Company on the same day for details.
2.Overview of the annual targeted poverty alleviation
(1) Precision poverty alleviation planning
（2）Half-year poverty relieving summary
1. On February 2, 2018, Tunghsu Photoelectricity donated the first batch of 300 graphene heaters to Fuping County, Hebei Province for free in order to realize clean heating in winter. At the same time, it also donated 200,000 yuan worth of books. This donation is only the first pilot project, and the scope of donation will be appropriately expanded in the later period according to the operation situation.
2. On February 8, 2018, Tunghsu Photoelectricity donated 530 sets of graphene heaters which worth 890,400 yuan and 200,000 yuan worth of books to the central primary school at Gonghui Town, Zhangbei County, Hebei Province and to center gerocomium at Haojiaying township to help primary school students and widows and orphans live in warm in the winter and do their part in the primary and secondary education.
3. On June 19, 2018, Guangxi Sunlong Automobile Manufacturing Co., Ltd., a wholly-owned subsidiary of the company, donated 228,500 yuan to Zhongdang village, which lies at Jiafang Township, Mashan County, Guangxi Province, so as to assist in the Sunlong twinning project of poverty alleviation project of the deep poverty-stricken village in Guangxi: reservoir project of drinking water engineering.
4. During the reporting period, Shanghai Sunlong, Jiangsu Jixing and Suzhou Tenda, which are the wholly-owned subsidiaries of the company, donated 10,000 yuan, 10,000 yuan and 20,000 yuan respectively for poverty alleviation.
3.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
Yes
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Main|||||||||
||pollutant|||Emission|Emission|||Verified||
|Company or|||Emissio|||Implemented|Total||Excessive|
||and|||port|concentratio|||total||
|subsidiary||Emission way|n port|||pollutant emission|emission||emission|
||specific|||distribution|n|||emission||
|name|||number|||standards|||condition|
||pollutant|||condition|(mg/Nm3)|||(Tons)||
||name|||||||||
|||||Total||||||
|Fuzhou||||||||||
|||After the||wastewater||||||
|Tunghsu||||||Integrated||||
|||treatment reaches||discharge||||||
|Optoelectro||||||Wastewater|3.19T/ye|117.1T/y|Not|
||COD|the standard, it|1|outlet in|25mg/L|||||
|nic||||||Discharge Standard|ar|ear|exceeded|
|||enters the urban||southeast||||||
|Technology||||||GB8978-1997||||
|||sewage pipe||corner of||||||
|Co., Ltd.||||||||||
|||network||plant area||||||
|Fuzhou|Ammoni||1|Total|6.8mg/L|Water quality|0.87T/ye|15.6T/ye||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Tunghsu|a|||wastewater||standard for sewage|ar|ar||
|Optoelectro|Nitrogen|||discharge||to be discharged into||||
|nic||||outlet in||urban sewage drain||||
|Technology||||southeast||CJ-343-2010||||
|Co., Ltd.||||corner of||||||
|||||plant area||||||
|||||Furnace||||||
|||||exhaust gas:||||||
|||||60-meter||||||
||||||||||On April|
|||||high||||||
||||||||||28, 2018,|
|||||chimney||||||
||||||||||the|
|||||batching||||||
||||||||||coordinat|
|||||particulate||||||
||||||||||ed|
|||||matter in|NOX≤700m||NOX：|||
|||||||||NOX：|monitorin|
||NOX,|||northwest|g/m³||82.67ton|||
|||||||||82.67ton|g of the|
||SO2,|||of the plant|SO2≤400m||s|||
|||||||||s/year|ai r|
||particulat|||area:|g/m³||/year|||
|||After being treated||||||SO2：|monitorin|
|Sichuan|e matter|||crushed|Granule||SO2：|||
|||by dust removal||||||8.49|g and|
|Xuhong|(melting|||glass feed|(melting|Emission Standard of|1.28|||
|||system and||||||tons/yea|measurin|
|Optoelectro|furnace),|||particulate|furnace)|Air Pollutants for|tons/yea|||
|||denitration|3|||||r|g tube|
|nic|particulat|||matter on|≤50mg/m³|F la t G la s s Industry|r|||
|||system, it is||||||Particula|showed|
|Technology|e matter|||batching|Particulate|(GB26453-2011)|Particula|||
|||discharged into||||||te|that the|
|Co., Ltd.|(ingredie|||roof in|matter||te|||
|||the atmosphere||||||matter:|company'|
||nts,|||northwest|(batching,||matter:|||
|||||||||6.23|s glass|
||broken|||of the plant|broken||2.09|||
|||||||||tons/yea|furnace|
||glass)|||area: 3rd|glass)≤30m||tons/yea|||
|||||||||r|emitted|
|||||floor of|g/m³||r|||
||||||||||742mg/m|
|||||crushed||||||
||||||||||3 of NOX|
|||||glass||||||
||||||||||(emission|
|||||feeding||||||
||||||||||limit: 700|
|||||building in||||||
||||||||||mg/m3|
|||||northwest||||||
|||||of the plant||||||
|||||area||||||
|||||1 chimney|Flue gas|The flue gas of glass||||
|||The furnace flue||||||||
|||||for the|discharge|furnace shall be||||
|||gas is discharged||||||||
|Zhengzhou||||||||||
|||||first-stage|port of|subject to the limit||||
|||after being treated||||||||
|Xufei||||glass|first-stage|values in Table 2 of||||
|||by a bag filter, and||||||||
|Optoelectro|Nitrogen|||furnace, 1|furnace:|Emission Standard of||10.014t/|Not|
|||the boiler flue gas|5||||9.72t/a|||
|nic|oxides|||chimney for|161.3|Air Pollutants for||a|exceeded|
|||is discharged after||||||||
|Technology||||the|mg/m3. Flue|Electronic Glass||||
|||being treated by a||||||||
|Co., Ltd.||||second-stag|gas|Industry||||
|||low-nitrogen||||||||
|||||e glass|discharge|(GB29495-2013),||||
|||burner||||||||
|||||furnace, and|port of|and the flue gas of||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
||||1 chimney|second-stag|boiler shall be||||
||||for each of|e furnace:|subject to the||||
||||the 3 natural|205.7|emission limit values||||
||||gas boilers|mg/m3.|in Table 1 of||||
||||||Emission Standard of||||
||||||Air Pollutants for||||
||||||Boiler||||
||||||(GB13271-2014)||||
||||||The flue gas of glass||||
||||||furnace shall be||||
||||1 chimney||subject to the limit||||
||||for the||values in Table 2 of||||
|||||Flue gas|||||
||||first-stage||Emission Standard of||||
|||||outlet of|||||
||||glass||Air Pollutants for||||
|||||first-stage|||||
|Zhengzhou|||furnace, 1||Electronic Glass||||
|||||furnace: not|||||
|Xufei|||chimney for||Industry||||
|||||detected.|||||
|Optoelectro|Sulphur||the||(GB29495-2013),|0.0466t/||Not|
|||5||Flue gas|||1.387t/a||
|nic|Dioxide||second-stag||and the flue gas of|a||exceeded|
|||||outlet of|||||
|Technology|||e glass||boiler shall be||||
|||||second-stag|||||
|Co., Ltd.|||furnace, and||subject to the||||
|||||e furnace:|||||
||||1 chimney||emission limit values||||
|||||not|||||
||||for each of||in Table 1 of||||
|||||detected.|||||
||||the 3 natural||Emission Standard of||||
||||gas boilers||Air Pollutants for||||
||||||Boiler||||
||||||(GB13271-2014)||||
||||||The flue gas of glass||||
||||||furnace shall be||||
||||1 chimney||||||
||||||subject to the limit||||
||||for the|Flue gas|||||
||||||values in Table 2 of||||
||||first-stage|discharge|||||
||||||Emission Standard of||||
||||glass|port of|||||
||||||Air Pollutants for||||
|Zhengzhou|||furnace, 1|first-stage|||||
||||||Electronic Glass||||
|Xufei|||chimney for|furnace:|||||
||||||Industry||||
|Optoelectro|Particula||the|8.44mg/m³.||||Not|
|||5|||(GB29495-2013),|0.827t/a|\||
|nic|tes||second-stag|Flue gas||||exceeded|
||||||and the flue gas of||||
|Technology|||e glass|discharge|||||
||||||boiler shall be||||
|Co., Ltd.|||furnace, and|port of|||||
||||||subject to the||||
||||1 chimney|second-stag|||||
||||||emission limit values||||
||||for each of|e furnace:|||||
||||||in Table 1 of||||
||||the 3 natural|25.1mg/m³|||||
||||||Emission Standard of||||
||||gas boilers||||||
||||||Air Pollutants for||||
||||||Boiler||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||(GB13271-2014)||||
|||||The||||||
|Zhengzhou||||||Implementation of||||
|||||company||||||
|Xufei||||||the integrated sewage||||
|||||has set up a||||||
|Optoelectro||||||discharge standard|||Not|
||COD|Domestic|1|total|62.3mg/L||5.02t/a|9.1t/a||
|nic||||||(GB8978-1996) table|||exceeded|
|||wastewater is||wastewater||||||
|Technology||||||4 secondary||||
|||discharged after||discharge||||||
|Co., Ltd.||||||standards||||
|||biochemical||port||||||
|||(AO2) treatment,||The||||||
|Zhengzhou||||||Implementation of||||
|||and production||company||||||
|Xufei||||||the integrated sewage||||
||Ammoni|wastewater is||has set up a||||||
|Optoelectro||||||discharge standard|||Not|
||a|discharged after|1|total|0.763mg/L||0.08t/a|0.13t/a||
|nic||||||(GB8978-1996) table|||exceeded|
||Nitrogen|||wastewater||||||
|Technology||||||4 secondary||||
|||||discharge||||||
|Co., Ltd.||||||standards||||
|||||port||||||
|Tunghsu||Grinding||Near the||Integrated||||
||||||||Wastewa|||
|（Yingkou）||wastewater and||gate on the||Wastewater||Wastewa||
||Wastewa||||||ter|||
|Photoelectri||cleaning|1|east side of|6-9|Discharge Standard||ter|No|
||ter PH||||||volume|||
|c display||wastewater are||the plant||of Liaoning Province||volume||
||||||||535m3/d|||
|Co., Ltd.||respectively||area||（DB21/1627-2008）||||
|Tunghsu||treated by the||Near the||Integrated||||
|||grinding||||||||
|（Yingkou）||||gate on the||Wastewater||||
||Wastewa|||||||||
|Photoelectri||wastewater|1|east side of|52.07mg/L|Discharge Standard|9.93t/a|57.21t/a|No|
||ter COD|||||||||
|||treatment system||||||||
|c display||||the plant||of Liaoning Province||||
|||and the cleaning||||||||
|Co., Ltd.||||area||（DB21/1627-2008）||||
|||wastewater||||||||
|Tunghsu||||Near the||Integrated||||
|||treatment system,||||||||
|（Yingkou）||||gate on the||Wastewater||||
||Wastewa|and then, together||||||||
|Photoelectri|||1|east side of|28.78mg/L|Discharge Standard|5.44t/a|56.71t/a|No|
||ter SS|with the domestic||||||||
|c display||||the plant||of Liaoning Province||||
|||wastewater treated||||||||
|Co., Ltd.||||area||（DB21/1627-2008）||||
|||by the oil||||||||
|Tunghsu||||Near the||Integrated||||
|||separation tank +||||||||
|（Yingkou）||septic tank, they||gate on the||Wastewater||||
||Wastewa|||||||||
|Photoelectri||are collected into|1|east side of|22.25mg/L|Discharge Standard|4.24t/a|47.64t/a|No|
||ter BOD|||||||||
|c display||the total||the plant||of Liaoning Province||||
|Co., Ltd.||wastewater||area||（DB21/1627-2008）||||
|||discharge port of||||||||
||Ammoni|||||||||
|Tunghsu||the plant area and||Near the||Integrated||||
||a|||||||||
|（Yingkou）||discharged||gate on the||Wastewater||||
||nitrogen|||||||||
|Photoelectri||through the|1|east side of|1.31mg/L|Discharge Standard|0.25t/a|5.73t/a|No|
||in|||||||||
|c display||municipal pipe||the plant||of Liaoning Province||||
||wastewat|||||||||
|Co., Ltd.||network of the||area||（DB21/1627-2008）||||
||er|||||||||
|||industrial base to||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||the third sewage||||||||
|||treatment plant of||||||||
|||Liaoning||||||||
|||(Yingkou) coastal||||||||
|||industrial base for||||||||
|||further treatment.||||||||
|Wuhu||||||||||
|Tunghsu||||Between||||||
|Optoelectro||||plant 101||||||
||（SO2）|After passing|2||19.5 mg/m³|SO2≤400 mg/m³|1.89 t|4.52 t/a|No|
|nic||||and plant||||||
|||through the flue||||||||
|Technology||||202||||||
|||gas treatment||||||||
|Co., Ltd.||||||||||
|||system, it is||||||||
|Wuhu||||||||||
|||directly||||||||
|Tunghsu||||Between||||||
|||discharged into||||||||
|Optoelectro||||plant 101||||||
||(NOX)|the atmosphere.|2||166 mg/m³|NOX≤700 mg/m³|33.03 t|84.76 t/a|No|
|nic||||and plant||||||
|Technology||||202||||||
|Co., Ltd.||||||||||
|Wuhu||||||||||
|Tunghsu||||East side of||||||
|Optoelectro||After||the east gate||||||
||(COD)||1||26 mg/L|COD≤500 mg/L|40.09 t|42.5 t/a|No|
|nic||neutralization, it||of the||||||
|Technology||enters the||company||||||
|Co., Ltd.||Chengdong||||||||
|Wuhu||Sewage Treatment||||||||
|Tunghsu||Plant through||East side of||||||
|Optoelectro||municipal sewage||the east gate||||||
||(NH3-N)||1||0.979 mg/L|/|1.51 t|2.86 t/a|No|
|nic||pipe network||of the||||||
|Technology||||company||||||
|Co., Ltd.||||||||||
|||||||||62.442||
|Tunghsu||Wastewater is|||||36.5tons|to n s||
||COD,|||||||||
|（Kunshan||discharged to the||South side|101.4mgL||0.023ton|0.096||
||TP,|||||Standards for Class 4||||
|）Display||sewage treatment|1|of the plant|0.066 mg/L||s|tons|No|
||ammonia|||||surface water||||
|Material||plant through||area|0.238 mg/L||0.085ton|||
||nitrogen|||||||||
|Co., Ltd.||pipelines|||||s|0.723ton||
|||||||||s||
|Tunghsu||Organic exhaust||||DB12/524-2014||||
||Organic|||The west||||||
|（Kunshan||gas is treated by||||Emission Control||||
||exhaust|||roof of the||||10.081to||
|）Display||exhaust gas|1||1.58 mg/m³|Standard for|0.58吨||No|
||gas|||main plant||||ns||
|Material||treatment facilities||||Industrial Enterprises||||
||(TVOC)|||building||||||
|Co., Ltd.||and then||||Volatile Organic||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||discharged||||Compounds||||
|||through a 25m||||||||
|||chimney||||||||
|||Organic exhaust||||||||
|||gas is treated by||||||||
|Tunghsu||||||||||
||Acid|exhaust gas||The west||GB16297-96||||
|（Kunshan||||||||||
||exhaust|treatment facilities||roof of the||Integrated Emission||0.333ton||
|）Display|||1||0.42 mg/m³||0.02tons||No|
||gas|and then||main plant||Standard of Air||s||
|Material||||||||||
||(HCL|discharged||building||Pollutants||||
|Co., Ltd.||||||||||
|||through a 25m||||||||
|||chimney||||||||
|Tunghsu|||||5.62 mg/ m³||0.0103|0.231ton||
||Particula|Exhaust gas is||The north||GB13271-2014||||
|（Kunshan|||||0.311||tons|s0.014||
||te matter,|discharged||roof of the||Emission Standard of||||
|）Display|||1||mg/m³||0.006|tons|No|
||SO2,|through a 25m||main plant||Air Pollutants for||||
|Material|||||45.32||tons0.23|5.361ton||
||NOx|chimney||building||Boiler||||
|Co., Ltd.|||||mg/m³||1tons|s||
|||Exhaust gas is||||||||
|Tunghsu||treated by exhaust||||Refer to||||
|||||The west||||||
|（Kunshan||gas treatment||||GB28665-2012||||
||Alkali|||roof of the|||0.626ton|2.294ton||
|）Display||facilities and then|1||4.83mg/m³|Emission Standard of|||No|
||mist|||main plant|||s|s||
|Material||discharged||||Steel Rolling||||
|||||building||||||
|Co., Ltd.||through a 25m||||Industry||||
|||chimney||||||||
|||||WS-960001||||||
|Jiangsu||||||||||
|||||west side of||||||
|Jixing New|||||||5.2446to|22.774to||
||COD|Discharge into the|1|sewage|≤500|HJ/T399-2007|||No|
|Material|||||||ns|ns||
|||municipal sewage||treatment||||||
|Co., Ltd.||||||||||
|||treatment plant||station||||||
|||through the||WS-960001||||||
|Jiangsu||||||||||
|||sewage pipe||west side of||||||
|Jixing New|||||||0.4995to|13.002to||
||SS|network|1|sewage|≤150|GB/T11901—1989|||No|
|Material|||||||ns|ns||
|||||treatment||||||
|Co., Ltd.||||||||||
|||||station||||||
||||||Emission|||||
|||||FQ-960001||||||
|||Discharge into the|||concentratio|||||
|Jiangsu||||north side||||||
||Sulfuric|atmosphere|||n ≤ 100|||||
|Jixing New||||of|||0.00216|0.206ton||
||Acid|through alkali mist|1||mg/m3;|GB16297-1996|||No|
|Material||||manufacturi|||5tons|s||
||Mist|spraying treatment|||Emission|||||
|Co., Ltd.||||ng||||||
|||facilities|||rate|||||
|||||workshop||||||
||||||≤0.26kg/h|||||
|Shanghai|Wastewa|After the||Total||Integrated|||Not|
||||1||197mg/L||/|/||
|Sunlong|ter:|treatment reaches||wastewater||Wastewater|||exceeded|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Bus|Chemica|the standard, it||discharge||Discharge Standard||||
||l oxygen|enters the urban||outlet in||(DB31/199-2018)||||
||demand|sewage pipe||southeast||||||
|||network||corner of||||||
|||||plant area||||||
|||||Total||||||
|||||wastewater||||||
|||||||Integrated||||
|Shanghai|Wastewa|||discharge||||||
|||||||Wastewater|||Not|
|Sunlong|ter: Total||1|outlet in|21.93mg/L||/|/||
|||||||Discharge Standard|||exceeded|
|Bus|nitrogen|||southeast||||||
|||||||DB31/199-2018||||
|||||corner of||||||
|||||plant area||||||
|||||Total||||||
||Wastewa|||||||||
|||||wastewater||||||
||ter:|||||Integrated||||
|Shanghai||||discharge||||||
||suspende|||||Wastewater|||Not|
|Sunlong|||1|outlet in|42.67mg/L||/|/||
||d|||||Discharge Standard|||exceeded|
|Bus||||southeast||||||
||substanc|||||DB31/199-2018||||
|||||corner of||||||
||e|||||||||
|||||plant area||||||
|||||Total||||||
|||||wastewater||||||
||Wastewa|||||Integrated||||
|Shanghai||||discharge||||||
||ter:|||||Wastewater|||Not|
|Sunlong|||1|outlet in|2.54mg/L||/|/||
||petroleu|||||Discharge Standard|||exceeded|
|Bus||||southeast||||||
||m|||||DB31/199-2018||||
|||||corner of||||||
|||||plant area||||||
|||||Total||||||
|||||wastewater||||||
||Wastewa|||||Integrated||||
|Shanghai||||discharge||||||
||ter: Total|||||Wastewater|||Not|
|Sunlong|||1|outlet in|1.41mg/L||/|/||
||phosphor|||||Discharge Standard|||exceeded|
|Bus||||southeast||||||
||us|||||DB31/199-2018||||
|||||corner of||||||
|||||plant area||||||
||Exhaust|||||||||
|||||||Emission Standards||||
||gas:|When it reaches||||||||
|||||||of Air Pollutants for||||
|Shanghai|volatile|the standard after||||||||
|||||West of the||Automobile|||Not|
|Sunlong|organic|the treatment, it|4||4.33mg/m³||39.289|/||
|||||plant area||Manufacturing|||exceeded|
|Bus|compoun|will be discharged||||||||
|||||||Industry (Coating)||||
||ds|at high altitude||||||||
|||||||(DB32/859-2014)||||
||(VOCs)|||||||||
|Shanghai|Exhaust|When it reaches||To the west||Emission Standard of|||Not|
||||10||9.545mg/m³||0.00134|0.02||
|Sunlong|gas:|the standard after||of the||Air Pollutants for|||exceeded|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Bus|sulfur|the treatment, it||central part||Industrial Kiln and||||
||dioxide|will be discharged||of the plant||Furnace||||
|||at high altitude||area||DB31/860-2014||||
|||||To the west||Emission Standard of||||
||Exhaust|||||||||
|Shanghai||||of the||Air Pollutants for||||
||gas:||||||||Not|
|Sunlong|||10|central part|13.04mg/m³|Industrial Kiln and|0.625|0.84||
||nitrogen||||||||exceeded|
|Bus||||of the plant||Furnace||||
||oxide|||||||||
|||||area||DB31/860-2014||||
|||||To the south||||||
||Exhaust|||||Integrated Emission||||
|Shanghai||||of the||||||
||gas:|||||Standard of Air|||Not|
|Sunlong|||11|central part|＜20mg/m³||1.001|1.04||
||welding|||||Pollutants|||exceeded|
|Bus||||of the plant||||||
||fumes|||||DB31/933-2015||||
|||||area||||||
||||||||COD:1.|||
||||||||61 tons|||
||||||||Ammoni|||
||||||||a|||
||||||COD:|||||
||Chemica||||||nitrogen:|||
||||||45mg/L|||||
||l oxygen||||||0.18|||
|||||There is 1|Ammonia|Integrated||||
||demand,||||||tons|||
|||||total sewage|nitrogen:|Wastewater||||
||ammonia||||||Toluene:|||
|||||outlet and|2.66 mg/L|Discharge Standard||||
|Guangxi|nitrogen,|Continuous|||||0.042|||
||||32|31 exhaust|Toluene|Level 3 Standard;||No|No|
|Sunlong|pH,|Blowdown|||||tons|||
|||||outlets in|0.215mg/m3|Integrated Emission||||
||toluene,||||||Xylene:|||
|||||the painting|Xylene|Standard of Air||||
||xylene,||||||0.04|||
|||||workshop|0.5mg/m3|Pollutants||||
||particulat||||||tons|||
||||||Particulate|||||
||e matter||||||Particula|||
||||||3.2mg/m3|||||
||||||||te|||
||||||||matter:|||
||||||||0.384|||
||||||||tons|||
|||Wastewater; After|||||Noise:|||
|||treatment, it is|||||up to|Subject||
||Wastewa|discharged by||||Integrated|standard|to the||
|Wuhu||||||||||
||ter,|Wuhu Tunghsu||||Wastewater|Wastewa|requirem||
|Tunghsu||||||||||
||noise,|Photovoltaic|||Meet the|Discharge Standard|ter: up to|ents of||
|Optoelectro||||||||||
||solid|Technology Co.,|||requirement|(GB8978-1996) and|standard|environ||
|nic|||/|/|||||No|
||waste|Ltd after reaching|||s and|Emisson Standard for|after|mental||
|Equipment||||||||||
||(waste|the standard;|||standards|Industrial Enterprises|treatmen|protectio||
|Technology||||||||||
||cutting|Noise: reasonable||||Noise at Boundary|t, solid|n||
|Co., Ltd.||||||||||
||liquid)|layout and noise||||（GB12348-2008）|waste|standard||
|||reduction|||||(waste|s||
|||measures; Solid|||||cutting|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||waste: waste|||||liquid):|||
|||cutting liquid shall|||||0.2 tons|||
|||be recovered and||||||||
|||treated by a||||||||
|||qualified company||||||||
|Changqing||||||||||
|||||Yingtian||||||
|Xufu||Access to||||||||
|||||Gonggu||||||
|Optoelectro|Domesti|municipal sewage||||Limits for Surface||||
||||1|wastewater|/||0.4350|0.4350|/|
|nic|c sewage|treatment pipe||||Water||||
|||||pipe||||||
|Technology||network||||||||
|||||network||||||
|Co., Ltd.||||||||||
|Chongqing||||||||||
||Non-met|||||||||
|Jinghuateng||||||||||
||hane|||||Emission standard of||||
|Optoelecron||||||||||
||total|Be organized|1|/|60|packaging and|/|0.38|No|
|ic||||||||||
||hydrocar|||||printing industry||||
|Technology||||||||||
||bon|||||||||
|Co., Ltd.||||||||||
|Suzhou||||||||||
|||Access to||||Water quality||||
|Tengda||||||||||
||Domesti|municipal sewage||||standard for sewage||||
|Opotic|||1|/|/||/|/|/|
||c sewage|treatment pipe||||to be discharged into||||
|Technology||||||||||
|||network||||urban sewage drain||||
|Co., Ltd.||||||||||
|Hefei||||||||||
|Jinghua||Access to||||Water quality||||
|Optoelectro|Domesti|municipal sewage||||standard for sewage||||
||||/|/|/||/|/|/|
|nic|c sewage|treatment pipe||||to be discharged into||||
|Technology||network||||urban sewage drain||||
|Co., Ltd.||||||||||
|Chengdu||||||Water quality||||
|||Directly discharge||||||||
|Tunghsu||||Undergroun||standard for sewage||||
||Waste|to industrial port||||||||
|Intelligence|||4|d water pipe|8mg/L|to be discharged into|14t/a|15 t/a|No|
||water|sewage pipe||||||||
|Technology||||in the park||urban sewage drain||||
|||network||||||||
|Co., Ltd.||||||（CJ3082-1999）||||
|Chengdu||||||Integrated Emission||||
|Tunghsu||||||Standard of Air||||
|||||Production|||110 mg/|120mg/||
|Intelligence|DUST|Bag filter|2||1mg/ m³|Pollutants|||No|
|||||Workshop|||m³|m³||
|Technology||||||(GB16297-1996)||||
|Co., Ltd.||||||secondary standards||||
|Chengdu|tin and|||||Integrated Emission||||
|Tunghsu|its|Air extraction and||Production||Standard of Air|3.3 mg/|8.5 mg/||
||||2||0.24mg/ m³||||No|
|Intelligence|compoun|exhaust system||Workshop||Pollutants|m³|m³||
|Technology|ds|||||(GB16297-1996)||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Co., Ltd.||||||secondary standards||||
|Chengdu||||||Emission Standard||||
||||||Daytime|||||
|Tunghsu||||||for Industrial||||
||||||(65) dB/A||16500|20000||
|Intelligence|NOISE|/|/|In the Zone||Enterprises Noise at|||/|
||||||Nightime||m³/h|m³/h||
|Technology||||||Boundary||||
||||||(55) dB/A|||||
|Co., Ltd.||||||(GB12348-2008)||||

Entrust financial expected to be unable to recover the principal or impairment might be occurred
1.Fuzhou Tunghsu Optoelectronic Co., Ltd.
1. Fuzhou Tunghsu optoelectronic operates normally during the whole year and produces main pollution of waste water. In 2017, it built the rain and sewage diversion system and waste water treatment station with designed treatment capacity of 1000t/d, which adopts PH adjustment+ secondary concrete sedimentation treatment process. All production waste water will be collected after treatment and meeting standards and discharged into Rongyuan sewage treatment plant together with pre-treated sanitary sewage by septic tank for uniform treatment. The waste water treatment station operates normally during the report period and discharges per standards.
2.Sichuan Xuhong Optoelectronic Technology Co., Ltd.
1)SCR denitration system (1 set)
The company uses natural gas as the fuel for glass production, and the air pollutants produced are mainly particulates, sulfur dioxide and nitrogen oxides. In 2015, the company spent a lot of money to establish an SCR denitration system. Untreated furnace flue gas enters the electrostatic precipitator of the denitration system through the flue. The dedusted flue gas enters the SCR reactor with ammonia water as reductant and V2O5/TiO2 as catalyst. Nitrogen oxides in the flue gas are reduced to N2 and then enter the 60-meter-high chimney through the outlet flue for emission. In order to ensure that the pollutants discharged by the company reach the standard, the denitration system operates continuously throughout the year. The denitration system of the company is equipped with two flue gas induced draft fans (one for use and one for standby), which adopt double-loop power supply. The operation personnel of denitration treatment facilities are subject to 4 shifts and 3 rotations to ensure that the operation personnel are on duty 24 hours a day. The operation management shall be carried out strictly in accordance with the operation procedures, operation instructions and inspection tour operation instructions, and the operation parameters shall be monitored in real time to ensure the normal operation rate of denitration system to the greatest extent.
2) Dust removal equipment (13 filter cartridge dust collectors and 1 bag filter)
The company produces a small amount of particulate matter in the process of glass feeding and batching. At the beginning of the factory in 2011, the company installed filter cartridge dust collectors in all silos, broken glass feeding systems and kiln head feeding ports of the batching workshop to collect the particulate matter generated in the feeding and batching process. In order to ensure that the discharged particles reach the standard, in February 2015, the company collected the exhaust cylinders of all silos into a main pipe, and installed a bag filter to carry out secondary dust removal on the treated residual particles. The dust removal equipment of the company is operated intermittently. During the gap period, the post personnel clean the filter cartridge and filter bag of the dust removal equipment and carry out regular maintenance to ensure the normal operation of the dust removal equipment in the operation process.
3. Zhengzhou Xufei Optoelectronic Technology Co., ltd
1) Invest 1.094 million yuan to implement ultra-low nitrogen renovation on 3 gas boilers (2 10t/h boilers and
1 6t/h boiler), with nitrogen oxide emission concentration lower than 30mg/m3, which has passed the verification
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report of Zhengzhou Ecological Environment Bureau.
2) An investment of 790,000 yuan has been invested to install an on-line monitoring system for furnace flue gas to realize the grid connection with Zhengzhou Ecological Environment Bureau.
3) Environmental protection facilities operate continuously and stably throughout the year. There is no unplanned shutdown. All pollutants are discharged stably up to standard. No environmental violations occur. 4. Tunghsu (Yingkou) Optoelectronic Display Co., Ltd.
1) The output of grinding wastewater in this project is 160m3/d, mainly containing SS and wastewater. The wastewater is collected through pipelines, enters the grinding wastewater equalization tank of the wastewater treatment station, and is pumped into the grinding wastewater treatment system for treatment. The wastewater is discharged into the sedimentation tank for coagulation sedimentation after being precipitated by stepped precipitation tank, and finally discharged into the integrated treatment system for further treatment, and then discharged into the sewage treatment plant of the industrial base for further treatment through the municipal pipe network of the industrial base. This project adopts coagulation and sedimentation process to treat grinding wastewater. The design capacity of the grinding wastewater treatment system is 400 m3/d, and the production capacity of grinding wastewater in this project is 176m3/d. It is fully capable of treating grinding wastewater generated in this project.
2) The cleaning wastewater enters the regulating tank, adjusts its PH value for neutralization treatment, and then is pumped into the sedimentation tank, and is discharged into the total sewage outlet of the plant area after sedimentation treatment. The treatment capacity of the cleaning wastewater treatment system in this project is 700 m3/d, and the production capacity of the cleaning wastewater in this project is 210 m3/d, which is fully capable of treating the cleaning wastewater produced in this project.
3) The discharge amount of domestic wastewater in this project is 20 m3/d, including washing, flushing and canteen drainage. The main pollutants COD, SS, ammonia nitrogen, etc. are designed in the domestic wastewater treatment system. Oil separationtank+septic tank is adopted for treatment, which has good removal effect on large suspended solids, animal and plant oil, etc. Septic tank is a common simple biochemical treatment measure for wastewater. It has good and stable treatment effect on domestic sewage.
4) Three-layer anti-seepage measures are adopted for the production workshop, chemical warehouse and ground of this project, i.e. the bottom layer shall be paved with not less than 30 cm thick concrete for compaction, whose top shall be paved with 100mm thick concrete, and then hardened with 200mm thick high-strength concrete to ensure the permeability coefficient is less than 1x10-7cm/s, and the water treatment structure shall be constructed with anti-seepage concrete; Each link of drainage is transported by cement or ceramic anti-seepage pipelines. Except for Green land, the ground of the plant area is all coated with cement plastering anti-seepage hardening. After the anti-seepage and anti-corrosion measures mentioned above are adopted, the pollution effects of chemical warehouse and production workshop on groundwater can be effectively prevented.
5. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
The company has a flue gas treatment system, an industrial wastewater treatment station and a septic tank. In order to ensure the normal operation of pollution prevention facilities, the company has formulated relevant management systems, explicitly requiring the facility usage and operation departments to regularly maintain and service the facilities. At present, the company's pollution prevention and control facilities are operating normally and stably, and the discharge of various pollutants meets the discharge standards.
6. Tunghsu (Kunshan) Display Material Co., Ltd
The company has built a set of volatile organic compounds system, an acid exhaust treatment system, an alkali exhaust treatment system, a boiler exhaust system, a acid and alkaline wastewater treatment system and an organic wastewater treatment system. At present, all systems except the volatile organic compounds system are installed
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report with automatic monitoring systems and operate normally. Cuerrently, the automatic monitoring system of the volatile organic compounds system is not perfect, with certain potential safety hazards. At present, the equipment responsible unit is preparing an automatic control improvement scheme to realize real-time monitoring of equipment operating parameters. During the scheme improvement period, the on-duty personnel conduct regular on-site inspections to ensure the normal operation of the equipment.
7. Jiangsu Jixing New Material Co., Ltd
The existing wastewater treatment facilities of Jiangsu Jixing New Material Co., Ltd are operating normally, with an approved wastewater treatment capacity of 52,030 t/a; The expanded sewage treatment station facility was put into operation in April with an approved wastewater treatment capacity of 147,037 t/a.
8. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co., Ltd. operates normally throughout the year. The main pollutants are wastewater, exhaust gas and hazardous waste. The rain and sewage diversion drainage system was completed in 2008. An industrial wastewater treatment station was built to mainly treat coating wastewater in the production process, with a designed treatment capacity of 10 t/h and a physical and biochemical treatment process adopted. All the production wastewater will be discharged into the municipal sewage pipe network (Yuanshan Road) together with domestic sewage after reaching the treatment standard and finally into the Bailonggang system. During the reporting period, the wastewater treatment station operated normally and the discharge reached the standard. Exhaust gas treatment: organic exhaust gas (VOCs) from spraying and painting is treated by zeolite rotating wheel+RTO combustion process and then discharged at high altitude; low-concentration organic exhaust gas (VOCs) is treated by activated carbon adsorption and desorption+ catalytic combustion process and discharged at high altitude after reaching the standard; Online monitoring system (FID) is installed at the discharge port of organic exhaust gas (VOCs) to monitor the emission value in real time; For particulate matter, welding fumes, etc., filter core filtration technology is adopted to remove dust, and the dust is discharged at high altitude after reaching the standard; Facilities that need to be heated in the production process shall be natural gas burners. Through the ternary internal circulation process, natural gas is efficiently combusted, energy consumption is reduced, and pollutant emission is reduced.
9. Guangxi Sunlong Automobile Manufacturing Co., Ltd
1) Construction of pollution prevention and control facilities
Exhaust gas emission and treatment: The coating exhaust gas uses water-filled+ activated carbon adsorption device to control volatile organic compounds, toluene, xylene and other atmospheric pollutants. The purified exhaust gas is discharged through a 15m high exhaust cylinder. The company has 6water-filled+activated carbon adsorption devices; Catalytic combustion device is used to control volatile organic compounds, toluene, xylene and other air pollutants in the coating and drying waste gas. The purified waste gas is discharged through a 15m high exhaust cylinder. The company has 3 sets of catalytic combustion device; The putty polishing chamber, glass fiber reinforced plastic polishing chamber and midway polishing chamber adopt the process of installing bag filter at the bottom exhaust channel and the top of the air supply to control atmospheric pollutants such as particulate matters. The collected waste particulate matters after bag filter are respectively discharged through a 15m high exhaust cylinder. The company has a total of 8 bag dust removal devices. The waste gas from paint makeup is controlled by activated carbon adsorption devices to control volatile organic compounds, particulate matters and other atmospheric pollutants. The company has 8 sets of activated carbon adsorption devices, and the purified waste gas is discharged through a 15m high exhaust cylinder.
Wastewater discharge and treatment: the company's wastewater mainly consists of domestic wastewater, rain test wastewater and coating circulating wastewater, among which the rain test wastewater is discharged every six months and the coating circulating wastewater is discharged every quarter, the domestic wastewater is treated by
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report septic tank and mixed with the production wastewater, then enters the plant sewage treatment station for treatment and then is discharged to Wuxiang sewage treatment through municipal sewage pipe network for further treatment. The plant sewage treatment station mainly adopts the process of oil isolation+UASBanaerobic+biological contact oxidation.
Noise treatment: reasonable layout of high-noise equipment and noise control measures such as sound insulation, sound absorption and vibration reduction.
Solid waste treatment: the solid wastes generated by the company mainly include general solid wastes such as paper skins and cartons, and hazardous wastes such as paint residues and waste organic solvents, among which, paint residues and other hazardous wastes are entrusted to CECEP (Guangxi) CleanTech Development Co., Ltd., which has a hazardous waste management license, for disposal.
2) Operation
In 2018, the company's environmental protection equipment and facilities operated continuously, reliably and stably, regular pollutant monitoring was carried out, and the requirements of the national environmental protection emission standard were implemented strictly, to ensure that all kinds of pollutants reach the standard for emission. 10. Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd
Air pollution prevention and control measures: through strengthening the ventilation and exhaust in the workshop, 1. Air pollution prevention and control measures: through strengthening the ventilation and exhaust in the workshop, at the same time, through the barrier of the workshop, it basically falls inside the workshop; 2. Measures for prevention and control of wastewater pollution: Before domestic wastewater is discharged into the pipeline of Wuhu Tunghsu Optoelectronic Technology Co., Ltd.. and Wuhu Tunghsu Optoelectronic Technology Co., Ltd. takes over Chengdong Sewage Treatment Plant, and it meets the discharge standard after being treated by buried sewage treatment facilities; 3. Noise pollution prevention and control measures: low-noise and high-performance equipment shall be selected, and measures such as foundation construction, wall barrier and greening barrier shall be taken for these noise sources; 4. Prevention and control measures for solid waste pollution: general solid waste is comprehensively utilized, waste cutting liquid is entrusted to a qualified unit (Maanshan Guandong Lubricating Oil Co., Ltd.) for recycling, and domestic waste is handed over to the sanitation department for treatment.
11. Chongqing Xufuda Optoelectronic Technology Co., Ltd
Water pollution: the existing2# biochemical pool of Yingtian• Liangjiang industrial valley standard plant building project is used to treat and discharge the municipal sewage pipe network in the park. The domestic sewage in the plant area is connected to the municipal sewage treatment pipe network, and the domestic sewage is discharged up to the standard.
12. Chongqing Jinghuateng Optoelectronic Technology Co., Ltd
Solid waste: after centralized collection of domestic waste, it shall be uniformly treated by the district sanitation department. It is strictly prohibited to dump and stack waste at will. Domestic waste shall be cleared every day. Solid wastes shall be treated in strict accordance with relevant regulations without causing secondary pollution. 13. Chengdu Tunghsu Intelligent Technology Co., Ltd
1) Wastewater: All kinds of wastewater can meet the requirements of Grade III standard of Integrated Wastewater Discharge Standard (GB8978-1996) after being treated by corresponding measures. Wastewater is discharged into the sewage pipe network of the park from the main discharge port, and enters Qingshui River after being treated by Chengdu Cooperative Sewage Treatment Plant, and an obvious signboard is set at the main discharge port.
2) Exhaust gas: Solder smoke is collected through the exhaust system provided by welding equipment above each area, and finally collected by a 20-meter-high exhaust cylinder and directly discharged, after which, it can
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report meet the Grade II standard of Integrated Emission Standard of Air Pollutants (GB16297-1996).
3) Noise: Reasonable arrangement of sound sources; Low noise equipment is adopted in the selection; Most of the noise equipment is installed in a closed plant building; Evolutionary exhaust system.
Environmental impact assessment of construction projects and other administrative permission for environmental protection
1. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
The company strictly implements the environmental impact assessment system and "Three Simultaneities" system, and the construction project is legal and compliant. The project was approved by Fuqing Environmental Protection Bureau in September 2016.
2. Sichuan Xuhong Optoelectronic Technology Co.,Ltd
The company's "PDP Glass Substrate Project" and "10 million m2 of High-strength and Ultra-thin Display Cover Glass Project" compiled environment impact report form and obtained EIA approval. The two projects passed EIA acceptance in 2015 and 2017 respectively. Our company obtained the new sewage permit in 2017 and 2012. In 2018, it strictly carried out sewage discharge and various environmental management according to the requirements of the new sewage permit.
3. Zhengzhou Xufei Optoelectronic Technology co., ltd
EIA for Phase I of the project: on August 16, 2009, the Henan Environmental Protection Department passed the Reply of Henan Environmental Protection Department on the Environmental Impact Report of TFT-LCD Glass Substrate Production Line of Zhengzhou Xufei Photoelectric Technology Co., Ltd (YHS[2009] No. 295), and on February 24, 2011, the Henan Environmental Protection Department passed the Opinions on Environmental Protection Acceptance for the completion of TFT-LCD Glass Substrate Production Line Project of Zhengzhou Xufei Optoelectronic Technology Co., Ltd (YHPY[2011] No. 12).
EIA for Phase II of the roject: On November 2, 2010, Henan Environmental Protection Department approved the Reply of Henan Provincial Environmental Protection Department on the Environmental Impact Report of Zhengzhou Xufei Photoelectric Technology Co., Ltd. on the Project of Annual Output of 2.2 Million sq.m. Liquid Crystal Glass Substrate Production Line (YHS[2010] No. 251), and on February 28, 2014, Henan Environmental Protection Department approved the Reply of Zhengzhou Xufei Optoelectronic Technology Co., Ltd. on the Application for Completion of Environmental Protection Acceptance of the Project of Annual Output of 2.2 Million sq.m. Liquid Crystal Glass Substrate Production Line (YHS[2014] No. 77).
4. Tunghsu (Yingkou) Optoelectronic Display Co., Ltd.
The environmental impact report was approved in February 2012, and the processing environmental protection acceptance was completed in March 2018. It is qualified upon acceptance.
5. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
The company's environmental impact assessment and other environmental protection administrative licenses are shown in the following table:
|||
|-|-|
|Time|Environmental impact assessment and other environmental protection administrative permits|
|November 2011|Anhui Environmental Science Research Institute has compiled and completed the Environmental ImpactReport of Wuhu Tunghsu optoelectronic Technology Co., Ltd. Display Glass Substrate Production Line Project.|
|December 2011|Anhui Provincial Environmental Protection Department approved the project with EIA Letter [2011] No. 1283Reply on Environmental Impact Report of Wuhu Tunghsu Optoelectronic Technology Co., Ltd. Display GlassSubstrate Production Line Project.|
|March 2012|Anhui Environmental Science Research Institute has compiled the Environmental Impact Report of Changes toFlat Panel Display Glass Substrate Production Line Project of Wuhu Tunghsu optoelectronic Technology Co.,|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
||Ltd.|
|March 2012|Anhui Environmental Protection Department approved the change of EIA for the project with EIA Letter[2012] No 298 Letter on the Review Opinions of Environmental Impact Report of Wuhu TunghsuOptoelectronic Technology Co., Ltd Flat Panel Display Glass Substrate Production Line Project.|
|April 2014|The Anhui Environmental Protection Department approved the Letter of Anhui Environmental ProtectionDepartment on approving the phased trial production of Wuhu Tunghsu Optoelectronic Technology Co., LtdFlat Panel Display Glass Substrate Production Line Project (WHH [2014] No. 472) and approved the phasedtrial production of the project.|
|June 2015|Through the 1-4 line G6 liquid crystal (TFT-LCD) glass substrate production line completed environmentalprotection stage acceptance.|
|October 2017|Through the 5-8 line G6 liquid crystal (TFT-LCD) glass substrate production line completed environmentalprotection stage acceptance.|
|December 2018|Through the 9-10 line G6 liquid crystal (TFT-LCD) glass substrate production line completed environmentalprotection stage acceptance.|

6. Tunghsu (Kunshan) Display Material Co., Ltd
The examination and approval opinions of the environmental impact report of the construction project were obtained in July 2015. Currently, the environmental protection Three Simultaneities acceptance operation is underway. The expert review of the environmental impact assessment Three Simultaneities acceptance will be completed in February 2019. In the preparation of the Three Simultaneities acceptance report, the publicity is expected to be completed by the end of March 2019. Currently, due to hazardous waste problems (if the waste developer and concentrated waste liquid with high concentration of nitrogen do not conform to the contents of the environmental impact report, it needs to be disposed of outside the contract according to the requirements of the environmental impact report, with records kept), for the overal acceptance part, the acceptance data cannot be submitted to the Environmental Protection Bureau. Currently, the application for outsourcing disposal of waste developer and concentrated waste liquid containing high concentration nitrogen has been submitted. The outsourcing disposal is expected to be completed in April during the purchasing contract negotiation.
7. Jiangsu Jixing New Material Co., Ltd
Jiangsu Jixing New Material Co., Ltd has obtained the approval of Yangzhong Municipal Environmental Protection Bureau for the new project of producing 2.6 million large-size Micro-LED sapphire intelligent production lines annually, with the approval document number of YHS[2018] No. 64.
8. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co., Ltd. strictly implements the environmental impact assessment system and Three Simultaneities system, and the construction project is legal and compliant. The project was approved for completion and acceptance by Shanghai Minhang District Environmental Protection Bureau (MHBGXY[2009] No. 041) in January 2009.
9. Guangxi Sunlong Automobile Manufacturing Co., Ltd
Nanning Yuanzheng All-aluminum New Energy Automobile Production Base Project was approved by Guangxi Environmental Protection Bureau on October 22, 2015 with the approval document number of GHS[2015] No.175. The project completed the environmental protection completion acceptance on March 27, 2018 with the completion acceptance document number of GHS[2018] No.45.
10. Wuhu Tunghsu optoelectronic Equipment Technology Co., Ltd
1) Before the construction of the project, a third party unit shall be entrusted to prepare the environmental
impact assessment report and file it through Wuhu Environmental Protection Bureau (document No.: HH[2013]
No.156).
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 2) Accepted by Wuhu Environmental Protection Bureau (document No: HY[2016] No.190).
11.Suzhou Tengda Optical Technology Co., Ltd.
Wuhuanjian{2013}No.632
12.Chongqing Fuda Optoelectronic Technology Co., Ltd.
Yu（Liangjiang）HZ［2018］No.090
13.Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.
Yu（Liangjiang）HZ{2017No.}240
14.Hefei Jinghuateng Optoelecrronic Technology Co., Ltd.
FDJSZD{2016}No.248
15.Chengdu Tunghsu Intelligent Technology Co., Ltd.
Documents such as enterprise investment project filing notice (PF Project No.2011-119), request for instructions on environmental standards (PH No.2011-88), approval of environmental standards (CHJF No.2011-204), review opinions on environmental impact report (CHJP 2009-406), etc.
Emergency response plan of emergency environmental event
1. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
The company commissioned a qualified third party to prepare the Plan for Environmental Emergencies of Fuzhou Tunghsu optoelectronic Technology Co., Ltd. and regularly organize and carry out training and drills of the plan to effectively improve the enterprises' emergency response capability and disposal capability to environmental pollution emergencies.
2. Sichuan Xuhong Optoelectronic Technology Co., Ltd.
There are natural gas, hydrogen, liquefied petroleum gas, diesel and other risk substances in the company, so in December 2015, the company organized and formulated the Plan for Environmental Emergencies and submitted it to Mianyang Environmental Protection Bureau for filing. In 2019, our company will apply to Mianyang Environmental Protection Bureau to carry out "revision, review and filing of the plan for environmental emergencies" according to relevant management requirements.
3. Zhengzhou Xufei Optoelectronic Technology co., ltd
The company has emergency plans for hazardous waste accidents, environmental anormaly for wastewater discharge, radiation sources and abnormal exhaust emissions.
4. Tunghsu (Yingkou)Optoelectronic Display Co., Ltd.
The company has a sound environmental emergency plan, which mainly includes: environmental pollution incidents caused by leakage of hazardous waste storage devices, leakage of natural gas and diesel oil, fire and explosion accidents in the plant area; Noise, ingredient dust, outflow of hazardous chemicals, environmental pollution events caused by radiation source leakage and other environmental pollution events caused by force majeure.
5. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
According to the relevant requirements of the Emergency Response Law of the People's Republic of China, Wuhu Tunghsu Optoelectronic Technology Co., Ltd. has compiled the Plan for Environmental Emergencies of Wuhu Tunghsu Optoelectronic Technology Co., Ltd. in accordance with the Risk Classification Method for Environmental Emergencies of Enterprises and in combination with the actual situation of Wuhu Tunghsu Optelectronic Technology Co., Ltd., which describes the emergency rescue principles, emergency rescue procedures and emergency rescue measures for environmental emergencies of the company, and is a programmatic document and operational guideline for guiding the emergency management of environmental emergencies of the company. The plan was reported to Wuhu Environmental Protection Bureau for filing in November 2015 (for the record: 340207-2015-016-L). After three years, it was reported to Wuhu Environmental
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Protection Bureau for filing again in September 2018 as required (for the record: 340207-2018-044-L).
6. Tunghsu (Kunshan) Display Material Co., Ltd
The company completed the environmental emergency plan report in July 2018, completed the expert review and final report revision in August, and obtained the emergency plan filing approval on September 14.
7. Jiangsu Jixing New Material Co., Ltd
Jiangsu Jixing New Material Co., Ltd entrusted a third party to prepare and file the Comprehensive Plan for Environmental Emergencies in 2017. The number of the emergency plan is JSJX-YA-2017001 and the version number of the emergency plan is 2017 (1).
8. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co., Ltd.'s Plan for Environmental Emergencies of Shanghai Sunlong Bus Co., Ltd. has been filed for environmental protection (Filing No.: 3102212018043), and regular training and drills of the plan have been organized to effectively improve the enterprises' emergency response and disposal capabilities to environmental pollution emergencies.
9. Guangxi Sunlong Automobile Manufacturing Co., Ltd
On November 2, 2017, the company entrusted Guangxi Gaobiao Monitoring Co., Ltd. to prepare a plan for environmental emergencies. The report was prepared on January 21, 2018 and passed the expert group review. On May 22, 2018, Yongning District Environmental Protection Bureau completed the filing of the plan for environmental emergencies of Guangxi Sunlong Automobile Manufacturing Co., Ltd. with the filing number of 450109-2018-0002-m.
10. Suzhou Tengda Optical Technology Co., Ltd., Chongqing Xufuda Optoelectronic Technology Co., Ltd., Chongqing Jinghuateng Optoelectronic Technology Co., Ltd., Hefei Jinghuateng Optoelectronic Technology Co., Ltd.
The above subsidiaries have formulated the corresponding Emergency Plan Management System and have trained all employees and publicized the emergency plan team members.
11. Chengdu Tunghsu Intelligent Technology Co., Ltd
Chengdu Tunghsu Intelligent Technology Co., Ltd. adheres to the principle of "clean production, emission up to standard and total amount control", formulates feasible pollution prevention and control measures, establishes and improves the environmental system, formulates environmental management formulation, defines the main responsibilities of the management organization, analyzes the environmental risks, and collects public participation opinions, which can fully meet the requirements of national and local environmental protection laws and standards.
Environmental self-monitoring plan
1. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
The company strictly abides by national and local laws, regulations and relevant provisions, and entrusts Fujian Tuopu Detection Technology Co., Ltd. to carry out monthly detection of the company's wastewater, quarterly detection of the company's noise, and timely log on to its own monitoring website every month to upload data and information such as detection results.
2. Sichuan Xuhong Optoelectronic Technical Co.,Ltd
According to the national environmental protection management requirements, the company has prepared a self-monitoring plan for the environment. The company has installed a flue gas on-line analyzer to carry out on-line monitoring of the major pollutants nitrogen oxides, sulfur dioxide and particulate matter in furnace flue gas and upload the monitoring data to the national environmental protection platform in real time. For the smoke blackness, hydrogen chloride, fluoride and ingredient particles that cannot be monitored online, a third party organization is entrusted to carry out manual monitoring every quarter. For the particulate matter and ammonia
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report emitted by the factory without organization, a third party organization is entrusted to carry out manual monitoring every six months. All monitoring data are uploaded to the monitoring iInformation disclosure platform of national key monitoring enterprise pollution source.
3. Zhengzhou Xufei Optoelectronic Technology co., ltd
The company has an on-line waste gas monitoring system, which tests waste gas manually once a month and is outsourced for test once a year; There is an online monitoring system for wastewater, which tests the wastewater manually once a day and is outsourced for test once a year.
4. Tunghsu (Yingkou) Optoelectronic Display Co., Ltd.
1) The management of solid wastes and hazardous wastes is strengthened, relevant management systems are formulated and ledgers are established, the whereabouts of wastes are strictly controlled, and wastes are disposed according to national standards.
2) The wastewater station is equipped with wastewater online monitoring and dosing equipment to monitor the pH value of wastewater in real time; In the morning and evening, the pH value of wastewater from the total sewage outlet is monitored manually to ensure that the wastewater discharge reaches the standard.
5. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
The company has 1 set of waste water on-line monitoring system and 1 set of flue gas on-line monitoring system for plant 101 and 202 respectively. The monitoring data are uploaded to the municipal environmental monitoring platform in real time. In addition, the company entrusts a qualified third-party environmental monitoring agency to carry out quarterly and annual monitoring of the company's plant environment every year and requires the monitoring agency to provide monitoring reports. Monitoring items include: monitoring of domestic sewage, production wastewater, unorganized waste gas, organized waste gas and noise. The company judges whether relevant environmental indicators meet relevant environmental protection requirements according to monitoring results. So far, the company's emissions of various pollutants have not exceeded the standard.
6. Tunghsu (Kunshan) Display Material Co., Ltd
The wastewater discharge port is provided with automatic monitoring equipment for COD, TP, ammonia nitrogen and flow rate, and the online monitoring equipment is all networked with the Environmental Protection Bureau to monitor the wastewater discharge status in real time to ensure the discharge reaching the standard; All exhaust gas treatment systems except the volatile organic compounds system are equipped with automatic monitoring measures to monitor the running status of the treatment device in real time. Qualified third-party units are entrusted to carry out exhaust gas emission testing every year to ensure the standard emission. Currently, there is no automatic monitoring system in the volatile organic compounds system and there are certain potential safety hazards. At present, the equipment responsible unit is preparing an automatic control improvement plan. During this period, the personnel on duty will conduct regular on-site inspections to ensure the normal operation of the equipment.
7. Jiangsu Jixing New Material Co., Ltd
Hardware facilities: In addition to the PH real-time monitoring equipment installed in the sewage treatment station of Jiangsu Jixing New Material Co., Ltd, 2 sets of PH real-time monitoring equipment, 1 set of COD on-line monitoring equipment, 1 set of PLC system that stops discharging when exceeding the standard, and 1 set of real-time data transmission system for sewage treatment are also installed on the sewage discharge pipeline. Software facilities: Jiangsu Jixing New Material Co., Ltd entrusts a third party to regularly monitor the treatment of wastewater and exhaust gas, and entrusts a real-time monitoring equipment maintenance unit to regularly maintain and check environmental protection equipment.
8. Shanghai Sunlong Bus Co. Ltd
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Shanghai Sunlong Bus Co., Ltd. strictly abides by national and local laws, regulations and relevant provisions, and entrusts ICAS Testing Technology Services (Shanghai) Co., Ltd. to carry out quarterly testing of wastewater, exhaust gas and noise as required. It regularly logs on the environmental protection census platform and the environmental statistics business system to upload data and information such as testing results.
9. Guangxi Sunlong Automobile Manufacturing Co., Ltd
Currently, the company is entrusting a third-party qualification unit to carry out emission permit application and environmental self-monitoring plan preparation.
10. Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd
As Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. and Wuhu Tunghsu Optoelectronic Technology Co., Ltd. are located in a park, and the rain and sewage pipelines in the park are managed by Wuhu Tunghsu Optoelectronic Technology Co., Ltd. with the environmental self-detection scheme adopted. The company will regularly carry out noise detection and wastewater detection, and Wuhu Tunghsu Optoelectronic Technology Co., Ltd. will supervise the company.
11. Suzhou Tengda Optical Technology Co., Ltd., Chongqing Xufuda Optoelectronic Technology Co., Ltd., Chongqing Jinghuateng Optoelectronic Technology Co., Ltd., Hefei Jinghuateng Optoelectronic Technology Co., Ltd.
1) Strengthen the management of "Three Simultaneities" of the project to ensure the construction of environmental protection facilities.
2) Regularly maintain and service mechanical equipment to prevent environmental pollution caused by equipment failure.
3) Strengthen the operation and management of various pollutant treatment facilities to ensure that pollutants meet the standards for discharge.
4) Carry out domestic sewage discharge inspection every year, and arrange a third party to carry out noise and workshop environment inspection.
12. Chengdu Tunghsu Intelligent Technology Co., Ltd
1) Self-monitoring plan of the enterprise: since the company does not have an independent sewage treatment station, the management committee provides unified assistance for treatment, and since there is no independent monitoring equipment and facilities for waste gas and noise, manual instruments are usually used for monitoring. 2) Commissioned monitoring: Since the company does not have the expertise to monitor exhaust gas and noise, the qualification testing company (Sichuan Jiuhe Evaluation Company) is invited to conduct annual workplace hazard factor testing, and issue a written testing report, which shall be filed with the system and management committee.
Other environmental information to be disclosed
1. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
1) The environmental self-monitoring information disclosure website of Fuzhou Tunghsu Optoelectronicc Technology Co., Ltd.:
http://wryfb.fjemc.org.cn/page0.aspx?id=CLDICBRK-37EH-9PYO-8M63-F288U13S89W8
2) The environmental protection acceptance information public website of Fuzhou Tunghsu Optoelectronicc Technology Co., Ltd.:http://114.251.10.205/#/pub-message
2. Sichuan Xuhong Optoelectronic Technology Co.,Ltd
The company publicized the acquisition of the company's environmental protection administrative licensing procedures, pollution discharge information, solid waste management, environmental risks and monitoring information on the environmental credit evaluation website.
3. Zhengzhou Xufei Optoelectronic Technology co., ltd
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Environmental protection credit information management system for enterprises and institutions in Henan province, and environmental information disclosure system in Henan province.
4. Tunghsu (Yingkou) Optoelectronic Display Co., Ltd.
The environmental impact assessment platform of the company's construction project is availableathttp://114.251.10.205/#/pub-message
5. Wuhu Tunghsu Optoelectronic Technology Co., Ltd.
1) The company's construction of EIA and acceptance are publicized in the EIA information platform of construction project(http://114.251.10.205/#/pub-message).
2) Use Wechat Public Account to publicize relevant environmental protection information of the company. 6. Tunghsu (Kunshan) Display Material Co., Ltd
At present, the environmental protection Three Simultaneities acceptance is being carried out. The acceptance report and the acceptance data are being compiled by the manufacturer. After completion, it is expected to be published on Kunshan website in China at the end of March.
7. Jiangsu Jixing New Material Co., Ltd
Website of EIA report form full publication for sapphire intelligent production line: http://www.212200.com 8. Shanghai Sunlong Bus Co. Ltd
The company's unit name, unified social credit code, legal representative, production address, main contents of production and operation, products and scale, dosage of raw and auxiliary materials and other basic information, the construction and operation of public pollution prevention facilities, the names of major pollutants and characteristic pollutants, their emission methods, number and distribution of emission ports, emission concentration, and environmental protection data pollution such as pollutant emission standards implemented are released on the environmental information disclosure platform of enterprises and institutions.
9. Chengdu Tunghsu Intelligent Technology Co., Ltd
In February 2019, Chengdu Tunghsu Intelligent Technology Co., Ltd has carried out a hazard factor test in the workplace and issued a written test report. The test contents include noise, benzene, toluene, xylene, dust, tin and their compounds. The company has invested a lot of money and adopted advanced treatment systems for wastewater, exhaust gas, noise and risk control, which shows that the company attaches great importance to environmental protection, and is consistent with the company's image as a green environmental protection industry.
Other information related to environmental protection
Hazardous Waste Pollutants from Shanghai Sunlong Bus Co., Ltd
||||||||||
|-|-|-|-|-|-|-|-|-|
|Name of the|Names of major and|Disposal|Storage place|Production|Executive|Output in 2018|Disposal|Inventory|
|Company or its|characteristic|mode||distribution|Standards|(tons)|Rate|(ton)|
|subsidiary|pollutants||||||(ton)||
|Shanghai Sunlong|900-252-12|Commissio|Temporary|Painting|/|21.66|23|15|
|Bus Co., Ltd.|900-252-12|ned by a|storage room|workshop,||5.87|5.31|2.74|
||900-014-13|qualified|for hazardous|assembly||6.6|4.8|4.85|
|||third party|wastes|workshop,|||||
||900-041-49|||||40.21|43.12|1.89|
|||for||commissio|||||
||900-041-49|||||1.3|0|1.3|
|||disposal||ning|||||
||900-218-08|||||0.4|0|0.4|
|||||workshop|||||
||900-041-49|||||5.55|0|5.55|
||900-041-49|||||2.25|0|2.25|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report XIX. Explanation on other significant events
□ Applicable√ Not applicable
Nil
XX. Material issues of the subsidiaries
□ Applicable√ Not applicable
VI. Change of share capital and shareholding of Principal Shareholders 1. Changes in share capital
1.Changes in share capital
In Shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase/decrease（+，-）|||||After the Change||
||Amount|Proportio|Share|Bon|Capitaliz|Other|Subtotal|Quantity|Proportion|
|||n|allotm|us|ation of|||||
||||ent|shar|common|||||
|||||es|reserve|||||
||||||fund|||||
|1.Shares with||||||||||
|conditional|1,385,624,525|24.18%||||-769,529,722|-769,529,722|616,094,803|10.75%|
|subscription||||||||||
|2. State-owned legal||||||||||
||60,389,095|1.05%||||-60,389,095|-60,389,095|||
|person shares||||||||||
|3.Other domestic||||||||||
||1,325,235,430|23.13%||||-709,140,627|-709,140,627|616,094,803|10.75%|
|shares||||||||||
|Incl：Domestic legal||||||||||
||1,323,974,680|23.11%||||-709,140,627|-709,140,627|614,834,053|10.73%|
|person shares||||||||||
|Domestic Natural||||||||||
||1,260,750|0.02%||||||1,260,750|0.02%|
|Person shares||||||||||
|II.Shares with||||||||||
|unconditional|4,344,625,593|75.82%||||769,529,722|769,529,722|5,114,155,315|89.25%|
|subscription||||||||||
|1.Common shares in||||||||||
||4,094,625,592|71.46%||||769,529,722|769,529,722|4,864,155,314|84.89%|
|RMB||||||||||
|2.Foreign shares in||||||||||
||250,000,001|4.36%||||||250,000,001|4.36%|
|domestic market||||||||||
|III. Total of capital||||||||||
||5,730,250,118|100.00%||||||5,730,250,118|100.00%|
|shares||||||||||

Reasons for share changed
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report□ Applicable√ Not applicable
Approval of Change of Shares
□ Applicable√ Not applicable
Ownership transfer of share changes
□ Applicable√ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period
□ Applicable√ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security regulators
□ Applicable√ Not applicable
2. Change of shares with limited sales condition
√ Applicable□ Not applicable
In Shares
||||||||
|-|-|-|-|-|-|-|
||||Number||||
||||of||||
|||Number of||Restricted|||
||||Increased||||
||Initial Restricted|Unrestricted||Shares in the|Reason for Restricted|Date of Restriction|
|Shareholder Name|||Restricted||||
||Shares|Shares This||End of the|Shares|Removal|
||||Shares||||
|||Term||Term|||
||||This||||
||||Term||||
|||||||439,882,687 shares|
|||||||will be released on|
|||||||December|
|||||||19,2018；|
|||||||106,326,446 shares|
||||||Non-public issue||
|Tunghsu Group|791,889,488|439,882,697||352,006,791||will be released on|
||||||restricted shares of 2015||
|||||||November|
|||||||30,2020；|
|||||||245,680,345 shares|
|||||||will be released on|
|||||||December 29,2020.|
|Tunghsu Optoelectronic|||||||
||||||Non-public issue||
|Technology Co., Ltd.－|72,639,296|72,639,296||0||December 19,2018|
||||||restricted shares of 2015||
|The first ESOP|||||||
|Kunshan Development|||||||
|Zone State-owned|||||Non-public issue||
||43,988,269|43,988,269||0||December 19,2018|
|Investment Holding Co.,|||||restricted shares of 2015||
|Ltd.|||||||
|Beijing Yingfei Hailin|29,325,513|29,325,513||0|Non-public issue|December 19,2018|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Investment Center||||restricted shares of 2015||
|(Limited Partnership)||||||
|Shanghai Changjiang||||||
|Wealth & Asset||||||
|Management Co., Ltd.||||||
|－China Merchants||||Non-public issue||
||8,005,865|8,005,865|0||December 19,2018|
|Bank－Changjiang||||restricted shares of 2015||
|Wealth －Tunghsu||||||
|No.1 Special Asset||||||
|Management Plan||||||
|||||In 2017, shares were||
|||||issued and cash was paid||
|Shanghai Huimao||||||
|||||to purchase assets, and||
|Enterprise Management|262,626,262||262,626,262||November 30,2020|
|||||matching funds and||
|Co., Ltd.||||||
|||||related transactions were||
|||||raised||
|||||In 2017, shares were||
|Minsheng Royal Fund||||||
|||||issued and cash was paid||
|Management Co., Ltd－||||||
|||||to purchase assets, and||
|-Ping An Bank-Daye|97,192,224|97,192,224|0||December 29,2018|
|||||matching funds and||
|Trust·Zengli 2 single||||||
|||||related transactions were||
|Fund Trust||||||
|||||raised||
|||||In 2017, shares were||
|Beixin Ruifeng Fund－||||||
|||||issued and cash was paid||
|China Merchants Bank||||||
|||||to purchase assets, and||
|－Daye Trust－Daye|62,095,032|62,095,032|0||December 29,2018|
|||||matching funds and||
|Trust·Profit increase 3||||||
|||||related transactions were||
|single fund plan||||||
|||||raised||
|||||In 2017, shares were||
|Mianyang Technology||||issued and cash was paid||
|City Development||||to purchase assets, and||
||11,380,165|11,380,165|0||December 29,2018|
|Investment （Group）||||matching funds and||
|Co., Ltd.||||related transactions were||
|||||raised||
|||||In 2017, shares were||
|||||issued and cash was paid||
|Sichuan Changhong||||to purchase assets, and||
||5,020,661|5,020,661|0||December 29,2018|
|Elec Co.,Ltd||||matching funds and||
|||||related transactions were||
|||||raised||
|The 40 Shareholders||||Equity incentive and top|Repurchase|
||1,260,750||1,260,750|||
|Awarded Stock||||management locking|cancellation of|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Incentive|||||shares|share incentive|
|||||||object after|
|||||||dismission or|
|||||||repurchase|
|||||||cancellation for|
|||||||failure to meet the|
|||||||unlocking|
|||||||conditions|
|||||||When the relevant|
|||||||shareholders|
|||||||entrust the|
|The 9 Non-agency|||||Before the first offering,||
|||||||company to handle|
|Restricted Shareholders|201,000|||201,000|institutional shareholders||
|||||||the business of|
|before the First Issue|||||restricted from sales||
|||||||lifting the|
|||||||restrictions on the|
|||||||sale of shares|
|Total|1,385,624,525|769,529,722|0|616,094,803|--|--|

 II.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable√Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable√Not applicable
3.About the existingemployees’ shares
□Applicable√Not applicable
III.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
|||||||||
|-|-|-|-|-|-|-|-|
|Total|350,362||357,676|The total number of preferred shareholders voting rights restored at period-end(if any)(See Notes 8)|0||0|
|||Total||||||
|number||||||||
|||||||Total||
|of||shareholders||||||
|||||||preferred share||
|commo||at the end of||||holders at the||
|n||the month||||end of the||
|||||||month from the||
|sharehol||from the||||||
|||||||date of||
|ders at||date of||||disclosing the||
|the end||disclosing||||annual report(if||
|of the||the annual||||any)(See Notes||
|||||||8)||
|reportin||report||||||
|g period||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Particulars about shares held above 5% by shareholders or top ten shareholders||||||||||||||||
||||||Proporti|||||||||Number of share|||
|||||||||Changes|||||||||
||||||on of||Number of|||Amount of||Amount of||pledged/frozen|||
||Shareholders||Nature of|||||in|||||||||
||||||shares||shares held at|||restricted||un-restricted|||||
||||shareholder|||||reporting||||||State of|||
||||||held||period -end|||shares held||shares held||||Amount|
|||||||||period||||||share|||
||||||（%）||||||||||||
|Tunghsu Group||DomesticNon-State-owned legalperson||15.97%||915,064,091|||352,006,791||563,057,300||Pledge||799,643,042||
|ShijiazhuangBaoshiElectronicGroup Co., Ltd.||DomesticNon-State-owned legalperson||5.80%||332,382,171|||||332,382,171||Pledge||153,520,000||
|ShanghaiHuimaoEnterpriseManagementCo., Ltd.||DomesticNon-State-owned legalperson||4.58%||262,626,262|||262,626,262||0||Pledge||80,240,722||
|Minsheng RoyalFundManagementCo., Ltd－-PingAn Bank-DayeTrust·Zengli 2single FundTrust||Other||1.70%||97,192,224|||||97,192,224||||||
|Qianhai equityinvestment fund(limitedpartnership)||DomesticNon-State-owned legalperson||1.45%||83,341,345|||||83,341,345||||||
|TunghsuOptoelectronicTechnology Co.,Ltd.－The firstESOP||Other||1.27%||72,639,296|||||72,639,296||||||
|Beixin RuifengFund－ChinaMerchants Bank－Daye Trust－||Other||1.27%||62,095,032|||||62,095,032||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|DayeTrust·Profitincrease 3 singlefund plan||||||||
|ShenzhenTaianerInformationTechnology Co.,Ltd.||DomesticNon-State-owned legalperson|1.07%|61,165,682|61,165,682|Pledge|55,265,682|
|Zhonghai TrustCo., Ltd. －Zhonghai Trust－ TunghsuOptoelectronicESOP pooledFund trust||Other|0.92%|52,555,280|52,555,280|||
|China Life AMPAssetManagementCo., Ltd. －Bohai Bank －Minsheng Trust－ ChinaMinshengTrust-ZhichengNo.192 TunghsuOptoelectronicPrivateplacement fundtrust plan||Other|0.85%|48,619,336|48,619,336|||
||||Among the top 10 shareholders, Shenzhen Taianer Information Technology Co., Ltd., Qianhai EquityInvestment Fund(Limited Partnership), China Life AMP Asset Management Co., Ltd.－Bohai Bank－Minsheng Trust－China Minsheng Trust-Zhicheng No.192 Tunghsu Optoelectronic Private placementfund trust plan became the top 10 shareholders of the company by participating in the subscription of thecompany's non-public share issuance in 2016-and the sale-restricted period for those shares held is 12months, that is, from August 26, 2016 to August 25, 2017. Among the top 10 shareholders, ShanghaiHuimao Enterprise Management Co., Ltd, Minsheng Jiayin Fund-Ping An Bank-Daye Trust-Daye TrustZengli No.2 Single Fund Trust, and Beixin Ruifeng Fund-China Merchants Bank-Daye Trust-Daye TrustZengli No.3 Single Fund Plan became the top 10 shareholders of the company by participating in thesubscription of shares of the company's 2017 Non-public Share Issuance and Paying Cash to PurchaseAssets and Raising Matching Funds and The Related Transaction, with that: the shares held by ShanghaiHuihao Enterprise Management Co., Ltd has a sale-restricted period of 36 months, namely fromNovember 30, 2017 - November 29, 2020; and the shares held by Minsheng Jiayin Fund-Ping AnBank-Daye Trust-Daye Trust Zengli No.2 Single Fund Trust and Beixin Ruifeng Fund-China MerchantsBank-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.|||||
||Strategy investors or general|||||||
||legal person becomes top 10|||||||
||shareholders due to rights|||||||
||issued (if applicable（) See Notes|||||||
||3）|||||||
||||Among the top ten shareholders , Tunghsu Group and Baoshi Group have relationship and constitutepersons taking concerted action. The company does not know whether there is relationship between other8 shareholders or whether they are persons taking concerted action defined in Administrative MeasuresRelating to Acquisitions of Listed Companies.|||||
||Explanation on shareholders|||||||
||participating in the margin|||||||
||trading business|||||||
||Shareholding of top 10 shareholders of unrestricted shares|||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
||||||Share type|||
||||Quantity of unrestricted shares held at the end of the reporting period|||||
||Name of the shareholder||||Share|||
||||(Note 4)||||Quantity|
||||||type|||
|Tunghsu Group||563,057,300||RMBCommon shares||563,057,300||
|Shijiazhuang Baoshi ElectronicGroup Co., Ltd.||332,382,171||RMBCommon shares||332,382,171||
|Minsheng Royal FundManagement Co., Ltd－-PingAn Bank-Daye Trust·Zengli 2single Fund Trust||97,192,224||RMBCommon shares||97,192,224||
|Qianhai equity investment fund(limited partnership)||83,341,345||RMBCommon shares||83,341,345||
|Tunghsu OptoelectronicTechnology Co., Ltd.－The firstESOP||72,639,296||RMBCommon shares||72,639,296||
|Beixin Ruifeng Fund－ChinaMerchants Bank－Daye Trust－Daye Trust·Profit increase 3single fund plan||62,095,032||RMBCommon shares||62,095,032||
|Shenzhen Taianer InformationTechnology Co., Ltd.||61,165,682||RMBCommon shares||61,165,682||
|Zhonghai Trust Co., Ltd.－Zhonghai Trust － TunghsuOptoelectronic ESOP pooledFund trust||52,555,280||RMBCommon shares||52,555,280||
|China Life AMP AssetManagement Co., Ltd.－BohaiBank－Minsheng Trust－ChinaMinsheng Trust-ZhichengNo.192 Tunghsu OptoelectronicPrivate placement fund trustplan||48,619,336||RMBCommon shares||48,619,336||
|Kunshan Development ZoneState-owned InvestmentHolding Co., Ltd.||43,988,269||RMBCommon shares||43,988,269||
||Explanation on associated|The top 10 tradable shareholders of Shijiazhuang Baoshi Electronic Group Co., Ltd. and the top ten shareholders of Tunghsu Group Co., Ltd. have relationship and constitute persons taking concerted action.||||||
||relationship or consistent action|||||||
||among the top 10 shareholders|||||||
||of non-restricted negotiable|||||||
||shares and that between the top|||||||
||10 shareholders of|||||||
||non-restricted negotiable shares|||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|and top 10 shareholders||
|Notes to the shareholders|Not applicable|
|involved in financing securities||
|(if any)(See Notes 4)||

Whether the top 10 ordinary shareholders of the company and the top 10 ordinary shareholders with unlimited terms of sale shall conduct the agreed repurchase transaction during the reporting period
2、Type of Controlling Shareholders: Legal person
Nature of controlling shareholder: natural person holding
Type of controlling shareholder: legal person
||||||
|-|-|-|-|-|
||Legal||||
|Name of the Controlling|||||
||representative/Leade|Date of incorporation|Organization code|Principal business activities|
|shareholder|||||
||r||||
|||||Investing projects with owned|
|||||funds; Development of mechanical|
|||||equipment and electronic|
|||||products; Productions and process|
|||||formulation of various|
|||||non-standard equipment and|
|||||components; Process and sales of|
|||||component for abrasive materials|
|||||and electromechanical products(no|
|||||equipment of public security);|
|||||Import and export of self-run and|
|||||agent goods and technology;|
|||||Computer system integration ;|
|Tunghsu Group Co., Ltd.|Li Zhaoting|November 5,2004|91130100768130363K||
|||||Software development;|
|||||Technology consulting;|
|||||Installation and engineering|
|||||consulting of electromechanical|
|||||device(no pre-licensing projects|
|||||included above). (Operation is|
|||||allowed only if being within the|
|||||confines of the above laws and|
|||||regulations and the matters|
|||||forbidden or restricted by the State|
|||||Council; Operation is allowed|
|||||once the matters are examined and|
|||||approved by other departments.|
|The equity of the controlling|1. As of December 31, 2018, Tunghsu Group holds 579.68 million shares of Tunghsu Lantian New Energy||||
|shareholder in other domestic|Co., Ltd. (forescout: Tunghsu Lantian, stock code: 000040), accounting for 38.99% of the total share||||
|and foreign listed companies|capital of the company. 2. As of December 31, 2018, Tunghsu Group directly holds 35.7488 million shares||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|held or partly held by it in the|of Shanghai Challenge Textile Co., Ltd. (forescout: Challenge, stock code: 002468), accounting for 4.30%|
|report period|of the total share capital of the company; Indirectly holds 163.19 million shares of Challenge through|
||Shanghai Guojun Investment Co., Ltd., accounting for 19.61% of the total share capital of the company; At|
||the same time, it has the voting rights corresponding to 25.35 million shares of Challenge through the way|
||of entrusted exercise of voting rights, accounting for 3.045% of the total share capital of the company;|
||Tunghsu Group holds voting rights corresponding to 224.29 million shares of Challenge, accounting for|
||26.96% of the total share capital of the company.|

Change of the actual controller in the reporting period
□Applicable√Not applicable
Nil
3．Information about the controlling shareholder of the Company
Actual controllernature：Domestic natural person
Actual controllertype：Natural person
|||||
|-|-|-|-|
||Relationship with the||Whether to obtain the right of abode in other|
|Name of actual controllers||Nationality||
||actual controller||countries or regions|
|Li Zhaoting|Self|Chinese|No|
||Mr. Li Zhaoting，Chinese, born in 1965，graduated from Hebei University of Technology as|||
||a mechanical engineering major, senior engineer, member of the Communist Party of China|||
||and the founder of Tunghsu Group. Li has served successively as the general manager|||
|Main occupations and duties|assistant and vice-general manager of Shijiazhuang Diesel Engine Factory, and Chairman of|||
||Hebei Tunghsu Investment Group Co., Ltd. Li is now the chairman of Tunghsu Group and|||
||Tunghsu Photoelectric Investment, general manager of COE, and the vice chairman as well|||
||as general manager of Chengdu COE.|||
||1. As of December 31, 2018, Tunghsu Group holds 579.68 million shares of Tunghsu Lantian|||
||New Energy Co., Ltd. (forescout: Tunghsu Lantian, stock code: 000040), accounting for|||
||38.99% of the total share capital of the company. 2. As of December 31, 2018, Tunghsu|||
||Group directly holds 35.7488 million shares of Shanghai Challenge Textile Co., Ltd.|||
|Situation of domestic and abroad|(forescout: Challenge, stock code: 002468), accounting for 4.30% of the total share capital of|||
|holding listed companies in the part|the company; Indirectly holds 163.19 million shares of Challenge through Shanghai Guojun|||
|10 years|Investment Co., Ltd., accounting for 19.61% of the total share capital of the company; At the|||
||same time, it has the voting rights corresponding to 25.35 million shares of Challenge|||
||through the way of entrusted exercise of voting rights, accounting for 3.045% of the total|||
||share capital of the company; Tunghsu Group holds voting rights corresponding to 224.29|||
||million shares of Challenge, accounting for 26.96% of the total share capital of the company.|||

 Change of the actual controller in the reporting period
□Applicable√Not applicable
Nil
Block Diagram of the ownership and control relations between the company and the actual controller
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report The actual controller controls the company by means of trust or managing the assets in other way
□Applicable√Not applicable
4.Other corporate shareholder holding over10% of theCompany’s shares
□Applicable√Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party and Other Commitment Subjects
□Applicable√Not applicable
VII. Situation of the Preferred Shares
□ Applicable√Not applicable
No preference shares in the Company.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Amount|Amount|||
||||||||Shares|of shares|of shares||Shares|
|||||||||||Other||
|||||||Expiry|held at|increased|decreased||held at|
|||Office|||Starting date|||||changes||
|Name|Positions||Sex|Age||date of|the|at the|at the||the|
|||status|||of tenure|||||increase/d||
|||||||tenure|year-begi|reporting|reporting||year-gain(|
|||||||||||ecrease||
||||||||n(share)|period(sh|period(sh||share)|
|||||||||are)|are)|||
|Wang|Board||||August|||||||
|||In office|Male|51|||0|0|0|0|0|
|Lipeng|chairman||||3,2018|||||||
|Zhang|Independ|||||||||||
||||||July|||||||
|Shuangca|ent|In office|Male|57|||0|0|0|0|0|
||||||29,2013|||||||
|i|director|||||||||||
||Independ|||||||||||
|Lu|||||May|||||||
||ent|In office|Male|50|||0|0|0|0|0|
|Guihua|||||19,2014|||||||
||director|||||||||||
||Independ|||||||||||
|Han|||||July|||||||
||ent|In office|Male|55|||0|0|0|0|0|
|Zhiguo|||||28,2016|||||||
||director|||||||||||
|Guo|||||August|||||||
||Director|In office|Male|53|||0|0|0|0|0|
|Xuan|||||20,2018|||||||
|Zhou|||||August|||||||
||Director|In office|Male|38|||0|0|0|0|0|
|Yongjie|||||20,2018|||||||
|Wang|||||August|||||||
||Director|In office|Female|42|||0|0|0|0|0|
|Zhong|||||20,2018|||||||
||Chairman|||||||||||
||of the|||||||||||
|Guo|superviso||||July|||||||
|||In office|Male|39|||0|0|0|0|0|
|Chunlin|ry||||28,2016|||||||
||committe|||||||||||
||e|||||||||||
|Xu|Superviso||||July|||||||
|||In office|Female|52|||0|0|0|0|0|
|Lingzhi|r||||28,2016|||||||
|Chen|Superviso||||July|||||||
|||In office|Male|55|||0|0|0|0|0|
|Dewei|r||||28,2016|||||||
|Xie|Superviso|||||||||||
|||In office|Male|41|July 8,2016||0|0|0|0|0|
|Juwen|r|||||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Wan|Superviso|||||||||||
|||In office|Female|33|July 8,2016||0|0|0|0|0|
|Huanhuan|r|||||||||||
||Board||||April|||||||
|Gong Xin||In office|Female|39|||100,000|0|0|0|100,000|
||secretary||||20,2015|||||||
|Feng|||||July|||||||
||CFO|In office|Female|41|||0|0|0|0|0|
|Qiuju|||||27,2018|||||||
||Deputy|||||||||||
|Wang|||||July|||||||
||General|In office|Male|53|||0|0|0|0|0|
|Jianqiang|||||28,2016|||||||
||Manager|||||||||||
||Deputy|||||||||||
|Liu|||||July|||||||
||General|In office|Male|48|||125,000|0|0|0|125,000|
|Wentai|||||28,2016|||||||
||Manager|||||||||||
||Deputy|||||||||||
|Wang|||||July|||||||
||General|In office|Male|54|||0|0|0|0|0|
|Junming|||||28,2016|||||||
||Manager|||||||||||
|||||||April||||||
|Li|Board||||November|||||||
|||Dimission|Male|53||25,201||||||
|Zhaoting|chairman||||30,2011|||||||
|||||||8||||||
||Board||||April|August||||||
|Wu Jiwei||Dimission|Male|48||||||||
||chairman||||25,2018|3,2018||||||
|||||||July||||||
|Huang|||||April|||||||
||CFO|Dimission|Male|39||27,201||||||
|Jinliang|||||28,2017|||||||
|||||||8||||||
|||||||Decem||||||
||Deputy|||||||||||
|Wang|||||July|ber||||||
||General|Dimission|Male|41||||||||
|Zhonghui|||||28,2016|21,201||||||
||Manager|||||||||||
|||||||8||||||
|Total|--|--|--|--|--|--|225,000|0|0|0|225,000|

 II. Change in shares held by directors, supervisors and senior executives
√ Applicable□Not applicable
||||||
|-|-|-|-|-|
|Name|Positions|Types|Date|Reason|
|Li Zhaoting|Board chairman|Dimission|April 25,2018|Job change|
|Wu Jiwei|Board chairman|Dimission|August 3,2018|Personal reasons|
|Huang Jinliang|CFO|Dimission|July 27,2018|Job change|
|Gong Xin|Director|Engaged|August 3,2018|Company talent strategy adjustment|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report III.Posts holding
The professional background, working experience and main responsibilities of the current board members, supervisors and senior managers in the company
1. Mr. Wang Lipeng, Chinese nationality, was born in 1968, master's degree of Tianjin University. Beginning to work in 1989, he had served as the factory director of the electron gun factory of Shijiazhuang Baoshi Electronics Group Co., Ltd, the general manager of Shijiazhuang Bao Dong Electronics Co., Ltd, the director and the general manager of Shijiazhuang Baoshi Electronic Glass Co., Ltd, the director of chairman office of Tunghsu Group Co., Ltd, the general manager of Sichuan Xu Hong Optoelectronics Technology Co., Ltd.and Tunghsu (Kunshan)Display Material Co., Ltd.
2. Mr.Guo Xuan, Chinese, was born in 1966, Bachelor degree,Senior Engineer, He had served as Deputy General Manager of Shijiazhuang Tractor Plant,Currently, he serves as as director and vice president of Tunghsu Group , he has served as Director of Tunghsu Optoelectronic Investment Co., Ltd., director of the Company.
3.Mr. Zhou Yongjie graduated from Renmin University of China. He started work in 2007 and served as deputy general manager and director of the office of Beijing Chengjian Building Materials Industry Co., Ltd, secretary of the chairman and director of the office of Ocasia Investment Group Co., Ltd, and currently is the vice president and director of the chairman office of the Tunghsu Group.
4. Ms. Wang Zhong, Master Degree, Chinese Academy of Sciences. She entered the work force in October 1999 and joined the Communist Party of China (CPC) in April 1998. She previously served as the Deputy Director of Human Resources of Beijing Huaqi Information (Aigo) Technology Co., Ltd., the Administrative Director of Human Resources of Gome Online, the General Manager Assistant and Administrative Director, the Administrative Director of Human Resources of (Gome) Beijing Dazhong and the Administrative Director of Human Resources of (Gome) Zhongguancun Technology Group. She is currently the Senior Vice President of Tunghsu Group and the Executive Vice President of Tunghsu Capital.
5.Mr. Zhang Shuangcai, Chinese Nationality, born in 1961, PhD in Management, Business Administration postdoctoral, Democratic National Construction Association. He serves as Associate Dean School of Management, Hebei University business professor, World Economic doctoral tutor, accounting, business management professional master tutor. He used to be Baoding CPPCC Standing Committee, representative of 11th People's Congress of Hebei Province. Now he is the representative of 12th People's Congress of Hebei Province, Executive director of the Institute of Hebei Province in budget management, deputy director of the private Center for Economic Research of Hebei Province, Accounting association executive director, executive director of Private Entrepreneur Association of Hebei Province, director of the Private Economic and Financial Committee of Hebei Province, committee member of National Central Economic Committee, independent director of Lekai film Co., Ltd. ,Boshen tools Co., Ltd. , Tianwei Baobian Electrical Co., Ltd.and Huida Bathroom Co., Ltd..
6.Mr. Lu Guihua, male, born in May 1968, Dr. Accounting, Applied Economics postdoctoral, Central University of Finance and Economics Professor of Accounting, Master Instructor, Chinese Certified Public Accountant. For mer Tianjin University associate professor, associate professor at the Central University of Finance and professor at the Central University of Finance and Economics, master's and doctoral tutor. ow is Independent Director of Hanvon Technology Co., Ltd., China Minsheng Investment Corp., Ltd., Hebei Iron and Steel Co., Ltd. and the company.
7. Mr. Han Zhiguo, Chinese nationality, was born in 1964, bachelor degree, lawyer of Hebei Dianfan Law Firm. He had served as the teacher of Hebei Vocational College of Politics and Law, and the lawyer of Hebei Zhengchen Law Firm. From September 2006 to September 2013, he had been served as the independent director of
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Shijiazhuang Baoshi Electronic Glass Co., Ltd. Since August 2013, he has been served as the independent director of Bosun Tools Co., Ltd and the independent director of the company.
8. Mr. Guo Chunlin, Chinese nationality, was born in 1980, bachelor degree in law. He began to work in 2004. From September 2004 to November 2005, he had been served for Beijing Zhongfu Law Firm; from November 2005 to October 2007, he taught at Communication University of China. He joined Tunghsu Group Co. Ltd in October 2007, and now he is one of the supervisors of Tunghsu Group Co. Ltd.
9. Ms. Xu Lingzhi, Chinese nationality, was born in 1967, bachelor degree in accounting. She began to work in 1988 and joined Tunghsu Group Co. Ltd in 2006. Currently, she serves as the director of financial center of Tunghsu Group Co. Ltd and the general manager and supervisor of risk-control center of board-office headquarter of Tunghsu Group Co. Ltd.
10.Mr. Chen Dewei, Chinese nationality, was born in 1964, college degree. Currently, he serves as the general manager and supervisor of the management center ofTunghsu Group Co., Ltd.
11.Mr. Xie Juwen, was born in June 1977, master degree, professional in project management of Beijing University of Technology. He had served as the R& D Engineer and the project leader of Beiren Group, the project leader and other posts of Sheet-folding Machine Branch of Beiren Group. Currently, he serves as the project manager of comprehensive office of the company and the employee-representative supervisor of thecompany’s eighth board of supervisors.
12.Ms. Wan Huanhuan, was born in July 1985, bachelor degree, professional in accounting of Industrial and Commercial University of Chongqing. She had served as the audit manager of Sino Railway Information Group Co., Ltd, the business manager of Jiangsu Huaxing Certified Public Accountants and the business specialist of Shenzhen JunZhiYuan Certified Public Accountants. Currently, she serves as the audit manager of thecompany’s audit supervision department and the employee-representative supervisor of thecompany’s eighth board of supervisors.
13.Mr. Wang Jianqiang, Chinese nationality, was born in 1964, university degree, graduated from mechanical specialty of Hebei University of Science and Technology. He had served for Shijiazhuang Baoshi Electronics Group Co., Ltd and had served as the supervisor of thecompany’s seventh session board of supervisors. Currently, he serves as the chairman of Fuzhou Tunghsu Optoelectronic Technology Co., Ltd which is thecompany’s 8.5 generation glass substrate project company.
14. Mr. Liu Wentai, Chinese nationality, born in 1969, graduated from chemical-mechanical professional of Qingdao Institute of Chemical Industry, bachelor's degree. He had served as the workshop equipment supervisor of Shijiazhuang Baoshi Electronics Group Co., Ltd, equipment supervisor of maintenance and engineering department of Shijiazhuang Baoshi Electric Nitrate Co., Ltd, the director of liquid crystal glass research institute of Tunghsu Group Co., Ltd, the general manger of the thermal engineering department, the vice president of Tunghsu Group with a concurrent post of purchasing director. Currently, he serves as thecompany’s vice-general manager and is responsible for thecompany’s whole sets of equipment and technical services .
15.Mr. Wang Junming, Chinese nationality, was born in 1964, master of Beijing Jiaotong University. He had served as the vice-general manager of Henan Anfei Electronic Glass Co. Ltd and the general manager of Zhengzhou Xufei Optoelectronic Technology Co. Ltd. Currently, he serves as Deputy General Manager of the Company.
16. Ms.Gong Xin, Nationality: Chinese, born in 1979, bachelor degree. She once worked in Capital Edge Investment and Management as Project Manager of Investment-banking Department, Assistant to Chairman, Vice General Manager and etc. Now Gong is Chief of Securities Department, Company Direcotr and Board Secretary of the company.
17. Ms. Feng Qiuju, graduated from Hunan University with a Bachelor Degree in Accounting, Chinese Certified
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Public Accountant. She has served as Financial Controller of Beijing Top Green Grass Co., Ltd., Financial Controller of China Century Holding Group Co., Ltd., General Manager and Assistant President (Financial Risk Management) of Financial Management Center of Tunghsu Group Subsidiary, and currently Office taking in shareholder companies
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||||Does he /she|
|||Titles||||
|Names of the|||||receive|
|||engaged in|Sharing date of|Expiry date of||
|persons in|Names of the shareholders||||remuneration or|
|||the|office term|office term||
|office|||||allowance from the|
|||shareholders||||
||||||shareholder|
|||Executive||||
|Guo Xuan|Tunghsu Group|Vice|||Yes|
|||president||||
|||Executive||||
|Zhou Yongjie|Tunghsu Group|Vice|||Yes|
|||president||||
|||Executive||||
|Wang Zhong|Tunghsu Group|Vice|||Yes|
|||president||||
|Guo Chunlin|Tunghsu Group|Supervisor|||Yes|
|||General||||
|||manager and||||
|Xu Lingzhi|Tunghsu Group|supervisor of|||Yes|
|||risk control||||
|||center||||
|||General||||
|||manager and||||
|||supervisor of||||
|||the||||
|Chen Dewei|Tunghsu Group||||Yes|
|||comprehensiv||||
|||e||||
|||management||||
|||center||||

Offices taken in other organizations
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||Office termstart from||Whetherreceivingremunerationfrom other unitsor not|
|||||Office term||
|Name|Name of other units|Position||||
|||||ended||
|Wang Lipeng|Tunghsu (Kunshan)Display Material Co.,|Board|||No|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Ltd.|chairman||
||Sichuan Xuhong Optoelectronic Technology|Board||
|Wang Lipeng|||No|
||Co., Ltd.|chairman||
||Zhengzhou Xufei Optoelectronic|Board||
|Wang Lipeng|||No|
||Technology Co., Ltd.|chairman||
|Wang Lipeng|Shijiazhuang Baodong Electric Co., Ltd.|Director|No|
|Zhang|Baoding Tianwei Baocheng Electric Co.,|||
|||Director|No|
|Shuangcai|Ltd.|||
|Zhang|Hebei Construction Industry Group Co.,|||
|||Director|No|
|Shuangcai|Ltd.|||
|Zhang|Hebei Laishui Rural Commercial Bank Co.,|||
|||Director|No|
|Shuangcai|Ltd.|||
|Zhang|Baoding Tianwei Baocheng Electric Co.,|||
|||Director|No|
|Shuangcai|Ltd.|||
|Zhang|Qingdao Topscomm Communication|Independent||
||||No|
|Shuangcai|Co., Ltd|director||
|Lu Guihua|HBIS CO., lTD.|Director|No|
|Lu Guihua|Minsheng Holding Co., Ltd.|Director|No|
|||Independent||
|Lu Guihua|BEZ Group||No|
|||director||
|||Independent||
|Han Zhiguo|Bosun Tools Co., Ltd.||No|
|||director||
|Guo Xuan|Tunghsu Group|Director|No|
|Guo Xuan|Tibet Xuri Capital Management Co., Ltd.|Supervisor|No|
|||Executive||
|Guo Xuan|Tunghsu Construction Group|director,|No|
|||Manager||
|||Executive||
||Hebei Xubao Construction Installation|||
|Guo Xuan||director,|No|
||Engineering Co., Ltd.|||
|||Manager||
||Shijiazhuang Tunghsu Energy Saving|||
|Guo Xuan||Supervisor|No|
||Technology Co., Ltd.|||
|||Executive||
||Tianjing Xuri Zhongtian Technology Co.,|||
|Guo Xuan||director,|No|
||Ltd.|||
|||Manager||
||Tunghsu Optoelectronic Investment Co.,|||
|Guo Xuan||Director|No|
||Ltd.|||
|Guo Xuan|China optoelectronic Technology Co.,Ltd.|Supervisor|No|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Zhongda Chengxin International|Board||
|Guo Xuan|||No|
||Commercial Factoring Co., Ltd.|chairman||
|||Board||
||Tunghsu International Investment Group|chairman,||
|Guo Xuan|||No|
||Co., Ltd.|General||
|||Manager||
||Tunghsu Rugao High-end Intelligent|||
|||Board||
|Guo Xuan|Manufacturing Industry Investment||No|
|||chairman||
||Management Co., Ltd.|||
|Guo Xuan|Chengdu Taiyisi Technology Co., Ltd.|Supervisor|No|
||Shijiazhuang Tunghsu Medical Equipment|||
|Guo Xuan||Supervisor|No|
||Co., Ltd.|||
||Guangdong Tunghsu Real Estate|||
|Guo Xuan||Supervisor|No|
||Development Co., Ltd.|||
||Yuanan Tunghsu Sun New Energy|Executive||
|Guo Xuan|||No|
||Technology Co., Ltd.|director||
||Huizhou Tunghsu Bay Area Industry|Executive||
|Zhou Yongjie|||No|
||Investment Co., Ltd.|director||
||Shenzhen Xuheng Dongcheng Investment|General||
|Zhou Yongjie|||No|
||Consulting Co., Ltd.|Manager||
|||Executive||
||Huizhou Xuhong Hongsheng Industry|||
|Zhou Yongjie||director,|No|
||Investment Co., Ltd.|||
|||Manager||
|||Executive||
||Huizhou Xuchanglong Industry Investment|||
|Zhou Yongjie||director,|No|
||Co., Ltd.|||
|||Manager||
|Zhou Yongjie|Tunghsu Group|Vice president|No|
|||Executive||
|Wang Zhong|Beijing Tunghsu Capital Holding Co., Ltd.||No|
|||vice president||
|||Senior Vice||
|Wang Zhong|Tunghsu Group||No|
|||president||
|Guo Chunlin|Beijing Xinghua Trade Co., Ltd.|Supervisor|No|
||Beijing Tunghsu Investment Development|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Huarong Metal Surface treatment (Anping)|||
|Guo Chunlin||Supervisor|No|
||Technology Co., Ltd.|||
|Guo Chunlin|Shanghai Guojun Investment Co., Ltd.|Supervisor|No|
||Rizhao Tunghsu Guoshan New Energy|||
|Guo Chunlin||Supervisor|No|
||Technology Co., Ltd.|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Shijiazhuang Tunghsu Optoelectronic|||
|Guo Chunlin||Supervisor|No|
||Equipment Technology Co., Ltd.|||
||Lixian Xuxiang New Energy Development|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
|Guo Chunlin|Shanxi Guoshan New Energy Co., Ltd.|Supervisor|No|
||Guangdong Tunghsu Qinhuang New Energy|||
|Guo Chunlin||Supervisor|No|
||Technology Co., Ltd.|||
|Guo Chunlin|Tunghsu International Investment Co., Ltd.|Supervisor|No|
||Xuxiu Intelligent Technology (Shanghai)|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
|Guo Chunlin|Baofeng Xuyang New Energy Co., Ltd.|Supervisor|No|
|Guo Chunlin|Nenjiang Quantum new energy co., Ltd.|Supervisor|No|
|Guo Chunlin|Tahe Xuyang New Energy Co., Ltd.|Supervisor|No|
|Guo Chunlin|Ezhou Xuyang New Energy Co., Ltd.|Supervisor|No|
||Baishui Xusheng New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Shanxi Xuhui Photovoltaic Electric Co.,|||
|Guo Chunlin||Supervisor|No|
||Ltd.|||
|Guo Chunlin|Lufeng Xuneng New Energy Co., Ltd.|Supervisor|No|
||Dongying Jian Photovoltaic Electric Co.,|||
|Guo Chunlin||Supervisor|No|
||Ltd.|||
||Dongying Hekou Xufei Photovoltaic Power|||
|Guo Chunlin||Supervisor|No|
||Generation Co., Ltd.|||
||Dongying Xufeng New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
|Guo Chunlin|Xuteng new energy Co., Ltd|Supervisor|No|
||Qingshuihe Xuxin New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Licheng Xuli New Energy Technology Co.,|||
|Guo Chunlin||Supervisor|No|
||Ltd.|||
|Guo Chunlin|Yixian Yixu New Energy Co., Ltd.|Supervisor|No|
||Pingshan Xulan New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
|Guo Chunlin|Changling Jiyuan New Energy Co., Ltd.|Supervisor|No|
||Qulan Yicai New Energy Technology Co.,|||
|Guo Chunlin||Supervisor|No|
||Ltd.|||
|Guo Chunlin|Lushan Tunghsu New Energy Technology|Supervisor|No|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Co., Ltd.|||
|Guo Chunlin|Lushan Xulan New Energy Co., Ltd.|Supervisor|No|
||Huaiyang Xuneng Agriculture Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
|Guo Chunlin|Huaiyang Xuyang New Energy Co., Ltd.|Supervisor|No|
||Tunghsu International Investment Group|||
|Guo Chunlin||Director|No|
||Co., Ltd.|||
||Qichuan Xuchun Solar Energy|||
|Guo Chunlin||Supervisor|No|
||Development Co., Ltd.|||
|Guo Chunlin|Tunghsu Group|Supervisor|No|
||Henan Taihuang New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Xuanhua Chengtu Solar Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Wuhan Taihuang New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Shandan Danxu New Energy Development|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Tangshan Caofeidian Xuyuan New Energy|||
|Guo Chunlin||Supervisor|No|
||Technology Co., Ltd.|||
|Guo Chunlin|Pingliang Quantum New Energy Co., Ltd.|Supervisor|No|
||Hunan Tunghsu Taihuang New Energy|||
|Guo Chunlin||Supervisor|No|
||Technology Co., Ltd.|||
||Shandong Donge Chengxing New Energy|||
|Guo Chunlin||Supervisor|No|
||Technology Co., Ltd.|||
||Yixing Hongji New Energy Technology Co.,|||
|Guo Chunlin||Supervisor|No|
||Ltd.|||
||Hubei Taiquan New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
|Guo Chunlin|Woyang Xuyang New Energy Co., Ltd.|Supervisor|No|
||Yingkou Xuying New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Yuexi Xukun New Energy Technology Co.,|||
|Guo Chunlin||Supervisor|No|
||Ltd.|||
|Guo Chunlin|Minle Zhongsheng New Energy Co., Ltd.|Supervisor|No|
||Zhangjiakou Haojing New Energy|||
|Guo Chunlin||Supervisor|No|
||Development Co., Ltd.|||
|Guo Chunlin|Baoding Tianji New Energy Technology|Supervisor|No|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Co., Ltd.|||
||Huili Hongkun New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
|Guo Chunlin|Gaotai Huisheng New Energy Co., Ltd.|Supervisor|No|
||Huangmei Guoxu New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
|Guo Chunlin|Jinxian Quantum New Energy Co., Ltd.|Supervisor|No|
||Hainan Tunghsu Taihuang New Energy|||
|Guo Chunlin||Supervisor|No|
||Technology Co., Ltd.|||
||Anhui Taiquan New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Chengdu Xurong New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Pingding Quantum Photovoltaic Power|||
|Guo Chunlin||Supervisor|No|
||Generation Co., Ltd.|||
||Kunming Tunghsu Qiming Investment|||
|Guo Chunlin||Supervisor|No|
||Development Co., Ltd.|||
||Guangshui Hongji New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Guixi Quantum New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Puyang Tunghsu New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Linqu Chengri New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Huangmei Tunghsu New Energy|||
|Guo Chunlin||Supervisor|No|
||Technology Co., Ltd.|||
||Eerduosi Xuyuan New Energy Development|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Gonghe Hongji New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
|Guo Chunlin|Mianyang Xuri New Energy Co., Ltd.|Supervisor|No|
||Youxian Xutai New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Zhaluteqi Tongbeo Lantian New Energy|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
||Xiantao Taiquan New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Quyang Zhengxu Photovoltaic Power|||
|Guo Chunlin||Supervisor|No|
||Generation Co., Ltd.|||
||Wuan Yanyan Photovoltaic Power|||
|Guo Chunlin||Supervisor|No|
||Generation Co., Ltd.|||
||Laiyuan Xuxi New Energy Technology Co.,|||
|Guo Chunlin||Supervisor|No|
||Ltd.|||
||Caling Xuheng New Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., Ltd.|||
|Guo Chunlin|Fengyang Xuyang New Energy Co., Ltd.|Supervisor|No|
|Guo Chunlin|Qixian Xulan New Energy Co., Ltd.|Supervisor|No|
||Xuanhua Chengji Solar Energy Technology|||
|Guo Chunlin||Supervisor|No|
||Co., ltd.|||
|Xu lingzhi|Beijing Kelinsibei Technology Co., Ltd.|Supervisor|No|
|Xu Lingzhi|Tunghsu Technology Development Co., Ltd.|Supervisor|No|
|Xu lingzhi|Tunghsu Technology Group Co., Ltd.|Supervisor|No|
||Beijing Tunghsu Investment Development|||
|Xu Lingzhi||Supervisor|No|
||Co., Ltd.|||
|Xu Lingzhi|Beijing Xufeng Real Estate Co., Ltd.|Supervisor|No|
||Beijing Nanlide New Energy Technology|||
|Xu Lingzhi||Supervisor|No|
||Co., Ltd.|||
||Beijing Yunzhikang Information|||
|Xu Lingzhi||Supervisor|No|
||Technology Co., Ltd.|||
||Hebei Xubao Construction Installation|||
|Xu Lingzhi||Supervisor|No|
||Engineering Co., Ltd.|||
||Shijiazhuang Tunghsu Optoelectronic|||
|Xu Lingzhi||Supervisor|No|
||Equipment Technology Co., Ltd.|||
|Xu Lingzhi|Dalian Xuchang Technology Co., Ltd.|Supervisor|No|
|Xu Lingzhi|Wuhan Zhongkai Technology Co., Ltd.|Supervisor|No|
||Fuzhou Tunghsu Optoelectronic Technology|||
|Xu Lingzhi||Supervisor|No|
||Co., Ltd.|||
||Tunghsu International Investment Group|||
|Xu Lingzhi||Supervisor|No|
||Co., Ltd.|||
||Huiyin Gold Control Asset Management|||
|Xu Lingzhi||Supervisor|No|
||Co., Ltd.|||
||Shijiazhuang Jinshun Environmental|||
|Xu Lingzhi||Supervisor|No|
||Protection Co., Ltd.|||
||Fuzhou Xufu Optoelectronic Technology|||
|Xu Lingzhi||Supervisor|No|
||Co., Ltd.|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Chongqing Xufuda Optoelectronic|||
|Xu Lingzhi||Supervisor|No|
||Technology Co., Ltd.|||
|Xu Lingzhi|Tunghsu Group|Supervisor|No|
|||Chairman of||
||Beijing Tunghsu Investment Development|the||
|Chen Dewei|||No|
||Co., Ltd.|supervisory||
|||committee||
|ChenDewei|Tunghsu Group|Supervisor|Yes|
|Wan Huanhuan|Tunghsu Group Finance Co., Ltd.|Supervisor|No|
||Wuhu Tunghsu Optoelectronic Technology|||
|Wang Jianqiang||Director|No|
||Co., Ltd.|||
||Liaotong Xutong Solar Energy Technology|||
|Wang Jianqiang||Director|No|
||Co., Ltd.|||
||Tunghsu (Yingkou) Optoelectronic Display|||
|Wang Jianqiang||Director|No|
||Co., Ltd.|||
||Wuhan Tunghsu Optoelectronic Technology|||
|Wang Jianqiang||Director|No|
||Co., Ltd.|||
|Wang Jianqiang|Mudanjiang Xuyang Technology Co., Ltd.|Director|No|
||Jinzhou Xulong New Energy Technology|||
|Wang Jianqiang||Director|No|
||Co., Ltd.|||
|||Executive||
||Fuzhou Tunghsu Optoelectronic Technology|director and||
|Wang Jianqiang|||No|
||Co., Ltd.|General||
|||Manager||
||Fuzhou Xufu Optoelectronic Technology|Board||
|Wang Jianqiang|||No|
||Co., Ltd.|chairman||
|||Executive||
||Anhui Xuan Optoelectronic Technology|director and||
|Wang Jianqiang|||No|
||Co., Ltd.|General||
|||Manager||
||Shenzhen Sanbao Innovation Intelligence|Board||
|Wang Jianqiang|||No|
||Co., Ltd.|chairman||
||Fuzhou Tunghsu Investment Development|Executive||
|Wang Jianqiang|||No|
||Co., Ltd.|director||
|||Executive||
||Chongqing Jinghuateng Optoelectronic|director and||
|Wang Jianqiang|||No|
||Technology Co., Ltd.|General||
|||Manager||
|Wang Jianqiang|Dalian Sihai Da Tong guiding equipment|Manager|No|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Co., Ltd.|||
|||Executive||
||Jiangsu Tunghsu Yitai Intelligent Equipment|director and||
|Wang Jianqiang|||No|
||Co., Ltd.|General||
|||Manager||
|||Board||
|Wang Jianqiang|Suzhou Tengda Optical Technology Co.,Ltd.||No|
|||chairman||
|||Executive||
||Zhejiang Xuheng Yongxin Intelligent|||
|Wang Jianqiang||director and|No|
||Science and Technology Co., Ltd.|||
|||Manager||
||Chongqing Xufu Optoelectronic Technology|Executive||
|Wang Jianqiang|||No|
||Co., Ltd.|director||
||Wuhu Tunghsu Optoelectronic Equipment|Board||
|Liu Wentai|||No|
||Technology Co., Ltd.|chairman||
||Beijing Tunghsu Investment Development|||
|Liu Wentai||Director|No|
||Co., Ltd.|||
|||Director and||
||Zhengzhou Xufei Optoelectronic|||
|Wang Junming||General|No|
||Technology Co., Ltd.|||
|||Manager||
|||Board||
||Shanghai Tanyuan Huigu New Material|||
|Wang Junming||chairman,|No|
||Technology Co., Ltd.|||
|||Manager||

Punishments to the current and leaving board directors, supervisors and senior managers during the report period by securities regulators in the recent three years
□ Applicable√Not applicable
IV. Remuneration to directors, supervisors and senior executives in the reporting period
Decision-making procedures, basis for determination and actual payment of the remuneration to directors , supervisors and senior executives
The payments for the company board directors, supervisors and senior managers are determined on the salary management system. The annual payments (including basic wages, bonus, allowance, subsidy, welfare expense and insurance premium, housing accumulation funds and other pretax net payments paid by the company) paid to board directors, supervisors and senior managers in 2018 are all based on the salary standard administration related to the job responsibilities, performance appraisal and salary level of the corresponding post. During the report period, the salaries for board directors, supervisors and senior managers have been paid monthly.
Remuneration to directors, supervisors and senior executives in the reporting period
In10，000 yuan
||||||||
|-|-|-|-|-|-|-|
||||||Total|Whether to get|
|Name|Positions|Sex|Age|Office status|remuneration|paid in the|
||||||received from the|company related|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
||||||Company|party|
|Li Zhaoting|Board chairman|Male|51|In Office|142.56|No|
||Independent||||||
|Zhang Shuangcai||Male|57|In Office|5|No|
||Director||||||
||Independent||||||
|Lu Guihua||Male|50|In Office|5|No|
||Director||||||
||Independent||||||
|Han Zhiguo||Male|55|In Office|5|No|
||Director||||||
|Guo Xuan|Director|Male|52|In office||Yes|
|Zhou Yongjie|Director|Male|37|In office||Yes|
|Wang Zhong|Director|Female|42|In office||Yes|
||Chairman of the||||||
|Guo Chunlin|supervisory|Male|38|In office||Yes|
||committee||||||
|Xu Lingzhi|Supervisor|Female|51|In office||Yes|
|Chen Dewei|Supervisor|Male|54|In office||Yes|
|Xie Juwen|Supervisor|Male|41|In office|39|No|
|Wan Huanhuan|Supervisor|Female|33|In office|36.72|No|
||Director/Board||||||
|Gong Xin||Female|39|In office|126|No|
||secretary||||||
|Feng Qiuju|CFO|Female|41|In office|72|No|
||Deputy General||||||
|Wang Jianqiang||Male|54|In office|99|No|
||Manager||||||
||Deputy General||||||
|Liu Wentai||Male|49|In office|84|No|
||Manager||||||
||Deputy General||||||
|Wang Junming||Male|54|In office|73.2|No|
||Manager||||||
|Li Zhaoting|Board chairman|Male|53|Dimission||Yes|
|Wu Jiwei|Board chairman|Male|47|Dimission||Yes|
|Huang Jinliang|CFO|Male|39|Dimission||No|
||Deputy General||||||
|Wang Zhonghui||Male|40|Dimission|130|No|
||Manager||||||
|Total|--|--|--|--|817.48|--|

 Incentive equity to directors, supervisors or/and senior executives in the reporting period
□ Applicable√ Not applicable
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report V. Particulars about employees.
（1）Particulars about employees.
|||
|-|-|
|Number of in-service staff of the parent company(person)|141|
|Number of in-service staff of the main subsidiaries(person)|8,465|
|The total number of the in-service staff(person)|8,606|
|The total number of staff receiving remuneration in the current|8,606|
|period(person)||
|Retired staff with charges paid by the parent company and main|0|
|subsidiaries (person)||
|Professional||
|Category|Number of persons（person）|
|Production||
||2,689|
|Sales||
||934|
|Tech||
||3,563|
|Finance||
||259|
|Administration||
||1,161|
|Total|8,606|
|Education||
|Category|Number of persons（person）|
|Doctor|8|
|Master|264|
|Bachelor degree|2,891|
|Below college diploma|5,443|
|Total|8,606|

 2. Remuneration policies
To keep fair to all employees and competitive in business circles and more importantly to inspire employees, we stick to a principle "payment closely matches value of job position,employee’s performance and operation, development and change of performance of the company itself" and stick to another principle "High responsibility, high requirement, high payment" based on thecompany’s fact. In addition, payment inclines to core job positions and core talents. Make short-term, medium-term and long-term incentive plans. Short-term incentives mainly
include payment (annual pay) and profit sharing. Medium-term incentives include equity subscription and option
subscription. Long-term incentives include employee stock ownership plan and partnership.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 3.Training plan
1. Employment training for recruiters: one training is taken per month. Professional learning of recruiters shall be not less than 2h.
2. Management cadre team (leadership) training: Based on different levels of leadership and expected goals, provide training for senior management personnel and middle management personnel, enhance the operating philosophy of senior management personnel, and improve the overall quality of middle management personnel. 3. (Professional) training for ready-to-be professionals: provide professional training for ready-to-be professionals. Professional learning shall be not less than 2h. Build "Tunghsu School" and "Tunghsu Posthouse". 4. (Profession Enhancement) training of performance improvement: based on management and profession channels, provide sub-channel and systematic training separately. Train and reserve administrative personnel to make performance of company achievable and push the implementation of strategy.
4.Outsourcing situation
□ Applicable√ No Applicable
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report IX. Administrative structure
I. General situation
The company adheres to honest operation, standard operation and performs obligation of information disclose required in Company Law, Securities Law, Rule of Stock Exchange Listing in Shenzhen Stock Exchange and Guideline on Standard Operation of Listing Companies on Main Board in Shenzhen Stock Exchange and other laws and regulations as well as related standard files in order to ensure fairness, timeliness and accuracy of information disclosure.
Based on standard files on listing companies issued by China Securities Regulatory Commission, the company constantly adjusts and improves its organizations to ensure completeness, independence and standardization of organizations. Core management organization is composed of general meeting of shareholders, Board of Directors, Board of Supervisors and administrative personnel. A good mechanism shall be created among authorities, decision-making body, supervising body and administrative personnel, namely clearly defied powers and responsibilities, standard operation, mutual coordination and balance of mutual distraction. Separation of positions, clearly defined powers and responsibilities and balance of mutual distraction among different organizations and departments shall be maintained in order to effectively ensure the "Profession", "Standardization" and "Transparency" ofcompany’s management and even to guarantee allshareholders’ benefits, especially minority shareholders.
General meeting of shareholders is an authority of the company. In2018，10 meetings was held totally, among which 1 meeting was annual general meeting of shareholders, 9 were temporary. Board of Directors serves general meeting of shareholders. During reporting period, 21 meetings were held in Board of Director and 121 bills were approved. Special committee is set under Board of Director and 8 meetings were held in 2018. Board of Supervisors serves all shareholders and 13 meeting were held in reporting period. Above meetings were held in conformity with related regulations of Articles of Association, Rule of Procedure of General Meeting of Shareholders, Rule of Procedure of Board of Director, Rule of Procedure of Board of Supervisor. Above meetings were convened, held and voted reasonably and legally while resolutions were all legal and valid, so the meetings play an important role in rapid development of the company.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC,
□ Yes√No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The controlling shareholder of the company has the standard behavior andhasn‘t directly or indirectly interfered the decision-making and operations of the company beyond theshareholders‘ meeting. “Five Separations” achieved on the fields of human resource, finance, assets, organization and business by the company and holding shareholders.
1. Human resource: Management on labor, personnel and wages by the company is independent from holding
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report shareholders. Senior managers all receive payments in the company; none of them receive payment from or serve in controlling shareholder's entities.
2. Finance: An independent financial management department and accounting system have been established. A formal financial management system has been set up for independent financial decisions. An independent bank account has been opened for independent tax payment in accordance with the law. No accountant work simultaneously in controlling shareholder's entities.
3. Assets: The property rights of company's assets are clear and complete. Production system and supporting facilities independent from holding shareholders have been built up, and free use and embezzlement of corporate assets by holding shareholders or other related parties will not happen.
4. Organization: A sound organization system has been constructed in the company, with which Board of Directors, Board of Supervisors and internal organizations operate independently and no affiliation exists between holding shareholders and functional departments. All the holding shareholders participate in corporate decisions in accordance with legal procedures and have caused no influence on the independence of the corporate operation and management.
5. Business: The company operates independently with complete business structure as well as independent production, sale and financial systems. The company operates and manages independently in accordance with the statutory scope of business, and no shareholders will directly or indirectly control and intervene in the supply and sale. Complete and independent business has been maintained with major shareholders.
III. Competition situations of the industry
□Applicable e√Not applicable
IV. Annual General Meeting and ExtraordinaryShareholders’ Meetings in the Reporting Period
1.Annual General Meeting
|||||||
|-|-|-|-|-|-|
|||Investor||||
|||||Disclosure||
|Sessions|Type|participation|Meeting Date||Disclosure index|
|||||date||
|||ratio||||
||||||Announcement No.2018—011,China|
|The First provisional|Provisional|||||
||||||Securities Daily, Securities Time,|
|shareholders’|shareholders’|||||
|||21.88%|January 26,2018|January 27,2018|Shanghai Securities News ,Securities|
|General meeting in|General|||||
||||||daily ,Hongkong Commercial Daily and|
|2018|meeting|||||
||||||www.cninfo.com.cn|
|The Second|||||Announcement No.2018—028,China|
||Provisional|||||
|provisional|||||Securities Daily, Securities Time,|
||shareholders’|||||
|shareholders’||21.95%|March 26,2018|March 27,2018|Shanghai Securities News ,Securities|
||General|||||
|General meeting in|||||daily ,Hongkong Commercial Daily and|
||meeting|||||
|2018|||||www.cninfo.com.cn|
|The Third|Provisional||||Announcement No.2017—052,China|
|provisional|shareholders’|21.96%|April 25,2018|April 26,2018年|Securities Daily, Securities Time,|
|shareholders’|General||||Shanghai Securities News ,Securities|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|General meeting in|meeting||||daily ,Hongkong Commercial Daily and|
|2018|||||www.cninfo.com.cn|
||||||Announcement No.2018—059,China|
||Annual|||||
||||||Securities Daily, Securities Time,|
|2017 Shareholders’|Shareholders’|||||
|||22.66%|May 10,2018|May 11,2018|Shanghai Securities News ,Securities|
|general meeting|General|||||
||||||daily ,Hongkong Commercial Daily and|
||Meeting|||||
||||||www.cninfo.com.cn|
|The Fourth|||||Announcement No.2017—087,China|
||Provisional|||||
|provisional|||||Securities Daily, Securities Time,|
||shareholders’|||||
|shareholders’||22.73%|June 28,2018|June 29,2018|Shanghai Securities News ,Securities|
||General|||||
|General meeting in|||||daily ,Hongkong Commercial Daily and|
||meeting|||||
|2018|||||www.cninfo.com.cn|
||||||Announcement No.2018—100,China|
|The Fifth provisional|Provisional|||||
||||||Securities Daily, Securities Time,|
|shareholders’|shareholders’|||||
|||21.99%|July 30,2018|July 31,2018|Shanghai Securities News ,Securities|
|General meeting in|General|||||
||||||daily ,Hongkong Commercial Daily and|
|2018|meeting|||||
||||||www.cninfo.com.cn|
|The Sixth|||||Announcement No.2018—117,China|
||Provisional|||||
|provisional|||||Securities Daily, Securities Time,|
||shareholders’|||||
|shareholders’||27.68%|August 20,2018|August 21,2018|Shanghai Securities News ,Securities|
||General|||||
|General meeting in|||||daily ,Hongkong Commercial Daily and|
||meeting|||||
|2018|||||www.cninfo.com.cn|
|The Seventh|||||Announcement No.2018—133,China|
||Provisional|||||
|provisional|||||Securities Daily, Securities Time,|
||shareholders’||November|November||
|shareholders’||21.87%|||Shanghai Securities News ,Securities|
||General||15,2018|16,2018||
|General meeting in|||||daily ,Hongkong Commercial Daily and|
||meeting|||||
|2018|||||www.cninfo.com.cn|
|The Eighth|||||Announcement No.2018—147,China|
||Provisional|||||
|provisional|||||Securities Daily, Securities Time,|
||shareholders’||December|December||
|shareholders’||21.92%|||Shanghai Securities News ,Securities|
||General||10,2018|11,2018||
|General meeting in|||||daily ,Hongkong Commercial Daily and|
||meeting|||||
|2018|||||www.cninfo.com.cn|
|The Ninth|||||Announcement No.2018—155,China|
||Provisional|||||
|provisional|||||Securities Daily, Securities Time,|
||shareholders’||December|December||
|shareholders’||21.93%|||Shanghai Securities News ,Securities|
||General||25,2018|26,2019||
|General meeting in|||||daily ,Hongkong Commercial Daily and|
||meeting|||||
|2018|||||www.cninfo.com.cn|

2. Preferred stockholders restored voting rights to request to convene ProvisionalShareholders’ Meeting.
□Applicable√Not applicable
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report V. Duty performance of independent Directors
1. Attendance of Board Meetings and General Meetings
|||||||||
|-|-|-|-|-|-|-|-|
|Independent Directors’ Attendance at Board Meetings||||||||
||Number of|||||||
|||||||Failure to||
||Board||Number of||||Number of|
|||||||personally||
||meetings|Number of|meetings|Number of|||attendance at|
|Independent|||||Number of|attend board||
||necessary to be|spot|attended by|attendances by|||general|
|Directors|||||absence|meetings||
||attended in the|attendances|Communicatio|representative|||meetings of|
|||||||successively||
||reporting||n||||shareholders|
|||||||twice (Yes/No)||
||period|||||||
|Zhang Shuangcai|27|27|0|0|0|No|10|
|Lu Guihua|27|27|0|0|0|No|10|
|Han Zhiguo|27|27|0|0|0|No|10|

 Notes to failure to personally attend Board Meetings Successively Twice
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes√No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independentdirector’s advice to the Company been accepted
√Yes□No
Explanation on acceptance of or failure to accept an independentdirector’s advice to the Company.
During the report period, the independent directors of the company has strictly followed the relevant laws and regulations of “Governance Rules of Listed Companies”, “Stock Listed Rules in Shenzhen Stock Exchange” and “Guidance Suggestion on the Establishment of Independent Directors System by the Listed Company”, and the provisions of “Articles of Association” to attend the Board of Directors and Shareholders of the company, conscientiously perform their duties, express the constructive comments or suggestions for the development decisions of the company, Is the company's annual profit distribution plan, annual internal control self assessment, annual related party guaranty fund occupancy, year, renewed annual financial and internal audit institutions, raise money deposit associated with use, finance companies, supplement directors, accounting policy changes, related party transactions, to increase commitment subject changes, raise funds use and replacement, raise funds investment project change, company executives change, company public offering of A shares, convertible corporate bonds and audit opinions issued by the independent directors, which has effectively ensured the impartiality and objectivity of decision-making of the Board of Directors, maintained the whole interests of the company and the legitimate rights
of miedium and small shareholders, and played a positive role in thecompany‘s standard operation and healthy
development.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report VI. Duty Performance of Special Committees under the Board of Directors in the Reporting period
1.Performance of duties of the Nomination Committee
In 2018, The Nomination Committee of the Board of Directors earnestly performs their duties, and reviews and make recommendations on thecompany’s Candidate for additional director and new CFO candidates as per the provisions of “Implementation Rules of Nomination Committee of the Board of Directors”.
2.Performance of Remuneration and Appraisal Committee
In 2018, Remuneration and Appraisal Committee under the Board of Directors have conscientiously performed their duties, and conducted the review and provide the suggestions on the subsidy of the independent directors of the company according to the provisions of “Detailed Rules for Implementation of Remuneration and Appraisal Committee under the Board of Directors”.
3. Performance of Audit Committee
In 2018, Audit Committee under the Board of Directors has conscientiously performed the duties, conducted the duty of care, actively performs all kinds of works according to the relevant provisions of “Detailed Rules for Implementation of Audit Committee under the Board of Directors” and “Articles of Association”, and mainly made communication, control and review on the annual audits of the company.
Audit Committee and the certified accountants have made fully communication on the audit plans, business engagement letters, risks and control matters. The Audit Committee has reviewed the audit opinions and the financial accounting statements issued by the certified accountants, and supervised the certified accountants to submit the audit report within the appointment time. At the same time, the Audit Committee believes that the certified accountants have strictly followed the provisions of the independent audit rules from CPAs to perform the audit work, the audit time is enough, the audit personnel is allocated reasonably, the certificated competence is qualified, and the financial accounting statements audited by the certified accountants shall reflect the true, accurate and complete financial condition.
4. Performance of Strategy Committee
In accordance with related provisions of The Detailed Rules for Implementing the Strategy Committee of the Board and Articles of Incorporation, Strategy Committee of the company is diligent and dutiful in fulfilling its duties and carrying out its work in 2018. It mainly focuses on the discussion and revision of strategic development planning of the company.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting period
□Yes√No
The supervisory Committee has no objection against any matters under supervision in the reporting period VIII. Assessment and incentive Mechanism for Senior executives
The company puts store by performance evaluation of administrative personnel, so the company gradually improves evaluation and inspiration mechanism of administrative personnel and builds improved payment management system and performance management system and finally found payment and evaluation committee under Board of Director, which is in charge of evaluating administrative personnel. Performance evaluation has a close influence on payment of administrative personnel. The company makes a scientific and effective inspiration
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report mechanism.
IX. Internal control situations
1. Specific situations on major defects of internal control discovered during report period
□ Yes√ No
2.Self-evaluation report on internal control
||||
|-|-|-|
|Disclosure date of appraisal report on|||
||April 29 , 2019||
|internal control|||
|Disclosure index of appraisal report on|||
||http://www.cninfo.com.cn||
|internal control|||
|Proportion of total unit assets covered by|||
|appraisal in the total assets of the|||
||90.00%||
|consolidated financial statements of the|||
|company|||
|Proportion of total unit incomes covered|||
|by appraisal in the total business incomes|||
||90.00%||
|of the consolidated financial statements of|||
|the company|||
|Standards of Defects Evaluation|||
|Type|Financial Report|Non-financial Report|
||Evaluation standards of internal control|Criteria of quality refers to the severity|
||defects in financial reports are based on the|of involved business nature, which can|
||degree of importance of the misstatement|be determined by the nature, range of|
||due to the internal control defects. The|influence and other factors of direct or|
||degree of importance mainly relies on|potential negative effects. The following|
||following factors: (1) the possibility of loss|signs indicate possible major defects in|
||or fraud of related assets or debts; the|internal control of non-financial reports:|
||severity degree of defect control relies on the|(1) invalid supervision on internal|
||possibility of prevention, discovery or|control by Audit Committee and the|
||correction of misstatement concerning to|internal audit authority; (2) lack of|
|Standard|account or presentation; (2) involved|democratic decision-making process,|
||account, presentation and related recognized|such as the decision-making process of|
||property: whether there is a recognized|“major policies, appointment or|
||direct relationship with one or more financial|dismissal of cadres in important|
||statements; (3) whether the control for|positions, arrangement of major projects|
||evaluation and compensation can offset the|and utilization of sizable funds”; (3)|
||control defects, whether the control for|violation of state laws and regulations,|
||evaluation and compensation is precise|for example environment pollution; (4)|
||enough to prevent, discover or correct|the outflow of managers and technicians;|
||possible majors misstatements; (4) whether it|(5) lack of system control or systemic|
||can arouse attention of personnel in charge|failure in major business; (6) no|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|of supervising enterprise financial reports: a.|rectification of major or important|
|control defects have been existed since|defects concerning to the results of|
|previous year and recognized as major ones;|internal control appraisal.|
|b. control defects exist in the rising business||
|or high-risk business of the company; c.||
|control defects exist in fields highly focused||
|by Board of Directors or Audit Committee,||
|such as special part or sensitive business; (5)||
|the interaction among control defects:||
|whether control defects, which influence the||
|same important account, presentation and||
|related recognized or internal control factors,||
|form major defects; (6) the possible||
|influences caused by control defects in||
|future. When a cautious manager considers a||
|control defect or the combination of control||
|defects are obstacles in formulating basic||
|recording transactions with applicable||
|financial reports in a reasonable way, then||
|the control defect or the combination of||
|control defects should be considered as the||
|indication of major defects. The following||
|signs indicate major defects in internal||
|control of financial reports: (1) any degree of||
|fraud carried out by board members,||
|supervisors and senior managers; (2)||
|financial statements re-published by the||
|company to correct major misstatements due||
|to fraud or mistakes; (3) major||
|misstatements existed in the current financial||
|statements of the company, which have not||
|been discovered during the operation of||
|internal control; (4) invalid supervision on||
|internal control carried out by Audit||
|Committee and internal audit authority; (5)||
|invalid internal control environment in the||
|company; (6) major deviation on budgets;||
|(7) negative effects due to the punishments||
|by regulators; (8) huge losses of the||
|company; (9) total amount of associated||
|business surpasses the upper limit of||
|associated business amount approved by||
|general meeting of shareholders; (10) defects||
|influencing the revenue trend, such as profit||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
||and loss results; (11) other defects||
||influencing the sound judgment by statement||
||users.||
|||(1) Defects and problems concerning to|
|||the internal control: Single defect: when|
|||the influence level reaches or surpasses|
|||0.5% of the sales revenue when|
|||appraising the annual consolidated|
|||statements of Tunghsu Photo-electricity,|
||（1）In Case of profit① Single defect: a.|it will be considered as major defect; b.|
||when the influence level reaches or|when the influence level is lower than|
||surpasses 5% of the profits before tax when|0.5% but reaches or surpasses 0.05% of|
||appraising the annual consolidated|the sales revenue when appraising the|
||statements of Tunghsu Photo-electricity, it|annual consolidated statements of|
||will be considered as major defect; b. when|Tunghsu Photo-electricity, it will be|
||the influence level is lower than 5% but|considered as major defect; c. when it is|
||reaches or surpasses 0.5% of the profits|not belonged to major or important|
||before tax when appraising the annual|defects, then it will be considered as|
||consolidated statements of Tunghsu|normal defect. ② The collection of|
||Photo-electricity, it will be considered as|defects influencing the same important|
||major defect; c. when it is not belonged to|account title or disclosure: a. when the|
||major or important defects, then it will be|influence level after collection reaches or|
||considered as normal defect. ② The|surpasses 0.5% of the sales revenue|
|Standards of Quantitation|collection of defects influencing the same|when appraising the annual consolidated|
||important account title or disclosure: a. when|statements of Tunghsu Photo-electricity,|
||the influence level after collection reaches or|it will be considered as major defect; b.|
||surpasses 5% of the profits before tax when|when the influence level after collection|
||appraising the annual consolidated|is lower than 0.5% but reaches or|
||statements of Tunghsu Photo-electricity, it|surpasses 0.05% of the sales revenue|
||will be considered as major defect; b. when|when appraising the annual consolidated|
||the influence level after collection is lower|statements of Tunghsu Photo-electricity,|
||than 5% but reaches or surpasses 0.5% of the|it will be considered as major defect; c.|
||profits before tax when appraising the annual|when it is not belonged to major or|
||consolidated statements of Tunghsu|important defects, then it will be|
||Photo-electricity, it will be considered as|considered as normal defect. (2) For|
||major defect; c. when it is not belonged to|internal control defects and problems|
||major or important defects, then it will be|including personal fraud, please refer to|
||considered as normal defect.|the integrity management related rules of|
|||the company. Standards of internal|
|||control defects and problems including|
|||personal fraud: a. normal defects: less|
|||than one million yuan, or punishments by|
|||the government departments following|
|||the provincial level (including|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|||provincial) without negative effects on|
|||regular reports or disclosures published|
|||by Tunghsu Photo-electricity; b. major|
|||defects: one million yuan (including one|
|||million) to ten million yuan, or|
|||punishments by the government|
|||departments at the national level without|
|||negative effects on regular reports or|
|||disclosures published by Tunghsu|
|||Photo-electricity; c. major defects: 10|
|||million or more or defects which have|
|||been officially announced and caused|
|||negative effects on regular reports or|
|||disclosures published by Tunghsu|
|||Photo-electricity|
|Number of major defects in financial|||
||0||
|reporting（a）|||
|Number of major defects in non financial|||
||0||
|reporting (a)|||
|Number of important defects in financial|||
||0||
|reporting（a）|||
|Number of important defects in non|||
||0||
|financial reporting（a）|||

X. Internal Control audit report
√ Applicable□Not applicable
||
|-|
|Review opinions in the internal control audit report|
|ZXCGHSZZD(2019)No.:105014.|
|：To All Shareholders of Tunghsu Optoelectronic Technology Co., Ltd|
|In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing standards of Chinese|
|Certified Public Accountant, we audited the effectiveness of the financial report’s internal control for Tunghsu Optoelectronic|
|Technology Co., Ltd . (the Company) dated 31December 2018.|
|I. As for responsibility of internal control,|
|The Company established and improved and implemented internal control effectively based on Basic Norms of Enterprises Internal|
|Control, Supporting Guidelines for Enterprise Internal Control and Evaluation Guild lines for Enterprises Internal Control, and|
|board of the director is responsible for evaluating its effectiveness.|
|II. Auditor’s responsibilities|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|Our responsibility is to express an opinion on the effectiveness of internal control for the financial statements based on our audit.||
|And disclosed major deficits of noted internal control without financial statement concerned.||
|III. Inherent feature of internal control:||
|The internal control has an inherent limitation, and exist mistakes that can not prevent and being discovered. Moreover, the internal||
|control might be inappropriate due to the changes of conditions, or fails to follow the controlling policies and procedures, to||
|speculate future effectiveness of the internal control in line with the auditing result has a certain risks.||
|IV. Auditing opinion: in our opinion, the Company.||
|In line with Basic Norms of Enterprises Internal Control and relevant regulations, shows an effectiveness internal control of||
|financial report in all major aspects dated 31 December 2018.||
|Hebei Guanghua Accounting Firms Co., Ltd.(LLP)||
|Accountants Chinese C.P.A(Project Partner).: Accountants Chinese C.P.A.:||
|Beijing China April 29, 2019||
|Disclosure of internal audit report|Disclosure|
|Disclosure date of audit report||
||April 29,2019|
|of internal control (full-text)||
|Index of audit report of||
||http://www.cninfo.com.cn|
|internal control (full-text)||
|Internal audit report’s opinion|Unqualified audit opinion|
|Non-financial reporting the||
||No|
|existence of significant deficiencies||

Has the CPAs issued a qualifiedauditor’s report of internal control .
□ Yes√No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of Directors
√Yes□No
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report X. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at maturity on the approval date for annual report disclosed
Yes
I. Basic information of the corporate bonds
|||||||||
|-|-|-|-|-|-|-|-|
||||||Bond||Method of repayment of|
||Abbreviated|||||Interest||
|Bond Name||Code|Issue Date|Date Due|Balance(RM||the principal and interest|
||Bond Name|||||Rate||
||||||B10,000)||payment|
|2015- corporate||||||||
||||||||Interest paid every year,|
|bond of Tunghsu||||||||
||15 Tunghsu||||||the principal will be repaid|
|Optoelectronic||112243|May 19,2015|May 19,2020|95,200|6.68%||
||bonds||||||with the last unpaid interest|
|Technology Co.,||||||||
||||||||in one time as the bond due|
|Ltd||||||||
|Listed place or Transaction||||||||
|||Shenzhen Stock Exchange||||||
|place for the corporate bonds||||||||
|Arrangement of investor’s||||||||
|||Investor’s put table right||||||
|eligibility||||||||
|Information about interest paid||||||||
|||The first period bond interest 60,000,000.00 was paid in full amount on schedule in the current||||||
|and bonds honored during the||||||||
|||period||||||
|reporting period||||||||
|||The Company will adjust the coupon rate of the follow-up period at the end of the 3rd year of the||||||
|||current bond duration for the "15 Tunghsu Bonds". The coupon rate of the bonds is 6.00% for the||||||
|Implementation of relevant||||||||
|||first 3 years of the duration. At the end of the 3rd year of the duration, the Company chooses to||||||
|special clauses(if applicable)||||||||
|||increase the coupon rate, i.e., the coupon rate of 2 years after the duration of the bonds is increased||||||
|such as option clause for the||||||||
|||from 6.00% to 6.80%, and remains unchanged within 2 years after the duration of the bonds (May||||||
|bond issuer or investors and||||||||
|||19, 2018 to May 18, 2020). During the Reporting Period, there are 439,573 declared put-back of||||||
|exchangeable clause||||||||
|||"15 Tunghsu Bonds", with the put-back amount of RMB 46,594,738.00 (including interest), and||||||
|||the remaining 9,560,427 custodian bonds.||||||

II. Information about the bond trustee and credit rating agency
|||||||||
|-|-|-|-|-|-|-|-|
|Bond trustee:||||||||
||||19,20/F, Main|||||
||||Tower ,|||||
||Guangzhou||Guangzhou|||||
|||Business|||Shi Jianhua,|||
|Name|Securities Co.,||International|Contacts||Tel|020-88836999|
|||Address|||Yan Xiangjun|||
||Ltd.||Finance Center|,||||
||||No.5 Zhujiang|||||
||||West Road,|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
||||Tianhe District|||
||||Guangzhou|||
||||City|||
|The credit rating agency who follow up and rate the corporate bonds in the reporting period:||||||
|||||Business|Room 508 Ailiyuan Apartment, No.38 Water|
|Name|United Rating Co.,Ltd|||||
|||||Address|Park North Road, Nankai District, Tianjin City|
|During the report period, the bond trustee,||||||
|credit rating agency employed by the||||||
|company that have changed, reasons for||||||
|||Not applicable||||
|the change, performing procedures,||||||
|relevant influence on investors, etc ( if||||||
|applicable)||||||

III. Information about the use of the funds raised by issuing corporate bonds
|||
|-|-|
|The information of the use of the funds|Using the funds raised by issuing corporate bonds strictly conforming to the purpose|
|raised by issuing corporate bonds and|stipulated by Rules of Management and Use of the Raised Funds and the Prospectus, and|
|related implementation procedure|implemented the corresponding approval procedures|
|Ending balance of the year(RMB10,000)|0|
|Operation status of the special account for||
||Normal|
|the raised funds||
|Whether the use of the raised funds||
|conforming to the purpose, use plan and||
||The use of the raised funds conformed to the purpose promised in the Prospectus|
|other provisions specified in the||
|Prospectus||

IV. Information about the rating of the corporate bonds
On June 14, 2018, United Ratings Co., Ltd. issued trace rating report LHPZ[2018] No.960 based on thecompany’s 2016 Annual Report.
By tracking and rating the long-term credit status of the main body of the company and corporate bonds publicly issued by the company, the rating results is determined as the long-term credit ratingAA+，and its outlook is "Steady".” (For details, please refer to the "Tracking Rating Announcement" of the company disclosed on www.cninfo.com on June 16, 2018)
According to the United RatingCo.,Ltd’s requirements on tacking and rating, a regular rating shall be carried out within 2 months after thecompany’s disclosure of 2018 annual report. Also, the United Rating Co.,Ltd shall carry out randomly tracking and rating during the duration of the corporate bonds based on relevant information. V. The corporatebond’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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report be charged on interest after thebond’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 everyyear’s financial budget, for ensuring the repayment of the interest and principal of the bonds is timely, guaranteeing thebond-holder’s interest. The company will set up a working team for repayment 15days before the day that is the interest paying day or principal repaying day of the bonds, with the personnel of the finance department being included, to specially in charge of the work of paying the interest of the bonds and the repayment of the principal.
II. Establishing Meeting Rules for Bond-holders
According to the provisions specified in the Pilot Approach, the company with bond trustee has established the Meeting Rules for Bond-holders for the corporate bonds. The Meeting Rules for Bond-holders specified the scope, procedures and other important items for the bond-holders to exercise rights through the Meeting of the Bond-holders, which provided a reasonable institutional arrangement for the timely and full payment to the interest and the principal of the corporate bonds.
III. Making the full use of the bond trustee
According to the requirements specified in the Pilot Approach, the company has adopted the institution of bond trustee, engaged Guangzhou Securities Co.,Ltd as the trustee of the bonds this time and signed the Agreement of Bond Entrusted Management with Guangzhou Securities. The Bond Trustee shall represent all the bond-holders to supervise the relevant information about the company and take all necessary measures to protect the legitimate interest of the bond-holders when the interest or principal of the bonds cannot be repaid in time. The company shall strictly conform to the provisions specified in the Agreement of Bond Entrusted Management, being cooperative when the bond trustee performance its duties, and regularly submit the report of commitment fulfillment status to the bond trustee. When there is a possible bond default, the company shall notice the bond trustee in time, thus the bond trustee can take other necessary measures in time according to the Bond Entrusted
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Management.
Ⅳ. Strictly fulfilling the obligation of information disclosure
The company shall adhere to the information disclosure principles of authentic, accurate and completed, making the information of thecompany’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 exceeds10% 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 exceeding10% of the net asset audited in the last accounting year; (7) Planning to dispose the asset or debt with subject amount exceeding10% 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 thecompany’s assets and liabilities management, liquidity management, use management of the raised funds, funds management and so forth according to thecompany’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 everyyear’s interest or principal of the bonds to adequately protect theinvestor’s interest. VI. Commitments
According to the resolutions of the issuance of the bonds approved on the board meeting on Oct 21, 2014 and the general meeting of shareholders on Nov 6, 2014, when the company cannot repay the interest or principal of the bonds in time or fully repay the interest or principal of the bonds, the company shall take the following resolutions and make corresponding measures: (1) None profit distribution to shareholders; (2) Postponing capital expenditure items, such as major investment, merger and acquisition; (3) Reducing or stopping the salaries and bonuses of the directors and senior management personnel; (4) No transferring of principal responsible personnel and so on.
VI. Information about the bond-holder meeting during the reporting period
There was no bond-holder meeting convened in the reporting period.
VII. Information about the obligations fulfilled by the bond trustee in the reporting period
The bond trustee has been continuously following up thecompany’s credit status,
2017 Entrusted Management Report of 2015 Corporate Bonds of Tunghsu Optoelectronic and and the Interim Report on the Entrusted Management of Major Events of 2015 Corporate Bond of Tunghsu Optoelectronic (on the change of Directors and Chairman) were released on May 10, 2018 and August 9, 2018 respectively, and the
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Company was visited on the spot in December 2018 to review the bank reconciliation of the special account for raised funds and continuously supervise the use of the raised funds.
VIII. The key accounting data and financial indicators of the latest two years to the end of the reporting period In RMB10,000
|||||
|-|-|-|-|
||||Rate of change in the same|
|Items|2018|2017||
||||period|
|Earnings before interest, tax,||||
||489,789.49|444,259.47|10.25%|
|depreciation and amortization||||
|Current ratio|167.08%|223.56%|-56.48%|
|Debt ratio|53.95%|53.11%|0.84%|
|Quick ratio|131.58%|177.08%|-45.50%|
|EBITDA/Total debts|12.51%|12.19%|0.32%|
|Interest coverage ratio|36.79|22.23|65.50%|
|Cash interest coverage ratio|1.61|2.26|-28.76%|
|EBITDA interest coverage ratio|3.73|3.43|8.75%|
|Loans repayment rate|100.00%|100.00%|0.00%|
|Interest payment rate|100.00%|100.00%|0.00%|

 The material reasons for the changed ratio of the accounting data or financial indicators exceeds30% over the last year
√Applicable□ Not applicable
The current ratio decreases by56.48%, mainly due to the increase of RMB 2.6 billion in short-term borrowings at the end of the current period compared with the end of the previous period.
The significant increase in interest coverage is due to better performance for the current period.
The sharp decline in the quick ratio is also due to a sharp increase in short-term borrowing of RMB 2.6 billion. The decrease in the multiple of cash interest protection is mainly attributable to the decrease in the ability to recover from operating activities as compared to the same period in 2017.
IX. Information about the repayment of interest and principal for other bonds or debt financing instruments 1. Bonds issuing, interest payment and cashing within the report period
The company 8th Board of Directors approved the application to National Association of Financial Market Institutional Investors (NAFMII) for registration and issuance of less than 4.7 billion medium term note on September 8, 2016. The extraordinary generalshareholders’ meeting was convoked on September 26, 2016 and approved the program concerning the proposed registration and issuance of the medium term note. The medium term note in 2016 was 4.7 billion in two periods including the first period with two types of(3+2 years) and 5 years totaling up to 3 billion and the second period with two types of(3+2 years) and 5 years totaling up to 1.7 billion, which would both adopt the interest payment per year, principal repayment upon expiration and the interest payment together with the principal cashing for the last period. The interest payment period has not expires within the report period and the interest accrued was RMB 224,280,000.00 .
2. Unmatured bonds issuing, interest payment and cashing in previous years
As approved by China Securities Regulatory Commission file ofZJXK[2015] No. 635, the company issued
toward the public 1 billion bones on May 19, 2015 , the first period bond interest 60,000,000.00 was paid in full
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report amount on schedule in 2016, and the first period bond interest 43,957,300.00 was paid in full amount on schedule in 2018.
X.Information about the bank credit obtaining and use, as well as repayment of the bank loans during the reporting period
The balance of the total amount of the short-term and long-term loans is RMB11,102,696,251.33, increased RMB605,143,618.36 compared with the end of year 2017, which mainly because of the need of the production and operation and the construction of projects. The company strictly conformed to requests of bank loans to use the funds and fully repaid the interest and principal to the bank in time.
XI. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of the bonds during the reporting period
During the reporting period, there is no use of corporate bonds to raise funds, and the company has strictly fulfilled its commitment that the bond raised funds will not be directly or indirectly invested in the real estate development business, and will not be used to increase the capital of subsidiaries engaged in the real estate business or lend money to them.
XII.Major events occurred during the reporting period
Nil
XIII. Whether the corporate bonds have a guarantor
□ Yes√No
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report XI. Financial Report
I. Audit report
|||
|-|-|
|Type of auditing opinion|Standard report without qualified opinion|
|Date for signing the auditor’s report|April 29,2019|
|Name of audit firm|Hebei Guanghua Accounting Firms Co., Ltd.(LLP)|
|The audit of the report|ZXCGHSKZD(2019)No.:105028|
|Certified public accountant's name|Qi Zhenghua, Meng Xiaoguang|

Auditors’ Report
ZXCGHSKZD(2019)No.:105028 To all shareholders of Shareholders of Tunghsu Optoelectronic Technology Co., Ltd.:
I. Opinion
We have audited the financial statements of Tunghsu Optoelectronic Technology Co., Ltd.
(hereinafter referred to as "the Company"), which comprise the balance sheet as at December 31, 2018, theCompany’s and consolidated income statements, theCompany’s and consolidated cash flow statements, theCompany’s and consolidated statements of changes inshareholders’ equity for the year then ended, as well as the notes to the financial statements.
In our opinion, the financial statements attached were prepared in line with the regulations of Accounting Standards for Business Enterprises in all significant aspects which gave a true and fair view of the consolidated and parent financial position of the Company as at 31 December 2018 and the consolidated and parent business performance and cash flow of the Company for 2018
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independent of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report We confirm that the following matters are the key audit matters that need to be communicated in the audit report:
(1) Recognition of operating income
1. Description of the matter
For details of relevant information disclosure, please refer to "Note V, 28 and Note VII, 52" of the financial statements.
Tunghsu Optoelectronic recognized operating income of 28,211.7 million yuan in 2018, up63.29% over 2017. The operating income is divided into construction contract income and product sales income:
As for construction contract income, Tunghsu Optoelectronic Company will determine the
completion progress according to the proportion of the accumulated actual cost to the estimated total cost under the condition that relevant projects can be reliably estimated. The estimated total cost of the budget contract involves significant accounting estimation and judgment. The estimation and judgment are influenced by existing experience and judgment on the future market. The rationality of the management's estimation and judgment on the estimated total cost will have a significant impact on the recognition of the income of relevant projects of Tunghsu Optoelectronic; Meanwhile, the sales revenue of products accounts for a large proportion of the
operating revenue of Tunghsu Optoelectronic;
Therefore, we will recognize the estimated cost of the construction contract and the recognition of product sales income as key audit matters.
2. Audit response
(1) For the recognition of product sales income, the main auditing procedures we implement are as follows:
Understand and evaluate the rationality and effectiveness of management's design of key internal controls related to revenue recognition; (Check whether the accounting policies for income recognition conform to the provisions of the accounting standards for enterprises and whether they are consistently implemented; Take sampling method to check the major sales contracts, sales invoices, transportation documents, customer acceptance documents, export declaration forms and other documents related to product sales income of Tunghsu Optoelectronic, and conduct confirmation and visits to important customers to confirm the occurrence of product sales income;
For the product sales revenue recognized before and after the balance sheet of Tunghsu
Optoelectronic, check the documents such as transportation documents and customer acceptance documents to evaluate whether the income is recorded in the appropriate accounting period.
(2) As for the estimated cost of the construction contract, the main auditing procedures we have implemented are as follows:
Understand and evaluate the rationality and operational effectiveness of the management's key internal control design related to project contract budgeting and revenue recognition;
Using sampling method, compare and analyze the actual total cost of completed projects with the estimated total cost of the contract made by the management on whether there are abnormal differences, so as to judge whether the management effectively manages the contract budget dynamically;
Compare and analyze the estimated total cost of unfinished projects with the historical actual cost of similar completed projects, and evaluate the management's experience and ability in making such accounting estimate;
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report By sampling method, check the compilation basis of the estimated total cost of Tunghsu
Optoelectronic and evaluate the rationality of the estimated total cost;
Obtain company income calculation details and execute recalculation procedures to determine the accuracy of income recognition.
(II) Goodwill impairment
1. Description of the matter
Please refer to "Note V, 22, Note VII, 22" to the financial statement for details of the relevant information disclosure.
As of December 31, 2018, the book value of goodwill in the consolidated financial statements of Tunghsu Optoelectronic was RMB 2835.6726 million, and the provision for goodwill impairment that had been made was RMB 10.1634 million. Management performs an impairment test on goodwill at the end of each year and adjusts the book value of goodwill based on the results of the impairment test. The results of the goodwill impairment test depend to a large extent on the estimates made and assumptions adopted by management (e.g. estimates of the expected future cash flow and discount rate of the asset group). These estimates are influenced by management's judgments on the future market and the economic environment. The use of different estimates and assumptions will have a significant impact on estimating the recoverable value of goodwill. Because the goodwill arising from the acquisition of100% equity interest in Shanghai Sunlong Bus Co., Ltd. amounted to RMB 2443.6274 million, Net carrying amount accounting for86.17% of the goodwill in the consolidated statement because of its huge amount. Therefore, we took the impairment measurement of the goodwill arising from the acquisition of equity interest in Shanghai Sunlong Bus Co., Ltd. as a key audit matter.
2. Audit response
In response to the above key audit matter, we have implemented the following main audit procedures: (1) Understand and test the internal control of Tunghsu Optoelectronic on goodwill impairment assessment;
(2) Review the recognition of asset group by management and the allocation method of goodwill; understand the historical performance and development planning of the asset group, as well as the development trend of the macro-economy and the industry; evaluate the assumptions and methods used by management in estimating the recoverable value of assets; evaluate and test the assumptions and valuation methods made by Tunghsu Optoelectronic in assessing whether goodwill is impaired as of December 31, 2018, determination of asset groups related to goodwill, cash flow forecasts and other data and parameters used, and evaluate other important parameters, including sales growth rate, output, production costs, operating expenses and discount rate; (3) Evaluate the professional competence, independence and objectivity of the asset appraiser, consult the appraisal technical description of the appraisal report, analyze whether the appraisal value and calculation formula are reasonable, and review and calculate the appraisal data. At the same time, interview the appraiser, including the purpose and scope of the appraisal report issued, its independence, the selection of appraisal process, the selection of the main parameters and the rationality of the appraisalresults；
(4) It is appropriate to review the goodwill presentation of Tunghsu Optoelectronic Technology Co., Ltd.
IV. Other information
The management of the Company is responsible for the other information. The other information comprises information of the Company's annual report in 2018, but excludes the financial statements and our auditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements The Company's management is responsible for preparing the financial statements in accordance with the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for
designing, implementing and maintaining internal control that is necessary to ensure that the financial statements are free from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the Company's ability to continue as a going concern, disclosing matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the Company, and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements and bear all liability for the opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit matters, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Hebei Guanghua Accounting Firms Co., Ltd.(Special General Partnership)
Accountants Chinese C.P.A(Project Partner).: Accountants Chinese C.P.A.:
Beijing China April 29, 2019
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1.Consolidated Balance sheet
Prepared by: Tunghsu Optoelectronic Technology Co., Ltd.
December 31,2018
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Cash and bank balances|19,807,094,397.16|27,456,759,768.86|
|Settlement provisions|||
|Outgoing call loan|||
|Financial assets measured at fair value|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|with variations accounted into current|||
|income account|||
|Derivative financial assets|||
|Notes receivable & Account receivable|14,852,563,398.56|8,411,548,269.26|
|Including：Notes receivable|499,781,503.17|538,128,584.84|
|Account receivable|14,352,781,895.39|7,873,419,684.42|
|Prepayments|5,215,414,219.51|2,021,119,950.95|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts|||
|receivable|||
|Other account receivable|1,125,991,020.55|1,094,347,121.61|
|Including：Interest receivable|56,811,961.67|49,456,785.29|
|Dividend receivable|||
|Repurchasing of financial assets|||
|Inventories|3,510,786,666.85|4,909,570,356.36|
|Assets held for sales|119,355,435.58|213,034,435.58|
|Non-current asset due within 1 year|||
|Other current asset|809,360,778.49|2,559,947,333.75|
|Total of current assets|45,440,565,916.70|46,666,327,236.37|
|Non-current assets：|||
|Loans and payment on other’s behalf|||
|disbursed|||
|Disposable financial asset|243,158,605.30|100,000,056.00|
|Expired investment in possess|||
|Long-term receivable|344,430,815.68|143,988,866.91|
|Long term share equity investment|2,174,347,969.22|2,130,640,158.90|
|Property investment|686,993,881.02|58,229,439.86|
|Fixed assets|9,634,463,323.77|11,379,727,456.13|
|Construction in progress|5,013,941,980.61|3,667,972,406.42|
|Productive biological assets|||
|Gas & petrol|||
|Gas & petrol|1,146,949,745.14|1,001,796,110.02|
|Intangible assets|37,122,235.94|15,397,704.97|
|Development expenses|2,835,672,586.90|2,587,678,140.99|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Long-germ expenses to be amortized|21,884,204.82|26,538,304.02|
|Deferred income tax asset|533,094,627.68|526,633,526.09|
|Other non-current asset|4,463,496,966.82|306,402,939.48|
|Total of non-current assets|27,135,556,942.90|21,945,005,109.79|
|Total of assets|72,576,122,859.60|68,611,332,346.16|
|Current liabilities|||
|Short-term loans|8,361,106,651.33|5,712,826,382.20|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial liabilities|||
|Notes payable & account payable|10,276,094,132.88|5,700,886,719.54|
|Advance payment|1,402,283,662.37|1,655,137,563.63|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|238,146,977.17|207,697,362.25|
|Tax payable|817,173,127.12|294,979,419.96|
|Other account payable|2,089,603,676.60|2,029,716,039.08|
|Including：Interest payable|117,554,951.58|107,195,147.20|
|Dividend payable||35,000,000.00|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liability due within 1 year|3,697,392,864.91|5,045,608,756.45|
|Other current liability|315,193,128.73|227,155,178.97|
|Total of current liability|27,196,994,221.11|20,874,007,422.08|
|Non-current liabilities：|||
|Long-term loan|2,741,589,600.00|5,209,726,250.77|
|Bond payable|5,630,818,825.32|5,665,126,090.52|
|Including：preferred stock|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Sustainable debt|||
|Long-term payable|2,644,309,592.95|3,276,308,254.44|
|Long-term payable Employees'|||
|remuneration|||
|Expected liabilities|99,765,750.04|156,421,713.31|
|Deferred income|676,146,399.31|592,290,617.42|
|Deferred income tax liability|55,192,983.97|60,149,328.74|
|Other non-current liabilities|108,000,000.00|608,000,000.00|
|Total non-current liabilities|11,955,823,151.59|15,568,022,255.20|
|Total of liability|39,152,817,372.70|36,442,029,677.28|
|Owners’ equity|||
|Share capital|5,730,250,118.00|5,730,250,118.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|21,786,233,393.78|21,979,242,606.60|
|Less：Shares in stock|4,422,320.00|4,422,320.00|
|Other comprehensive income|-29,175.80|-4,518.45|
|Special reserves|12,614,331.35|1,983,921.21|
|Surplus reserves|245,507,019.95|224,133,824.86|
|Common risk provision|||
|Retained profit|4,750,977,557.86|3,009,860,755.82|
|Total of owner’s equity belong to the|||
||32,521,130,925.14|30,941,044,388.04|
|parent company|||
|Minority shareholders’ equity|902,174,561.76|1,228,258,280.84|
|Total of owners’ equity|33,423,305,486.90|32,169,302,668.88|
|Total of liabilities and owners’ equity|72,576,122,859.60|68,611,332,346.16|

 Legal representative：Wang Lipeng
Person-in-charge of the accountingwork：Feng Qiuju
Person-in -charge of the accountingorgan：Gao Feipeng
2. Balance sheet of the Parent Company
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Current asset：|||
|Cash and bank balances|9,732,302,654.23|11,224,359,236.39|
|Financial assets measured at fair value with|||
|variations accounted into current income|||
|account|||
|Derivative financial assets|||
|Notes receivable & account receivable|176,613,926.23|24,037,262.59|
|Including：Notes receivable|50,000.00|200,000.00|
|Account receivable|176,563,926.23|23,837,262.59|
|Prepayments|2,008,364.11|16,902,375.19|
|Other account receivable|6,281,675,319.27|5,497,581,593.85|
|Including：Interest receivable|7,521,489.86|41,868,921.15|
|Dividend receivable|500,000,000.00|665,000,000.00|
|Inventories|269,759,580.95|509,283,364.38|
|Assets held for sales|||
|Non-current asset due within 1 year|||
|Other current asset|148,973.38|1,220,148,973.38|
|Total of current assets|16,462,508,818.17|18,492,312,805.78|
|Non-current assets：|||
|Available for sale of financial assets|129,500,056.00|100,000,056.00|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|26,504,735,200.89|23,020,364,897.17|
|Property investment|||
|Fixed assets|160,867,244.63|44,669,881.93|
|Construction in progress|||
|Production physical assets|||
|Oil & gas assets|||
|Intangible assets|9,339,387.26|9,687,094.58|
|Development expenses|||
|Goodwill|||
|Long-germ expenses to be amortized|||
||119,964,967.85|58,105,970.47|
|Deferred income tax asset|||
|||1,381,400.00|
|Other non-current asset|||
||26,924,406,856.63|23,234,209,300.15|
|Total of non-current assets|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
||43,386,915,674.80|41,726,522,105.93|
|Total of assets|||
|Current liabilities|||
|Short-term loans|4,278,000,000.00|2,760,000,000.00|
|Financial liabilities measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial liabilities|||
|Notes payable& account payable|11,500,796.58|15,219,920.86|
|Advance payment|1,991,498.78|421,587.90|
|Employees’ wage payable|4,484,401.86|4,061,413.48|
|Tax payable|17,959,833.09|28,150,779.48|
|Advance payment|3,656,725,253.66|503,617,925.37|
|Employees’ wage payable|97,197,464.99|79,827,566.10|
|Tax payable|||
|Liabilities held for sales|||
|Non-current liability due within 1 year|1,533,383,333.28|2,769,233,333.30|
|Other current liability|||
|Total of current liability|9,504,045,117.25|6,080,704,960.39|
|Non-current liabilities：|||
|Long-term loan||1,512,500,000.00|
|Bond payable|5,630,818,825.32|5,665,126,090.52|
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term Employees’ wage payable|||
|Expected liabilities|||
|Deferred income|||
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|5,630,818,825.32|7,177,626,090.52|
|Total of liability|15,134,863,942.57|13,258,331,050.91|
|Owners’ equity|||
|Share capital|5,730,250,118.00|5,730,250,118.00|
|Other equity instruments|||
|Including：preferred stock|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Sustainable debt|||
|Capital reserves|21,832,453,907.50|21,861,207,672.90|
|Less：Shares in stock|4,422,320.00|4,422,320.00|
|Other comprehensive income|||
|Special reserve|||
|Surplus reserves|226,517,795.62|205,144,600.53|
|Retained profit|467,252,231.11|676,010,983.59|
|Total of owners’ equity|28,252,051,732.23|28,468,191,055.02|
|Total of liabilities and owners’ equity|43,386,915,674.80|41,726,522,105.93|

 3.Consolidated income statement
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I. Income from the key business|28,211,700,021.12|17,276,969,039.03|
|Incl：Business income|28,211,700,021.12|17,276,969,039.03|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|25,817,783,711.68|15,436,795,701.80|
|Incl：Business cost|23,204,078,792.38|13,674,487,646.24|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Insurance policy dividend paid|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|237,483,799.16|94,070,286.07|
|Sales expenses|334,476,301.51|209,160,183.73|
|Administrative expenses|653,479,277.58|393,125,009.94|
|R & D expenses|572,089,634.30|256,991,555.91|
|Financial expenses|722,695,173.66|753,977,500.45|
|Including：Interest expenses|1,204,287,050.60|1,142,316,421.06|
|Interest income|506,083,846.24|442,489,241.64|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Asset impairment loss|93,480,733.09|54,983,519.46|
|Add：Other income|251,303,953.08|352,095,131.45|
|Investment gain（“-”for loss）|80,925,191.79|63,704,853.98|
|Incl: investment gains from affiliates|64,366,051.65|4,663,254.00|
|Gains from change of fir value （“-”for|||
|loss）|||
|Gains from currency exchange|||
|（“-”for loss）|||
|Assets disposal income|1,515,607.51||
|III. Operational profit（“-”for loss）|2,727,661,061.82|2,255,973,322.66|
|Add ：Non-operational income|19,063,270.76|3,569,062.38|
|Less：Non business expenses|8,892,705.00|2,408,772.80|
|IV.Total profit(“-”for loss)|2,737,831,627.58|2,257,133,612.24|
|Less：Income tax expenses|469,003,541.40|336,234,590.36|
|V. Net profit|2,268,828,086.18|1,920,899,021.88|
|1.Net continuing operating profit|2,268,828,086.18|1,920,899,021.88|
|2.Termination of operating net profit|||
|Net profit attributable to the owners of|||
||2,163,607,505.39|1,730,174,564.57|
|parent company|||
|Minority shareholders’ equity|105,220,580.79|190,724,457.31|
|VI. Net after-tax of other|||
||-42,240.07|-8,409.93|
|comprehensive income|||
|Net of profit of other comprehensive inc|||
|ome attributable to owners of the parent|-24,657.35|-4,518.45|
|company.|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pl|||
|ans of changes in net debt or net assets|||
|2.Other comprehensive income under th|||
|e equity method investee can not be recl|||
|assified into profit or loss.|||
|（II）|||
|Other comprehensive income that will b|-24,657.35|-4,518.45|
|e reclassified into profit or loss.|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||
|2.Gains and losses from changes in fair|||
|value available for sale financial assets|||
|3.Held-to-maturity investments reclassif|||
|ied to gains and losses of available for s|||
|ale financial assets|||
|4.The effective portion of cash flow hed|||
|ges and losses|||
|5.Translation differences in currency fin|||
||-24,657.35|-4,518.45|
|ancial statements|||
|6.Other|||
|Net of profit of other comprehensive inc|||
||-17,582.72|-3,891.48|
|ome attributable to Minority|||
|shareholders’ equity|||
|VII. Total comprehensive income|2,268,785,846.11|1,920,890,611.95|
|Total comprehensive income|||
|attributable to the owner of the parent|2,163,582,848.04|1,730,170,046.12|
|company|||
|Total comprehensive income|||
||105,202,998.07|190,720,565.83|
|attributable minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|||
||0.38|0.32|
|(II)Diluted earnings per share|0.38|0.32|

 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB -11,435,425.33, last period the combined party realized RMB-13,043,965.22.
Legal representative：Wang Lipeng
Person-in-charge of the accountingwork：Feng Qiuju
Person-in -charge of the accountingorgan：Gao Feipeng
4. Income statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I. Income from the key business|192,196,941.80|224,036,245.36|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Incl：Business cost|||
||152,993,440.70|157,850,832.08|
|Business tax and surcharge|6,644,502.15|5,861,889.82|
|Sales expenses|||
|Administrative expenses|39,463,721.23|36,146,618.59|
|R & D expenses|8,322,311.54|4,750,475.24|
|Financial expenses|379,774,437.36|440,687,806.43|
|Including：Interest expenses|645,866,773.53|715,302,441.40|
|Interest income|275,451,910.63|277,294,157.23|
|Asset impairment loss|10,403,118.18|953,612.93|
|Add：Other income||5,000.00|
|Investment gain（“-”for loss）|||
||556,448,607.09|728,710,908.36|
|Including: Investment gains from|||
||64,362,875.25|4,680,716.60|
|affiliates|||
|Gains from change of fir value|||
|Assets disposal income|-83,936.54||
|II. Operational profit（“-”for loss）|||
||150,960,081.19|306,500,918.63|
|Add ：Non-operational income|1,125,858.13|3,258.50|
|Less：Non business expenses|||
||212,985.83||
|III.Total profit(“-”for loss)|151,872,953.49|306,504,177.13|
|Less：Income tax expenses|||
||-61,858,997.38|-54,393,366.62|
|IV. Net profit（“-”for net loss）|||
||213,731,950.87|360,897,543.75|
|1.Net continuing operating profit|213,731,950.87|360,897,543.75|
|2.Termination of operating net profit|||
|V.Net of profit of other comprehensive i|||
|ncome|||
|（I）Other comprehensive income|||
|items that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pl|||
|ans of changes in net debt or net assets|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|2.Other comprehensive income under th|||
|e equity method investee can not be recl|||
|assified into profit or loss.|||
|（ II ）|||
|Other comprehensive income that will b|||
|e reclassified into profit or loss.|||
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||
|2.Gains and losses from changes in fair|||
|value available for sale financial assets|||
|3.Held-to-maturity investments reclassif|||
|ied to gains and losses of available for s|||
|ale financial assets|||
|4.The effective portion of cash flow hed|||
|ges and losses|||
|5.Translation differences in currency fin|||
|ancial statements|||
|6.Other|||
|VI. Total comprehensive income|213,731,950.87|360,897,543.75|
|VII. Earnings per share：|||
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||

5. Consolidated Cash flow statement
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||24,460,106,952.41|16,319,362,118.18|
|rending of services|||
|Net increase of customer deposits|||
|and capital kept for brother company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from|||
|other financial bodies|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Cash received against original insurance|||
|contract|||
|Net cash received from reinsurance|||
|business|||
|Net increase of client deposit and|||
|investment|||
|Net increase of trade financial asset|||
|disposal|||
|Cash received as interest, processing fee|||
|and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Tax returned|342,117,355.30|368,068,395.17|
|Other cash received from business|||
||1,112,750,115.02|1,393,784,267.32|
|operation|||
|Sub-total of cash inflow|25,914,974,422.73|18,081,214,780.67|
|Cash paid for purchasing of|||
||22,506,440,909.95|13,863,864,085.75|
|merchandise and services|||
|Net increase of client trade and advance|||
|Net increase of savings n central bank|||
|and brother company|||
|Cash paid for original contract claim|||
|Cash paid for interest, processing fee|||
|and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|1,148,904,118.69|675,531,188.29|
|Taxes paid|874,045,127.91|851,129,505.84|
|Other cash paid for business activities|997,332,261.66|1,437,511,489.48|
|Sub-total of cash outflow from business|||
||25,526,722,418.21|16,828,036,269.36|
|activities|||
|Net Cash flow generated by business|||
||388,252,004.52|1,253,178,511.31|
|operation|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||2,287,107,423.40|10,720,000,000.00|
|retrieving|||
|Cash received as investment gains|14,623,990.55|61,158,304.69|
|Net cash retrieved from disposal of|1,342,541.78|4,233.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|fixed assets, intangible assets, and other|||
|long-term assets|||
|Net cash received from disposal of|||
||392,179,613.50||
|subsidiaries or other operational units|||
|Other investment-related cash received|2,065,561,030.00|110,685,142.80|
|Sub-total of cash inflow due to|||
||4,760,814,599.23|10,891,847,680.49|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|5,397,726,636.77|2,120,419,910.48|
|and other long-term assets|||
|Cash paid as investment|1,100,017,546.00|2,743,196,945.39|
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and|||
||392,683,239.84|409,333,786.20|
|other operational units|||
|Other cash paid for investment|||
||4,514,811,164.19|11,372,003,800.00|
|activities|||
|Sub-total of cash outflow due to|||
||11,405,238,586,80|16,644,954,442.07|
|investment activities|||
|Net cash flow generated by investment|-6,664,423,987.57|-5,753,106,761.58|
|III.Cash flow generated by financing|||
|Cash received as investment|29,782,250.00|4,089,127,645.26|
|Incl: Cash received as investment from|||
||29,000,000.00|381,127,660.00|
|minor shareholders|||
|Cash received as loans|9,271,938,586.70|6,415,966,666.66|
|Cash received from bond placing|||
|Other financing –related ash received|1,625,337,955.88|6,079,515,983.16|
|Sub-total of cash inflow from financing|||
||10,927,058,792.58|16,584,610,295.08|
|activities|||
|Cash to repay debts|10,790,796,153.46|7,676,192,931.29|
|Cash paid as dividend, profit, or|||
||1,634,663,688.12|1,506,017,279.72|
|interests|||
|Incl: Dividend and profit paid by|||
||35,000,000.00|30,000,000.00|
|subsidiaries to minor shareholders|||
|Other cash paid for financing activities|2,448,920,714.02|3,305,362,985.49|
|Sub-total of cash outflow due to|||
||14,874,380,555.60|12,487,573,196.50|
|financing activities|||
|Net cash flow generated by financing|-3,947,321,763.02|4,097,037,098.58|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|IV. Influence of exchange rate|||
||5,470,280.86|-20,700,620.86|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-10,198,023,465,21|-423,591,772.55|
|equivalents|||
|Add: balance of cash and cash|||
||25,114,660,756.25|25,538,252,528.80|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||14,916,637,291.04|25,114,660,756.25|
|equivalents at the end of term|||

6. Cash Flow Statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||72,531,777.31|257,729,472.43|
|rending of services|||
|Tax returned|||
|Other cash received from business|||
|||727,597,222.22|
|operation|||
|Sub-total of cash inflow|72,531,777.31|985,326,694.65|
|Cash paid for purchasing of|||
||39,022,885.88|499,508,106.89|
|merchandise and services|||
|Cash paid to staffs or paid for staffs|23,420,776.83|12,003,112.70|
|Taxes paid|17,690,820.97|13,008,194.55|
|Other cash paid for business activities|12,832,370.74|704,986,879.59|
|Sub-total of cash outflow from business|||
||92,966,854.42|1,229,506,293.73|
|activities|||
|Net Cash flow generated by business|||
||-20,435,077.11|-244,179,599.08|
|operation|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||2,788,307,423.40|10,720,000,000.00|
|retrieving|||
|Cash received as investment gains|678,923,452.07|631,146,896.47|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|||
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Other investment-related cash received|18,756,644,994.40|4,090,240,995.50|
|Sub-total of cash inflow due to|||
||22,223,875,869.87|15,441,387,891.97|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|56,199.61|108,600.00|
|and other long-term assets|||
|Cash paid as investment|4,234,000,000.00|8,020,648,977.50|
|Net cash received from subsidiaries and|||
||817,834,645.97||
|other operational units|||
|Other cash paid for investment|||
||20,503,969,862.86|16,271,549,676.04|
|activities|||
|Sub-total of cash outflow due to|||
||25,555,860,708.44|24,292,307,253.54|
|investment activities|||
|Net cash flow generated by investment|-3,331,984,838.57|-8,850,919,361.57|
|III.Cash flow generated by financing|||
|Cash received as investment||3,707,999,985.26|
|Cash received as loans|4,858,000,000.00|4,241,666,666.66|
|Cash received from bond placing|||
|Other financing –related ash received|10,928,715,830.12|241,954,213.63|
|Sub-total of cash inflow from|||
||15,786,715,830.12|8,191,620,865.55|
|financing activities|||
|Cash to repay debts|6,132,307,300.02|3,730,033,333.36|
|Cash paid as dividend, profit, or|||
||1,020,777,853.83|1,044,754,330.46|
|interests|||
|Other cash paid for financing activities|6,773,267,342.75|49,565,032.84|
|Sub-total of cash outflow due to|||
||13,926,352,496.60|4,824,352,696.66|
|financing activities|||
|Net cash flow generated by financing|1,860,363,333.52|3,367,268,168.89|
|IV. Influence of exchange rate|||
|||433,490.39|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-1,492,056,582.16|-5,727,397,301.37|
|equivalents|||
|Add: balance of cash and cash|||
||11,224,359,236.39|16,951,756,537.76|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||9,732,302,654.23|11,224,359,236.39|
|equivalents at the end of term|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 7. Consolidated Statement on Change inOwners’ 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||||||||||||||
||Share|||||Less:||Speciali||||shareho||
||||||Capital||Compre||Surplus|n risk|Retaine||owners’|
||Capita|prefer||||Shares||zed||||lders’||
||||Sustai||reserves||hensive||reserves|provisio|d profit||equity|
||l|red||Other||in stock||reserve||||equity||
||||nable||||Income|||n||||
|||stock||||||||||||
||||debt|||||||||||
||5,730,||||21,979,||||||3,009,8|1,228,2|32,169,|
|I.Balance at the||||||4,422,3|-4,518.4|1,983,9|224,133|||||
||250,11||||242,606||||||60,755.|58,280.|302,668|
|end of last year||||||20.00|5|21.21|,824.86|||||
||8.00||||.60||||||82|84|.88|
|Add: Change of||||||||||||||
|accounting||||||||||||||
|policy||||||||||||||
|Correcting of||||||||||||||
|previous errors||||||||||||||
|Merger of entities||||||||||||||
|under common||||||||||||||
|control||||||||||||||
|Other||||||||||||||
|II.Balance at the|5,730,||||21,979,||||||3,009,8|1,228,2|32,169,|
|||||||4,422,3|-4,518.4|1,983,9|224,133|||||
|beginning of|250,11||||242,606||||||60,755.|58,280.|302,668|
|||||||20.00|5|21.21|,824.86|||||
|current year|8.00||||.60||||||82|84|.88|
||||||-193,00||||||1,741,1|-326,08|1,254,0|
|III.Changed in the|||||||-24,657.|10,630,|21,373,|||||
||||||9,212.8||||||16,802.|3,719.0|02,818.|
|current year|||||||35|410.14|195.09|||||
||||||2||||||04|8|02|
|（1）Total|||||||||||2,163,6||2,268,7|
||||||||-24,657.|||||105,202||
|comprehensive|||||||||||07,505.||85,846 .|
||||||||35|||||,998.07||
|income|||||||||||39||11|
|（II）Investment||||||||||||||
||||||2,516,2|||||||38,810,|41,326,|
|or decreasing of||||||||||||||
||||||87.18|||||||610.28|897.46|
|capital by owners||||||||||||||
|1．Ordinary Share||||||||||||39,734,|39,734,|
|s invested by Shar||||||||||||500.00|500.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|eholders||||||
|2．Holders of oth||||||
|er equity instrume||||||
|nts invested capital||||||
|3．Amount of||||||
|shares paid and||||||
|accounted as||||||
|owners’ equity||||||
||2,516,2|||-923,88|1,592,3|
|4．Other||||||
||87.18|||9.72|97.46|
||||-422,49||-401,11|
|（III）Profit||21,373,||||
||||0,703.3||7,508.2|
|allotment||195.09||||
||||5||6|
|1.Providing of||21,373,|-21,373,|||
|surplus reserves||195.09|195.09|||
|2.Providing of||||||
|common risk||||||
|provisions||||||
|3．Allotment to the|||-401,11||-401,11|
|owners (or|||7,508.2||7,508.2|
|shareholders)|||6||6|
|4．Other||||||
|(IV) Internal||||||
|transferring of||||||
|owners’ equity||||||
|1. Capitalizing of||||||
|capital reserves (or||||||
|to capital shares)||||||
|2. Capitalizing of||||||
|surplus reserves||||||
|(or to capital||||||
|shares)||||||
|3．Making up||||||
|losses by surplus||||||
|reserves.||||||
|4.Change amount||||||
|of defined benefit||||||
|plans that carry||||||
|forward||||||
|Retained earnings||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|5．Other||||||||||
|(V). Special|||||10,630,|||7,169,3|17,799,|
|reserves|||||410.14|||63.61|773.75|
|1. Provided this|||||38,527,|||7,324,9|45,852,|
|year|||||044.56|||78.46|023.02|
||||||-27,896,|||-155,61|-28,052,|
|2．Used this term||||||||||
||||||634.42|||4.85|249.27|
|||-195,52||||||-477,26|-672,79|
|（VI）Other||5,500.0||||||6,691.0|2,191.0|
|||0||||||4|4|
||5,730,|21,786,|||||4,750,9||33,423,305,486.90|
|IV. Balance at the|||4,422,3|-29,175.|12,614,|245,507||902,174||
||250,11|233,393|||||77,557.|||
|end of this term|||20.00|80|331.35|,019.95||,561.76||
||8.00|.78|||||86|||

 Amount in last year
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||
|||Other Equity||||||||||||
|||||||||||||Minor||
|||instrument|||||Other|||Commo|||Total of|
|Items||||||||||||||
||Share|||||Less:||Speciali||||shareho||
||||||Capital||Compre||Surplus|n risk|Retaine||owners’|
||Capita|prefer||||Shares||zed||||lders’||
||||Sustai||reserves||hensive||reserves|provisio|d profit||equity|
||l|red||Other||in stock||reserve||||equity||
||||nable||||Income|||n||||
|||stock||||||||||||
||||debt|||||||||||
||4,939,||||16,338,||||||1,823,6|1,093,0|24,379,|
|I.Balance at the||||||4,422,3|||188,044|||||
||928,98||||960,810||||||95,278.|61,728.|268,550|
|end of last year||||||20.00|||,070.48|||||
||3.00||||.89||||||31|31|.99|
|Add: Change of||||||||||||||
|accounting||||||||||||||
|policy||||||||||||||
|Correcting of||||||||||||||
|previous errors||||||||||||||
|Merger of entities|||||||||||-155,09|||
||||||194,098|||||||91,021,|130,022|
|under common|||||||||||7,190.9|||
||||||,440.35|||||||359.68|,609.11|
|control|||||||||||2|||
|Other||||||||||||||
|II.Balance at the|4,939,||||16,533,||||||1,668,5|1,184,0|24,509,|
|||||||4,422,3|||188,044|||||
|beginning of|928,98||||059,251||||||98,087.|83,087.|291,160|
|||||||20.00|||,070.48|||||
|current year|3.00||||.24||||||39|99|.10|
|III.Changed in the|790,32||||5,446,1||-4,518.4|1,983,9|36,089,||1,341,2|44,175,|7,660,0|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|current year|1,135.|83,355.|5|21.21|754.38|62,668.|192.85|11,508.|
||00|36||||43||78|
|（1）Total||||||1,730,1||1,920,8|
||||-4,518.4||||190,724||
|comprehensive||||||74,564.||94,503.|
||||5||||,457.31||
|income||||||57||43|
|（II）Investment|790,32|6,683,0||||||7,856,2|
||||||||382,886||
|or decreasing of|1,135.|65,275.||||||72,452.|
||||||||,041.50||
|capital by owners|00|65||||||15|
|1．Ordinary Share|790,32|6,728,5||||||7,901,7|
||||||||382,886||
|s invested by share|1,135.|22,710.||||||29,887.|
||||||||,041.50||
|holders|00|65||||||15|
|2．Holders of oth|||||||||
|er equity instrume|||||||||
|nts invested capital|||||||||
|3．Amount of|||||||||
|shares paid and|||||||||
|accounted as|||||||||
|owners’ equity|||||||||
|||-45,457,||||||-45,457,|
|4．Other|||||||||
|||435.00||||||435.00|
|||||||-388,91||-387,82|
|（III）Profit|||||36,089,||-35,000||
|||||||1,896.1||2,141.7|
|allotment|||||754.38||,000.00||
|||||||4||6|
|1.Providing of|||||36,089,|-36,089,|||
|surplus reserves|||||754.38|754.38|||
|2.Providing of|||||||||
|common risk|||||||||
|provisions|||||||||
|3．Allotment to the||||||-352,82||-387,82|
||||||||-35,000||
|owners (or||||||2,141.7||2,141.7|
||||||||,000.00||
|shareholders)||||||6||6|
|4．Other|||||||||
|(IV) Internal|||||||||
|transferring of|||||||||
|owners’ equity|||||||||
|1. Capitalizing of|||||||||
|capital reserves (or|||||||||
|to capital shares)|||||||||
|2. Capitalizing of|||||||||
|surplus reserves|||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|(or to capital||||||||||
|shares)||||||||||
|3．Making up||||||||||
|losses by surplus||||||||||
|reserves.||||||||||
|4.Change amount||||||||||
|of defined benefit||||||||||
|plans that carry||||||||||
|forward||||||||||
|Retained earnings||||||||||
|5．Other||||||||||
|(V). Special|||||1,983,9|||1,906,1|3,890,0|
|reserves|||||21.21|||20.38|41.59|
|1. Provided this|||||38,971,|||1,906,1|40,877,|
|year|||||707.64|||20.38|828.02|
||||||-36,987,||||-36,987,|
|2．Used this term||||||||||
||||||786.43||||786.43|
|||-1,236,8||||||-496,34|-1,733,2|
|（VI）Other||81,920.||||||1,426.3|23,346.|
|||29||||||4|63|
||5,730,|21,979,|||||3,009,8|1,228,2|32,169,|
|IV. Balance at the|||4,422,3|-4,518.4|1,983,9|224,133||||
||250,11|242,606|||||60,755.|58,280.|302,668|
|end of this term|||20.00|5|21.21|,824.86||||
||8.00|.60|||||82|84|.88|

 8.Statement of change inowner’s Equity of the Parent Company
Amount in this period
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period|||||||||||
|||Other Equity instrument||||||||||
||||||||Other|||||
|||||||Less:|||||Total of|
|Items|Share||||Capital||Compreh|Specialize|Surplus|Retaine||
|||preferre|Sustain|||Shares in|||||owners’|
||Capital|||Other|reserves||ensive|d reserve|reserves|d profit||
|||d stock|able|||stock|||||equity|
||||||||Income|||||
||||debt|||||||||
|I.Balance at the|5,730,25||||21,861,20|4,422,320|||205,144,6|676,010|28,468,19|
|end of last year|0,118.00||||7,672.90|.00|||00.53|,983.59|1,055.02|
|Add: Change of||||||||||||
|accounting||||||||||||
|policy||||||||||||
|Correcting of||||||||||||
|previous errors||||||||||||
|Other||||||||||||
|II.Balance at the||||||||||||
||5,730,25||||21,861,20|4,422,320|||205,144,6|676,010|28,468,19|
|beginning of||||||||||||
||0,118.00||||7,672.90|.00|||00.53|,983.59|1,055.02|
|current year||||||||||||
|||||||||||-208,75||
|III.Changed in the|||||-28,753,7||||21,373,19||-216,139,|
|||||||||||8,752.4||
|current year|||||65.40||||5.09||322.79|
|||||||||||8||
|（I）Total||||||||||||
|||||||||||213,731|213,731,9|
|comprehensive||||||||||||
|||||||||||,950.87|50.87|
|income||||||||||||
|(II) Investment or||||||||||||
||||||-28,753,7||||||-28,753,7|
|decreasing of||||||||||||
||||||65.40||||||65.40|
|capital by owners||||||||||||
|1．Ordinary Share||||||||||||
|s invested by share||||||||||||
|holders||||||||||||
|2．Holders of oth||||||||||||
|er equity instrume||||||||||||
|nts invested capital||||||||||||
|3.Amount of||||||||||||
|shares paid and||||||||||||
|accounted as||||||||||||
|owners’ equity||||||||||||
|4．Other|||||-28,753,7||||||-28,753,7|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|||65.40||||65.40|
||||||-422,49||
|（III）Profit||||21,373,19||-401,117,|
||||||0,703.3||
|allotment||||5.09||508.26|
||||||5||
|1.Providing of||||21,373,19|-21,373,||
|surplus reserves||||5.09|195.09||
|2．Allotment to the|||||-401,11||
|||||||-401,117,|
|owners (or|||||7,508.2||
|||||||508.26|
|shareholders)|||||6||
|3．Other|||||||
|(IV) Internal|||||||
|transferring of|||||||
|owners’ equity|||||||
|1. Capitalizing of|||||||
|capital reserves (or|||||||
|to capital shares)|||||||
|2. Capitalizing of|||||||
|surplus reserves|||||||
|(or to capital|||||||
|shares)|||||||
|3．Making up|||||||
|losses by surplus|||||||
|reserves.|||||||
|4.Change amount|||||||
|of defined benefit|||||||
|plans that carry|||||||
|forward|||||||
|Retained earnings|||||||
|5．Other|||||||
|(V) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||
|2．Used this term|||||||
|（VI）Other|||||||
|IV. Balance at the|5,730,25|21,832,45|4,422,320|226,517,7|467,252|28,252,051,732.23|
|end of this term|0,118.00|3,907.50|.00|95.62|,231.11||

Amount in last year
In RMB
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year|||||||||||
|||Other Equity instrument||||||||||
||||||||Other|||||
|||||||Less:|||||Total of|
|Items|Share||||Capital||Compreh|Specialize|Surplus|Retaine||
|||preferre|Sustain|||Shares in|||||owners’|
||Capital|||Other|reserves||ensive|d reserve|reserves|d profit||
|||d stock|able|||stock|||||equity|
||||||||Income|||||
||||debt|||||||||
|I.Balance at the|4,939,92||||15,130,19|4,422,320|||169,054,8|696,998|20,931,75|
|end of last year|8,983.00||||1,736.27|.00|||46.15|,223.03|1,468.45|
|Add: Change of||||||||||||
|accounting||||||||||||
|policy||||||||||||
|Correcting of||||||||||||
|previous errors||||||||||||
|Other||||||||||||
|II.Balance at the||||||||||||
||4,939,92||||15,130,19|4,422,320|||169,054,8|696,998|20,931,75|
|beginning of||||||||||||
||8,983.00||||1,736.27|.00|||46.15|,223.03|1,468.45|
|current year||||||||||||
|III.Changed in the|790,321,||||6,731,015||||36,089,75|-20,987,|7,536,439|
|current year|135.00||||,936.63||||4.38|239.44|,586.57|
|（I）Total||||||||||||
|||||||||||360,897|360,897,5|
|comprehensive||||||||||||
|||||||||||,543.75|43.75|
|income||||||||||||
|(II) Investment or||||||||||||
||790,321,||||6,731,015||||||7,521,337|
|decreasing of||||||||||||
||135.00||||,936.63||||||,071.63|
|capital by owners||||||||||||
|1．Ordinary Share||||||||||||
||790,321,||||6,728,522||||||7,518,843|
|s invested by share||||||||||||
||135.00||||,710.65||||||,845.65|
|holders||||||||||||
|2．Holders of oth||||||||||||
|er equity instrume||||||||||||
|nts invested capital||||||||||||
|3.Amount of||||||||||||
|shares paid and||||||||||||
|accounted as||||||||||||
|owners’ equity||||||||||||
||||||2,493,225||||||2,493,225|
|4．Other||||||||||||
||||||.98||||||.98|
|||||||||||-381,88||
|（III）Profit|||||||||36,089,75||-345,795,|
|||||||||||4,783.1||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|allotment||||4.38|9|028.81|
|1.Providing of||||36,089,75|-36,089,||
|surplus reserves||||4.38|754.38||
|2．Allotment to the|||||-345,79||
|||||||-345,795,|
|owners (or|||||5,028.8||
|||||||028.81|
|shareholders)|||||1||
|3．Other|||||||
|(IV) Internal|||||||
|transferring of|||||||
|owners’ equity|||||||
|1. Capitalizing of|||||||
|capital reserves (or|||||||
|to capital shares)|||||||
|2. Capitalizing of|||||||
|surplus reserves|||||||
|(or to capital|||||||
|shares)|||||||
|3．Making up|||||||
|losses by surplus|||||||
|reserves.|||||||
|4.Change amount|||||||
|of defined benefit|||||||
|plans that carry|||||||
|forward|||||||
|Retained earnings|||||||
|5．Other|||||||
|(V) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||
|2．Used this term|||||||
|（VI）Other|||||||
|IV. Balance at the|5,730,25|21,861,20|4,422,320|205,144,6|676,010|28,468,19|
|end of this term|0,118.00|7,672.90|.00|00.53|,983.59|1,055.02|

 III. Brief introduction of the Company
Approved by Hebei Economic System Reform Commission with the Approval of Establishment of Tunghsu
Optoelectronic Technology Co.,Ltd（. Hereinafter referred to as “The Company” or “TunghsuOptoelectronic”）(Ji
Ti Gfai Wei Gu Zi(1992) No.5 Document) in 1992, Shijiazhuang Baoshi Electronic Glass Co., Ltd. is a joint stock
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report limited company jointly established by Shijiazhuang Kinescope General Factory (transformed into Shijiazhuang Baoshi Electronics Group Co., Ltd.later), China Electronic Import and export Corporation and Zonghua Hebei Import and Export Company. At the Time of establishment, the Company had 25.68 million shares (the par value of each share is RMB 10) and total share capital of RMB 256.80 million.
On July 17, 1993, the Company held a provisional shareholders' general meeting and decided to split the stock equity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result, the total number of the Company's shares became 256.80 million and its total share capital became RMB 256.80 million. Approved by Securities Commission under State Council with the Approval of Issue of 100 Million Domestically Listed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zheng Wei Fa (1996) No. 15 Document) on June 11, 1996, the Company issued 100 million domestically listed foreign investment shares (B shares) (the par value of each share is RMB 1). Approved by China Securities Regulatory Commission with the Approval of the Application of Shijiazhuang Baoshi Electronic Glass Co., Ltd. to Publicly Issue Shares (Zheng Jian Fa Zi (1996) No. 174 Document) on August 30 of the same year, the Company publicly issued 26.20 million shares (the par value of each share is RMB 1). As of September 17, 1996, the total share capital of the Company increased to RMB 383 million.
According to the Approval of Private Issue of Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zhen Jian Xu Ke (2012) No. 1661 Document) issued by China Securities Regulatory Commission ("CSRC"), the Company privately issued 520 million RMB ordinary shares (A shares) to specific investors at the price of RMB 9.69 per share on April 3, 2013. All investors subscribed for shares in cash. After this private issue, the registered capital of the Company was changed to RMB 903.00 million. The controlling shareholder of the company by the Shijiazhuang Baoshi Electronic Group Co., Ltd. changed to Tu nghsu Group , a direct stake of14.40%, Shijiazhuang Baoshi Electronic Glass Co., Ltd. held the indirectly12.27% of the share.
The 6th Provisional shareholder meeting in 2013 approved the name change of Shijiazhuang Baoshi Electronic G lass Co., Ltd. to Tunghsu Optoelectronic Technology Co., Ltd..
According to the resolution of annual shareholder meeting in 2013 and the provisions of amendments to articles of association approved on April 27, 2014, the company has transferred 20 shares for each 10 shares to all shareholders, and with total shares of 1806 million transferred on the basis of the general capital of 903 million on December 31, 2013. Thus, the registered capital of RMB1,806 million applied to add by the company should be transferred into the share capital by the capital reserve with the reference date on May 27, 2014, and the registered capital is RMB2,709 million after changed.
As per the provisions of “Restricted Stock Incentive Plan of Tunghsu Optoelectronic Technology Co., Ltd. (Draft)” and its summary proposal approved after the second temporaryshareholders’ 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 temporaryshareholders’ 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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Regulatory Commission: Replies on Approval of Private Issuing of Stocks by Tunghsu Photoelectric Technology Co., Ltd., it is approved that the company issues new shares less than 1,186,943,620 privately. The planned number of privately issued stocks is less than (including) 1,186,943,620. The actual issuance number of the stock is 1,173,020,525, and the modified equity capital is 3,835,100,526.00 yuan.
According to Proposals on the Repurchase and Cancellation of Partial Restricted Shares deliberated and approved on the
43rd
Meeting of the
7th
Board of Directors of the company convened on October 29, 2015, the company plans to repurchase and cancel restricted shares. The granted but unlocked restricted shares held by left equity incentive objects sum to 100,000 at the repurchase price of 3.78 yuan/share. Other forms of lease besides financial leasing are considered as operating leasing
According to ZJXK[2016] No. 1322 document On the Approval of Non-public Stock to Tunghsu Optoelectronic Technology Co. Ltd permitted by China Securities Regulatory Commission and also was resolved in the 7th board of the forty-eight meeting and the first extraordinary shareholders' generalmeeting，it is approved that the company issues new shares less than 1,104,928,457.00 privately. The planned number of privately issued stocks is less than (including) 1,104,928,457.00. The actual issuance number of the stock is 1,104,928,457.00, and the modified equity capital is 4,939,928,983.00 yuan.
According to the company's eleventh meeting of the eighth Board of Directors held on March 20, 2017, the eighteenth meeting of the eighth Board of Directors held on June 9, 2017, the fourth temporaryshareholders’ 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 thecompany’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 TunghsuGroup，Uitimate controller is Li Zhaoting.
Financial statements and notes to the financial statements approved at the 61th meeting of the 8th Board of Directors on April 29, 2019.
The company's business scope: investing in the project investments with its own funds; research and development of machinery equipment and electronic products; manufacturing and production-process development of various non-standard equipments and components; processing and sales of electronic products for grinding machine (excluding public safety equipment and devices); self operated and agent import and export business of various commodities and technologies; computer system integration, software development, technical consulting; installation of electrical and mechanical equipment (not including pre-licensing ones), engineering
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report advice. (All of the above scope, excluded those prohibited or restricted by laws, regulations and State Council decisions; matters needing approval by other departments can be operated after the approval).
In the reporting period, 22 subsidiaries and 93 sub-subsidiaries were included in the consolidation scope by the company, see details at Note 9 “Rights and Interests in Other Subjects ”. The consolidation scope of the company increased by 33 and decreased by 2 companies year on year at this reporting period, see details at Note 8“Change of consolidation scope.
IV.Basis for the preparation of financial statements
1. Basis for the preparation of financial statements
The financial statements of the company are prepared based on the going-concern assumption and the actual transactions anditems,，the Company prepared financial statements in accordance with the ASBE-Basic Standard and revised thereafter, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises and other regulations(hereinafter referred to as “the Accounting Standards for Business Enterprises”, “China Accounting Standards” or“CAS”)，Rules for Preparation Convention of Disclosure of Public Offering Companies No.15– General Regulations for Financial Reporting (revised in 2014) by China Securities Regulatory Commission.
In accordance with Accounting Standards for Business Enterprises, the Company has adopted the accrual basis of accounting. Except for certain financial instruments, the Company adopts the historical cost as the principle of measurement in the financial statements. The valuation will be made according to the lower one between the amount of on-sales non-current assets after fair value deducts the predicted costs and the original book value which conforms to the condition of being on-sales. When assets are impaired, provisions for asset impairment are made in accordance with relevant requirements.
2. Ongoing-operation
The company has the capacity to continually operate within 12 months at least since the end of report period, andhasn’t the major issues impacting on the sustainable operation ability.
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|V.|The company's major accounting policies, accounting estimates and prior errors|

Whether the Company needs to comply with the disclosure requirements for specific industries
No
Specific accounting policies and accounting estimates are indicated as follows:
Nil
1. Statement on compliance with accounting standards for business Enterprises
The financial statements prepared are in line with the requirements in enterprise accounting standards in line with of system, and have truly and completely reflected of the financial status in December
31, 2018, operational results, cash flow, and other relevant information of 2018.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 2.Accounting year:
TheGroup’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 forbookkeeping：
The Company takes RMB as the standard currency for bookkeeping.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 5. Accounting treatments for a business combinations under common control and under non common control The term "business combination" refers to a transaction or event combining two or more separate enterprises into one reporting entity. Business combinations are classified into business combinations involving enterprises under common control and business combinations not involving enterprises under common control.
(1) A business combination involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory. For the business combination involving enterprises under common control, the party obtaining the control right over other enterprises involved in the combination on the combination date is the combining party, while other enterprises involved in the combination is the combined party. The combination date is the date on which one combining enterprise obtains control of other combining enterprises.
Assets and liabilities obtained are measured at their respective carrying amounts as recorded by the combining entities at the date of the combination. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination[the aggregate face value of shares issued asconsideration] 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.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree, the intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services and other associated administrative expense attributable to the business combination are charged to profit or loss when they are incurred. The costs of issuing equity or debt securities as a part of the consideration for the acquisition are included in the carrying amounts of these equity or debt securities upon initial recognition. The contingent costs as a part of the consideration for the acquisition are included in the cost of combination on fair values at the acquisition date, and will be adjusted if any new situation incurred or further evidence provided in 12 months subsequent to acquisition date, then the goodwill will be adjusted accordingly. Theacquiree’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 theacquirer’s interest in the fair value of theacquiree’s identifiable net assets, the difference is treated as an asset and recognised as goodwill. Where the cost of combination is less than theacquirer’s interest in the fair value of theacquiree’s identifiable net assets, the acquirer firstly reassesses the measurement of the fair values of theacquiree’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 theacquirer’s interest in the fair value of theacquiree’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.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 theshareholders’ 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 theshareholders’ 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 theshareholders’ equity shared by the minority shareholders of the company at the beginning of period.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report When the control on the original subsidiaries lost due to the disposal of partial equity investment or other reasons, the remaining equity should be measured again according to the fair value on the control lost date. The difference of the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the net assets portion of the original subsidiaries calculated from the purchase date as per the original stock proportion shall be recorded into the current investment income after the control lost. Other comprehensive returns relevant to the original subsidiary shares investment shall be disposed through the accounting treatment on the same basis of the direct disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely, all the rest are transferred into the current investment incomes, with the exception of the changes caused by the net liabilities or the net assets of the defined benefit plans re-measured by the original subsidiaries). Thereafter, the subsequent measurement shall be made for the rest equity according to the relevant provisions of “Accounting Standards for Business Enterprises No. 2– Long-term Equity Investment” or “Accounting Standards for Business Enterprises No. 22– Recognition and Measurement of Financial Instruments”. For the details, please see Notes V, 14 “Long-term Equity Investment” or Notes V, 10 “Financial Instruments”.
For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till the control right lost, the company should respectively dispose all the transactions if belong to the package deal. As long as the terms, conditions and economic influence on all the transactions of the disposal of the equity investment in the subsidiary meet one status below, it usually shows that the multiple transactions matters should be conducted the accounting treatment as the package deal:① these transactions are made simultaneously or under the consideration of the influence each other.② these transactions shall be as the whole to achieve one complete business results.③ one transaction occurs depending on the appearance of other one transaction at least.④ one transaction is economic under the consideration with other transactions even if it is not economic when individually considerate. For the non-package deal, each transaction shall be respectively conducted the accounting treatment according to the applicable principles of “Partial Disposal of Long-term Equity Investment in Subsidiary without Control Lost” (please refer to V 14, (2)④ in Notes III,) and “The Control on Original Subsidiary Lost due to Disposal of Part of Equity Investment or Other Reasons” (details please see forepart). For the package deal from the transactions after the disposal of equity investment in the subsidiary till the control right lost, the transactions shall be as one transaction of the disposal of subsidiary and the control lost for the accounting treatment. Therefore, every balance between the net assets proportion of the subsidiary shared relative to the disposal price and the disposal investment before the control right lost, shall be recognized as other comprehensive incomes in the consolidated financial treatment and transferred into the current profits and losses when the control lost.
7. Accounting treatment for classification and co-operation of joint arrangement
Joint arrangement is an arrangement whereby two or more parties have joint control. The Company classified the joint arrangement into co-operation arrangement and joint venture according to the right and obligation involving in the joint arrangement. Under co-operation, the Company has joint control and rights to the relevant assets and liability of the arrangement. Under joint venture, the Company only has joint control and rights to the net assets of the arrangement.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report The company adopts equity method to calculate investment to joint enterprises by referring to accounting policies stated in "Long-term Stock Ownership for Equity Method Calculation" in Note V 14 (2).
Under co-operation, the Company recognizes 1) its solely held of assets and liability, 2) assets and liabilities jointly owned based on share proportions, 3) revenue from sales of assets jointly owned by the Company, 4) revenue from sales of assets based on share proportions, 5) expense incurred by the Company, 6) expense incurred based on share proportions.
When the Company invests, sells or purchase assets (the asset does not constitute a business, the same below), to or from the co-operation, the Company only recognizes the profit or loss belong to other joint parties before selling those assets to third party. If those assets are impaired in compliance with Accounting Standards for Business Enterprises No.8-Assets impairment, the Company should recognize loss for all the invested or sold assets to co-operation. For the assets purchased from co-operation, the Company should recognize loss based on share proportion.
8. Cash and cash equivalent
Cash and cash equivalents comprise cash on hand, deposits that can be readily withdraw on demand, and short-term, highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of change in value.
9. Conversion method of foreign currency transactions
(1) Conversion method of foreign currency transactions
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying the foreign currency amount by the spot exchange rate on the transaction dates, while the foreign currency exchange business or transactions relating to foreign currency exchange are recorded in the functional currency by applying to the foreign currency amount at the actual exchange rate used.
(2) Conversion method of foreign currency monetary items and foreign currency non-monetary items
Foreign currency monetary items are convered using the spot exchange rate on the balance sheet date. The exchange gains or losses arising from occurrence of transactions and exchange of currencies are recognized in profit or loss for the period, except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualifies for capitalization are capitalized as part of the cost of the qualified asset during the capitalization period; (2) exchange differences arising from changes in the carrying amounts of available-for-sale monetary items are recognized as other comprehensive income.
Foreign currency non-monetary items measured at historical cost are converted to the amounts in functional currency at the spot exchange rates on the dates of the transactions and the amounts in functional currency remain unchanged. Foreign currency non-monetary items measured at fair value are re-converted at the spot exchange rate on the date the fair value is determined. Difference between the re-converted functional currency amount and the original functional currency amount is treated as changes in fair value (including changes of exchange rate) and is recognized in profit and loss or as other comprehensive income.
(3) Conversion of financial statements denominated in foreign currencies
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 inshareholders’ 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 inshareholders’ 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 inshareholders’ 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 inshareholder’s equity associated with the disposing part is transferred to minoritystockholder’s interest. Disposing investment in a foreign operation which is joint venture enterprise, the conversion differences accumulated inshareholder’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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Financial assets classified as loans and receivables by the Company include notes receivable, accounts receivable, interest receivable, dividends receivable, and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit or loss for the current period.④ Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on initial recognition as available for sale, and financial assets that are not classified as financial assets at fair value through profit or loss, loans and receivables or held-to-maturity investments.
Cost of available-for-sale investments in debt instruments are measured on the basis of the post-amortization cost at period end, which is the initially recognized amount of financial asset or financial liability deducting the already paid principal, plus or minus the accumulated amount of amortization incurred from amortizing the balance between the initially recognized amount and the amount of the maturity date by adopting the actual interest rate method and deducting the impairment loss that have actually incurred. Cost of available-for-sale investments in equity instruments is the initially recognized amount at acquisition.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising from changes in the fair value are recognized as other comprehensive income and included in the capital reserve, except that impairment losses and exchange differences related to amortized cost of financial assets are recognized in profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recognized in profit or loss. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured and derivative financial assets that are linked to and must be settled by delivery of such unquoted equity instruments are subsequently measured at cost.
Interests obtained and the dividends declared by the investee during the period in which the available-for-sale financial assets are held, are recognized in investment income.
Impairment of Available-for-sale financial assets
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report If all the related information considered indicates that the decline in fair value of available-for-sale financial assets is significant or non-temporary decline, impairment incurred for available-for-sale financial assets. Significant decline refers to accumulated decline in fair value exceed20%; 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; or② it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity; or③ 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.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report If the transfer of partial financial asset satisfies the derecognition criteria, the entire book value of the transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose recognition has not been stopped, be apportioned according to their respective relative fair value and the difference between the amounts of the following 2 items shall be included into the profit or loss of the current period: (1)The book value of the portion whose recognition has been stopped; (2)The sum of consideration of the portion whose recognition has been stopped, and the portion of the accumulative amount of the changes in the fair value originally recorded in the owner's equities which is corresponding to the portion whose recognition has been stopped.
In terms of financial assets sold with recourse or financial assets transferred by endorsement, the Company shall determine whether substantially all the risks and rewards of ownership of the financial asset are transferred. Where an enterprise has transferred substantially all of the risks and rewards related to the ownership of the financial asset to the transferee, it shall stop recognizing the financial asset. If it retained substantially all of the risks and rewards related to the ownership of the financial asset, it shall not stop recognizing the financial asset. If the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, the Company shall determine whether it retains the control of the financial assets and account the financial assets in accordance with the Standards mentioned above.
(3) Classification and Measurement of Financial Liability
On initial recognition, financial liabilities are classified as either financial liabilities at 'fair value through profit or loss' (FVTPL) or 'other financial liabilities'. The financial liabilities initially recognized shall be measured at their fair values. For the financial liabilities at fair value through profit or loss, the transaction expenses thereof shall be directly recorded into the profit or loss of the current period; for other financial liabilities, the transaction expenses thereof shall be included into the initially recognized amount.
① Financial liabilities at fair value through profit or loss
The transactional financial liabilities and designated financial liabilities at fair value through profit or loss are classified under the same criteria as the transactional financial assets and designated financial assets at fair value through profit or loss.
On subsequent measurement of financial liabilities at fair value through profit or loss, gain or loss arising from changes in fair value and dividends and interests related to the financial liabilities are recognized in the profit or loss of the current period.
② Other Financial Liability
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report For a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, it is subsequently measured at cost. Other financial liabilities are subsequently measured at amortized cost using the effective interest method, with gain or loss arising from derecognition or amortization recognized in profit or loss.
(5) Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged. An agreement between the Company (an existing borrower) and an existing lender to replace the original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
When the Company derecognizes a financial liability or a part of it, it recognizes the difference between the carrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
(6) Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, financial assets and financial liabilities are offset with the net amounts presented on the balance sheet. Otherwise, financial assets and financial liabilities are separately presented on the balance sheet without offsetting.
(7) Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued (including refinanced), repurchased, sold or cancelled by the Company are treated as changes in equity. Changes in the fair value of equity instruments are not recognized. Transaction costs related to equity transactions are deducted from equity.
Distributions to holders of equity instruments by the Company (excluding dividends) reduceshareholders’ 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|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||
|-|
|determined and provision for bad debts shall be made according|
|to the difference between the present value of its future cash flow|
|and its book value. For the accounts receivable whose|
|impairment is not proved by separate test, such accounts|
|receivable, together with those with insignificant single-item|
|amount, are divided into some groups based on similar|
|characteristics of credit risks. For these groups of accounts|
|receivable, provision for bad debts shall be made according to|
|the regulation mentioned in "(2) provision for bad debts shall be|
|made for accounts receivable on group basis".|

(2)The accounts receivable of bad debt provisions made by credit risk Group
|||
|-|-|
|Name|Withdrawing Method|
|Aging Group|Aging Analysis Method|
|Other Group|Other method|

In Group ,Accounts on age basis in theportfolio：
√ Applicable□ Not applicable
||||
|-|-|-|
|Aging|||
||Rate for receivables(%)|Rate for other receivables(%)|
|Within 1 year（Including 1 year）|5.00%|5.00%|
|During the credit period|0.00%|0.00%|
|The credit period within 1 year|5.00%|5.00%|
|1－2 years|10.00%|10.00%|
|2－3 years|30.00%|30.00%|
|3－4 years|50.00%|50.00%|
|4－5 years|70.00%|70.00%|
|Over 5 years|100.00%|100.00%|

 In Group, adopting balance percentage method for bad debtprovision：
□ Applicable√ Not applicable
In Group ,adopting other method for bad debtprovision：
√ Applicable□ Not applicable
||||
|-|-|-|
|Name|Account receivable proportion|Other account receivable proportion|
|Affiliated company exchanges|0.00%|0.00%|
|Security deposit|0.00%|0.00%|
|Deposit|0.00%|0.00%|
|Petty cash|0.00%|0.00%|

(3) Accounts receivable that are individually insignificant but with bad debt provision provided on an
|||
|-|-|
|Reason for separate provision for bad debts|The accounts receivable with single-item amount of less than|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
||RMB 5 million whose risk characteristics can’t be reflected by|
||provision for bad debts on basis of group.|
||Provision for bad debts is made according to the difference|
|Method of provision for bad debts|between the present value of its future cash flow and its book|
||value.|

12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1)Classification of Inventories
This enterprise's inventories is classified as raw materials, works in process, finished products, circulation materials, low-value consumption goods, packing materials, supplies purchasing, engineering construction, development cost,etc.
(2) Obtaining and Measurement of Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be measured by their actual cost when they are obtained. Raw materials, works in process, finished products, etc. shall be measured with the weighted average method when they are being sent out. Low-value consumption goods shall be written off by one-off write-off method when they are withdrawn for use. Circulation packaging materials shall be recorded into cost according to the predicted usage times.
(3) Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period, this enterprise shall make the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss on decline in value of inventories on the ground of each item of inventories. If the factors causing any write-down of the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision for the loss on decline in value of inventories that has been made.
(4) Method for confirming the net realizable value of inventories
The net realizable value of inventories refers to the amount of the estimated selling price, less the estimated costs of completion, the estimated selling costs and related tax payments.
13.Asset-held for sale
The Company will retrieve its book value by means of selling assets (including the exchange of commercial non-monetary assets) instead of sequentially using a non-monetary asset or a disposal group, and when meeting two of the following conditions, the book value will be divided into on-sales category: (1) When a certain non-monetary assets or a certain disposal group sells such kind of assets in similar transactions in accordance with the convention , assets can be sold immediately under the current situation.
(2)The Company has made decision for the selling plans and has acquired assured purchase commitment, predicting that selling will be completed within one year.( The selling, which can only be sold after acquiring approval from relevant authorities or supervision departments according to relevant provision requirement , has acquired its approval ).
The Company will be specifically for dividing the non-current assets or disposal group which are acquired from reselling into on-sales category on acquisition date if on acquisition date they can meet the stipulated condition
that the predicted selling will be completed within one year , and in a short term (usually 3 months) they are likely
to meet other conditions of dividing into on-sales category.
When the non-monetary assets and disposal group were measured by the Company at the beginning or
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 disposalgroup’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 bookvalue’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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Long-term equity investments refer to all investments that are the Company with control of, joint control of, or significant influence over, an investee. The Company accounted investments that are the Company without control of, joint control of, or significant influence over, an investee as financial assets available-for-sale or financial assets at fair value through profit or loss. Please refer to Note V 10 “Financial instruments” for detail. Joint control refers to the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Significant influence refers to the power to participate in the financial and operating policy decisions of the investee but is not control or joint control of those policies.
(1) Initial measurement
For business combination under common control, if the consideration of the merging enterprise is that it makes payment in cash, transfers non-cash assets or bear its debts, it shall, on the date of combination, regard the share of the book value of the stockholder's equity of the merged enterprise as the initial cost of the long-term equity investment. The difference between the initial cost of the long-term equity investment and the payment in cash, non-cash assets transferred as well as the book value of the debts borne by the merging party shall offset against the capital reserve. If the capital reserve is in sufficient to dilute, the retained earnings shall be adjusted. If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date of combination, regard the share of the book value of the stockholder's equity of the merged enterprise as the initial cost of the long-term equity investment. The total face value of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of the long-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. Business combination under common control achieved in stages by several transactions shall determine whether the transactions belong to one package. If the transactions belong to one package, the Company accounted these transactions as one transaction with control of the investee. If the transactions do not belong to one package, on the date of combination, the Company shall regard the share of the book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment. The difference between the initial cost of the long-term equity investment and the sum of book value of long-term equity investments prior to the combination and the book value of consideration paid at the date of combination in order to achieve control of the investees shall offset against the capital reserve. If the capital reserve is in sufficient to dilute, the retained earnings shall be adjusted. No accounting treatment will be made for the other comprehensive income arising from equity investment under equity method before the combination date or recognized with available-for-sale financial assets.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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,
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 theCompany’s share of the fair value of theinvestee’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 theCompany’s share of the fair value of theinvestee’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 theinvestee’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.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 investedentity’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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 investedentity’s identifiable net assets related to such investments sold, shall be recorded inshareholder’s equity; when parent company partially disposes long-term equity investments in subsidiaries with control lost, adjustments shall be made in accordance to Note V 6 (2).
Under other circumstances, for disposal of long-term equity investment, the Company shall derecognize such investment and recognize in profit or loss the difference between the proceeds received, and the carrying amount of the investment in the associates and joint ventures.
In terms of long-term equity investments accounted under equity method, the accounting method after disposal shall not change. The Company shall account for proportionate amount previously recognized in other comprehensive income in relation to that investment on the same basis as would have been required if the investee had directly disposed of the related assets or liabilities. The Company shall also reclassify to current period profit or loss the proportion of changes inshareholders’ 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 inshareholders’ 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 inshareholders’ equity shall be transferred to current period profit or loss proportionally; if retained shares are accounted under cost method, other comprehensive income and changes inshareholders’ equity shall be transferred to current period profit or loss at once.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 inshareholders’ 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. Thecompany’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|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|||of title|||
|Kiln|Straight-line method|5|5|19|
|Platinum passage|Straight-line method|3|95.50|1.5|
|Glass flat-panel and other|||||
||Straight-line method|15|5|6.33|
|equipment|||||
|other equipment|Straight-line method|10|5|9.5|
|Transportation|||||
||Straight-line method|5|5|19|
|equipment|||||
|||According to the length|||
|Temporary equipment|Straight-line method||0||
|||of the project|||
|Testing, quality|||||
|inspection, office|||||
||Straight-line method|5|5|19|
|equipment, tools and|||||
|other tool|||||

The platinum channel is mainly made up of precious metals such as platinum and rhodium, which almost has no losses. Hence, the channel has a higher rate of net residual value.
Thereinto, the fixed asset whose asset impairment provision has been withdrawn should also have its accumulated amount deducted to count and confirm the depreciation rate.
When the year of the fixed asset comes to an end, the Company will review its service life, net residual value and depreciation method. Should there be any differences between the estimated amount of service life and the initially estimated one, adjustment will be made for the service life; Should there be any differences between the estimated amount of net residual value and the initially estimated one, adjustment will be made for the estimated one.
(3) Basis of asserting, valuation and depreciation method for fixed assets under financing lease
Fixed assets leased by the Company shall be recognized as fixed assets acquired under finance leases when they meet one or more of the following criteria:① Upon expiration of the lease term, the ownership of the leased assets shall be transferred to the Company.② The Company has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date of the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the option will be exercised. (3) the lease term accounts for a substantial proportion of the useful life of the leased asset, notwithstanding that the ownership will not be transferred;④ At the inception of lease, the present value of minimum lease payments amount to substantially all of the fair value of leased asset.⑤ Leased assets are of a specialized nature that only the Company can use them without major modifications. Forthe fixed assets that are under finance leases, if the ownership of the leasedassets can be reasonably determined at the end of the lease term, thedepreciation shall be made within the service life of such leased assets;otherwise the depreciation shall be made for a shorter period between the
leaseterm and the remaining service life of such leased assets. (4) Major repair expenses: The major repair
expenses incurred by the Company in carrying out regular inspections of fixed assets, if there is conclusive
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report evidence showing that they meet the conditions for recognition of fixed assets, are included in the cost of fixed assets, while those that do not meet the conditions for recognition of fixed assets are included in the profits and losses of the current period. Fixed assets are under depreciation during regular overhaul intervals.17. Construction in progress
17 Whether the Company needs to comply with the disclosure requirements for specific industries
No
The costs of construction in progress include all necessary project expenditures, the borrowing expenses that should be capitalized before the works reaches the expected usable status and other relevant expenses.
Construction in progress changes to fixed assets when it reaches the expected usable status.
18. Borrowing expenses
Borrowing costs include interest expenses, amortization of discount or premium, auxiliary expenses, exchange differences arising from foreign currency borrowings, etc. Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset are capitalized when expenditures for such asset and borrowing costs are incurred and activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of the capitalized interest is the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed under general-purpose borrowings, the Company determines the amount of interest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of the excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The capitalization rate is the weighted average of the interest rates applicable to the general-purpose borrowings. During the capitalization period, exchange differences related to the principal and interest on a specific-purpose borrowing denominated in foreign currency are capitalized as part of the cost of the qualifying asset. The exchange differences related to the principal and interest on foreign currency borrowings other than a specific-purpose borrowing are recognized as a financial expense when incurred.
The qualifying assets to be capitalized are fixed assets, investment properties and inventories which need to be acquired, constructed or produced through a long period of time, in order to become ready for its intended use or sale.
If general borrowings are used to purchase, construct or produce the capitalization eligible assets, the borrowing cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of the special borrowings times the capitalization rate of the used general borrowings, which is determined by the weighted average interest rate of the general borrowings.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 19.Biological Assets
20.Oil& Gas assets
21.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
The Company makes initial measurements on intangible assets in terms of the costs and determines the useful life when obtaining the assets. For intangible assets of a limited useful life, from the time the assets are available for use, the Company adopts the amortization method that reflects realization of the expected economic benefits, or the straight-line amortization method if unable reliably to determine how to realize the expected economic benefits; and no amortization are made for intangible assets of an unlimited useful life.
At the end of each year, the Company reviews the useful life and amortization methods of intangible assets of a limited useful life and makes adjustments and accounting treatment if different from the previous estimates. For the intangible assets that are estimated to produce no more economic benefits in the future, the Company records the book value of such assets all in current profit and loss.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditures for internal research and development projects of an enterprise shall be classified into research expenditures and development expenditures.
The research expenditures shall be recorded into the profit or loss for the current period.
Development expenses can only be capitalized when the following conditions are satisfied: the technology is feasible for use or sales; there is the intention to use or sell the intangible assets; it can be proven that the product generated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is used internally, it can be proven that it is useful; with necessary technical and financial resources and other resources to complete the development of the intangible assets and the intangible assets can be used or sold; the development expense can be reliably measured. If not, the development expense is accounted into the current gain/loss account. If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study, the project will enter the development stage.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 theasset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of anasset’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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 24Employees’ Remuneration
(1) Accounting methods for short-term compensation
Employee remuneration refers to all kinds of rewards or compensations given in return foremployees’ 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 toemployees’ spouses, children, dependents, deceasedemployees’ 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.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 EquityInstruments’ 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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 theenterprise’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 thecontract’s completion percentage on the balance sheet date. Thecontract’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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 theCompany’s stocks, theCompany’s reduction of capital is conducted according to the total nominal value of written-off stocks. The part of price paid to stock repurchase (including transaction expenses) that excesses the total nominal amount shall offset the capital reserve (share premium), earned surplus and undistributed profits in sequence; The part of price paid to stock repurchase (including transaction expenses) that less than the total nominal amount shall increase the capital
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report reserve (share premium).
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable□ Not applicable
||||
|-|-|-|
|Contents and causes for changes of|||
||Approval procedures|Remarks|
|accounting policy|||
||The company will hold the 49th meeting of||
|Implementation of the new accounting|eighth board meeting on October 30,||
|standards for enterprises - "notice on the|2018 to review and approve the Notices on||
|revision and issuance of the 2018 annual|the change of accounting policy. Notice on||
|general financial statement format for|the revision and issuance of the format of||
|enterprises" (finance and accounting|general corporate financial statements for||
|[2018] no. 15) implementation of the new|the year 2018 (finance and accounting||
|accounting standards for enterprises|[2018] no. 15)||

①Accounting policy changes arising from the implementation of the new accounting standards for business enterprises
The Ministry of Finance issued the Notice on Amending the Format of Financial Statements of General Enterprises in 2018 (CK No.[2018] 15.
The impact of the company's implementation of this accounting policy on the items and amounts presented in the previous financial statements is asfollows：
||||
|-|-|-|
|No|Name of affected item in the statements|Affected amount of December 31, 2017 / 2017Increase + / decrease - -|
|1|Notes receivable|-538,128,584.84|
||Account receivable|-7,873,419,684.42|
||Notes receivable & account receivable|+8,411,548,269.26|
|2|Interest receivable|-49,456,785.29|
||Other account receivable|+49,456,785.29|
|3|Notes payable|-1,063,897,679.89|
||Account payable|-4,636,989,039.65|
||Notes payable & Account payable|+5,700,886,719.54|
|4|Interest payable|-107,195,147.20|
||Dividend payable|-35,000,000.00|
||Other account payable|+142,195,147.20|
|5|Administration expenses|-256,991,555.91|
||R & D expenses|+256,991,555.91|

(2) Change of main accounting estimations
□Applicable√ Not applicable
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 intoshareholder’s equity or some deferred income tax which is counted inshareholder’s equity.
Current income tax is payable tax amount currently calculated as current taxable income. Payable tax amount is calculated by adjusting pre-tax accounting profit specified in related tax laws.
The company confirms deferred income tax by adopting liability method in Balance Sheet based on the temporary difference between book value of asset and liability in Balance Sheet and tax base.
Temporary difference of items of payable taxes are confirmed to be related deferred income tax liabilities, except the temporary difference of payable taxes are made in the following conditions:
A. Initial confirmation of reputation or that of assets or liabilities made in trades with these features: the trade is not enterprise combination and it neither influences accounting profit nor amount of payable tax when it happens.
B. As for temporary difference of items of payable taxes related to investment to subsidiaries, joint enterprises and associated enterprises. The temporary difference return time may be controlled and may not return in foreseeable future.
On the date of balance sheet , the company will calculate deferred income tax assets and deferred income tax liabilities according to applicable tax between expected recovered assets and paid liabilities, and also the company will reflect the income tax influence in ways of expected recovered assets and paid liabilities on the date of balance sheet.
On the date of balance sheet, the company will check the book value of the deferred income tax assets. If it was unlikely to obtain sufficient taxable income taxes to offset benefit of deferred income tax assets, while it was likely to obtain sufficient taxable income, carrying amount of deferred income tax assets shall be written down. 2. Safety production expenses
The company counts and draws safety production expenses specified in Notification on Printing and Distributing and Administrative Measures on Drawing and UsingEnterprise’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 relatedproduct’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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 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 theCompany’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 theCompany’s management, thereby significant adjustment will be made for the assets influenced in the coming future and the indebted book value.
The Company will periodically recheck the above-mentioned judgement, estimation and assumption based on going concern. The changes of accounting estimation only influence those which are influenced at the current period, and of which the influence number will be confirmed at that current period; For those changes which have influence both at the current period and the future period, the influence number of them will be confirmed at that current period and the future period.
On balance sheet date, the significant fields where the Company needs to make judgement, estimation and assumption for the financial statement items will be as follows:
(1)Revenue Recognition-Construction Contract
When the result of construction contract can be estimated reliably, the Company will confirm the contract revenue on balance sheet date by adopting Percentage of Completion Method. The percentage of completion will be confirmed according to Article 28-Revenue Recognition Principle in Note V and it will be totalized in each accounting year of executing this contribution contract.
Significant judgement needs to be made when confirming the percentage of completion, the contract cost occurred, the total predicted revenue of the contract and total cost of the contract, as well as the recoverability of the contract. The project management will make judgement mainly by means of previous experience and work. The total predicted revenue and total cost of the contract, as well as the estimation changes of contract execution result will probably have effect on the operation revenue, the operation cost at the current changing period or at the subsequent period, as well as the profits and losses during that period, and significant influence is likely to be formed due to the above-mentioned changes.
(2) Provision for bad debts
The Company uses the allowance method to account for bad debt losses in accordance with the accounting policy for accounts receivable. Impairment of accounts receivable is based on the assessment of the recoverability of accounts receivable. The identification of impairment of accounts receivable requires management's judgment and estimation. The difference between the actual result and the original estimate will affect the book value of accounts receivable and the provision or reversal of bad debt provision for accounts receivable during the period in which the estimate is changed.
(3) Inventory falling price preparation
According to the inventory accounting policy, the Company measures the lower of cost and net realizable value, and makes provision for inventory devaluation for inventory whose cost exceeds net realizable value, obsolete and unsalable. The depreciation of inventories to net realizable value is based on the assessment of the saleability of inventories and their net realizable value. Identification of impairment of inventories requires management to make judgments and estimates on the basis of obtaining conclusive evidence and considering the purpose of holding the inventory and the influence of events after the balance sheet date. The difference between the actual result and the original estimate will affect the book value of inventory and provision or reversal of inventory depreciation provision during the period in which the estimate is changed.
(4) Depreciation and amortization
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report After considering the salvage value of investment real estate, fixed assets and intangible assets, the company shall accrue depreciation and amortization on a straight-line basis over its useful life. The Company regularly reviews the service life to determine the amount of depreciation and amortization expenses to be included in each reporting period. The service life is determined by the Company based on past experience of similar assets and combined with expected technical updates. If there has been a significant change in previous estimates, the depreciation and amortization expense will be adjusted in the future period.
(5) Deferred income tax assets
Insofar as it is highly probable that there will be sufficient taxable profits to offset losses, the company will recognize deferred income tax assets for all unused tax losses. This requires the management of the company to use a large number of judgments to estimate the time and the amount of future taxable profits, and combine the tax planning strategy to determine the amount of deferred income tax assets that should be recognized.
(6) Income tax
In the normal business activities of the company, there are certain uncertainties in the final tax treatment and calculation of some transactions. It requires the approval of the tax authorities on whether some items can be listed as deductible in the profit before tax. If there is a difference between the final recognized result of these taxation matters and the originally estimated amount, the difference will have an impact on the income tax and the deferred income tax of that period with the final recognition being made.
VI. Taxation
1.Main categories and rates of taxes
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|-|-|-|
|Taxes|Tax references|Applicable tax rates|
|VAT|Sales revenue|3%、10%、11%、16%、17%|
|Urban construction tax|Turnover tax to be paid allowances|5%、7%|
|Enterprises income tax|Taxable income|9%、10%、15%、16.5%、25%|
|VAT|Technical services revenue|6%|
|Educational surtax|Turnover tax to be paid allowances|3%|
|Local education surcharge|Turnover tax to be paid allowances|1%、2%|

The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
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|-|-|
|Name of Taxpayer|Rate of Income Tax|

2.Tax Preference
① On September 11, 2018,The Company was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2018.
②On July 20, 2017,Wuhu Tunghsu Optoelectronic Technology Co., Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15%
enterprise tax rate applicable for high-tech enterprises for three years since 2017.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report③On 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 adopts15% 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 adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑤On November 29, 2018,Zhengzhou Xufei Optoelectronic Technology Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2018.
⑥On November 21, 2016,Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% 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 adopts15% 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 adopts15% 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 adopts15% 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 adopts15% 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 adopts15% 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 adopts15% 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 adopts15% enterprise
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report tax rate applicable for high-tech enterprises for three years since 2016.
⒁On December 8, 2016,Chengdu Tunghsu Intelligence Technology Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
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|-|
|⒂Daosui Group Tibet Construction Development Co., Ltd, based on the “Notice of the People's Government|
|of Tibet Autonomous Region on Issuing the Measures for the Implementation of Enterprise Income Tax Policy of|
|Tibet Autonomous Region” (Zangzhengfa [2014] No. 51) policy, enjoys the corporate income tax at the rate of|
|15% for the strategy of developing the western region and is exempted from the 40% tax share that originally|
|belongs to the local place, thus actually implementing the income tax rate of 9%.|
|⒃Guangxi Sunlong Automobile Manufacturing Co., Ltd, based on the Guangxi People’s Government’s|
|Circular on the Continuation and Revision of Certain Policies Concerning the Promotion of the Open|
|Development of the Guangxi Beibu Gulf Economic Zone” (Gui Zhengfa [2014] No. 5) policy, enjoys the|
|corporate income tax at the rate of 15% for the strategy of developing the western region and is exempted from|
|the 40% tax share that originally belongs to the local place, thus actually implementing the income tax rate of 9%.|
|⒄Harbin Sunlong New Energy Automobile Sales Co., Ltd, based on the “Notice of Ministry of Finance,|
|State Administration of Taxation on the Relevant Issues Concerning the Preferential Policies for Small-scale,|
|Low-profit Enterprises” (Cai Shui [2011] No. 117) and the 28th clause of “The People's Republic of China|
|Enterprise Income Tax Law”- that the small profit-making enterprise that meets the requirements enjoys a|
|reduction of 20% tax rate on the corporate income tax, actually implements the income tax rate of 10%.|

⑱According to the Notice of the Ministry of Finance, the General Administration of Customs, P.R. China and the State Taxation Administration on Issues Concerning Tax Policies Related to the Further Implementation of the Western Development Strategy (CS (2011) No. 58), Catalogue of Encouraged Industries in the Western Region (Decree No. 15 of the State Development and Reform Commission of the People's Republic of China), Announcement of the State Taxation Administration on Issues Concerning Enterprise Income Tax Related to the Further Implementation of the Strategy for the Development of the Western Region (Announcement of the State Administration No.12, 2012), Announcement of the State Taxation Administration on Implementing the Issues Concerning Enterprise Income Tax in the Catalogue of Encouraged Industries in the Western Region (Announcement of the State Administration No.14, 2015): From January 1, 2011 to December 31, 2020, the enterprise income tax rate may be reduced and paid at15% for those enterprises located in the western region whose main business is the industrial projects specified in the Catalogue of Encouraged Industries in the Western Region and whose main business income accounts for more than70% of the total enterprise income in the current year. In 2018, Tunghsu Construction Co., Ltd. shall enjoy this policy and pay enterprise income tax at the rate of15%.
⑲On October 12, 2018,Tunghsu(Yingkou) Optoelectronic Display Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2018.
⑳On November 124, 2018,Chongqing Jinghuateng Optoelectronic Technology Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2018.
㉑On November 30, 2018,Huzhou Mingshuo Optoelectronic Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company
adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2018.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 3.Other
VII. Notes of consolidated financial statement
1. Cash and Bank Balances
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Cash|2,593,055.78|2,461,658.94|
|Bank deposit|19,285,678,472.37|26,666,668,936.88|
|Other monetary assets|518,822,869.01|787,629,173.04|
|Total|19,807,094,397.16|27,456,759,768.86|
|Including：Total amount deposited|||
||2,307,958.14|15,577,823.27|
|abroad|||

Other note
Note 1: The decrease of monetary fund at the end of the period compared with the beginning of the period is mainly due to the increase of purchase payment in the current period.
Note2：The amount of restricted cash and bank balances by the end of the period is RMB4,890,457,106.12. The main types are l/c and acceptance bill deposit, time deposit certificate, pledged deposit certificate and letter of guarantee deposit.
2.Financial assets measured at fair value through current profit and loss
3.Derivative financial assets
□Applicable√ Not applicable
4.Notes receivable& account receivable
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Notes receivable|499,781,503.17|538,128,584.84|
|Account receivable|14,352,781,895.39|7,873,419,684.42|
|Total|14,852,563,398.56|8,411,548,269.26|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report（1）Notes receivable
（1）Classification Notes receivable
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Bank acceptance|142,810,310.93|267,121,031.99|
|Trade acceptance|356,971,192.24|271,007,552.85|
|Total|499,781,503.17|538,128,584.84|

（2）Notes receivable pledged by the Company at the period -end
In RMB
|||
|-|-|
|Items|Amount|
|Bank acceptance|0.00|
|Trade acceptance|0.00|
|Total|0.00|

（3）Note receivable endorsed or discounted by the Company as at June 30.2018 but not expired on the balance sheet date
In RMB
||||
|-|-|-|
||Amount derecognized as at December|Amount underecognized as at January|
|Items|||
||31,2018|1,2018|
|Bank acceptance|1,074,945,963.88||
|Trade acceptance||350,505,600.00|
|Total|1,074,945,963.88|350,505,600.00|

（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract or agreement
In RMB
|||
|-|-|
|Items|Transfer of accounts receivable at the end of the period|
|Trade acceptance|0.00|
|Total|0.00|

 Other note
(2) Account receivable
(1)Classification account receivables.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Year-end balance|||||Year-beginning balance|||||
||||Provision for bad||||||||
||Book balance||||Net|Book balance||Provision for bad debts||Net|
|Category|||debts||||||||
||||||carrying|||||carrying|
|||Proportio||Proportion（%）|||Proportio||Proportion||
||Amount||Amount||amount|Amount||Amount||amount|
|||n（%）|||||n（%）||（%）||
|Accounts receivable|||||||||||
|of individually|||||||||||
|withdrawing bad debt|154,637,||154,637,|||175,782||175,782,0|||
|||1.06%||100.00%|||2.16%||100.00%||
|provision with|381.31||381.31|||,084.76||84.76|||
|significant individual|||||||||||
|amount|||||||||||
|Account receivables|||||||||||
|with provision for|||||||||||
||14,450,5|||||7,975,7|||||
|bad debt made on a|||97,758,8||14,352,78|||102,357,1||7,873,419,6|
||40,744.2|98.94%||0.68%||76,808.|97.84%||1.28%||
|portfolio with similar|||48.85||1,895.39|||24.41||84.42|
||4|||||83|||||
|risk credit|||||||||||
|characteristics basis|||||||||||
||14,605,1||||14,352,781,895.39|8,151,5||||7,873,419,684.42|
||||252,396,|||||278,139,2|||
|Total|78,125.5|100.00%||1.73%||58,893.|100.00%||3.41%||
||||230.16|||||09.17|||
||5|||||59|||||

Accounts receivable subject to individually withdrawing bad debt provision with significant individual amount..√ Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
||Amount in year-end||||
|Account receivable(Unit)|||||
||Account receivable|Provision for bad debts|Proportion%|Reason|
|Inner Mongolia||||Not expected to be|
|Zhunxing Heavy Haul|136,922,651.00|136,922,651.00|100.00%|recovered as a result of|
|Expressway Co., Ltd.||||litigation|
|Korea Sunlong Bus|||||
||17,714,730.31|17,714,730.31|100.00%|Uncollectible|
|Co.Ltd|||||
|Total|154,637,381.31|154,637,381.31|--|--|

Accounts receivable of combinational withdrawing bad debt provision by aging analysis method
√ Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Account receivable|Provision for bad debts|Proportion%|
|Withitem 1 year||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Within credit period|8,737,320,986.99|||
|Within 1 year after credit period|1,070,531,899.41|53,526,594.96|5.00%|
|Subtotal within 1 year|9,807,852,886.40|53,526,594.96|5.00%|
|1-2 years|189,920,028.18|18,992,002.82|10.00%|
|2-3 years|35,279,812.36|10,583,943.71|20.00%|
|Over 3 years|20,711,170.96|14,656,307.36||
|3-4 years|10,708,702.83|5,354,351.42|30.00%|
|4-5 years|2,335,040.62|1,634,528.43|50.00%|
|Over 5years|7,667,427.51|7,667,427.51|70.00%|
|Total|10,053,763,897.90|97,758,848.86|100.00%|

Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio□Applicable√Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
C.Accounts receivable of combinational withdrawing bad debt provision by Other methods
|||
|-|-|
|Group Name|Amount in year-end|
|State subsidy. Local subsidy|2,810,817,714.40|
|Other Group|1,585,959,131.94|
|Total|4,396,776,846.34|

Continued：
|||
|-|-|
|Group Name|Amount in year- beginning|
|State subsidy. Local subsidy|2,160,997,954.00|
|Other Group|254,753,079.36|
|Total|2,415,751,033.36|

（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB116,848,675.65;The amount of the reversed or collected part during the reporting period was of RMB55,997,072.38.
（3）The current accounts receivable written-offs situation
In RMB
|||
|-|-|
|Items|Amount written-offs|
|Accounts receivable written-offs|86,594,582.28|

 Account receivables actually written-offs during the reportingperiod：
In RMB
|||||||
|-|-|-|-|-|-|
||Nature of account||Reason for written|Verification|Arising form related|
|Name||Amount written-off||||
||receivable||-off|procedures|transactions(Y/N)|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||||Relevant approval||
|Korea sunlong Bus|||Unexpected to|||
||Goods|33,605,450.90||procedures have|No|
|Co.Ltd|||recover|||
|||||been implemented||
|||||Relevant approval||
|Siam Standard|||Unexpected to|||
||Goods|29,683,695.30||procedures have|No|
|Energy Co.,Ltd|||recover|||
|||||been implemented||
|Foshan Sanshui|||Bankruptcy of the|||
|||||Relevant approval||
|Yuejing Automobile|||enterprise is not|||
||Goods|5,695,816.45||procedures have|No|
|Transportation Co.,|||expected to be|||
|||||been implemented||
|Ltd.|||recovered.|||
|Total|--|68,984,962.65|--|--|--|

Account receivable verification instructions:
Note: the company has completed the related examination and approval procedures for the accounts receivable actually written off in the current period
（4）The ending balance of account receivables owed by the imputation of the top five parties
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is RMB1,861,131,011.67, which accounts for12.74% of the total receivables. The total amount of closing balance for corresponding accrued bad-debt provision is RMB2,204,560.00.
Note：
Nil
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Nil
Othernote：
Note 1: the increase of accounts receivable at the end of the period compared with the beginning of the period is caused by the increase of sales income in the current period and the corresponding increase of receivables.
Note 2: details of factoring financing at the end of accounts receivable are shown in note 70 to the consolidated financial statements 5. Prepayments
（1）Disclosed by aging:
In RMB
||||||
|-|-|-|-|-|
||Amount in year-end||Amount in year- beginning||
|Aging|||||
||Amount|Proportion(%)|Amount|Proportion(%)|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Within 1 year|4,876,126,216.78|93.49%|1,771,543,035.64|87.65%|
|1-2 years|146,513,615.36|2.81%|196,545,999.45|9.73%|
|2-3 years|148,601,980.13|2.85%|27,318,669.74|1.35%|
|Over 3 years|44,172,407.24|0.85%|25,712,246.12|1.27%|
|Total|5,215,414,219.51|--|2,021,119,950.95|--|

Note：
Note Note: the prepayment amount of 220,285,693.73 yuan with aging over 1 year and significant amount is not carried forward because the settlement conditions are not met.
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Note1：As of December 31, 2018, the total amount of the top five companies in advance payments is RMB 1,860,688,593.47 , accounting for35.68% of the total ending balance of prepayments of advance payments. Othernote：
6. Other accounts receivable
In RMB
||||
|-|-|-|
|Items|Amount in year-end|Amount in year-begin|
|Interest receivable|56,81196.67|49,456,785.29|
|Other receivable|1,069,179,058.88|1,044,890,336.32|
|Total|1,125,991,020.55|1,094,347,121.61|

（1）Interest receivable
（1）Classification Interest receivable
In RMB
||||
|-|-|-|
|Items|Amount in year-end|Amount in year-begin|
|Fixed deposit|56,811,961.67|49,456,785.29|
|Total|56,811,961.67|49,456,785.29|

（2）Important overdue interest
Othernote：
Nil
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report (2).Dividend receivable
（3）Other account receivable
(1) Other accounts receivable disclosed by category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year- begin|||||
||Book Balance||Bad debt provision||Net|Book Balance||Bad debt provision||Net|
|Category|||||||||||
||Amount|Proportio|Amount|Proportio|carrying|Amount|Proportio|Amount|Proportion(|carrying|
|||n(%)||n(%)|amount||n(%)||%)|amount|
|Other Accounts|||||||||||
|receivable of|||||||||||
|individually|||||||||||
|||||||9,056,8||9,056,821|||
|withdrawing bad debt|||||||0.83%||100.00%||
|||||||21.74||.74|||
|provision with|||||||||||
|significant individual|||||||||||
|amount|||||||||||
|Other receivables|||||||||||
|subject to provision||||||1,080,8|||||
||1,075,68||19,934,8||1,055,751|||35,930,81||1,044,890,3|
|for bad debts on||98.19%||1.85%||21,148.|98.85%||3.32%||
||6,445.89||34.82||,611.07|||2.05||36.32|
|credit risk||||||37|||||
|characteristics basis|||||||||||
|Other Accounts|||||||||||
|receivable of|||||||||||
|individually|||||||||||
||19,817,7||6,390,26||13,427,44|3,471,1||3,471,143|||
|withdrawing bad debt||1.81%||32.25%|||0.32%||100.00%||
||16.37||8.56||7.81|43.41||.41|||
|provision with|||||||||||
|non-significant|||||||||||
|individual amount|||||||||||
||||||1,069,179,058.88|1,093,3||||1,044,890,336.32|
||1,095,50||26,325,1|||||48,458,77|||
|Total||100.00%||2.40%||49,113.|100.00%||4.43%||
||4,162.26||03.38|||||7.20|||
|||||||52|||||

Other receivable accounts with large amount and were provided had debt provisions individually at end of period.□ Applicable√Not applicable
Other receivable of combinational withdrawing bad debt provision by aging analysis method
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Other account receivable|Provision for bad debts|Proportion(%)|
|Within item 1 year||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Within credit period|270,308,778.79|||
|Within 1 year after credit period|33,176,078.81|1,658,803.94|5.00%|
|Subtotal Within 1 year|303,484,857.60|1,658,803.94|5.00%|
|1-2 years|48,822,292.15|4,882,229.21|10.00%|
|2-3 years|26,135,402.05|7,840,620.61|30.00%|
|Over 3 years|9,516,681.87|5,553,181.06||
|3-4 years|7,896,375.72|3,948,187.86|50.00%|
|4-5 years|51,043.17|35,730.22|70.00%|
|Over 5 years|1,569,262.98|1,569,262.98|100.00%|
|Total|387,959,233.67|19,934,834.82||

Note：
Other receivable account in Group on which bad debt provisions were provided on percentagebasis：
□Applicable√Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in theportfolio：
√ Applicable□ Not applicable
B. other receivable of individually withdrawing bad debt provision with not significant individual amount Other receivable（Unit） Book balance
Provision for bad
Proportion(%) Reason debts
Harbin Junqi Automobile Leasing Co., Ltd. 1,886,873.28 462,229.61 24.50 Estimated recoverable amount
Shenzhen Haisheng Transportation Service Co., 2,765,624.60 1,103,381.59 39.90 Estimated recoverable Ltd. amount
Shenzhen Xinguangtong Automobile 2,519,037.04 1,148,020.60 45.57 Estimated recoverable Transportation Co., Ltd amount
Datong Longtuo Travel Co., Ltd. 1,969,899.05 571,507.85 29.01 Estimated recoverable amount
Harbin Tianlu Automobile Leasing Co., Ltd. 1,866,499.22 801,693.19 42.95 Estimated recoverable amount
Xuchang Yuntong Bus Travel Co., Ltd. 1,478,721.26 802,334.27 54.26 Estimated recoverable amount
Datong Longlu Travel Co.,Ltd. 1,274,996.21 20,059.22 1.57 Estimated recoverable amount
Huhehaote Juding Automobile Sales Co., Ltd. 1,105,311.68 144,270.58 13.05 Estimated recoverable amount
Other 4,950,754.03 1,336,771.65 27.00 Estimated recoverable
amount
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Total 19,817,716.37 6,390,268.56 32.25
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB22,110,365.98, the account collected or switches back amounting to RMB30,868,265.50.
Significant amount of reversed or recovered bad debtprovision：
(3) Other account receivables actually cancel after write-off
In RMB
|||
|-|-|
|Items|Amount|
|Other receivables actually written off|13,375,774.30|

 Of Which, Other receivablewrite-off：
In RMB
|||||||
|-|-|-|-|-|-|
||Nature of account||Reason for written|Verification|Arising form related|
|Name||Amount written-off||||
||receivable||-off|procedures|transactions(Y/N)|
|||||Confirm bad debt||
|Foshan Sanshui||||||
||||Expected|according to the||
|Yuejing Automobile|Current account|3,471,143.41|||No|
||||unrecoverable|report - Foshan||
|Services Co., Ltd.||||||
|||||Sanshui yuejing||
|||||According to the||
|||||company's||
|||||examination and||
|Korea Sunlong Bus|||Expected|||
||Current account|9,904,630.89||approval report to|No|
|Co.Ltd|||unrecoverable|||
|||||confirm the loss of||
|||||South Korea||
|||||Sunlong bad debt||
|Total|--|13,375,774.30|--|--|--|

Note：
(4) Other account receivables category by nature of money
In RMB
||||
|-|-|-|
|Nature|Ending book balance|Beginning book balance|
|Current account|305,650,872.46|283,565,756.25|
|Deposit|621,344,394.44|507,704,264.31|
|Personal official borrowing|59,482,116.20|84,988,267.52|
|Persona Returnable Insurance|5,863,292.04|2,564,564.43|
|Export tax refunds|1,037,409.54|6,453,137.37|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Advance payment|55,633,246.16|129,922,874.94|
|Project fund|37,831,545.08|68,529,879.43|
|Other|8,661,286.34|9,620,369.27|
|Total|1,095,504,162.26|1,093,349,113.52|

（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
|||||||
|-|-|-|-|-|-|
|||||Portion in total other|Bad debt provision|
|Name|Nature|Year-end balance|Age|||
|||||receivables(%)|of year-end balance|
|Sichuan City|||Within 1 year after|||
|Construction No.5|||credit period:80|||
|Infrastructure|Deposit|200,000,000.00|million yuan, 1-2|18.26%||
|Development Co.,|||years: 120 million|||
|Ltd.||||||
|Sichuan Panxi||||||
|Lingshan Tourism||||||
||Enterprises fund|||||
|Investment||83,188,661.00|Within credit period|7.59%||
||transfers|||||
|Development Co.,||||||
|Ltd.||||||
|Chongqing Haolong||||||
||Enterprises fund|||||
|Platinum Industry||50,163,611.11|Within credit period|4.58%||
||transfers|||||
|Co., Ltd.||||||
|Tibet transportation||||||
||Deposit|30,305,918.60|1-2 years|2.77%||
|Dept.||||||
||||Within 1|||
|Chengdu Dingyang|||year:20,672,055.62|||
||Deposit|25,024,900.25||2.28%||
|Technology Co., Ltd.|||yuan, the rest are 1-2|||
||||years|||
|Total|--|388,683,090.96|--|35.48%||

(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil (8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
Othernote：
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Nil
7.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industries
No
（1）Inventory types
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items||Provision for bad|Net carrying||Provision for bad|Net carrying|
||Book Balance|||Book Balance|||
|||debts|amount||debts|amount|
|Raw materials|1,011,195,380.28|39,101,593.48|972,093,786.80|2,210,317,909.51|23,802,249.09|2,186,515,660.42|
|Processing|||||||
||144,788,638.36||144,788,638.36|243,932,972.44||243,932,972.44|
|products|||||||
|Stock goods|675,474,531.36|21,859,006.00|653,615,525.36|457,130,464.91|9,080,902.13|448,049,562.78|
|Completed but|||||||
|unsettled assets|||||||
|caused by|1,200,764,859.02||1,200,764,859.02|760,198,642.91||760,198,642.91|
|construction|||||||
|contract|||||||
|Development|||||||
||317,769,074.78||317,769,074.78||||
|product|||||||
|Commissioned|||||||
|processing|33,093,172.93|435,243.31|32,657,929.62|60,471,813.36|1,443,698.36|59,028,115.00|
|material|||||||
|Commissioned|||||||
||6,883,551.21||6,883,551.21|13,306,134.19||13,306,134.19|
|materials|||||||
|land arrangement|182,213,301.70||182,213,301.70|10,346,187.21||10,346,187.21|
|Development cost||||1,188,193,081.41||1,188,193,081.41|
|Total|3,572,182,509.64|61,395,842.79|3,510,786,666.85|4,943,897,205.94|34,326,849.58|4,909,570,356.36|

 Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure Guidelines No.11 - listed companies engaged in jweelry related business" disclosure requirements
No
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report (2) Inventory depreciation reserve
In RMB
||||||||
|-|-|-|-|-|-|-|
||Beginning of|Increased in current period||Decreased in current period|||
|Items||||||End of term|
||term|Provision|Other|Transferred back|Other||
|Raw materials|23,802,249.09|15,299,344.39||||39,101,593.48|
|Stock goods|9,080,902.13|14,146,518.02||1,368,414.15||21,859,006.00|
|Processingprodects|||||||
||1,443,698.36|||1,008,455.05||435,243.31|
|Total|34,326,849.58|29,445,862.41||2,376,869.20||61,395,842.79|

 Notes1：Basis of provision for inventory revaluation reserve was cost and net realizable value, and reason of inventory revaluation reserve provision was that final realizable net value was lower than cost.
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
The end of the development cost includes interest capitalization of 32,101,989,.83 yuan.
(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
|||
|-|-|
|Items|Amount|
|Accumulated Incurred Cost|8,396,256,236.64|
|Accumulated Confirmed Gross Profit|844,504,632.54|
|Settlement Amount|8,039,996,010.16|
|Unliquidated Completed Assets Formed in the Construction||
||1,200,764,859.02|
|Contract||

Othernote：
（4）Development cost
||||||||
|-|-|-|-|-|-|-|
|Name|Starting time|Estimatedcompletion time|Expectedtotalinvestment(tenthousand)|Opening balance|Inventorydepreciationreserve|Clodingblance|
|TunghsuInternational Cente|2015.12.29r|2018.10.16 2|20,000.00|1,188,193,081.41|||
|Including：Capital interest||||101,544,263.19|||
|Total||||1,188,193,081.41|||

（5）Development Product
|||||||
|-|-|-|-|-|-|
|Name|Completion time|Opening|Increased in this|Decreased in this|Ending balance|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||balance|period|period||
|TunghsuInternationalCenter|2018/10/16||1,459,295,506.43|1,141,526,431.65|317,769,074.78|
|Including：Capital interest|||125,233,711.67|93,131,721.84|32,101,989.83|

Note 2: Note 2: For details of Mortages of end-of-period, please refer to Note 70 of Consolidated Financial Statements
8. Holding assets for sale
In RMB
||||||
|-|-|-|-|-|
|Items|End book value|Fair value|Estimated disposal cost|Estimated disposal time|
|Holding assets for sale|119,355,435.58|119,355,435.58||December 31,2019|
|Total|119,355,435.58|119,355,435.58||--|

Othernote：
Notes:Subsidiary-Shenzhen Xuhui Investment Control Co., Ltd. acquires Sub-Subsidiary
Mingshuo (Beijing) Electric Technology Co., Ltd., and the acquisition agreement stipulates that: Mingshuo (Beijin g) Electric Technology Co.,Ltd.’s original subsidiary, Mingshuo (Beijing) Trade Co., Ltd., Huzhou Mingwang Li ghting Technology Co., Ltd., Sold on 31 December 2019.
Pursuant to the agreement of the acquisition of sub-subsidiary company Daosui Group Engineering Co., Ltd.: Daosui Group Engineering Co., Ltd originally held a subsidiary .Sichuan Panxi Liangshan Travel Investment Development Co., Ltd.,Sichuan Panxi Lingshan Travel Investment Huanshun real estate Co., Ltd. Subei Hexing Water Co., Ltd. was stripped after the acquisition, Sold on 31 December 2019.
9. Non current assets due within one year
10. Other current assets
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|USD exchange|58,000,000.00|58,000,000.00|
|Prepayment of income tax|663,642,694.01|1,281,947,333.75|
|Short –term Financing|87,718,084.48|1,220,000,000.00|
|Total|809,360,778.49|2,559,947,333.75|

 Othernote：
Note: The decrease at the end of the period compared with the beginning of the period is mainly due to the
decrease in short-term financial management, advance payment and taxes to be deducted.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 11. Available-for-sale financial assets
(1) Available-for-sale financial assets
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Items||Provision for|Net carrying||Provision for|Net carrying|
||Book balance|||Book balance|||
|||impairment|amount||impairment|amount|
|Available-for-sale Equity|||||||
||243,158,605.30||243,158,605.30|100,000,056.00||100,000,056.00|
|instrument|||||||
|Cost measured|243,158,605.30||243,158,605.30|100,000,056.00||100,000,056.00|
|Total|243,158,605.30||243,158,605.30|100,000,056.00||100,000,056.00|

（2）Available-for-sale financial assets measured by cost
（3）Available-for–sale financial assets measured at cost at the end of the year
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Book balance|||Provision for impairment||||Percentage||
||||||||||Cash|
|||||||||of||
||||||||||dividends|
|Investee|Balance of|||Balance of|||End of|shareholdi||
|||Increase|||Increase|Decrease|||for the|
||term|||term|||term|ng in||
||||||||||year|
|||||||||investees%||
|Beijing||||||||||
|Yihuatong|100,000,05||100,000,05|||||||
|||||||||5.51%||
|Technolog|6.00||6.00|||||||
|y Co., Ltd.||||||||||
|Beijing||||||||||
|Shenwei||||||||||
|Lixing||29,500,000|29,500,000|||||||
|||||||||16.50%||
|Auto||.00|.00|||||||
|Service||||||||||
|Co., Ltd.||||||||||
|China||||||||||
|Metallurgi||||||||||
|cal||||||||||
|investment||||||||||
|||113,658,54|113,658,54|||||||
|fund||||||||||
|||9.30|9.30|||||||
|manageme||||||||||
|nt||||||||||
|(Beijing)||||||||||
|Co., Ltd.||||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
||100,000,05|143,158,54|243,158,60||
|Total||||--|
||6.00|9.30|5.30||

(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair value or non temporary decline but not related to impairment provision
Other note:
Notes 1: On July 10, 2017, the Company subscribed for 1,282,052.00 shares of the add-directional share issuance of the New Third Board Beijing Yihuatong Technology Co., Ltd at the price of RMB 78.00 per share, with paying the consideration of RMB 100,000,056.00. After the subscription, the company holds5.51% stake of Beijing Yihuatong Technology Co., Ltd. Asit’s unable to obtain fair value, the estimate is measured at cost.
Note 2: On July 12, 2018, the company signed an agreement with Ming Feng, Liang Hongjie, Liu Jie and Tu Liying to invest 29.5 million yuan in Beijing Shenwei Shixing Automobile Service Co., Ltd. capital increase, holding16.5% of Beijing Shenwei Shixing after the capital increase. Since fair value cannot be obtained, it is measured at cost.
Note 3: Tunghsu Construction Group Co., Ltd., a wholly-owned subsidiary of the company (hereinafter referred to as "Tunghsu Construction"), participates in the subscription of the Hengshui Funan New District Municipal Pipe Rack Project Government-Social Capital Cooperation PPP Project Private Equity Investment Fund (hereinafter referred to as "Hengshui Pipe Rack Fund") and Hengshui Funan New District Municipal Road Project Government-Social Capital Cooperation PPP Project Private Equity Investment Fund (hereinafter referred to as "Hengshui Road Fund") initiated by MCC Jianxin Investment Fund Management (Beijing) Co., Ltd. Hengshui Pipe Rack Fund has a total scale of 386.0271 million yuan, of which Tunghsu Construction contributed 200 million yuan in cash and China Metallurgical Tiangong Group Co., Ltd. contributed 186.0271 million yuan in cash. Hengshui Road Fund has a total scale of 64.6776 million yuan, of which Tunghsu Construction contributed 40 million yuan in cash and MCC Tiangong Group Co., Ltd. contributed 24.6776 million yuan in cash. Both Hengshui Pipe Rack Fund and Hengshui Road Fund are managed by MCC Jianxin Investment Fund Management (Beijing) Co., Ltd. and the co-managed funds are managed by Beijing Dongfang Xujie Fund Management Co., Ltd.
12. Held-to-maturity investment
13. Long-term account receivables
（1）Long-term account receivables
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||End of term|||Beginning of term||||
|Items||Provision for|Net carrying||Provision for|Net carrying|Range of rate|
||Book balance|||Book balance||||
|||impairment|amount||impairment|amount||
|Sale of|347,225,434.0||344,430,815.6|143,988,866.9||143,988,866.9|6%-7.6%|
|||2,794,618.37||||||
|commodities by|5||8|1||1|45.78%|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|installment|||||||
||347,225,434.0||344,430,815.68|143,988,866.9|143,988,866.91||
|Total||2,794,618.37||||--|
||5|||1|||

(2) Long-term account receivables recognition terminated due to transfer of financial assets
Nil
(3) Long-term account receivables transferred and assets& liability formed by its continuous involvement Nil
Other note
Nil
14. Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease||||||||||
||||||||||||Closing|
||||||Other|||||||
|||||||||Withdraw|||balance|
||||Deductio|Gains/los|comprehe||Declarati|||||
||Opening|Addition||||Other||n||Closing|of|
|Investees||||||||||||
||||n|s under|nsive||on of cash|||||
||balance|investmen||||changes||impairme|Other|balance|impairme|
||||investmen|equity|income||dividends|||||
|||t||||in equity||nt|||nt|
||||t|method|adjustmen||or profit|||||
|||||||||provision|||provision|
||||||ts|||||||
|I. Joint ventures||||||||||||
|II. Associates||||||||||||
|Tunghsu||||||||||||
|Group|2,004,062|||52,198,29||||||2,056,260||
|Finance|,204.94|||0.80||||||,495.74||
|Co., Ltd.||||||||||||
|Tunghsu||||||||||||
|(Deyang)||||||||||||
|Graphene||||||||||||
|Industry||||||||||||
||20,436,73||20,502,80|||||||||
|Develop||||66,069.02||||||||
||8.11||7.13|||||||||
|ment||||||||||||
|Fund||||||||||||
|Partnershi||||||||||||
|p (LP)||||||||||||
|Zibo Bus||||||||||||
||32,678,81|||9,137,725||||||41,816,53||
|service||||||||||||
||3.57|||.63||||||9.20||
|Co., Ltd.||||||||||||
|CUHK|73,306,96|||2,963,966||||||76,270,93||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|internatio|8.08||.20|4.28|
|nal|||||
|business|||||
|factoring|||||
|co., Ltd|||||
||2,130,484|20,502,80|64,366,05|2,174,347|
|Subtotal|||||
||,724.70|7.13|1.65|,969.22|
||2,130,484|20,502,80|64,366,05|2,174,347|
|Total|||||
||,724.70|7.13|1.65|,969.22|

Other note
Note 1: Tunghsu (Deyang) Graphene Industry Development Fund Partnership (Limited Partnership), the joint venture, was liquidated in November 2018.
Note 2: The long-term equity investment at the beginning of the period includes the investment of RMB 155,434.20 in the subsidiary Tunghsu Technology Co., Ltd. which has decided to be cancelled. The decrease at the end of the period is attributable to the cancellation completion of Tunghsu Technology Co., Ltd. in May 2018. 15. Investment real estate
(1) Investment real estate by cost measurement
√ Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|House, Building|Land use right|Construction in process|Total|
|I. Original price|||||
|1. Balance at|||||
||58,843,742.66|||58,843,742.66|
|period-beginning|||||
|2.Increase in the current|||||
||650,839,934.77|||650,839,934.77|
|period|||||
|(1) Purchase|||||
|（2）Inventory\Fixed|||||
|assets\ Transferred from|650,839,934.77|||650,839,934.77|
|construction in progress|||||
|(3)Increased of|||||
|Enterprise Combination|||||
|3.Decreased amount of|||||
|the period|||||
|（1）Dispose|||||
|（2）Other out|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|4. Balance at period-end|709,683,677.43|709,683,677.43|
|II. Accumulated|||
|amortization|||
|1.Opening balance|614,302.80|614,302.80|
|2.Increased amount of|||
||22,075,493.61|22,075,493.61|
|the period|||
|(1) Withdrawal|1,311,370.70|1,311,370.70|
|（2）Other transfers|20,764,122.91|20,764,122.91|
|3.Decrease in the|||
|reporting period|||
|（1）Disposal|||
|（2）Other out|||
|4.Closing balance|22,689,796.41|22,689,796.41|
|III. Impairment provision|||
|1.Opening balance|||
|2.Increase in the|||
|reporting period|||
|（1）Withdrawal|||
|3.Decrease in|||
|the reporting period|||
|（1）Disposal|||
|（2）Other out|||
|4. Closing balance|||
|IV. Book value|||
|1.Book value of the||686,993,881.02|
||686,993,881.02||
|period-end|||
|2.Book value of the||58,229,439.86|
||58,229,439.86||
|period-begin|||

(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
Other note:
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Note 1: At the end of the period, there is no investment real estate without a property right certificate. Note 2: For details of restrictions on the use of end-of-period ownership, please refer to Note 70 of Consolidated Financial Statements
16. Fixed assets
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Fixed assets|9,634,463,323.77|11,379,727,456.13|
|Total|9,634,463,323.77|11,379,727,456.13|

 (1) List of fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|||Machinery||||
|Items|House, building||Transportations|Other equipment|Total|
|||equipment||||
|I. Original price||||||
|1. Balance at||||||
||2,113,818,494.63|11,507,750,402.79|122,144,132.07|185,704,090.92|13,929,417,120.41|
|period-beginning||||||
|2.Increase in the||||||
||10,207,180.25|246,913,236.99|12,199,683.44|17,281,305.55|286,601,406.23|
|current period||||||
|(1) Purchase|3,461,826.41|102,143,588.91|11,778,832.81|14,896,843.09|132,281,091.22|
|（2）||||||
|Transferred from con|6,745,353.84|135,659,667.72|420,850.63|154,608.75|142,980,480.94|
|struction in progress||||||
|||9,109,980.36||2,229,853.71|11,339,834.07|
|(3)Increased of||||||
|Enterprise||||||
|Combination||||||
|3.Decreased amount|55,773,182.12|1,490,329,299.95|5,451,335.92|8,506,417.41|1,560,060,235.40|
|of the period||||||
|（1）Disposal|1,643,394.46|31,261,718.03|2,172,216.69|2,555,836.20|37,633,165.38|
|（2）Investment|54,129,787.66||||54,129,787.66|
|real estate transfer||||||
|（3）Transfer of||1,423,046,991.10|||1,423,046,991.10|
|project under||||||
|construction||||||
|（4）Decreased of||34,979,102.26|3,224,838.34|3,917,061.15|42,121,001.75|
|Enterprise||||||
|consolidation||||||
|（5）Other decrease||1,041,488.56|54,280.89|2,033,520.06|3,129,289.51|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|4.Closing balance|2,068,252,492.76|10,264,334,339.83|128,892,479.59|194,478,979.06|12,655,958,291.24|
|II. Accumulated||||||
|depreciation||||||
|1.Opening balance|404,808,570.47|2,013,275,887.71|57,491,501.47|73,521,319.79|2,549,097,279.44|
|2.Increased||748,514,807.63|14,306,694.96|22,334,400.51|857,534,971.08|
|amount of the|72,379,067.98|||||
|period||||||
|（1）Withdrawal|72,379,067.98|748,456,500.83|14,306,694.96|22,299,885.01|857,442,148.78|
|||58,306.80||34,515.50|92,822.30|
|(2) Combined to||||||
|increase||||||
|3.Decreased|20,267,629.35|360,768,003.71|1,457,400.78|3,236,634.05|385,729,667.89|
|amount of the||||||
|period||||||
|（1）Disposal or||||||
||711,850.91|22,966,383.95|1,057,436.73|943,282.86|25,678,954.45|
|scrap||||||
|（2）Investment real||||||
||19,555,778.44||||19,555,778.44|
|estate transfer||||||
|（3）||||||
|Transferred from con||336,099,776.16|||336,099,776.16|
|struction in progress||||||
|Combined to reduce||660,355.04|345,683.16|259,831.13|1,265,869.33|
|（4）Other decrease||1,041,488.56|54,280.89|2,033,520.06|3,129,289.51|
|4.Closing balance|456,920,009.10|2,401,022,691.63|70,340,795.65|92,619,086.25|3,020,902,582.63|
|III. Impairment||||||
|provision||||||
|1.Opening balance||36,444.84|555,940.00||592,384.84|
|2.Increase in the||||||
|reporting period||||||
|（1）Withdrawal||||||
|3.Decrease in||||||
|the reporting period||||||
|（1）Disposal||||||
|4. Closing balance||36,444.84|555,940.00||592,384.84|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|IV. Book value||||||
|1.Book value of the||||||
||1,611,332,483.66|7,863,275,203.36|57,995,743.94|101,859,892.81|9,634,463,323.77|
|period-end||||||
|2.Book value of the||||||
||1,709,009,924.16|9,494,438,070.24|64,096,690.60|112,182,771.13|11,379,727,456.13|
|period-begin||||||

(2) Fixed assets temporarily idled
(3) Fixed assets rented by finance leases
In RMB
||||||
|-|-|-|-|-|
|||Accumulated|Accumulated||
|Items|Original book value|||Net carrying amount|
|||depreciation|depreciation||
|Machinery equipment|1,438,000,000.00|397,112,850.07||1,040,887,149.93|
|Total|1,438,000,000.00|397,112,850.07||1,040,887,149.93|

 (4) Fixed assets leased in the operating leases
(5) Fixed assets without certificate of title completed
In RMB
||||
|-|-|-|
|Items|Net carrying amount|Reason|
|Substation|249,637.97|Processing|
|Boiler room|3,700,833.84|Processing|

Other note:
Note 1: For details of the mortgage right of fixed assets at the end of the period and the restrictions on financial leasing, please refer to Note 70 of the Consolidated Financial Statements
（6）Liquidation of fixed assets
17. Project under construction
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Project under|||
||5,013,940,816.82|3,667,972,406.42|
|construction|||
|Engineering Materials|1,163.79||
|Total|5,013,941,980.61|3,667,972,406.42|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report (1)Project under construction
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|Book balance|Provision for|Net carrying|Book balance|Provision for|Net carrying|
|||devaluation|amount||devaluation|amount|
|Wuhu LCD glass|||||||
|substrate|||||||
||2,258,254,792.65||2,258,254,792.65|1,992,039,147.54||1,992,039,147.54|
|production line|||||||
|project|||||||
|Wuhan LCD|||||||
|glass substrate|||||||
||14,645,209.52|14,645,209.52||14,645,209.52|14,645,209.52||
|production line|||||||
|project|||||||
|Kunshan Color|||||||
||617,456,517.49||617,456,517.49|363,976,794.49||363,976,794.49|
|film project|||||||
|Polarizer project||||763,009,412.48||763,009,412.48|
|Surface display|||||||
||125,655,703.76||125,655,703.76|15,954,258.93||15,954,258.93|
|cover glass|||||||
|High aluminum|||||||
|silicon cover|||||||
|glass sheet|1,003,879,240.41||1,003,879,240.41||||
|production line|||||||
|upgrade project|||||||
|Glass substrate|||||||
|production line|||||||
|with annual|||||||
||570,129,313.14||570,129,313.14|414,857,526.62||414,857,526.62|
|output of 1.65|||||||
|million (G5)|||||||
|TFT-LCD|||||||
|New energy bus|||||||
|and logistics|||||||
|vehicle|147,947,403.38||147,947,403.38|0.00||0.00|
|production|||||||
|project|||||||
|Other|290,617,845.99||290,617,845.99|118,135,266.36||118,135,266.36|
|Total|5,028,586,026.34|14,645,209.52|5,013,940,816.82|3,682,617,615.94|14,645,209.52|3,667,972,406.42|

 (2)Changes of significant construction in progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name|Budget|Amount|Increase|Transferr|Other|Balance|Proporti|Progress|Capitaliz|Includin|Capitaliz|Source|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||at year|at this|ed to|decrease|in|on(%)|of work|ation of|g：|ation of|of funds|
|||beginnin|period|fixed||year-end|||interest|Current|interest||
|||g||assets|||||accumul|amount|ratio（%)||
||||||||||ated|of|||
||||||||||balance|capitaliz|||
|||||||||||ation of|||
|||||||||||interest|||
|Wuhu|||||||||||||
|LCD|||||||||||||
|glass|||||||||||||
||7,576,52|1,992,03|266,215,|||2,258,25|||800,297,|83,615,8||IPO|
|substrate|||||||96.66%|96.66%|||||
||0,000.00|9,147.54|645.11|||4,792.65|||668.32|83.39||funds|
|producti|||||||||||||
|on line|||||||||||||
|project|||||||||||||
|Kunshan|||||||||||||
|Color|3,115,50|363,976,|253,479,|||617,456,||||||IPO|
||||||||21.30%|21.30%|||||
|film|0,000.00|794.49|723.00|||517.49||||||funds|
|project|||||||||||||
|Surface|||||||||||||
|display|1,497,38|15,954,2|109,701,|||125,655,|||13,715,7|||IPO|
||||||||12.18%|12.18%|||||
|cover|0,000.00|58.93|444.83|||703.76|||01.19|||funds|
|glass|||||||||||||
|High|||||||||||||
|aluminu|||||||||||||
|m silicon|||||||||||||
|cover|||||||||||||
|glass|1,300,00||1,003,87|||1,003,87||||||IPO|
||||||||85.44%|85.44%|||||
|sheet|0,000.00||9,240.41|||9,240.41||||||funds|
|producti|||||||||||||
|on line|||||||||||||
|upgrade|||||||||||||
|project|||||||||||||
|New|||||||||||||
|energy|||||||||||||
|bus and|||||||||||||
|logistics|2,955,07||147,947,|||147,947,||||||IPO|
||||||||10.41%|10.41%|||||
|vehicle|4,600.00||403.38|||403.38||||||funds|
|producti|||||||||||||
|on|||||||||||||
|project|||||||||||||
|Annual|981,050,|414,857,|155,271,|||570,129,|||56,702,5|23,550,3|||
||||||||109.17%|95.00%||||Other|
|output|000.00|526.62|786.52|||313.14|||56.91|11.10|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|1.65||||||||||||
|million||||||||||||
|(G5)||||||||||||
|TFT-LC||||||||||||
|D glass||||||||||||
|substrate||||||||||||
|producti||||||||||||
|on line||||||||||||
|Pilot||||||||||||
|producti||||||||||||
|on line||||||||||||
|project|126,490,||120,788,|120,788,||||||||
||||||||95.49%|100.00%|||Other|
|for thick|000.00||399.94|399.94||||||||
|film||||||||||||
|substrate||||||||||||
|s||||||||||||
|Polarizer|2,200,00|763,009,|15,793,2||778,802,|||||||
||||||||||||Other|
|project|0,000.00|412.48|20.47||632.95|||||||
||19,752,0|||||||||||
|||3,549,83|2,073,07|120,788,|778,802,|4,723,32|||870,715,|107,166,||
|Total|14,600.0||||||--|--|||--|
|||7,140.06|6,863.66|399.94|632.95|2,970.83|||926.42|194.49||
||0|||||||||||

（3）Impairment provision of construction projects
18. Engineering Material
In RMB
||||||||
|-|-|-|-|-|-|-|
||Balance in year-end|||Balance Year-beginning|||
|Items|Book balance|Provision for|Net carrying|Book balance|Provision for|Net carrying|
|||devaluation|amount||devaluation|amount|
|Special Material|1,163.79||1,163.79||||
|Total|1,163.79||1,163.79||||

Other note:
Note 1: For details of the mortgage at the end of the construction in progress, see Note 70 of the consolidated financial statements.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 18. Productive biological assets
(1) Measured by cost
□ Applicable√ Not applicable
(2) Measured by fair value
□ Applicable√ Not applicable
19. Oil-and-gas assets
□ Applicable√ Not applicable
20. Intangible assets
（1）Information
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Non patent||Right of trade||
|Items|Land use right|Patent right||Software||Total|
||||technology||mark||
|I. Original price|||||||
|1. Balance at|||||||
||887,528,257.12|23,582,996.80|150,931,868.85|7,755,063.97|87,050,298.13|1,156,848,484.87|
|period-beginning|||||||
|2.Increase in the|||||||
||145,458,869.94|66,657,413.82|14,204,413.89|12,316,749.51||238,637,447.16|
|current period|||||||
|(1) Purchase|145,458,869.94|2,234,200.42||12,316,749.51||160,009,819.87|
|（2）Internal R &|||||||
|D|||||||
|（3）Increased of|||||||
|Enterprise||53,688,713.40|14,204,413.89|||67,893,127.29|
|Combination|||||||
|(4)Investor||10,734,500.00||||10,734,500.00|
|investment|||||||
|3.Decreased|||||||
|amount of the|5,632,373.72|||||5,632,373.72|
|period|||||||
|（1）Disposal|||||||
|（2）Investment|||||||
|real estate|5,632,373.72|||||5,632,373.72|
|transfer|||||||
|4. Balance at|1,027,354,753.34|90,240,410.62|165,136,282.74|20,071,813.48|87,050,298.13|1,389,853,558.31|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|period-end|||||||
|II. Accumulated|||||||
|amortization|||||||
|1. Balance at|||||||
||76,219,489.09|3,138,879.85|28,677,985.20|2,965,954.66|44,050,066.05|155,052,374.85|
|period-beginning|||||||
|2. Increase in the|||||||
||22,744,757.95|5,204,892.49|15,878,742.46|2,331,780.50|42,899,609.40|89,059,782.80|
|current period|||||||
|(1) Withdrawal|22,744,757.95|4,688,497.61|15,878,742.46|2,331,780.50|42,899,609.40|88,543,387.92|
|（2）Increased of|||||||
|Enterprise||447,405.94||||447,405.94|
|Combination|||||||
|（3）Investment||68,988.94||||68,988.94|
|3.Decreased|||||||
|amount of the|1,208,344.48|||||1,208,344.48|
|period|||||||
|（1）Disposal|||||||
|（2）|||||||
|Investment real|1,208,344.48|||||1,208,344.48|
|estate transfer|||||||
|4. Balance at|||||||
||97,755,902.56|8,343,772.34|44,556,727.66|5,297,735.16|86,949,675.45|242,903,813.17|
|period-end|||||||
|III. Impairment|||||||
|provision|||||||
|1. Balance at|||||||
|period-beginning|||||||
|2. Increase in the|||||||
|current period|||||||
|(1) Withdrawal|||||||
|3.Decreased|||||||
|amount of the|||||||
|period|||||||
|（1）Disposal|||||||
|4. Balance at|||||||
|period-end|||||||
|4. Book value|||||||
|1.Book value at|929,598,850.78|81,896,638.28|120,579,555.08|14,774,078.32|100,622.68|1,146,949,745.14|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|period -end|||||||
|2.Book value at|||||||
||811,308,768.03|20,444,116.95|122,253,883.65|4,789,109.31|43,000,232.08|1,001,796,110.02|
|period-beginning|||||||

The intangible assets by the end of the formation of the company's internal R& D accounted of the proportion of the balance of intangible assets0.00%
⑵Details of Land use right failed to accomplish certification of property
Other note:
Note 1: the certificate of title has been completed by the end of this period.
Note2: For details of the ending mortgage of intangible assets, see Note 70 of the consolidated financial statements.
21.Development expenses
In RMB
|||||||
|-|-|-|-|-|-|
||Beginning||||Ending|
|Items||Increase in the period|Decrease in period|||
||balance||||balance|
|Metal||||||
|phosphate as||||||
|a negative||||||
|electrode|3,883,495.16|7,260,906.60||2,557,863.40|8,586,538.36|
|material for||||||
|lithium ion||||||
|batteries, etc.||||||
|Jingang||||||
|||3,361,420.59|||3,361,420.59|
|Robot||||||
|Warehouse||||||
|||2,855,282.54|||2,855,282.54|
|robot||||||
|Companion||||||
|robot||2,900,641.21|||2,900,641.21|
|(desktop)||||||
|EASSupply||||||
|||2,236,772.24|||2,236,772.24|
|chain system||||||
|Landscape||||||
|street lamp||||||
||2,141,940.99|1,673,576.37|||3,815,517.36|
|design||||||
|project||||||
|Magnolia||||||
||762,432.49|||762,432.49||
|lamp design||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|project|||||
|Low voltage|||||
|distribution|||||
||2,055,487.81||2,055,487.81||
|system|||||
|project|||||
|High voltage|||||
|distribution|||||
||3,096,837.78||3,096,837.78||
|system|||||
|project|||||
|Intelligent|||||
|photovoltaic|914,598.09||914,598.09||
|junction box|||||
|Vehicle|||||
|charging pile|519,955.68|803,963.60|519,955.68|803,963.60|
|Project|||||
|Energy|||||
|storage|2,022,956.97||2,022,956.97||
|project|||||
|Development|||||
|of main|||||
|Control|||||
|||5,522,571.93||5,522,571.93|
|system for|||||
|AC charging|||||
|pile|||||
|Research on|||||
|an efficient|||||
|||3,903,701.39||3,903,701.39|
|LED module|||||
|street lamp|||||
|Chinese style|||||
|courtyard|||||
|||1,663,986.67||1,663,986.67|
|lamp design|||||
|project|||||
|Flexible|||||
|||1,456,310.68||1,456,310.68|
|battery|||||
|Other||15,529.37||15,529.37|
||15,397,704.9|33,654,663.1|11,930,132.2|37,122,235.9|
|Total|||||
||7|9|2|4|

22. Goodwill
(1) Original book value of goodwill
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report In RMB
|||||||
|-|-|-|-|-|-|
|||Increase||Decrease||
||Beginning|||||
|Investees/ Item||Business|||Ending balance|
||balance||Purchase|Disposal||
|||Combination||||
|Mingshuo||||||
|（Beijing）||||||
|Electric|32,783,882.96||||32,783,882.96|
|Technology Co.,||||||
|Ltd.||||||
|Chenzhou||||||
|Hongcheng||||||
|Public Traffic||||||
||10,163,443.61||||10,163,443.61|
|Constriction||||||
|Development||||||
|Co., Ltd.||||||
|Daosui Group||||||
|Engineering Co.,|40,095,298.31||||40,095,298.31|
|Ltd.||||||
|Chuanglian||||||
|Huatai(HK) Co.,|722,450.89||||722,450.89|
|Ltd.||||||
|Suzhou Tengda||||||
|Optics||||||
||82,350,192.94||||82,350,192.94|
|Technology Co.,||||||
|Ltd.||||||
|Guangxi Sunlong||||||
|Automobile||||||
||55,664,910.37||||55,664,910.37|
|Manufacturing||||||
|Co., Ltd .||||||
|Shanghai||||||
|Tanyuan Huigu||||||
||33,935,384.57||||33,935,384.57|
|New Material||||||
|Co., Ltd.||||||
|Shanghai||||||
|Sunlong Bus Co.,|2,331,962,577.34||||2,331,962,577.34|
|Ltd.||||||
|Zhongcheng||||||
|National||||||
|||133,269,567.62|||133,269,567.62|
|construction co.,||||||
|Ltd.||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Shenzhen Sanbao||||
|Innovation||||
|||68,888,405.50|68,888,405.50|
|Intelligent Co.,||||
|Ltd.||||
|Huaxi Nanchong||||
|Automobile Co.,||55,999,916.40|55,999,916.40|
|Ltd.||||
|Total|2,587,678,140.99|258,157,889.52|2,845,836,030.51|

（2）Impairment provision of goodwill
In RMB
||||||
|-|-|-|-|-|
|Name of the|||||
|investees or the|||||
||Opening balance|Increase|Decrease|Closing balance|
|events formed|||||
|goodwill|||||
|Chenzhou|||||
|Hongcheng|||||
|Public Traffic|||||
|||10,163,443.61||10,163,443.61|
|Constriction|||||
|Development|||||
|Co., Ltd.|||||
|Total||10,163,443.61||10,163,443.61|

 Relevant information about the asset group or asset group combination in which goodwill resides
The asset group or asset group combination related to goodwill impairment test is that can benefit from the synergistic effect of business merger. The test scope at the balance sheet date is the assets and liabilities involved in the smallest asset group related to goodwill, specifically including business capital and long-term assets. The asset group has changed in the current period:The Company acquired Shanghai Sunlong Bus Co., Ltd. (hereinafter referred to as "Shanghai Sunlong") in October 2017. There was no consolidation of the bus business due to the short merger and acquisition. Therefore, goodwill impairment test was carried out with Shanghai Sunlong and Guangxi Sunlong Automobile Manufacturing Co., Ltd. (hereinafter referred to as "Guangxi Sunlong"), a subsidiary thereof, as 2 independent asset groups. In 2018, with the consolidation of bus business, unified management of busR&D, procurement and sales, and unified allocation of resources, the management conducted goodwill impairment test with Shanghai Sunlong, Guangxi Sunglong and Huaxi Nanchong Automobile Co., Ltd. (hereinafter referred to as "Huaxi Nanchong") which was acquired by Shanghai Sunlong in April 2018, as independent asset groups.
Except for the above asset groups, there is no change in other asset groups in the current period.
Describe the goodwill impairment test process, key parameters (e.g. forecast period growth rate, stable period
growth rate, profit margin, discount rate and forecast period when forecasting the present value future cash flow)
and the recognition method of goodwill impairment loss
The recoverable amounts for asset group and asset group combination are based on the three-to five-year
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report budgets approved by the management, Then use a fixed growth rate to estimate based on the entry stability period. and calculated using the cash flow forecast method.
Chenzhou Hongsheng has made a full cycle of cash flow forecast due to the construction period and operating period up to 2036.
The discount rate adopted by the management of the company is the pre-tax interest rate reflecting the time value of the current market currency and the specific risks of the relevant asset group. Different asset groups are located in different industries, and the discount rate results are different, including11.03% for Shanghai Sunlong;11.39% for Suzhou Tengda;14.23% for Shenzhen Sanbao;12.79% for Daosui;14.11% for Tanyuan Huigu;12.63% for Mingshuo;10.29% for Chenzhou Hongsheng.
The recoverable amount of the asset group shall be determined according to the fair value (future disposal value) of the asset minus the disposal expenses due to the future disposal of Zhongcheng National construction co., Ltd. Ltd..
Impact of goodwill impairment test
Zhongming International Asset Appraisal (Beijing) Co., Ltd. evaluated and confirmed the present value of the future cash flow of the asset group on December 31, 2018, and issued the appraisal report.
Confirmed in the appraisal report (ZMPBZ[2019] No. 0008), Shanghai Sunlng Asset Group shows no sign of goodwill impairment.
Confirmed in the appraisal report (ZMPBZ[2019] No. 0009), Suzhou Tengda shows no sign of goodwill impairment.
Confirmed in the appraisal report (ZMPBZ[2019] No. 0010), Sanbao Innovation shows no sign of goodwill impairment.
Confirmed in the appraisal report (ZMPBZ[2019] No. 0011), Daosui shows no sign of goodwill impairment. Confirmed in the appraisal report (ZMPBZ[2019] No. 0012), Tanyuan Huigu shows no sign of goodwill impairment.
Confirmed in the appraisal report (ZMPBZ[2019] No. 0013), Mingshuo shows no sign of goodwill impairment. Confirmed in the appraisal report (ZMPBZ[2019] No. 0014), Chengzhou Hongcheng shows no sign of goodwill impairment.
Zhongcheng National Construction co., Ltd.has signed an equity transfer agreement in April 2019, and the valuation price of70% equity of Zhongcheng National construction co., Ltd. held by Tunghsu Construction Group Co., Ltd. is RMB 140 million, thus there is no sign of goodwill impairment.
23.Long-term amortization expenses
In RMB
|||||||
|-|-|-|-|-|-|
||Balance in|Increase at this|Amortization|||
|Items||||Other decrease|Balance in year-end|
||year-begin|period|balance|||
|Building renovation|20,884,579.02|12,415,384.73|7,862,496.12|8,590,217.81|16,847,249.82|
|NEG Technology||||||
||5,653,725.00||616,770.00||5,036,955.00|
|Use fee||||||
|Total|26,538,304.02|12,415,384.73|8,479,266.12|8,590,217.81|21,884,204.82|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 24.Deferred income tax assets/deferred income tax liabilities
(1)Details of the un-recognized deferred income tax assets
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Items|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|assets|difference|assets|
|Assets devaluation|||||
||343,092,733.65|64,950,015.23|361,268,489.05|72,770,445.79|
|provision|||||
|Not realized the internal|||||
||2,085,646,185.70|313,672,923.77|2,184,199,412.75|350,253,995.33|
|profit|||||
|Deductible loss|813,056,144.42|123,065,344.84|434,657,411.04|65,723,232.54|
|Deferred income|||||
||99,944,032.99|14,878,382.57|73,641,000.14|11,046,150.02|
|difference|||||
|Non-identical control|||||
||9,424,416.78|909,279.99|8,652,114.93|783,147.37|
|enterprise|||||
|Projected liability|20,944,899.84|5,236,224.96|38,543,627.93|9,635,906.98|
|Advance quality margin|78,820,850.20|10,382,456.32|117,878,085.38|16,420,648.06|
|Total|3,450,929,263.58|533,094,627.68|3,218,840,141.22|526,633,526.09|

 (2)Details of the un-recognized deferred income tax liabilities
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Items|Temporarily Deductible|Deferred Income Tax|Temporarily Deductible|Deferred Income Tax|
||or Taxable Difference|liabilities|or Taxable Difference|liabilities|
|Impairment of assets|||||
|under the control of|||||
||293,849,152.24|54,572,072.64|349,818,170.15|60,149,328.74|
|enterprises under the|||||
|same control|||||
|Depreciation difference|||||
|due to different tax law|||||
||4,198,490.69|620,911.33|||
|and accounting|||||
|depreciation period|||||
|Total|298,047,642.93|55,192,983.97|349,818,170.15|60,149,328.74|

(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
||||Trade-off between the|Opening balance of|
||Trade-off between the|End balance of deferred|||
||||deferred income tax|deferred income tax|
|Items|deferred income tax|income tax assets or|||
||||assets and liabilities at|assets or liabilities after|
||assets and liabilities|liabilities after off-set|||
||||period-begin|off-set|
|Deferred income tax||533,094,627.68||526,633,526.09|
|assets|||||
|Deferred income||55,192,983.97||60,149,328.74|
|liabilities|||||

(4)Details of income tax assets not recognized
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Deductible losses|152,606,559.26|74,905,668.59|
|Fixed assets depreciation reserves|0.00|36,444.84|
|Provision for impairment of construction|||
||14,645,209.52|14,645,209.52|
|projects|||
|Bad debt provision|86,413.68|86,413.68|
|Total|167,338,182.46|89,673,736.63|

 (5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
|||||
|-|-|-|-|
|Year|Balance in year-end|Balance in year-begin|Remark|
|2018|0.00|15,649.80||
|2019|386,221.54|436,608.64||
|2020|3,751,170.54|3,751,170.54||
|2021|22,199,323.24|32,084,711.54||
|2022|27,911,201.66|38,617,528.07||
|2023|98,358,642.28|||
|Total|152,606,559.26|74,905,668.59|--|

25 .Other non-current assets
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Prepaid land fund||6,590,000.00|
|Prepaid engineering equipment|4,463,496,966.82|299,812,939.48|
|Total|4,463,496,966.82|306,402,939.48|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 26.Short–term loans
（1）Short-term loans by category
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Pledge loan|2,666,853,417.34|320,666,279.80|
|Mortgage loan|1,847,600,000.00|374,600,000.00|
|Guarantee loan|3,589,753,471.68|4,997,500,000.00|
|Credit loan|256,899,762.31|20,060,102.40|
|Total|8,361,106,651.33|5,712,826,382.20|

Note：
Note 1. There is no mature but unredeemed short-term borrowing in the company during the accounting period. Note 2.At the end of the period, the company's Mortgage loans of RMB 847,600,000.00.
Including: (1) End-of-period mortgage loan is RMB 110,000,000.00 which is both a guarantee loan and a mortgage loan. Tunghsu Group Co., Ltd., the Company and its subsidiary Shanghai Sunlong Bus Co., Ltd. provide guarantee for Guangxi Sunlong Automobile Manufacturing Co., Ltd., the grandson company; the collateral is the inspection line workshop, warehouse and No. 1 production workshop located at No. 99 Puxing Avenue, Yongning District, Nanning City, numbered as No. 0243831, 0243689, 0137166 of Gui (2018) Nanning Real Estate Right; (2) End-of-period mortgage loan is RMB 49,600,000.00 which is both a guarantee loan and a mortgage loan. Tunghsu Construction Group Co., Ltd. and Yang Jianzhong provide joint liability guarantee for Daosui Group Engineering Co., Ltd., the grandson company. The collateral is the No. 384 construction land (HGY (2012) Z) and No. 200700980 real estates (HYZ No.200700980) located at No. 66 Yingbin Road, Huaying City.
(3) End-of-period mortgage loan is RMB 110,000,000.00. The collateral is the machinery and equipment of the subsidiary Fuzhou Xufu Optoelectronic Technology Co., Ltd. and the land and real estate corresponding to the first production line;
(4) End-of-period mortgage loan is RMB 98,000,000.00 which is both a guarantee loan and a mortgage loan. Tunghsu Group Co., Ltd. and Li Zhaoting provide joint liability guarantee for the Company. Tunghsu Zhuding Investment Development Group Co., Ltd., the mortgagor, will mortgage the house and other fixtures (J (2018) H Real Estate No. 0050316) located in No. 115 office property, Yangfangdian, Haidian District, Beijing.
(5) End-of-period guarantee loan is RMB 480,000,000.00. Li Zhaoting provides joint and several guarantees for the Company. All parcel number 33010801200000004 residential lands and parcel number 33010801200000006 commercial lands of Hangzhou Yuanbang Real Estate Development Co., Ltd. located in Kanshan Town, Xiaoshan District, Hangzhou City, Zhejiang Province, serve as the second order mortgage guarantee for the state-owned transfer of land use right. The first floor of Binjiang Huayue Phase III apartment building and the first floor of Binjiang Huayue Phase III office building of Anhui Meisheng Real Estate Co., Ltd. are located in No.368 Baohe Avenue, Baohe District, Hefei City, Anhui Province serve as the mortgage guarantee. (6) The pledged loan at the end of the period is RMB 1,000,000,000.00.
Li Zhaoting provides joint and several guarantees for the Company.Tunghsu optoelectronic Technology Co.,
Ltd., Tunghsu Group and Li Zhaoting provides joint and serveral guarantees for the Company, The company also
pledged100% shares of its subsidiary Beijing Xufeng Real Estate Co., Ltd., which provides mortgage on its own
land.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Note 3: The guarantee loan is RMB 3,589,753,471.68:
Of which: (1) End-of-period guarantee loan is RMB 210,000,000.00, The Company and Li Zhaoting provides joint liability guarantee for the Company;
（2）End-of-period guarantee loan is RMB 100,000,000.00, The company provides joint liability guarantee to the Sub-Subsidiary–Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
（3）End-of-period guarantee loan is RMB 25,000,000.00, The company and Li Zhaoting provides joint liability guarantee to the Sub-Subsidiary–Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
（4）End-of-period guarantee loan is RMB 20,000,000.00, The company provides joint liability guarantee to the Sub-Subsidiary–Suzhou Tengda Optics Technology Co., Ltd.;
（5）End-of-period guarantee loan is RMB 205,000,000.00, The company provides joint liability guarantee to the Subsidiary–Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;
（6）End-of-period guarantee loan is RMB 95,000,000.00, The company provides joint liability guarantee to the Subsidiary–Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd.;
（7）End-of-period guarantee loan is RMB 50,000,000.00, The company provides joint liability guarantee to the Subsidiary–Zhengzhou Xufei Optoelectronic Technology Co., Ltd.;
(8) End-of-period guarantee loan is RMB 80,000,000.00, Tunghsu Group Co., Ltd. and Li Zhaoting provide joint guarantee for Sichuan Xuhong Optoelectronic Technology Co., Ltd.;
（9）End-of-period guarantee loan is RMB 50,000,000.00, The Company provides joint liability guarantee to the subsidiary -Shanghai Sunlong Bus Co., Ltd;
（10）End-of-period guarantee loan is RMB100,000,000.00, The Company and Tunghsu Group provides joint liability guarantee to the Subsidiary–Shanghai Sunlong Bus Co., Ltd.;
（11）End-of-period guarantee loan is RMB45,000,000.00, The Company and Tunghsu Group provides joint liability guarantee to the sub-subsidiary–Suzhou Tengda Optics Technology Co., Ltd.;
（12）End-of-period guarantee loan is RMB200,000,000.00, The Company and Tunghsu Group provides joint liability guarantee to the Subsidiary–Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;
（13）End-of-period guarantee loan is RMB400,000,000.00, Li Zhaoting and Tunghsu Group provides joint liability guarantee to the Company.;
（14）End-of-period guarantee loan is RMB100,000,000.00, Li Zhaoting and Tunghsu Group provides joint liability guarantee to Shanghai Sunlong Bus Co., Ltd.;
（15）End-of-period guarantee loan is RMB200,000,000.00, Li Zhaoting and Tunghsu Group provides joint liability guarantee to the Subsidiary–Zhengzhou Xufei Optoelecronic Technology Co., Ltd.;
（16）End-of-period guarantee loan is RMB200,000,000.00, Tunghsu Group.provides joint liability guarantee to the Subsidiary–Shanghai Sunlong Bus Co., Ltd.;
（17）End-of-period guarantee loan is RMB200,000,000.00, Tunghsu Group provides joint liability guarantee to the Company.;
（18）End-of-period guarantee loan is RMB250,000,000.00, Tunghsu Group provides joint liability guarantee to the Subsidiary–Daosui Group Co., Ltd.;
（19）End-of-period guarantee loan is RMB150,000,000.00, Tunghsu Group provides joint liability guarantee to the Subsidiary–Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
（20）End-of-period guarantee loan is RMB320,000,000.00, Tunghsu Group provides joint liability guarantee to the Subsidiary–Shanghai Sunlong Bus Co., Ltd.;
（21）End-of-period guarantee loan is RMB50,000,000.00, Tunghsu Group provides joint liability guarantee to the Subsidiary–Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;
（22）End-of-period guarantee loan is RMB200,000,000.00, Tunghsu Group provides joint liability guarantee to
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report the Subsidiary–Zhengzhou Xufei Optoelectronic Technology Co., Ltd.;
（23）End-of-period guarantee loan is RMB30,000,000.00, Subsidiary-Shanghai Sunlong Bus Co., Ltd.provides joint liability guarantee to the Sub- Subsidiary–Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
(24)End-of-period guarantee loan is RMB55,253,471.68, Sub-Subsidiary-Shenzhen Xinyingtong Technology Co., Ltd.provides guarantee with100% Pledge .;
（25）End-of-period guarantee loan is RMB150,000,000.00,The Company provides joint liability guarantee to Subsidiary - Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd.;
（26）End-of-period guarantee loan is RMB25,000,000.00, The Company provides joint liability guarantee to the sub-subsidiary–Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.;
（27）End-of-period guarantee loan is RMB49,500,000.00, The Company provides joint liability guarantee to the Subsidiary–Tunghsu (Kunshan) Display Co., Ltd.;
（28）End-of-period guarantee loan is RMB20,000,000.00, The Company and Li Zhaoting provides joint liability guarantee to the sub-subsidiary–Hunan Tunghsu Delai Electric Technology Co., Ltd.;
（29）End-of-period guarantee loan is RMB10,000,000.00, The Company provides joint liability guarantee to the sub-subsidiary–Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.
Note 4: End-of-period pledge loan is RMB2,666,853,417.34:
(1) The Company pledges a loan of RMB 142,500,000.00 and provides pledge guarantee for Wuhu Tunghsu Optoelectronic Technology Co., Ltd. with the fixed deposit receipt of RMB 150,000,000.00.
（2）The Company provides a guarantee of RMB 20,000,000.00 for the sub-subsidiary Chongqing Jinghuateng Optoelectronic Technology Co., Ltd. which uses the accounts receivable of RMB 25,674,800.00 as pledge.
(3) End-of-period pledge loan is RMB 180,000,000.00 which is both a guarantee loan and a pledge loan. Tunghsu Group Co., Ltd., Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. and Wuhu Tunghsu Weiyu Medical Apparatus Technology Co., Ltd., a sub-subsidiary of the Company, provide joint guarantee; Hunan Tunghsu Weigao Medical Apparatus Technology Co., Ltd., the grandson company, provides pledge guarantee with fixed deposit receipt of RMB 100 million;
(4) End-of-period pledge loan is RMB 142,500,000.00. Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. provides pledge guarantee with the fixed deposit receipt of RMB 150,000,000.00.
(5) End-of-period pledge loan is RMB 69,000,000.00. Daosui Group Engineering Co., Ltd., the sub-subsidiary company, provides pledge guarantee with the fixed deposit receipt of RMB 72,010,000.00; (6) The pledged loan at the end of the period is RMB 1,800,000,000.00. Li Zhaoting and Shenzhen Oufuyuan Technology Co., Ltd. hold75% of the equity of Zhongshan Shenzhong Real Estate Development Co., Ltd. to provide pledge guarantee.
(7) End-of-period pledge loan is RMB 12,853,417.34. Suzhou Tengda Optical Technology Co., Ltd., the sub-subsidiary company, provides pledge guarantee with accounts receivable pledge .
(8) End-of-period pledge loan is RMB 300,000,000.00.Tunghsu Group's loan is both a guarantee loan and a pledge loan guarantee. Li Zhaoting,Tunghsu Group Co., Ltd. and Shanghai Sunlong Bus Co., Ltd. provide joint liability guarantee. Shanghai shenlong bus co., LTD. Provides pledge guarantee for the company with the pledge of 350 million accounts receivable.
(2) Situation of Overdue Outstanding Short-Term Borrowing
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 27. Financial liabilities measured at fair value through current profit and loss
28. Derivative financial liabilities
□Applicable√ Not applicable
29.Notes payable& account payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Notes payable|1,643,167,026.68|1,063,897,679.89|
|Account payable|8,632,927,106.20|4,636,989,039.65|
|Total|10,276,094,132.88|5,700,886,719.54|

（1）List of Notes payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Commercial acceptance|1,288,410,321.68|826,294,597.49|
|Bank acceptance bills|354,756,705.00|237,603,082.40|
|Total|1,643,167,026.68|1,063,897,679.89|

（2）List of account payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Materials engineering labor payment|6,796,000,151.83|3,434,306,764.15|
|Project Fouds|1,749,055,669.87|1,093,739,288.73|
|Transportation expenses|28,726,403.86|11,172,407.72|
|Other|59,144,880.64|97,770,579.05|
|Total|8,632,927,106.20|4,636,989,039.65|

（2）Significant accounts payable that aged over one year
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Sichuan zhongde construction labor|||
||48,000,000.00|Unpaid payment term|
|service co. LTD|||
|Beijing Guoxun investment co., Ltd.|41,088,123.25|Unpaid payment term|
|Sichuan Chaohang Construction Services|22,500,000.00|Unpaid payment term|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Co., Ltd. Chengdu Branch|||
|Ningxia tianshun electric power|||
||21,052,646.58|Unpaid payment term|
|engineering co. LTD|||
|Xinjiang Anpuneng New Energy|||
||20,895,884.25|Unpaid payment term|
|Investment Co., Ltd.|||
|Total|153,536,654.08|--|

30.Advance account
（1）Advance account
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Goods|133,288,930.47|635,268,325.76|
|Engineering fund|1,268,994,731.90|1,019,869,237.87|
|Total|1,402,283,662.37|1,655,137,563.63|

 (2) Accounts payable with major amount and aging of over one year
（3）Information of unliquidated completed assets formed in the construction contract at the end of the period
In RMB
|||
|-|-|
|Items|Amount|
|Accumulated Incurred Cost|2,275,075,178.00|
|Accumulated Confirmed Gross Profit|162,467,492.90|
|Settlement Amount|2,688,749,974.00|
|Unliquidated Completed Assets Formed in the Construction||
||-251,207,303.10|
|Contract||

Other note
Note: At the end of the period, there are no important advance receipts with an age of more than one year.
31. Employee compensation payable
(1)Classification of employee compensation payable
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase at this period|Decrease at this period|Balance in year-end|
|I. Short –term wages|205,475,973.45|1,098,774,156.49|1,068,386,812.83|235,863,317.11|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|II. Welfare after waving|||||
|of position-fixed|2,221,388.80|75,449,849.88|75,387,578.62|2,283,660.06|
|provision scheme|||||
|III. Termination benefit||2,985,525.91|2,985,525.91||
|Total|207,697,362.25|1,177,209,532.28|1,146,759,917.36|238,146,977.17|

（2）Short-term remuneration
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|Payable in this period|Balance in year-end|
|1.Wages, bonuses,|||||
||158,272,400.10|965,100,495.48|953,664,721.94|169,708,173.64|
|allowances and subsidies|||||
|2.Employee welfare|54,843.85|37,806,600.30|37,724,038.16|137,405.99|
|3. Social insurance|||||
||1,209,437.58|38,925,976.09|38,618,326.35|1,517,087.32|
|premiums|||||
|Including：Medical|||||
||1,043,116.93|33,687,308.23|33,593,331.33|1,137,093.83|
|insurance|||||
|Work injury insurance|66,261.87|2,562,329.37|2,384,798.52|243,792.72|
|Maternity insurance|100,058.78|2,676,338.49|2,640,196.50|136,200.77|
|4. Public reserves for|||||
||986,360.29|28,309,758.40|27,377,817.94|1,918,300.75|
|housing|||||
|5.Union funds and staff|||||
||44,804,730.41|23,167,792.00|5,776,294.23|62,196,228.18|
|education fee|||||
|Other|148,201.22|5,463,534.22|5,225,614.21|386,121.23|
|Total|205,475,973.45|1,098,774,156.49|1,068,386,812.83|235,863,317.11|

（3）Defined contribution plans listed
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase in this period|Payable in this period|Balance in year-end|
|1. Basic old-age|||||
||2,080,192.50|71,033,325.56|70,982,835.70|2,130,682.36|
|insurance premiums|||||
|2.Unemployment|||||
||141,196.30|4,416,524.32|4,404,742.92|152,977.70|
|insurance|||||
|Total|2,221,388.80|75,449,849.88|75,387,578.62|2,283,660.06|

 Othernote：Employee benefits payable has no arrears of wages.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 32. Taxes payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|VAT|349,650,560.67|60,982,068.15|
|Enterprise Income tax|307,974,748.03|170,094,083.01|
|Individual Income tax|8,509,011.91|30,271,740.75|
|City Construction tax|13,922,593.39|7,530,509.66|
|Land VAT|101,545,748.03||
|House property tax|10,701,618.07|8,631,413.12|
|Land use tax|1,534,812.83|1,802,208.59|
|Educational surtax|10,584,164.68|6,453,814.04|
|Stamp Tax|3,930,901.55|3,666,280.55|
|Other|8,818,967.96|5,547,302.09|
|Total|817,173,127.12|294,979,419.96|

 Other note:
Note: The increase in taxes payable at the end of the period compared with the beginning of the period is mainly due to the increase in value added tax payable, enterprise income tax and land value-added tax.
33.Other payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Interest payable|117,554,951.58|107,195,147.20|
|Dividend payable||35,000,000.00|
|Other account payable|1,972,048,725.02|1,887,520,891.88|
|Total|2,089,603,676.60|2,029,716,039.08|

（1）Interest payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Long-term loans interest of installment and|||
||37,542,540.23|29,020,856.73|
|interest charge|||
|Enterprise bond interest|71,935,414.10|66,833,709.29|
|Short term loan interest payable|8,076,997.25|11,340,581.18|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Total|117,554,951.58|107,195,147.20|

 - Particulars of significant overdue unpaid interest
Othernote：
Nil
（2）Dividends payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Common dividends||35,000,000.00|
|Total||35,000,000.00|

 Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Nil
(3)Other payable
（1）Disclosure by nature
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Related party current account|632,884,079.05|475,619,957.85|
|Project Current account|558,426,427.62|575,733,577.03|
|Deposit|370,070,455.32|332,956,845.59|
|Individual official borrowing|95,995,501.74|118,851,620.51|
|Government Subsidy|15,000,000.00|15,000,000.00|
|Social security withholding|8,526,750.21|1,823,102.07|
|Engineering fund||55,246,500.11|
|Advance funds|10,363,123.11|33,376,954.61|
|Stock right fund|266,310,044.77|252,444,235.97|
|Restricted stock repurchase obligations|4,422,320.00|4,422,320.00|
|Other|10,050,023.20|22,045,778.14|
|Total|1,972,048,725.02|1,887,520,891.88|

 (2) Other payables with large amount and aging of over one year
Other instructions
Note: other important payables with an aging of more than 1 year at the end of the accounting period are 527,931,897.61 yuan.
The reason for not paying back or carrying forward is that the settlement conditions are not met.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 34. Divided into liability held for sale
35.Non-current liabilities due within 1 year
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Long-term loans due within 1 year|2,523,290,150.75|4,196,242,686.59|
|Long-term Account payable due within 1|||
||1,124,359,280.45|801,679,582.86|
|year|||
|Deferred income due within 1 year|49,743,433.71|47,686,487.00|
|Total|3,697,392,864.91|5,045,608,756.45|

 36.Other current liabilities
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|USD exchange|68,632,000.00|65,342,000.00|
|For resale tax|136,561,128.73|79,012,267.85|
|Financing|110,000,000.00|82,800,911.12|
|Total|315,193,128.73|227,155,178.97|

 Othernote：
Notes：In 1993,the Group signed the agreement on exchange of US dollars which agreed returning 10,000,000 US dollars to the Exchange Unit and repossess the RMB58,000,000.00 exchanged in November 1998, As of December 31, 2018, the Group still consults with the Exchange Unit on the returning of the exchange.
37. Long-term loan
(1) Category of long-term loan
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Pledge loans|450,000,000.00|950,000,000.00|
|Mortgage loans|3,013,496,417.47|4,096,235,604.06|
|Guarantee loans|1,801,383,333.28|4,359,733,333.30|
|Less ：Long-term loan due 1 year|-2,523,290,150.75|-4,196,242,686.59|
|Total|2,741,589,600.00|5,209,726,250.77|

Note：
Notes1：At the end of the period, the Company has no long-term borrowings that have not yet been repaid.
Notes2：The Guarantee of RMB 1,801,383,333.28 is both the mortgage loan and the guarantee loan, reclassified
into the non-current liabilities due within one year RMB 1,533,383,333.28.
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Thereinto: (1) Tunghsu Group Co., Ltd, Li Zhaoting and Li Qing provided the joint and several guarantee for the company's borrowings of RMB 615,000,000.00, of which RMB 615,000,000.00 was reclassified to non-current liabilities due within one year; Tunghsu Group Co., Ltd,and Li Zhaoting provided the joint and several guarantee for the company's borrowings of RMB 218,833,333.28, Tunghsu Group , Li Zhaoting and Li Qing provided the joint and several guarantee for Company's borrowings of 299,550,000.00, of which RMB 518,383,333.28 was reclassified to non-current liabilities due within one year; Tunghsu Group, Tunghsu Optoelectronic Investment Co., Ltd. and Li Zhaoting provided the joint and several guarantee for the company's borrowings of RMB 400,000,000.00, of which RMB 400,000,000.00 was reclassified to non-current liabilities due within one year; Tunghsu Group provided the guarantee for RMB 80,000,000.00 for Sichuan Tunghsu Fanrong Construction Development Co., Ltd., of which RMB 0 was reclassified to non-current liabilities due within one yea
（2）NEG provides joint guarantee for the loan of RMB 188,000,000.00 of Fuzhou Xufu Optoelectronic Technology Co., Ltd., the grandson company, of which the non-current liabilities reclassified and transferred into one-year maturity shall be RMB 0.00.
Note 3: Mortgage loan RMB 3,013,496,417.47 is both a mortgage loan and a guarantee loan, and the non-current liabilities reclassified and transferred into one-year maturity shall be RMB 989,906,817.47.
Of which: (1) The non-current liabilities reclassified and transferred into one-year maturity in the loan of RMB 204,000,000.00 are RMB 136,000,000.00. The collateral and guarantor of the loan are: a. The 202 mu state-owned land use right and the plant after the completion of the project are mortgaged by Wuhu Tunghsu Optoelectronic Technology Co., Ltd., and 2 precious metal platinum passages are provided for mortgage guarantee; b. The loan guarantor is Wuhu Construction Investment Co., Ltd.
(2) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB 1,125,000,000.00 are RMB 375,000,000.00. The collateral and guarantor of the loan are: a. 8 precious metal platinum passage assets owned by Wuhu Tunghsu Optoelectronic Technology Co., Ltd. provides mortgage and guarantee; b. The Company provides joint and several liability guarantee for Wuhu Tunghsu Optoelectronic Technology Co., Ltd., the subsidiary of the Company.
(3) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB 213,726,400.00 are RMB 375,000,000.00. The collateral and guarantor of the loan are: a. Tunghsu Group Co., Ltd., the guarantor, provides joint liability guarantee to the Lender for the loan equivalent to RMB 450 million under the Project and the interest, penalty interest, compound interest, compensation, liquidated damages, damage awards and the expenses of the realized creditor's rights thereof; b. The appraisal value of the collateral of the buildings, machinery and equipment on the ground (including 4 precious metal platinum passages) is RMB 1,055,713,019.27.
(4) The non-current liabilities reclassified and transferred into one-year maturity in the loan of RMB 425,000,000.00 are RMB 35,000,000.00. The mortgage and pledge guarantee of the loan are: a. Real estates (YFQZYZ No. 20150301716, YFQZYZ No. 20150301767, YFQZYZ No. 20150301734, YFQZYZ No. F20150301760, YFQZYZ No. 20150301711, YFQZYZ No. 20150301725, YFQZYZ No. 20150301769, YFQZYZ No. 1715047 of Tunghsu (Yingkou) Optoelectronic Technology Co., Ltd.; b. Tunghsu Group Co., Ltd. shall provide joint liability guarantee for Tunghsu (Yingkou) Optoelectronic Technology Co., Ltd. and provide pledge guarantee of 40 million shares.
(5) The non-current liabilities reclassified and transferred into one-year maturity in the loan of RMB 180,417.47 are RMB 180,417.47. The collateral and guarantor of the loan are: Zeng Jiankai shall provide joint liability guarantee and vehicle with a value of RMB 729,238.00 as collateral.
(6) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB 450,000,000.00 are RMB 150,000,000.00. The collateral and guarantor of the loan are: a. Shijiazhuang Xuxin
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Optoelectronic Technology Co., Ltd., the mortgagor, provides mortgage guarantee with the assets formed by the mortgagable Project, including the land use right, plants and other buildings, machinery and equipment (including the three precious metal platinum passages), etc.; b. Tunghsu Group Co., Ltd. and the couple Li Zhaoting and Li Qing provide joint guarantee.
(7) The amount reclassified and transferred into one-year maturity in the roan of RMB 330,000,000.00 is RMB 80,000,000.00. The collateral and guarantor of the loan are: a. The land use right of WK (Gong) GY 2013 No. 020, WK (Gong) GY 2013 No. 021 and WK (Gong) GY 2014 No. 008 and the fixed assets after the completion of the project owned by Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. are mortgaged; b. The Company provides joint liability guarantee for its subsidiary Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd.
Note 4: The pledge loan of RMB 450,000,000.00 is both a pledge loan and a guarantee loan, and the non-current liabilities reclassified and transferred into one-year maturity shall be RMB 0.00.
Of which, the loan is RMB 450,000,000.00. The the loan pledge and the guarantor are: a. The pledge is the RMB 5 million circulating stocks of Tunghsu Optoelectronic Technology Co., Ltd. held by Tunghsu Group Co., Ltd. and the full pledge of the equity corresponding to the paid-in contribution of RMB 178,750,000.00 of Chengdu Tunghsu Intelligent Technology Co., Ltd. held by Tunghsu Group Co., Ltd.; b. Tunghsu Group Co., Ltd. and Li Zhaoting provide guarantee.
Notes 5.Rate of annual long-term borrowing is generally ranged from3.68%--8.50%.
38. Bonds payable
（1）Bonds payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|15 Tunghsu bonds|952,223,306.45|993,310,440.39|
|Mid-term note I|2,986,250,396.83|2,981,914,109.61|
|Mid -term note II|1,692,345,122.04|1,689,901,540.52|
|Less：Bond payable due 1 year|||
|Total|5,630,818,825.32|5,665,126,090.52|

（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability)
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|15||||||||||
||956,042,7|||1,000,000|993,310,4|63,088,91|2,870,166|43,957,30|952,223,3|
|Tunghsu||2015.5.19|5 years|||||||
||00.00|||,000.00|40.39|3.18|.06|0.00|06.45|
|bonds||||||||||
|Mid-term|3,000,000|2016.11.1||3,000,000|2,981,914|139,280,0|4,336,287||2,986,250|
||||5 years|||||||
|note I|,000.00|7||,000.00|,109.61|00.00|.22||,396.83|
|Mid -term|1,700,000|2016.12.0||1,700,000|1,689,901|85,000,00|2,443,581||1,692,345|
||||5 years|||||||
|note II|,000.00|2||,000.00|,540.52|0.00|.52||,122.04|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||5,700,000|5,665,126|287,368,9|9,650,034|43,957,30|5,630,818|
|Total|--|--|--|||||||
|||||,000.00|,090.52|13.18|.80|0.00|,825.32|

 (3) Note to conditions and time of share transfer of convertible bonds
Nil
（4）Other financial instruments that are classified as financial liabilities
The issuance of preferred stock and other financial instruments such as perpetual debt
Nil
Notes:On May 19, 2015, the “15 Tunghsu Debt” with a total amount of RMB 1 billion was issued. In May 2018, the resale amount was RMB 43,957,300.00, and the coupon rate was adjusted from6.00% to6.80%.
39. Long-term payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Long-term payable|2,644,309,592.95|3,276,308,254.44|
|Total|2,644,309,592.95|3,276,308,254.44|

 (1) Long-term payable listed by nature of the account
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Long-term payable|4,441,492,662.34|4,935,555,693.56|
|Less：Unconfirmed financing costs|672,823,788.94|857,567,856.26|
|Less：Port due Within 1 year|1,124,359,280.45|801,679,582.86|

 Other note
Note: Tunghsu Group Co., Ltd. provides a guarantee of RMB 1,047,092,103.61 for financial lease, Tunghsu Group Co., Ltd. and Li Zhaoting provide a guarantee of RMB 732,372,469.64 for financial lease, and Tunghsu Group Co., Ltd., Li Zhaoting and Li Qing provide a guarantee of RMB 208,000,000.00 for financial lease; Yang Jianzhong, Hong Shuping, You Shaoguo, Li Yan, Hu Yongsheng and Li Jun provide a guarantee of RMB 123,276,502.66 for the financial lease; The Company and Li Zhaoting provide a guarantee of RMB 11,0316,039.24 for financial lease; Subsidiaries of the Company provide RMB 71,830,000.00 as security deposit pledge for financing lease; The production lines and machinery and equipment of the subsidiaries of the Company provide a mortgage of RMB 2,148,605,547.19 for financing lease.
40. Long-term employee salary payable
41. Estimates liabilities
In RMB
|||||
|-|-|-|-|
|Items|Balance in year-end|Balance in year-begin|Rreason|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Lispendens|20,944,899.84|38,543,627.93||
|Product guarantee|78,820,850.20|117,878,085.38||
|Total|99,765,750.04|156,421,713.31|--|

42.Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Beginning of term|Increased this term|Decreased this term|End of term|Reason|
|Govemment Subsidy|601,213,644.42|143,338,833.67|46,218,458.32|698,334,019.77||
|Less ：Government||||||
|subsidies due within|-36,478,840.45|-2,056,946.72||-38,535,787.17||
|one year||||||
|Not realized after||||||
||38,763,460.00|16,348,166.82|27,555,813.56|27,555,813.26||
|sale rental return||||||
|Less：Unrealized||||||
|customer service due||||||
||-11,207,646.55|||-11,207,646.55||
|within 1 year rent to||||||
|profit or loss||||||
|Total|592,290,617.42|157,630,053.77|73,774,271.88|676,146,399.31|--|

Details of government subsidies
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Amount|Other income|Amount of||||
|||New subsidy||||||Asset-related|
||Beginning of||transferred to|recorded in|cost deducted|Other|||
|Items||in current|||||End of term|orincome-rel|
||term||non-operatio|the current|in the current|changes|||
|||period||||||ated|
||||nal income|period|period||||
|Grant of|||||||||
|Government|||||||||
||25,438,800.0||||||23,194,200.0|Related to|
|Infrastructure||||2,244,600.00|||||
||0||||||0|assets|
|（Land|||||||||
|refund）|||||||||
|Grant of|||||||||
|Industry|||||||||
|Revitalizatio|||||||||
|||||||||Related to|
|n and|2,644,444.61|||233,333.28|||2,411,111.33||
|||||||||assets|
|Technology|||||||||
|Reconstructio|||||||||
|n Project|||||||||
|Technical||||||||Related to|
||2,666,666.65|||266,666.68|||2,399,999.97||
|reconstructio||||||||assets|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|n|||||
|Grant of|||||
|Glass||||Related to|
||9,999,999.94|1,000,000.00|8,999,999.94||
|Substrate||||assets|
|Project|||||
|Industry|||||
|||||Related to|
|Development|4,666,666.65|466,666.68|4,199,999.97||
|||||assets|
|Fund|||||
|Project|||||
|||||Related to|
|finance|313,333.37|31,333.32|282,000.05||
|||||assets|
|discount|||||
|Grant of|||||
|Industry|||||
|Revitalizatio|||||
||71,668,666.7||65,153,333.3|Related to|
|n and||6,515,333.32|||
||1||9|assets|
|Technology|||||
|Reconstructio|||||
|n n Project|||||
|2013|||||
|Provincial|||||
|strategic|||||
|||||Related to|
|emerging|4,250,000.04|333,333.32|3,916,666.72||
|||||assets|
|industries of|||||
|special grant|||||
|funds|||||
|Technology|||||
|reconstructio|28,822,333.3||26,666,333.3|Related to|
|||2,156,000.00|||
|n on Special|2||2|assets|
|funds|||||
|Investment|||||
|and Subsidies|||||
|of “Double|||||
|Hundred|||||
|Plan” Project||||Related to|
||1,783,333.33|200,000.00|1,583,333.33||
|granted by||||assets|
|the People's|||||
|Government|||||
|of Henan|||||
|Province|||||
|TFT glass|||||
|||||Related to|
|substrate|89,166.77|10,000.00|79,166.77||
|||||assets|
|technology|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|R& D fund|||||
|TFT glass|||||
|substrate||||Related to|
||5,944,444.43|666,666.67|5,277,777.76||
|project||||assets|
|Subsidy|||||
|Investment|||||
|and Subsidies|||||
|within|||||
|Budget for|||||
|Technologica|||||
|l|||||
|Transformati|||||
|on Project by|||||
|||||Related to|
|National|8,322,222.23|933,333.33|7,388,888.90||
|||||assets|
|Development|||||
|and Reform|||||
|Commission|||||
|and the|||||
|Ministry of|||||
|Industry and|||||
|Information|||||
|Technology|||||
|TFT glass|||||
|substrate|11,888,888.9||10,555,555.5|Related to|
|||1,333,333.33|||
|project|1||8|assets|
|Subsidy|||||
|Subsidy|||||
|Major|||||
|Scientific and|||||
|Technical|||||
|||||Related to|
|Projects by|594,444.43|66,666.67|527,777.76||
|||||assets|
|Finance|||||
|Bureau of|||||
|Zhengzhou|||||
|City|||||
|Financial|||||
|Supports for|||||
|National Key|||||
|Industry and||||Related to|
||8,322,222.23|933,333.33|7,388,888.90||
|Technical||||assets|
|Transformati|||||
|on on|||||
|Projects|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Granted by|||||
|the Municipal|||||
|Finance|||||
|Bureau|||||
|Economic|||||
|and|||||
|Technologica|||||
|l|||||
|Development||||Related to|
||4,161,111.10|466,666.67|3,694,444.43||
|Zone Finance||||assets|
|Bureau|||||
|Industrial|||||
|Development|||||
|Support Fund|||||
|Funds for|||||
|Independent|||||
|Innovation of||||Related to|
||3,566,666.71|400,000.00|3,166,666.71||
|Provincially||||assets|
|Supported|||||
|Enterprises|||||
|Supporting|||||
|Funds on||||Related to|
||1,188,888.91|133,333.33|1,055,555.58||
|Finance||||assets|
|Discounts|||||
|Funds for|||||
|Education,|||||
|Science and|||||
|||||Related to|
|Culture|891,666.71|100,000.00|791,666.71||
|||||assets|
|Granted by|||||
|the Finance|||||
|Bureau|||||
|Supporting|||||
|Funds for|||||
|Industrial|||||
|Structure|||||
|-adjusting||||Related to|
||1,742,222.16|186,666.67|1,555,555.49||
|Projects||||assets|
|Granted by|||||
|the Regional|||||
|Finance|||||
|Bureau|||||
|Industry|1,004,444.42|106,666.67|897,777.75|Related to|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|discount and|||||assets|
|expenses||||||
|Financial|||||Related to|
||3,194,444.50||333,333.33|2,861,111.17||
|discount|||||assets|
|Industrial||||||
|restructuring||||||
||||||Related to|
|project|3,493,333.29||320,000.00|3,173,333.29||
||||||assets|
|financial||||||
|funds||||||
|Special||||||
|Funds for||||||
|High-end||||||
|Information||||||
|Industry||||||
|Chain||||||
|Granted by||||||
||||||Related to|
|the Finance|3,861,111.09||333,333.33|3,527,777.76||
||||||assets|
|Bureau of the||||||
|Economic||||||
|and||||||
|Technologica||||||
|l l||||||
|Development||||||
|Zone||||||
|2015 project||||||
|equipment|29,981,766.6|||27,690,166.4|Related to|
||||2,291,600.16|||
|investment|0|||4|assets|
|subsidies||||||
|Zhengzhou C||||||
|ity Finance B||||||
|ureau in 2011||||||
|and 2012 has||||||
|been the acc||||||
|eptance of th|||||Related to|
||2,412,222.08||173,333.39|2,238,888.69||
|e provincial i|||||assets|
|ndustrial stru||||||
|cture adjustm||||||
|ent project th||||||
|e second batc||||||
|h of funds||||||
|Project|||||Related to|
|||1,760,000.00||1,760,000.00||
|subsidy of|||||assets|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Chongqing||||||
|Liangjiang||||||
|New Area||||||
|Finance||||||
|Bureau||||||
|Equipment||||||
|subsidy of||||||
|Chongqing||||||
||||||Related to|
|Liangjiang||880,000.00||880,000.00||
||||||assets|
|New Area||||||
|Finance||||||
|Bureau||||||
|Investment in||||||
|the Central||||||
|Budget of|25,500,000.0|||23,500,000.0|Related to|
||||2,000,000.00|||
|Strategic|0|||0|assets|
|emerging||||||
|Industries||||||
|The high-tech||||||
|zone||||||
||||||Related to|
|appropriates|5,866,666.65||426,666.68|5,439,999.97||
||||||assets|
|baseboard||||||
|projects||||||
|Production||||||
||19,241,899.3|||17,734,955.9|Related to|
|line award|||1,506,943.40|||
||7|||7|assets|
|fund||||||
|Special fund||||||
|for the||||||
|transformatio||||||
|n of scientific|||||Related to|
||6,158,080.51||635,162.01|5,522,918.50||
|and|||||assets|
|technological||||||
|achievements||||||
|in 2015||||||
|G8.5tft-lcd||||||
|glass||||||
|substrate||||||
|manufacturin|45,000,000.0|||42,000,000.0|Related to|
||||3,000,000.00|||
|g precision|0|||0|assets|
|intelligent||||||
|digital||||||
|workshop||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|construction|||||
|project|||||
|Investment in|||||
|the Central|||||
|Budget of||||Related to|
||3,933,333.41|799,999.92|3,133,333.49||
|Strategic||||assets|
|emerging|||||
|Industries|||||
|2011Key|||||
|technical|||||
|||||Related to|
|transformatio|491,666.70|99,999.96|391,666.74||
|||||assets|
|n project|||||
|funds|||||
|2011Strategic|||||
|emerging|||||
|||||Related to|
|industry|565,416.70|114,999.96|450,416.74||
|||||assets|
|development|||||
|funds|||||
|2012Electron|||||
|ic|||||
|Information|||||
|||||Related to|
|Industry|983,333.30|200,000.04|783,333.26||
|||||assets|
|Development|||||
|Assistance|||||
|Project|||||
|Subsidies|||||
|from the|||||
|Bureau of|||||
|Finance of|||||
|||||Related to|
|the Economic|9,399,999.99|800,000.02|8,599,999.97||
|||||assets|
|and|||||
|technological|||||
|Development|||||
|Zone|||||
|2013Strategic|||||
|emerging||||Related to|
||392,777.78|33,333.34|359,444.44||
|industry||||assets|
|funds|||||
|Mianyang|||||
|Municipal||||Related to|
||236,666.66|20,000.02|216,666.64||
|Bureau of||||assets|
|Finance|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Special funds|||||
|Glass|||||
|substrate|||||
|finishing||||Related to|
||548,333.33|46,666.67|501,666.66||
|production||||assets|
|Transformati|||||
|on Project|||||
|Special fund|||||
|subsidy for|||||
|industrial|||||
|||||Related to|
|development|433,888.86|36,666.69|397,222.17||
|||||assets|
|of municipal|||||
|financial|||||
|bureau|||||
|2013 fund of|||||
|||||Related to|
|strategic new|3,944,444.44|333,333.34|3,611,111.10||
|||||assets|
|industry|||||
|Sichuan|||||
|Province|||||
|Industrial|||||
||18,608,333.3||17,158,333.3|Related to|
|Transformati||1,449,999.98|||
||5||7|assets|
|on and|||||
|upgrading|||||
|Project 2015|||||
|Special funds|||||
|for Industrial|39,852,753.5||36,650,568.2|Related to|
|||3,202,185.31|||
|Development|4||3|assets|
|in 2016|||||
|Technical|||||
|Reformation|||||
|of key Green|||||
|||||Related to|
|Technology|8,400,000.00|140,000.00|8,260,000.00||
|||||assets|
|for Glass|||||
|substrate|||||
|（840）|||||
|Intelligent|||||
|manufacturin|||||
|g pilot|||||
|||||Related to|
|demonstratio|1,000,000.00|66,666.67|933,333.33||
|||||assets|
|n project|||||
|subsidy fund|||||
|（100）|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Group|||||
|transfer|||||
|subsidy|||||
|(National key|||||
|R & D|||||
|Program, key|||||
|basic||||Related to|
||915,400.00||915,400.00||
|Materials||||assets|
|Technology|||||
|Promotion|||||
|and|||||
|industrializati|||||
|on Project,|||||
|2016)|||||
|Intelligent|||||
|Manufacturin|||||
|||||Related to|
|g New Mode|3,990,000.00||3,990,000.00||
|||||assets|
|Engineering|||||
|Project|||||
|Annual|||||
|production of|||||
|10 million|||||
|square meters|||||
|||||Related to|
|high|4,700,000.00||4,700,000.00||
|||||assets|
|aluminum|||||
|ultra-thin|||||
|display panel|||||
|glass items|||||
|2017 funds|||||
|for|||||
|technological|||||
|Transformati|30,000,000.0||30,000,000.0|Related to|
|on of|0||0|assets|
|Electronic|||||
|Information|||||
|Industry|||||
|Subsidy fund|||||
|for technical|||||
|transformatio|||||
|||||Related to|
|n of|2,580,000.00|172,000.00|2,408,000.00||
|||||assets|
|industrial|||||
|enterprises in|||||
|Fuzhou|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Technical||||||
|Transformati||||||
|on of||||||
|Industrial||||||
|Enterprises in|||||Related to|
||1,290,000.00||86,000.00|1,204,000.00||
|Fuzhou and|||||assets|
|supporting||||||
|subsidy funds||||||
|in Fuqing||||||
|City||||||
|2018||||||
|Industrial||||||
|Internet||||||
|Innovation||||||
|Development||||||
|Project and||||||
|Intelligent||||||
|||45,000,000.0||43,699,421.9|Related to|
|Manufacturin|||1,300,578.03|||
|||0||7|assets|
|g Integrated||||||
|Standardizati||||||
|on and New||||||
|Model||||||
|Application||||||
|Project||||||
|Subsidy||||||
|The||||||
|Development||||||
|Bureau of||||||
|Economic||||||
|and Trade||||||
|Development||||||
|of Wuhu||||||
|Economic||||||
|and|13,417,100.0|||12,522,626.8|Related to|
||||894,473.18|||
|technological|0|||2|assets|
|Development||||||
|Zone in 2017||||||
|"Triple||||||
|creation"||||||
|high-end||||||
|equipment||||||
|and new||||||
|material||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Glass||||||
|substrate||||||
|production||||||
|||30,000,000.0||30,000,000.0|Related to|
|line||||||
|||0||0|assets|
|transformatio||||||
|n special||||||
|funds||||||
|Tunghsu||||||
|group limited||||||
||||||Related to|
|transfer to|150,400.00|||150,400.00||
||||||assets|
|project five||||||
|funds||||||
|China||||||
|National||||||
|Building||||||
|Material||||||
|International||||||
|Engineering|||||Related to|
||496,000.00|||496,000.00||
|Group Co.,|||||assets|
|Ltd.||||||
|transferred||||||
|funds for||||||
|11-625||||||
|projects||||||
|Bengbu||||||
|Glass||||||
|Industry||||||
|Design and||||||
|Research||||||
|Institute Co.,||||||
||||||Related to|
|Ltd., China|521,000.00|||521,000.00||
||||||assets|
|Building||||||
|Materials||||||
|Co., Ltd.,||||||
|transferred to||||||
|indirect funds||||||
|(subject 4)||||||
|Factory||||||
|building||||||
||||||Related to|
|construction|854,475.22||30,699.72|823,775.50||
||||||assets|
|award||||||
|877,500||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Qualification||||||
|acquisition||45,653,100.0||45,653,100.0|Related to|
|and factory||0||0|assets|
|rental subsidy||||||
|Special fund||||||
|for|||||Related to|
||114,399.00|1,800,000.00||1,914,399.00||
|automobile|||||assets|
|development||||||
|Project||||||
|subsidy from||||||
|the Bureau of||||||
||||||Related to|
|Finance of|6,966,547.39||588,957.03|6,377,590.36||
||||||assets|
|the Economic||||||
|Development||||||
|Zone||||||
|National key||||||
|R & D||||||
|Program key||||||
|basic|||||Related to|
||2,280,000.00|||2,280,000.00||
|Materials|||||assets|
|Technical||||||
|Project||||||
|subsidy||||||
|Financial||||||
|subsidy for||||||
|the major||||||
|scientific and||||||
|technological||||||
|achievements||||||
||||||Related to|
|transformatio|1,000,000.00|||1,000,000.00||
||||||assets|
|n project of||||||
|"High||||||
|Aluminium||||||
|cover Glass||||||
|complete||||||
|Technology"||||||
|2017 Special||||||
|Fund for||||||
|Industrial|||||Related to|
|||5,000,000.00|289,855.07|4,710,144.93||
|Development|||||assets|
|in Economic||||||
|Development||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Zone||||||
|Intelligent||||||
|factory||||||
|construction||||||
|and||||||
|application of|||||Related to|
|||9,350,000.00||9,350,000.00||
|key materials|||||assets|
|and||||||
|components||||||
|for curved||||||
|display||||||
|Key new||||||
||||||Related to|
|product|160,000.04||39,999.96|120,000.08||
||||||assets|
|projects||||||
|Financial||||||
|allocation for||||||
|Strategic||||||
||||||Related to|
|emerging|3,366,000.00||306,000.00|3,060,000.00||
||||||assets|
|Industries in||||||
|Sichuan||||||
|Provinc||||||
|Technical||||||
|revamping||||||
|items of||||||
|300,000|||||Related to|
||644,999.92||86,000.04|558,999.88||
|production|||||assets|
|Line of||||||
|Pole-less||||||
|Lights Ballast||||||
|Intelligent||||||
|Engineering||||||
|Laboratory of||||||
||||||Related to|
|High|1,783,333.29||200,000.04|1,583,333.25||
||||||assets|
|efficiency||||||
|Lighting||||||
|system||||||
|District level||||||
|technical||||||
||||||Related to|
|reform|0.00|1,500,000.00||1,500,000.00||
||||||assets|
|project||||||
|subsidy 150||||||
|The subsidy||1,892,899.93|5,860.37|1,887,039.56|Related to|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|for the||||||assets|
|construction|||||||
|of the factory|||||||
|building is|||||||
|1,892,900|||||||
|yuan|||||||
|Glass|||||||
|substrate|86,971,803.6||||85,655,410.9|Related to|
||||1,316,392.68||||
|project|6||||8|assets|
|subsidy fund|||||||
|Research and|||||||
|development||||||Related d to|
||2,226,000.00||2,226,000.00||||
|project funds||||||income|
|159|||||||
|2017 loan|||||||
|||||||Related d to|
|discount|1,127,484.71|||1,127,484.71|||
|||||||income|
|4.871 million|||||||
|Science and|||||||
|||||||Related d to|
|education|1,787,595.41|500,000.00|||2,287,595.41||
|||||||income|
|support fund|||||||
|Subsidy for|||||||
|post||||||Related d to|
||0.00|2,833.74|||2,833.74||
|stabilizatio||||||income|
|n|||||||
|Special funds|||||||
|||||||Related d to|
|for scientific|400,000.00||400,000.00||||
|||||||income|
|research 40|||||||

43.Other Non-current liabilities
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|CDB financing||500,000,000.00|
|Yingkou coastal financing|108,000,000.00|108,000,000.00|
|Total|108,000,000.00|608,000,000.00|

 Othernote：
Note 1: According to the investment contract signed between Tunghsu Group Co., Ltd., Tunghsu (Yingkou)
Optoelectronic Display Co., Ltd. and Yingkou Coastal Development and Construction Group Co., Ltd., Yingkou
Coastal Development and Construction Group Co., Ltd. has increased the capital of Tunghsu (Yingkou)
Optoelectronic Display Co., Ltd. with RMB 108 million. The Company undertakes all the rights and obligations
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report to be fulfilled by Tunghsu Group, with the repurchase no more than RMB 108 million of investment principal of Yingkou Coastal Development and Construction Group Co., Ltd. and the compensation obligation corresponding to1.2%/year investment income involved in total. before June 2024, the equity of Tunghsu Yingkou corresponding to the registered capital of RMB 108 million will be transferred to the Company after the payment of the investment principal of RMB 108 million and1.2%/year investment income is completed.
Note 2: According to the investment contract signed between Tunghsu Optoelectronic Technology Co., Ltd., Wuhu Tunghsu Optoelectronic Technology Co., Ltd. Fuzhou Tunghsu Investment Development Co., Ltd. and China Development Bank Development Fund Co., Ltd., China Development Bank Development Fund Co., Ltd. has increased the capital of Fuzhou Tunghsu Investment Development Co., Ltd. with RMB 50,000.00 million and enjoyed a fixed annual rate of return. Upon completion of the project, Tunghsu Optoelectronic Technology Co., Ltd. will redeem the equity held by China Development Bank Development Fund Co., Ltd. in installments. Pursuant to the relevant agreement, the Company redeemed the equity interest held by China Development Bank Development Fund Co., Ltd. in December 2018.
44.Stock capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase/decrease this time (+ , - )||||||
||Balance||||||Balance|
|||Issuing of new||Transferred||||
||Year-beginning||Bonus shares||Other|Subtotal|year-end|
|||share||from reserves||||
||5,730,250,118.00||||||5,730,250,118.00|
|Total shares||||||||

 45. Other equity instruments
46. Capital reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||
|Share premium|21,947,720,231.34|4,475,242.57|197,484,455.39|21,754,711,018.52|
|Other capital reserves|31,522,375.26|||31,522,375.26|
|Total|21,979,242,606.60|4,475,242.57|197,484,455.39|21,786,233,393.78|

 Other exlanation, including changes and reasons forchanges：
Changes in capital reserve: The merger of Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. under the same control in the current period results in a decrease of RMB 195,525,500.00 in capital reserve; the non-proportional capital increase to Tunghsu (Kunshan) Display Material Co., Ltd. in the current period results in a decrease of RMB558,955.39 in capital reserve; the non-proportional capital increase to Chenzhou Xuhong Transportation Construction Co., Ltd., the grandson company, in the current period results in an increase of RMB 1,881,000.00 in
capital reserve; the non-proportional capital increase to Shenzhen Xinyingtong Technology Co., Ltd., the grandson
company, in the current period results in a decrease of RMB 1,400,000.00 in capital reserve; the non-proportional
capital increase to Beijing Xujiang Technology Co., Ltd., the grandson company, in the current period results in an
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report increase of RMB 1,002,082.92 in capital reserve; the disposal of Xuyou Electronic Material Technology (Wuxi) Co., Ltd., a subsidiary, in the current period results in an increase of RMB 1,592,159.65 in capital reserve. 47.Treasury stock
In RMB
||||||
|-|-|-|-|-|
||||Decrease in the current||
|Items|Year-beginning balance|Increase in the current||Year-end balance|
||||period||
|The obligation to|||||
|repurchase equity|4,422,320.00|||4,422,320.00|
|incentive|||||
|Total|4,422,320.00|||4,422,320.00|

 48. Other comprehensive income
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Amount of current period||||||
||||Less：|||||
|||Amount for|Previously rec||After - tax a|After - tax a||
||Year-beginni||||||Year-end|
|Items||the period|ognized in pro|Less：|ttributable t|ttributable t||
||ng balance||||||balance|
|||before inco|fit or loss in ot|Income tax|o the parent|o minority s||
|||me tax|her comprehen||company|hareholders||
||||sive income|||||
|2.Other comprehensive income|||||-24,657.35|||
||||||||-29,175.8|
|reclassifiable to profit or loss in|-4,518.45|-42,240.07||||-17,582.72||
||||||||0|
|subsequent periods||||||||
|Balance form the translation of|||||-24,657.35||-29,175.8|
||-4,518.45|-42,240.07||||-17,582.72||
|foreign currency financial statements|||||||0|
||-4,518.45||||-24,657.35|-17,582.72|-29,175.80|
|Total of Other comprehensive income||-42,240.07||||||

 49. Special reserves
In RMB
||||||
|-|-|-|-|-|
||||Decrease in the current||
|Items|Year-beginning balance|Increase in the current||Year-end balance|
||||period||
|Safety production cost|1,983,921.21|38,527,044.56|27,896,634.42|12,614,331.35|
|Total|1,983,921.21|38,527,044.56|27,896,634.42|12,614,331.35|

50. Surplus reserve
In RMB
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||
|Statutory surplus reserve|224,133,824.86|21,373,195.09||245,507,019.95|
|Total|224,133,824.86|21,373,195.09||245,507,019.95|

 51. Retained profits
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Retained earnings before adjustments at the yearbeginning|||
||3,009,860,755.82|1,823,695,278.31|
|Total adjustment of retained earnings at thebeginning of the year|||
|||-155,097,190.92|
|Retained earnings after adjustments at the yearend|3,009,860,755.82||
|||1,668,598,087.39|
|Add: Net profit attributable to owners of theCompany for the period|||
||2,163,607,505.39|1,730,174,564.57|
|Less: Appropriation to statutory surplus reserve|21,373,195.09|36,089,754.38|
|Common stock dividend payable|401,117,508.26|352,822,141.76|
|Retained earnings at the year end|4,750,977,557.86|3,009,860,755.82|

 As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 . (4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits are RMB -155,097,190.92
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
52. Business income, Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Main business|27,532,911,433.28|22,666,699,476.31|17,245,606,616.24|13,644,514,366.81|
|Other business|678,788,587.84|537,379,316.07|31,362,422.79|29,973,279.43|
|Total|28,211,700,021.12|23,204,078,792.38|17,276,969,039.03|13,674,487,646.24|

53. Business tax and subjoin
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Urban construction tax|33,810,482.30|25,979,433.14|
|Education surcharge|23,159,424.99|17,674,597.83|
|Property tax|16,876,028.18|12,698,590.04|
|Land use tax|21,346,497.10|21,300,624.63|
|vehicle and vessel usage tax|132,583.31|32,274.84|
|Stamp tax|13,856,742.20|12,325,654.26|
|Land VAT|124,554,237.34||
|Other|3,747,803.74|4,059,111.33|
|Total|237,483,799.16|94,070,286.07|

 Othernote：
54.Sales expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage and welfare insurance|92,273,371.89|58,561,217.08|
|Shipment|90,294,560.21|63,453,918.97|
|Travel|20,406,607.49|8,645,322.33|
|Business expenses|25,334,960.74|8,067,708.92|
|Quality inspection certification fee|355,243.12|400,656.64|
|Consultancy services|23,399,717.86|10,178,128.46|
|car expenses|22,148,062.40|6,054,493.14|
|Low value consumables and repairs|4,482,483.49|970,196.52|
|Office fee|5,349,463.64|4,311,147.89|
|Depreciation|1,264,353.73|837,982.02|
|Advertising|10,333,401.71|6,800,911.81|
|Product sales guarantee fee|32,639,764.21|27,469,125.70|
|Other|6,194,311.02|13,409,374.25|
|Total|334,476,301.51|209,160,183.73|

 55. Administrative expenses
In RMB
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage and additional cost|288,091,860.23|180,518,516.88|
|Business expenses|16,030,918.90|6,808,507.59|
|Labor protect fee|2,722,389.79|1,944,101.86|
|Office fees|25,841,772.52|25,043,067.11|
|Travel fees|17,009,388.53|9,719,098.91|
|Publicize Fees|8,345,441.30|7,383,473.36|
|Miscellaneous charges|8,035,086.41|1,946,988.14|
|Depreciation accumulative|144,145,302.18|62,962,111.58|
|Low value consumables and repair costs|24,488,949.88|10,288,171.00|
|Consultation fees|53,847,915.52|51,079,357.72|
|Miscellaneous charges|45,502,177.92|26,010,092.75|
|Equity incentive cost||-3,685,060.00|
|Other|19,418,074.40|13,106,583.04|
|Total|653,479,277.58|393,125,009.94|

 Othernote：
Note: The increase in 2018 compared with 2017 is mainly due to the increases in labor and depreciation. In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Labor cost|204,666,344.41|84,414,093.62|
|Material expenses|220,667,309.89|109,611,282.99|
|Test inspection fee|86,313,301.06|28,773,748.12|
|Hydropower and gas charge|14,396,778.76|13,647,405.72|
|Depreciation expenses|23,882,733.08|12,320,763.99|
|Amortization of Intangible assets|4,322,047.03|1,256,897.08|
|Other|17,841,120.07|6,967,364.39|
|Total|572,089,634.30|256,991,555.91|

 57. Financial expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest expenses|1,204,287,050.60|1,142,316,421.06|
|Less：Interest income|506,083,846.24|442,489,241.64|
|Exchange gains and losses|-23,199,230.78|18,458,150.08|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Commission charge|21,943,537.39|5,619,616.01|
|Note discount rate|7,137,552.53|14,514,160.04|
|Financing|18,000,000.00|14,509,424.87|
|Other|610,110.16|1,048,970.03|
|Total|722,695,173.66|753,977,500.45|

 58. Asset impairment loss
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|I. Bad debt loss|54,879,882.12|45,785,385.37|
|II. Losses for falling price of inventory|28,437,407.36|9,198,134.09|
|XIII.Goodwill impairment loss|10,163,443.61||
|Total|93,480,733.09|54,983,519.46|

 Other note
Note: The increase in 2018 compared with 2017 is mainly due to the increase in inventory depreciation loss and goodwill impairment loss.
59.Other gains
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Government subsidy|250,713,869.96|352,095,131.45|
|Personal income tax fee|590,083.12||
|Total|251,303,953.08|352,095,131.45|

 60. Investment income
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Long-term equity investment income by equity|||
||64,366,051.65|4,663,254.00|
|method|||
|Disposal of investment income from long-term|||
||1,935,149.59||
|equity investments|||
|Financing income|14,623,990.55|59,041,599.98|
|Total|80,925,191.79|63,704,853.98|

Other note
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Investment income from disposal of long-term equity investment: The investment income generated by the disposal of Xuyou Electronic Material Technology (Wuxi) Co., Ltd., a subsidiary is RMB 3,182,206.12. The investment income generated by the current liquidation of the partnership of Tunghsu (Deyang) Graphene Industrial Development Fund, the joint venture, is RMB -1,195,383.73. The investment income generated after the grandson disposes of the current liquidation of Tunghsu Technology Co., Ltd. is RMB -51,672.80.
61. Fair value change income
62. Assets disposal income
In RMB
||||
|-|-|-|
|Source|Amount of current period|Amount of previous period|
|Non-current assets disposal gains and|||
||1,515,607.51||
|losses|||
|Including：Income from disposal of fixed|||
||1,515,607.51||
|assets|||
|Total|1,515,607.51||

63. Non-Operation income
In RMB
|||||
|-|-|-|-|
|Items|Amount of current period|Amount of previous period|Recorded in the amount of the|
||||non-recurring gains and losses|
|Government Subsidy|203,256.52|1,646,890.81|203,256.52|
|Unpayable amount|1,100,000.00||1,100,000.00|
|Net fine income|200,053.96||200,053.96|
|Insurance premium|10,799,394.15||10,799,394.15|
|Other|6,760,566.13|1,922,171.57|6,760,566.13|
|Total|19,063,270.76|3,569,062.38|19,063,270.76|

 Government subsidy reckoned into current gains/losses
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Whether the|||||
|||||impact of|||||
||||||Whether|Amount of|Amount of|Assets-relate|
|Subsidy||Issuing||subsidies on|||||
||Issuing body||Nature||special|current|previous|d/income|
|items||reason||the current|||||
||||||subsidies|period|period|–related|
|||||profit and|||||
|||||loss|||||
|Housing|Finance|Subsidy|Grants|No|No||1,546,890.81|Related to|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|maintenance|bureau of||obtained due|||||income|
|subsidies|suqian||to the country||||||
||economic and||encourage||||||
||technological||and support||||||
||development||specific||||||
||zone||industries||||||
||||(Obtained in||||||
||||accordance||||||
||||with the||||||
||||national||||||
||||policies and||||||
||||regulations)||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
||||conforming||||||
||||to the local||||||
|Land tax|Coastal|Subsidy|supporting|||||Related to|
|||||No|No||100,000.00||
|return|industry base||policies such|||||income|
||||as local||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to research||||||
||China||||||||
||||and||||||
||Building||||||||
|Research||Subsidy|development,|||||Related to|
||Materials|||No|No|153,262.52|||
|funds|||technical|||||income|
||Design||||||||
||||renovation||||||
||Institute||||||||
||||and||||||
||||transformatio||||||
||||n, etc.||||||
||||A subsidy||||||
||||obtained due||||||
||||to||||||
||Social||undertaking||||||
|||Subsidy||||||Related to|
|稳岗补贴|security||the state’s|No|No|29,994.00|||
|||||||||income|
||bureau||safeguarding||||||
||||for protection||||||
||||for a certain||||||
||||utility or||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
||||socially||||||
||||necessary||||||
||||product||||||
||||supply or||||||
||||price control||||||
||||function.||||||
||||A subsidy||||||
||||obtained due||||||
||||to||||||
||||undertaking||||||
||||the state’s||||||
||||safeguarding||||||
||||for protection||||||
|Tax|||for a certain|||||Related to|
||Tax bureau|Award||No|No|20,000.00|||
|incentives|||utility or|||||income|
||||socially||||||
||||necessary||||||
||||product||||||
||||supply or||||||
||||price control||||||
||||function.||||||
|Total||||||203,256.52|1,646,890.81||

64.Non-Operation expense
In RMB
|||||
|-|-|-|-|
||Amount of current period|Amount of previous period|The amount of non-operating|
|Items||||
||||gains & lossed|
|Donation expense|2,764,006.00|695,000.00|2,764,006.00|
|Penalty|2,526,929.14|753,616.36|2,526,929.14|
|Non current assets disposal loss|1,660,746.89|65,061.78|1,660,746.89|
|Other|1,941,022.97|895,094.66|1,941,022.97|
|Total|8,892,705.00|2,408,772.80|8,892,705.00|

 65. Income tax
(1) Details of income tax
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Current Income tax|486,169,741.93|419,418,513.13|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Deferred income tax|-17,166,200.53|-83,183,922.77|
|Total|469,003,541.40|336,234,590.36|

（2）Accounting profit and tax expense adjustment process
InRMB
|||
|-|-|
|Items|Amount of current period|
|Total profit|2,737,831,627.58|
|Income tax expense at statutory / applicable tax rates|410,674,744.19|
|Effect of different tax rates applicable to subsidiaries|53,321,675.38|
|Effect of non-taxable income|-5,732,239.03|
|The influence of R & D expenses deduction|-14,980,132.99|
|Effect of non-taxable income|24,827,760.53|
|Affect the use of deferred tax assets early unconfirmed||
||-320,369.80|
|deductible losses||
|The current period does not affect the deferred tax assets||
||17,547,779.09|
|recognized deductible temporary differences or deductible loss||
|Tax preferences|-41,462,810.37|
|Changes in tax rate resulting in changes in the balance of||
|deferred income tax assets/liabilities at the beginning of the|25,127,134.40|
|period||
|Income tax expense|469,003,541.40|

 66 .Other comprehensive income
Refer to section XI Notes, VII, 485 for details.
67.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest income|72,580,223.31|140,642,106.05|
|Government subsidy|285,674,986.53|182,198,655.37|
|Deposits income|341,556,036.47|898,714,597.84|
|Advances fund|95,881,327.96|128,508,839.16|
|Withholding VAT refund|244,105,762.29||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Personal official loans|49,113,531.62|42,487,900.06|
|Collection of funds|12,042,902.50||
|Insurance claims|9,121,325.00||
|Other|2,674,019.34|1,232,168.84|
|Total|1,112,750,115.02|1,393,784,267.32|

 (2)Other cash paid related to operation activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Donation expenses|3,003,932.05|164,100.97|
|Petty cash|37,390,022.00|39,765,728.35|
|Deposit|384,336,174.24|1,032,128,416.85|
|Period expenses paid in cash|572,602,133.37|365,453,243.31|
|Total|997,332,261.66|1,437,511,489.48|

 (3)Cash received related to other investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Investment|200,000,000.00|50,000,000.00|
|Cash and cash equivalents of the|||
|subsidiary on the date of acquisition after||51,681,062.80|
|deducting the monetary investments paid|||
|for the acquisition|||
|Fixed deposit|1,402,500,000.00||
|Current account|463,061,030.00|9,004,080.00|
|Total|2,065,561,030.00|110,685,142.80|

（4）Other Cash payable related to investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Short-term Financing|113,658,549.30|9,940,000,000.00|
|Fixed deposit|3,751,750,000.00|1,352,500,000.00|
|Investment|200,000,000.00|50,000,000.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Current account|449,402,614.89|29,503,800.00|
|Total|4,514,811,164.19|11,372,003,800.00|

（5）Other cash received in relation to financing activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest income|426,148,446.55|252,390,350.30|
|Finance lease|533,750,000.00|2,502,800,000.00|
|Factoring financing|27,199,088.88|100,000,000.00|
|Fixed deposit|157,000,000.00||
|Current account|481,240,420.45|3,224,325,632.86|
|Total|1,625,337,955.88|6,079,515,983.16|

（6）Other Cash payable related to Financing activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Bank charges|37,017,570.05|39,217,775.67|
|Finance lease deposit||47,666,666.66|
|Factoring financing||17,199,088.88|
|Finance lease|984,205,977.49|693,258,375.43|
|Acquisition of minority equity payments|571,040,000.00||
|Sunlong No private funds||31,979,671.29|
|Current account|856,657,166.48|2,476,041,407.56|
|Total|2,448,920,714.02|3,305,362,985.49|

 68. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
||||
|-|-|-|
|Supplement Information|Amount of current period|Amount of previous period|
|I. Adjusting net profit to cash flow from|||
||--|--|
|operating activities|||
|Net profit|2,268,828,086.18|1,920,899,021.88|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Add: Impairment loss provision of assets|93,480,733.09||
|||54,983,519.46|
|Depreciation of fixed assets, oil and gas|858,753,519.46||
|||1,003,010,229.32|
|assets and consumable biological assets|||
|Amortization of intangible assets|88,543,387.92|29,493,603.50|
|Amortization of long-term deferred expenses|8,479,266.12|10,640,874.16|
|Loss on disposals of fixed assets, intangible|||
|assets and other long-term assets ("-" for|-1,515,607.51||
|gains)|||
|Loss on write-off of fixed assets|1,660,746.89|65,061.78|
|Financial cost|823,755,233.08|882,333,791.42|
|Investment losses|-80,925,191.79|-63,704,853.98|
|Decrease in deferred income tax assets|-6,306,027.61|-81,706,028.32|
|Increased in deferred income tax liabilities|-10,860,172.92|-1,477,894.45|
|Decrease in inventories|799,334,364.53|-701,656,101.00|
|Decease in operating receivables|-10,076,576,343.39|-2,798,458,529.59|
|Increase in operating payables|5,621,600,010.47|998,755,817.13|
|Cash flows from operating activities|388,252,004.52|1,253,178,511.31|
|2.Significant investment and financing|||
||--|--|
|activities not affecting cash flows|||
|Fixed assets acquired under financial leasing|525,209,012.42|3,234,833,741.02|
|3．Changes in cash and cash equivalents：|--|--|
|Ending balance of cash|14,916,637,291.04|25,114,660,756.25|
|Less: Beginning balance of cash|25,114,660,756.25|25,538,252,528.80|
|Net increase of cash and cash equivalents|-10,198,023,465.21|-423,591,772.55|

 (2) Cash paid for acquiring subsidiaries and other business units
In RMB
|||
|-|-|
|Items|Amount|
|Cash or Cash Equivalent of Enterprise consolidation that Occurred||
||313,924,083.50|
|in the Current Period Paid in the Current Period||
|Including：|--|
|Shenzhen Sanbao Innovation Intelligence Co., Ltd.|33,598,587.50|
|Zhongcheng National construction co., Ltd.|39,999,996.00|
|Huaxi Nanchong Automobile Co., Ltd.|44,800,000.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|Tunghsu（Yingkou）Optoelectronic Display Co., Ltd.|195,525,500.00|
|Less：Cash or Cash Equivalent Owned by Subsidiary on the||
||4,930,677.33|
|Purchasing Date||
|Including：|--|
|Shenzhen Sanbao Innovation Intelligence Co., Ltd.|3,075,645.81|
|Zhongcheng National construction co., Ltd.|1,854,947.92|
|Huaxi Nanchong Automobile Co., Ltd.|83.60|
|Tunghsu（Yingkou）Optoelectronic Display Co., Ltd.||
|Add： Cash or cash equivalents paid in the current period for||
||83,689,833.67|
|business combinations in the previous period||
|Including：|--|
|Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd.|17,670,558.47|
|Jiangsu Tengda Optics Technology Co., Ltd.|20,019,275.20|
|Changzhou Hongsheng Public Transportation Construction||
||8,000,000.00|
|Development Co., Ltd.||
|Guangxi Sunlong Automobile Co., Ltd.|38,000,000.00|
|Obtain the net cash paid by the subsidiary|392,683,239.84|

 (3) Net Cash receive of disposal of the subsidiary
In RMB
|||
|-|-|
||Amount|
|Cash or cash equivalents received by the disposal company in the||
||550,103,761.40|
|current year||
|Including：|--|
|Xuyou Electronic Materials Technology (Wuxi) Co., Ltd.|550,000,000.00|
|Tunghsu Technology Co., Ltd.|103,761.40|
|Less：Cash and cash equivalents held by a controlling subsidiary|157,924,147.90|
|Including：|--|
|Xuyou Electronic Materials Technology (Wuxi) Co., Ltd.|157,924,147.90|
|Tunghsu Technology Co., Ltd.||
|Including：|--|
|Net cash received from disposal subsidiaries|392,179,613.50|

（4）Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-beginning|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|I. Cash|14,916,637,291.04|25,114,660,756.25|
|Including: cash in treasury|||
||2,593,055.78|2,461,658.94|
|Bank savings could be used at any time|14,914,044,235.26|24,971,467,452.68|
|Other monetary capital could be used at any|||
|||140,731,644.63|
|time|||
|III. Balance of cash and cash equivalents at|14,916,637,291.04|25,114,660,756.25|
|the period end|||

69. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.: 70. The assets with the ownership or use right restricted
In RMB
||||
|-|-|-|
|Items|Closing book value|Causation of limitation|
|Monetary funds|4,890,457,106.12|Mainly term deposits and deposits|
|Inventory|317,769,074.78|Mortgage loans|
|||Set up the mortgage and the fixed assets of|
|Fixed assets|9,130,840,228.68||
|||the financial lease|
|Intangible assets|352,121,698.93|Pledge loans|
|Construction in progress|3,143,663,638.12|Pledge loans|
|Investment property|678,833,230.08|Pledge loans|
|Account receivable|455,136,717.34|Factoring financing|
|Total|18,968,821,694.05|--|

71. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||Closing foreign currency||Closing convert to RMB|
|Items||Exchange rate||
||balance||balance|
|Cash and bank balances|--|--||
|Including：USD|6,526,979.25|6.8632|44,795,960.10|
|Euro|6,016.60|7.8473|47,214.06|
|HKD|10,379.45|0.8762|9,094.97|
|JPY|563,299,791.60|0.0619|34,860,934.19|
|Account receivable|--|--||
|Including：USD|53,519,866.68|6.8632|367,317,549.01|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Euro|1,490.00|7.8473|11,692.48|
|HKD|23,697,714.31|0.8762|20,763,937.29|
|JPY|981,801,683.00|0.0619|60,760,760.76|
|Long-term loans|--|--||
|Including：USD|5,000,000.00|6.8632|34,316,000.00|
|Euro||||
|HKD||||
|Notes payable||||
|Including：USD|5,015,000.00|6.8632|34,418,948.00|
|Interest payable||||
|Including：USD|170,737.09|6.86|1,171,802.79|
|Short-term loans||||
|Including：USD|8,407,370.00|6.8632|57,701,461.78|
|Account payable||||
|Including：USD|75,451,654.63|6.8632|517,839,796.09|
|Euro|2,680,492.77|7.8473|21,034,630.92|
|HKD|28,442,325.26|0.8762|24,921,165.40|
|JPY|234,698,455.00|0.0619|14,521,991.37|
|GBP|1,230,210.14|8.6762|10,673,549.18|

 (2) Note to overseas operating entities, including important overseas operating entities, wich should be disclosed about its principal business place, function currency for bookkeeping and basis for the choice. In case of any change in function currency, the cause should be disclosed.
□ Applicable√ Not applicable
72. Hedging
Disclosure of hedging items and related hedging instruments, qualitative and quantitative information on hedged risks in accordance with the hedging category:
73.Govemment subsidy
1）Government subsidies confirmed in current period
In RMB
|||||
|-|-|-|-|
||||Amount included in current|
|Type|Amount|Items||
||||profit or loss|
|Project subsidy of ChongqingLiangjiang New Area Finance||||
||1,760,000.00|Deferred income||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Bureau||||
|Equipment subsidy of||||
|Chongqing Liangjiang New|880,000.00|Deferred income||
|Area Finance Bureau||||
|Project subsidy for industrial||||
|internet innovation||||
|development project and||||
|integrated standardization and|45,000,000.00|Deferred income||
|new mode application of||||
|intelligent manufacturing in||||
|2018||||
|Special fund for glass substrate||||
||30,000,000.00|Deferred income||
|production line transformation||||
|Subsidy for qualification||||
||45,653,100.00|Deferred income||
|acquisition and plant rental||||
|Special fund for automobile||||
||1,800,000.00|Deferred income||
|development||||
|Special fund for industrial||||
|development in Economic|5,000,000.00|Deferred income||
|Development Zone in 2017||||
|Intelligent factory construction||||
|and application project of key||||
||9,350,000.00|Deferred income||
|materials and components for||||
|curved display||||
|Subsidy for district-level||||
|technical transformation|1,500,000.00|Deferred income||
|projects150||||
|Subsidy for plant construction:||||
||1,892,899.93|Deferred income||
|RMB 1,892,900||||
|Science and education support||||
||500,000.00|Deferred income||
|fund||||
|Subsidy for post stabilization|2,833.74|Deferred income||
|Special fund for scientific and||||
|technological achievement|635,162.01|Other income|635,162.01|
|transformation in 2015||||
|1.9 Receive Jinshan Talent||||
||500,000.00|Other income|500,000.00|
|subsidy fund||||
|3.12 CCB receives the science||||
|and technology innovation|100,000.00|Other income|100,000.00|
|award of the Science and||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Technology Bureau||||
|3.1 Receive the award for||||
|promoting industrial towns in|80,000.00|Other income|80,000.00|
|2017||||
|3.16 CCB receives the first||||
|batch of patent funds from the||||
||15,000.00|Other income|15,000.00|
|Science and Technology Bureau||||
|in 2018||||
|2017 provincial intellectual||||
|property management system|10,000.00|Other income|10,000.00|
|performance evaluation award||||
|4.8 CCB receives the incentive||||
|funds for outsourcing||||
||50,000.00|Other income|50,000.00|
|implementation from the||||
|Finance Bureau||||
|5.31 CCB receives the reward||||
|funds for the implementation of|10,000.00|Other income|10,000.00|
|the enterprise standards||||
|The second batch of patent||||
||6,000.00|Other income|6,000.00|
|special funds in 2018||||
|5.31 CCB receives reward||||
|funds for academician|100,000.00|Other income|100,000.00|
|workstation||||
|Subsidy for "Double-hundred||||
|Plans" project investment of||||
||200,000.00|Other income|200,000.00|
|Henan Provincial People's||||
|Government||||
|Budget for complete set of||||
|technology research and||||
||10,000.00|Other income|10,000.00|
|development of TFT glass||||
|substrate||||
|Subsidy for TFT glass substrate||||
||666,666.67|Other income|666,666.67|
|project||||
|Subsidy for technology||||
|transformation project||||
|investment within budget of||||
|National Development and|933,333.33|Other income|933,333.33|
|Reform Commission and||||
|Ministry of Industry and||||
|Information Technology||||
|Subsidy for TFT glass substrate|1,333,333.33|Other income|1,333,333.33|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|project.||||
|Special fund for major science||||
|and technology of Zhengzhou|66,666.67|Other income|66,666.67|
|Municipal Finance Bureau||||
|Fund for national key industries||||
|and technical transformation||||
||933,333.33|Other income|933,333.33|
|project support of Municipal||||
|Finance Bureau||||
|Fund for industrial development||||
|support of Economic and||||
||466,666.67|Other income|466,666.67|
|Technological Development||||
|Zone Finance Bureau||||
|Fund for provincial supporting||||
|independent innovation of|400,000.00|Other income|400,000.00|
|enterprises||||
|Fund for financial discount||||
||133,333.33|Other income|133,333.33|
|support||||
|UNESCO fund of Finance||||
||100,000.00|Other income|100,000.00|
|Bureau||||
|Supporting fund for industrial||||
|restructuring projects of District|186,666.67|Other income|186,666.67|
|Finance Bureau||||
|Industrial interest discount and||||
||106,666.67|Other income|106,666.67|
|budget||||
|Financial discount of||||
|state-owned assets holding||||
||333,333.33|Other income|333,333.33|
|operation limited company in||||
|Henan Province||||
|The first batch of financial||||
|funds for industrial|320,000.00|Other income|320,000.00|
|restructuring projects in 2013||||
|Special fund for high-end||||
|information industry chain of||||
|Economic and Technological|333,333.33|Other income|333,333.33|
|Development Zone Finance||||
|Bureau||||
|Subsidy fund for investment in||||
||2,291,600.16|Other income|2,291,600.16|
|project equipment in 2015||||
|The second batch of funds for||||
||173,333.39|Other income|173,333.39|
|accepted provincial industrial||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|adjustment projects in 2011 and||||
|2012 of Zhengzhou Municipal||||
|Finance Bureau||||
|Occupational injury prevention||||
|fee of Zhengzhou Municipal||||
||30,000.00|Other income|30,000.00|
|Social Security Bureau in||||
|January||||
|Unemployment insurance and||||
|post stabilization subsidy of||||
||215,600.00|Other income|215,600.00|
|Zhengzhou Municipal Social||||
|Security Bureau||||
|College student probation||||
|subsidy of Zhengzhou|246,000.00|Other income|246,000.00|
|Municipal Finance Bureau||||
|Special subsidy for Zhengzhou||||
||200,000.00|Other income|200,000.00|
|opening-up in 2017||||
|Patent subsidy of Zhengzhou||||
|Economic and Technological||||
||14,400.00|Other income|14,400.00|
|Development Zone||||
|Administrative Committee||||
|Patent subsidy of Zhengzhou||||
|Economic and Technological||||
||22,800.00|Other income|22,800.00|
|Development Zone||||
|Administrative Committee||||
|Subsidy funds after R&D||||
||2,000,000.00|Other income|2,000,000.00|
|expenses in 2017||||
|Corporate licensed patent||||
||46,400.00|Other income|46,400.00|
|funding in 2017||||
|Service charge for returning||||
||8,816.64|Other income|8,816.64|
|three generations||||
|Subsidy for post stabilization|10,553.00|Other income|10,553.00|
|New subsidy for specialization|250,000.00|Other income|250,000.00|
|Subsidy for post stabilization|17,946.00|Other income|17,946.00|
|Enterprise Technology||||
|Innovation Project -||||
||50,000.00|Other income|50,000.00|
|Engineering Technology||||
|Research Center||||
|Industrial transformation and||||
||50,000.00|Other income|50,000.00|
|upgrading support||||
|Accelerate the transformation|30,000.00|Other income|30,000.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|and upgrading of enterprises to||||
|improve quality and efficiency||||
|support||||
|Investment in strategic||||
|emerging industry projects||||
||799,999.92|Other income|799,999.92|
|within the budget of the central||||
|government||||
|Fund for municipal key||||
|technological transformation|99,999.96|Other income|99,999.96|
|projects in 2011||||
|Fund for strategic emerging||||
|industry development|114,999.96|Other income|114,999.96|
|promotion in 2011||||
|Projects supported by the||||
|electronic information industry|200,000.04|Other income|200,000.04|
|development fund in 2012||||
|Subsidy of Economic and||||
|Technological Development|800,000.02|Other income|800,000.02|
|Zone Finance Bureau||||
|Glass substrate finishing||||
|achievement transformation|46,666.67|Other income|46,666.67|
|project||||
|Industrial transformation and||||
|upgrading projects in Sichuan|1,449,999.98|Other income|1,449,999.98|
|Province in 2015||||
|Fund for strategic emerging||||
||33,333.34|Other income|33,333.34|
|industries in 2013||||
|Special fund of Mianyang||||
||20,000.02|Other income|20,000.02|
|Municipal Finance Bureau||||
|Special fund subsidy for||||
|industrial development of|36,666.69|Other income|36,666.69|
|Municipal Finance Bureau||||
|Funds allocated by the||||
|Economic Development Zone||||
|Government on behalf of the||||
||333,333.34|Other income|333,333.34|
|Provincial Finance Department||||
|for strategic emerging industries||||
|in 2013||||
|Special fund for industrial||||
|development in Economic|3,202,185.31|Other income|3,202,185.31|
|Development Zone in 2016||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Subsidy for project of||||
|Economic Development Zone|588,957.03|Other income|588,957.03|
|Finance Bureau||||
|Special fund for industrial||||
|development in Economic|289,855.07|Other income|289,855.07|
|Development Zone in 2017||||
|(Municipal supporting) funds||||
||200,000.00|Other income|200,000.00|
|for talent introduction project||||
|Major innovative products|1,000,000.00|Other income|1,000,000.00|
|Encourage technological||||
|transformation of enterprises in|500,000.00|Other income|500,000.00|
|2017||||
|First batch of patent subsidies in||||
||16,000.00|Other income|16,000.00|
|2018||||
|Provincial patent subsidy fund|8,400.00|Other income|8,400.00|
|Additional expenditure for the||||
||120,000.00|Other income|120,000.00|
|talent introduction in 2017||||
|Provincial patent award in 2017|150,000.00|Other income|150,000.00|
|Patent subsidy|21,260.00|Other income|21,260.00|
|Provincial intellectual property||||
|project (high strength glass||||
||200,000.00|Other income|200,000.00|
|version conversion project) in||||
|2018||||
|National project of talent and||||
||500,000.00|Other income|500,000.00|
|expert introduction in 2018||||
|Group transfer payment subsidy||||
|(key basic materials technology||||
|upgrading and industrialization||||
||91,540.00|Other income|91,540.00|
|special project of the state key||||
|research and development plan||||
|in 2016)||||
|Enterprise recruitment subsidy|3,000.00|Other income|3,000.00|
|First batch of provincial||||
|intellectual property funds in|50,000.00|Other income|50,000.00|
|2018||||
|Fund subsidy for civil-military||||
||20,000.00|Other income|20,000.00|
|integration||||
|Subsidy for technological||||
||80,000.00|Other income|80,000.00|
|transformation and innovation||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|achievements in 2017||||
|Subsidy for enterprise post||||
||60,561.00|Other income|60,561.00|
|stability in 2018||||
|Promote benefit up the step:||||
|enterprises with warehousing||||
||105,000.00|Other income|105,000.00|
|taxes breaking through RMB 20||||
|million||||
|Land tax refund for coastal||||
||500,000.00|Other income|500,000.00|
|industrial bases||||
|Patent subsidy of Yingkou||||
||17,100.00|Other income|17,100.00|
|Science and Technology Bureau||||
|Subsidy fund for glass substrate||||
||1,316,392.68|Other income|1,316,392.68|
|project||||
|Patent subsidy|5,000.00|Other income|5,000.00|
|Tax refund|63,490,000.00|Other income|63,490,000.00|
|Provincial science and||||
||60,000.00|Other income|60,000.00|
|technology award in 2018||||
|Subsidy for construction of||||
|demonstration activity room of|200,000.00|Other income|200,000.00|
|party committee||||
|Municipal science and||||
|technology plan project fund of||||
||210,000.00|Other income|210,000.00|
|Wuhu Science And Technology||||
|Bureau||||
|The third batch of "5111"||||
|industrial team support funds of||||
|Wuhu Municipal CPC|100,000.00|Other income|100,000.00|
|Committee Organization||||
|Department||||
|Technical standard award of||||
|Wuhu Economic and||||
||30,000.00|Other income|30,000.00|
|Technological Development||||
|Zone Finance Bureau||||
|Trademark registration award of||||
|Wuhu Economic and||||
||600.00|Other income|600.00|
|Technological Development||||
|Zone Finance Bureau||||
|Provincial culture||||
|demonstration enterprise funds|10,000.00|Other income|10,000.00|
|of Wuhu Economic and||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Technological Development||||
|Zone Finance Bureau||||
|Strategic emerging industries||||
|talent support of Wuhu Human||||
||100,000.00|Other income|100,000.00|
|Resources and Social Security||||
|Bureau||||
|Independent innovation subsidy||||
|of Wuhu Economic||||
||400,000.00|Other income|400,000.00|
|Development Zone Finance||||
|Bureau||||
|Independent innovation award||||
|of Wuhu Economic and||||
||200,000.00|Other income|200,000.00|
|Technological Development||||
|Zone Finance Bureau||||
|Independent innovation policy -||||
|patent award of Wuhu||||
|Economic and Technological|106,250.00|Other income|106,250.00|
|Development Zone Finance||||
|Bureau||||
|Government subsidy|240,000.00|Other income|240,000.00|
|Post stability subsidy of||||
|development zone in 2018 of|219,999.00|Other income|219,999.00|
|Wuhu Social Insurance Center||||
|Training and identification||||
|subsidy of Wuhu Economic and||||
||126,000.00|Other income|126,000.00|
|Technological Development||||
|Zone Finance Bureau||||
|Industrial transformation and||||
|upgrading funds of Finance||||
||6,742,100.00|Other income|6,742,100.00|
|Division of Ministry of Industry||||
|and Information Technology||||
|Construction funds for building||||
|strong province in 2018 of||||
|Wuhu Economic and|3,000,000.00|Other income|3,000,000.00|
|Technological Development||||
|Zone Finance Bureau||||
|Provincial foreign trade subsidy||||
|of Wuhu Economic and||||
||189,300.00|Other income|189,300.00|
|Technological Development||||
|Zone Finance Bureau||||
|Subsidy for infrastructure (land|2,244,600.00|Other income|2,244,600.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|refund)||||
|Industrial revitalization and||||
|technological transformation|233,333.28|Other income|233,333.28|
|projects||||
|“Subsidy for "Three Majors and||||
|One Innovation" emerging|894,473.18|Other income|894,473.18|
|industries||||
|Technical modifications|266,666.68|Other income|266,666.68|
|Subsidy fund for glass substrate||||
||1,000,000.00|Other income|1,000,000.00|
|project||||
|Industrial development fund|466,666.68|Other income|466,666.68|
|Financial discount of project|31,333.32|Other income|31,333.32|
|Subsidy for industrial||||
|revitalization and technological|6,515,333.32|Other income|6,515,333.32|
|transformation projects||||
|Special fund subsidy for||||
|provincial strategic emerging|333,333.32|Other income|333,333.32|
|industries||||
|Special fund for technological||||
||2,156,000.00|Other income|2,156,000.00|
|transformation||||
|Fund for strategic emerging||||
||2,000,000.00|Other income|2,000,000.00|
|industry development projects||||
|Funds allocated by High-tech||||
||426,666.68|Other income|426,666.68|
|Zone for substrate projects||||
|Reward fund for production line|1,506,943.40|Other income|1,506,943.40|
|Green key technological||||
|transformation of glass|140,000.00|Other income|140,000.00|
|substrate (840)||||
|Subsidy fund for intelligent||||
|manufacturing pilot|66,666.67|Other income|66,666.67|
|demonstration project (100)||||
|Fund for CSCEC International||||
||2,226,000.00|Other income|2,226,000.00|
|Project 159||||
|Special fund for scientific||||
||400,000.00|Other income|400,000.00|
|research 40||||
|Project fund subsidy|6,824,000.00|Other income|6,824,000.00|
|Municipal patent application||||
||500.00|Other income|500.00|
|funds in 2018||||
|Subsidies for input-output|1,400.00|Other income|1,400.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|surveyors in Statistical Bureau||||
|Receive the bonus for new flat||||
|panel display glass substrate||||
|technology achievement|80,000.00|Other income|80,000.00|
|transformation and||||
|industrialization||||
|Seagull Plan|999,980.01|Other income|999,980.01|
|Funds for technological||||
|innovation projects of key|89,000.00|Other income|89,000.00|
|industries in Kunshan in 2018||||
|Key industry projects of||||
||200,000.00|Other income|200,000.00|
|Science and Technology Bureau||||
|Receive patent subsidy of||||
|Shanghai Intellectual Property|7,232.00|Other income|7,232.00|
|Office||||
|Subsidy for additional training||||
||34,464.00|Other income|34,464.00|
|in education||||
|Subsidy for education costs||||
|with additional training of||||
||101,616.00|Other income|101,616.00|
|Human Resources and Social||||
|Security Bureau||||
|Receive subsidy for VOC||||
|governance of Shanghai||||
|Minhang District|110,000.00|Other income|110,000.00|
|Environmental Protection||||
|Bureau||||
|Acceptance balance of key||||
|projects of zhangjiang special|500,000.00|Other income|500,000.00|
|fund||||
|Acceptance funds for science||||
||40,000.00|Other income|40,000.00|
|and technology projects||||
|Acceptance balance of key||||
|projects of Zhangjiang special|500,000.00|Other income|500,000.00|
|fund||||
|The fourth batch of domestic||||
||17,800.00|Other income|17,800.00|
|intellectual property funds||||
|Reward for plant construction|30,699.72|Other income|30,699.72|
|Budget subsidy for science and||||
||300,000.00|Other income|300,000.00|
|technology projects||||
|Subsidy for enterprise post|74,146.00|Other income|74,146.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|stability||||
|Recommended catalogue||||
||63,000,000.00|Other income|63,000,000.00|
|subsidy||||
|Steady growth subsidy|1,000,000.00|Other income|1,000,000.00|
|Hi-tech subsidy|100,000.00|Other income|100,000.00|
|Subsidy for project R&D of||||
||200,000.00|Other income|200,000.00|
|Technology Center||||
|Probation subsidy|3,600.00|Other income|3,600.00|
|Reward fund for science and||||
||100,000.00|Other income|100,000.00|
|technology award||||
|Down payment for planned||||
||210,000.00|Other income|210,000.00|
|projects||||
|Patent budget subsidy of||||
|Nanxun District Science and|16,800.00|Other income|16,800.00|
|Technology Bureau||||
|Special budget subsidy of||||
|Nanxun District Science and|50,000.00|Other income|50,000.00|
|Technology Bureau||||
|Special budget subsidy of||||
||100,000.00|Other income|100,000.00|
|Huzhou Finance Bureau||||
|Subsidy for talent development||||
||1,000,000.00|Other income|1,000,000.00|
|in Nanxun District||||
|Tax incentive|50,000.00|Other income|50,000.00|
|Subsidy for post stabilization|5,376.32|Other income|5,376.32|
|The second quarter growth||||
|support of Enterprise Service|300,000.00|Other income|300,000.00|
|Center||||
|New warehousing support of||||
||100,000.00|Other income|100,000.00|
|modern service industry||||
|The third quarter growth||||
||100,000.00|Other income|100,000.00|
|support of Service Center||||
|Talent subsidy|31,500.00|Other income|31,500.00|
|Integrated standardization||||
|project of intelligent|2,550,000.00|Other income|2,550,000.00|
|manufacturing in 2016||||
|Subsidy allocated by industrial||||
|development for building strong|4,620,000.00|Other income|4,620,000.00|
|province||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Integrated standardization||||
|project of intelligent|3,990,000.00|Other income|3,990,000.00|
|manufacturing in 2016||||
|Provincial key R&D project||||
||900,000.00|Other income|900,000.00|
|funds in 2017||||
|VAT refund in 2017|1,590,000.00|Other income|1,590,000.00|
|Provincial technology||||
|enterprises warehousing award||||
||123,300.00|Other income|123,300.00|
|in 2017 of Suqian Development||||
|Zone Finance Bureau||||
|Provincial financial funds for||||
|research and development||||
|expenses in 2017 of Suqian|203,100.00|Other income|203,100.00|
|Development Zone Finance||||
|Bureau||||
|Provincial innovation coupon||||
|cashout fund in 2016 of Suqian||||
||150,000.00|Other income|150,000.00|
|Development Zone Finance||||
|Bureau||||
|special bonus for municipal||||
|industry introducing science||||
|and technology innovation in|150,000.00|Other income|150,000.00|
|2017 of Suqian Development||||
|Zone Finance Bureau||||
|One-off award for talent||||
|introduction in Suqian City in|10,000.00|Other income|10,000.00|
|2017||||
|Municipal patent subsidy in||||
||20,500.00|Other income|20,500.00|
|Suqian City in 2017||||
|Subsidy fund for technological||||
|transformation of industrial|172,000.00|Other income|172,000.00|
|enterprises in Fuzhou City||||
|Fuqing supporting subsidy for||||
|technological transformation of||||
||86,000.00|Other income|86,000.00|
|industrial enterprises in Fuzhou||||
|City||||
|G8.5 TFT-LCD glass substrate||||
|precision intelligent||||
||3,000,000.00|Other income|3,000,000.00|
|manufacturing digital workshop||||
|construction project||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Project subsidy for industrial||||
|internet innovation||||
|development project and||||
|integrated standardization and|1,300,578.03|Other income|1,300,578.03|
|new mode application of||||
|intelligent manufacturing in||||
|2018||||
|Special fund for utilization of||||
||300,000.00|Other income|300,000.00|
|foreign capital in 2017||||
|Award for increasing||||
|production and efficiency in the|343,000.00|Other income|343,000.00|
|first quarter of 2018||||
|Award for city-wide industrial||||
|steady growth, increased||||
||610,000.00|Other income|610,000.00|
|production and efficiency in||||
|2017||||
|Award for policy upgrading||||
|scale industrial enterprises in|200,000.00|Other income|200,000.00|
|2017||||
|New material insurance subsidy|2,922,323.47|Other income|2,922,323.47|
|Award for increasing||||
||71,500.00|Other income|71,500.00|
|production and efficiency||||
|Urban bus subsidy of Municipal||||
||1,508,400.00|Other income|1,508,400.00|
|Finance Bureau||||
|Key new product projects|39,999.96|Other income|39,999.96|
|Financial fund for strategic||||
|emerging industries in Sichuan|306,000.00|Other income|306,000.00|
|Province||||
|Technical transformation||||
|project of 300,000 sets of||||
||86,000.04|Other income|86,000.04|
|electrodeless lamp ballast||||
|production line||||
|Intelligent Engineering||||
|Laboratory of High Efficiency|200,000.04|Other income|200,000.04|
|Lighting System||||
|First batch of science and||||
|technology plans in 2018 (key|300,000.00|Other income|300,000.00|
|new products of the province)||||
|District science and technology||||
||20,000.00|Other income|20,000.00|
|plan||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Interest subsidy for working||||
||210,000.00|Other income|210,000.00|
|capital loans||||
|Industrial enterprise support|400,000.00|Other income|400,000.00|
|Dynamic monitoring of||||
||1,200.00|Other income|1,200.00|
|unemployment||||
|Government subsidy for post||||
||47,132.90|Other income|47,132.90|
|stability||||
|Reward and subsidy for||||
||14,424,000.00|Other income|14,424,000.00|
|enterprise operation (tax refund)||||
|Employment subsidy|16,800.00|Other income|16,800.00|
|Special support project fund for||||
||50,000.00|Other income|50,000.00|
|safety production||||
|Subsidy fund for sales income|6,924,000.00|Other income|6,924,000.00|
|Post-subsidy bonus for||||
||50,000.00|Other income|50,000.00|
|high-tech enterprises||||
|Subsidy for booth fee of China||||
||50,000.00|Other income|50,000.00|
|Industrial Expo||||
|Subsidy fund for Health||||
|Literacy Promotion Action in|10,000.00|Other income|10,000.00|
|2018||||
|Subsidy of Family Planning||||
||10,000.00|Other income|10,000.00|
|Bureau||||
|Bonus for automobile in the||||
||2,392,000.00|Other income|2,392,000.00|
|consumption month||||
|Budget for emergency||||
|management standardization|10,000.00|Other income|10,000.00|
|construction demonstration site||||
|Subsidy fund for supporting key||||
||200,000.00|Other income|200,000.00|
|industries||||
|Subsidy for plant construction:||||
||5,860.37|Other income|5,860.37|
|RMB 1,892,900||||
|Subsidy for statistical primary||||
||2,000.00|Other income|2,000.00|
|construction||||
|Special advanced||||
|manufacturing industry||||
||535,000.00|Other income|535,000.00|
|development project in||||
|Minhang District in 2018||||
|Small and medium-sized||||
||120,000.00|Other income|120,000.00|
|enterprise technology||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|innovation plan project in||||
|Minhang District||||
|Shanghai technology-based||||
|small and medium-sized||||
||200,000.00|Other income|200,000.00|
|enterprise technology||||
|innovation fund project||||
|Science and technology award|5,600.00|Other income|5,600.00|
|Feasibility study budget|153,262.52|Non- operating income|153,262.52|
|Subsidy for post stabilization|29,994.00|Non- operating income|29,994.00|
|Tax incentive|20,000.00|Non- operating income|20,000.00|

（2）Government subsidy return
□ Applicable√Not applicable
74. Other
VIII.Changes of consolidation scope
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Income of|Net Profit of|
|||||||Determinatio|Acquire|Acquire from|
||||Ratio of||||||
||Time-point of|Obtained||Method of||n Basis on|from the|the|
|Name of|||Obtained||Purchasing||||
||Obtained|Cost of||Obtained||the|Purchasing|Purchasing|
|Acquiree|||Equity||Date||||
||Equity|Equity||Equity||Purchasing|Date to the|Date to the|
||||(100%)||||||
|||||||Date|End of the|End of the|
||||||||Period|Period|
|ShenzhenSanbaoChuangxinIntelligentCo., Ltd.|||||May 30,2018|Acquisitionof controlled|7,659,108.35|-12,733,040.13|
|||||Merger of|||||
|||157,598,587.||non-identical|||||
||May 30,2018||67.00%||||||
|||00||controlled|||||
|||||enterprises|||||
|ZhongchengNationalconstructionco., Ltd.||||Merger of|March30,2018|Acquisitionof controlled||-7,172,706.59|
||March|140,000,000.||non-identical|||||
||||70.00%||||||
||30,2018|00||controlled|||||
|||||enterprises|||||
|Huaxi BusCo., Ltd.||||Merger of|April 4,2018|Acquisitionof controlled|||
|||56,000,000.0|||||||
||April 4,2018||100.00%|non-identical|||||
|||0|||||||
|||||controlled|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||
|-|
|enterprises|

Othernote：
（2）Consolidation Cost and Goodwill
In RMB
|||||
|-|-|-|-|
|Consolidation Cost|Shenzhen Sanbao Chuangxin|Zhongcheng National|Huaxi Bus Co., Ltd.|
||Intelligent Co., Ltd.|construction co., Ltd.||
|--Cash|157,598,587.50|39,999,996.00|44,800,000.00|
|Contingent fair value||100,000,004.00||
|Other|||11,200,000.00|
|Consolidation Cost|157,598,587.50|140,000,000.00|56,000,000.00|
|Less：Reduction: Obtained||||
|Definable Net Assets Fair|88,710,182.00|6,730,432.38|83.60|
|Proportion||||
|Goodwill/ The Consolidation||||
|Cost is Less Than the Obtained||||
||68,888,405.50|133,269,567.62|55,999,916.40|
|Definable Net Assets Fair||||
|Proportion||||

(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
||||||||
|-|-|-|-|-|-|-|
||Shenzhen Sanbao Chuangxin||Zhongcheng National construction||Huaxi Bus Co., Ltd.||
||Intelligent Co., Ltd.||co., Ltd.||||
||Fair value on|Book value on|Fair value on|Book value on|Fair value on|Book value on|
||purchase date|purchase date|purchase date|purchase date|purchase date|purchase date|
|Cash and bank|||||||
||127,075,645.81|127,075,645.81|1,854,947.92|1,854,947.92|83.60|83.60|
|balances|||||||
|Account|||||||
||203,360.00|203,360.00|||||
|receivable|||||||
|Inventory|26,320,943.47|18,724,138.92|||||
|Fixed assets|11,205,970.95|9,391,876.78|41,040.82|44,833.14|||
|Intangible asset|53,241,307.46|53,849,371.07|14,204,413.89||||
|Prepayments|318,723.00|318,723.00|284,956.45|284,956.45|||
|Other receivable|5,297.05|5,297.05|171,120.78|171,120.78|||
|Other current|||||||
||7,989,608.01|7,989,608.01|28,559.54|28,559.54|||
|assets|||||||
|Deferred Income|||||||
||154,125.90|2,110.00|948.08||||
|tax assets|||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Account payable|||4,200.00|4,200.00|||
|Deferred Income|||||||
||2,352,724.68||3,551,103.47||||
|tax Liabilities|||||||
|Advance|||||||
||410,909.49|410,909.49|||||
|Payments|||||||
|Employees’ wage|||||||
||59,926.94|59,926.94|1,261,899.22|1,261,899.22|||
|payable|||||||
|Tax payable|7,677.39|7,677.39|||||
|Other account|||||||
||91,280,486.44|91,280,486.44|2,153,881.38|2,153,881.38|||
|payable|||||||
|Net assets|132,403,256.71|125,801,130.38|9,614,903.41|-1,035,562.77|83.60|83.60|
|Less：Minority|||||||
||43,693,074.71|41,514,373.03|2,884,471.03|-310,668.83|||
|equity|||||||
|Acquire net assets|88,710,182.00|84,286,757.35|6,730,432.38|-724,893.94|83.60|83.60|

 (4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and gaining the controlduring the reporting period
□ Yes√ No
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Income of the|Net profit of|||
||||||||Income of the|Net profit of|
||||||combined|the combined|||
|||||Recognition|||merged party|the combined|
||||||party from|party from|||
|Combined|Proportion of||Combination|basis of|||during the|party during|
|||Basis|||the beginning|the beginning|||
|party|the profits||date|combination|||comparison|the period of|
||||||of the year to|of the year to|||
|||||date|||period|comparison|
||||||the date of|the date of|||
||||||the merger|the merger|||
|Tunghsu|||||||||
|||||Pay|||||
|（Yingkou）|||||||16,069,429.2|-13,043,965.2|
|||Same parent||consideration|27,289,664.9|-11,435,425.3|||
|Optoelectroni|65.00%||June 30,2018||||1|2|
|||company||, control|9|3|||
|c Display|||||||||
|||||operation|||||
|Co., Ltd.|||||||||

（2） Consolidation Cost
In RMB
|||
|-|-|
|Consolidation Cost|Tunghsu(Yingkou)Optoelectronic Display Co., Ltd.|
|--Cash|195,525,500.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report (3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
||||
|-|-|-|
||Tunghsu（Yingkou）Optoelectronic Display Co., Ltd.||
|||End of previous period|
||Merger date||
|Cash and bank balances|49,876,382.38|85,581,351.01|
|Account receivable|26,247,411.94|27,508,065.58|
||25,751,148.63|23,963,131.18|
|Fixed assets|330,341,703.53|335,451,284.12|
|Intangible assets|24,988,633.63|25,314,850.99|
|Prepayments|498,425.88|858,504.05|
|Other receivable|32,000.00|2,000.00|
|Other current assets|75,603,084.09|74,056,644.01|
|Construction in process|586,201,554.22|570,609,032.67|
|Deferred Income tax assets|4,807,992.36|5,334,663.88|
|Other non-current assets|1,985,104.15|1,985,104.15|
|Account payable|30,134,535.09|101,667,530.90|
|Advance Payments|11,593.50|9,537.00|
|Employees’ wage payable|296,037.13|249,318.39|
|Tax payable|1,840,851.65|280,315.37|
|Other payable|188,164,916.74|125,478,801.61|
|Non-current liabilities due 1 year|36,316,392.68|36,316,392.68|
|Long-term loans|420,000,000.00|425,000,000.00|
|Deferred Income|84,997,214.64|85,655,410.98|
|Other non- current liabilities|108,000,000.00|108,000,000.00|
|Net assets|256,571,899.38|268,007,324.71|
|Less：Minority equity|89,800,164.78|93,802,563.65|
|Acquire net assets|166,771,734.60|174,204,761.06|

 3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
√ Yes□No
In RMB
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||The|||||||
|||||||differenc|||||||
|||||||e|||||||
|||||||between|||||||
|||||||the||||||The|
|||||||disposal|||||Determin|amount|
|||||||price and|||||ation of|of other|
|||||||the share||||Regainin|the fair|compreh|
|||||||of the||The||g gains|value of|ensive|
||||||||||The fair||||
|||||||subsidiar|Proporti|book||or losses|the|income|
||||||||||value of||||
||||||Determi|y's net|on of|value of||arising|remainin|related to|
||||||||||the||||
||||||ning the|assets at|remainin|the||from|g equity|the|
||Equity|Equity||Loss of|||||remainin||||
||||Disposal||basis for|the level|g stocks|remainin||re-measu|at the|atomic|
|Name|disposal|disposal||control|||||g equity||||
||||of equity||the loss|of the|at the|g equity||rement|date of|company|
||price|ratio||point|||||at the||||
||||||of|consolid|date of|at the||of the|loss of|'s equity|
||||||||||date of||||
||||||control|ated|loss of|date of||remainin|control|investme|
||||||||||loss of||||
|||||||financial|control|loss of||g equity|rights|nt|
||||||||||control||||
|||||||statemen||control||at fair|and its|transferr|
|||||||t||||value|main|ed to|
|||||||correspo|||||assumpti|investme|
|||||||nding to|||||ons|nt profit|
|||||||the||||||and loss|
|||||||disposal|||||||
|||||||of the|||||||
|||||||investme|||||||
|||||||nt|||||||
|Xuyou|||||||||||||
|Electroni|||||||||||||
||||||Received||||||||
|c|||||||||||||
||||||consider||||||||
|Materials|550,000,|||April||3,182,20|||||||
|||51.00%|Sell||ation and||0.00%|0.00|0.00|0.00||0.00|
|Technolo|000.00|||28,2018||6.12|||||||
||||||lost||||||||
|gy|||||||||||||
||||||control||||||||
|(Wuxi)|||||||||||||
|Co., Ltd.|||||||||||||

Othernotes：
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report reporting period
□ Yes√ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant information:
New important subsidiaries in the current period
（1）On March 8,2018,Shenzhen Xuhui Investment Holding Co., Ltd and Jiangxi University of Science and Technology set up a subsidiary-Beijing Xujiang Technology Co., Ltd., with the registered capital of RMB 22.7345 million and the paid-up capital of RMB 22.7345 million. Of which, Shenzhen Xuhui Investment Holding Co., Ltd.Subscribet and pays RMB 12 million, holding52.78% of the shares.
subscribet of RMB 316.1197 million and Holding90% of the shares;Xiji Traffic Construction Co., Ltd. subscribet and pays RMB 35.1244 million, holding10% of the shares,Jiangxi University of Science and Technology subscribet and pays RMB 10.7345 million , holding47.22% of the shares.
（2）On March 23,2018, Mingshuo(Beingjing )Electronic Technology Co., Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB30 million and the paid-up capital of RMB 0.00.
（3）On May 17,2018, Tunghsu Constructtion Group Co., Ltd .set up a wholly-owned subsidiary- Luoyang Construction Engineering Co., Ltd ., With the registered capital of RMB 100 million and the paid-up capital of RMB 100 million.
（ 4） On July 16,2018, Mingshuo(Beijing)Electronic Technology Co., Ltd.set up a wholly-owned subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB 30 million and the paid-up capital of RMB 10,000
（5）On July 26,2018, Jiangsu Yitai Intelligent Equipment Co., Ltd. acquired equity of Tunghsu Ruiqi (Beijing) Technology Co., Ltd. With the registered capital of RMB 20 million , Jiangsu Tunghsu Yitai Intelligent Equipment Co., Ltd. holds51% of the shares, Liu Yang holds32% of the shares, Xiajinlong holds17% of the shares.
（6）November 6,2018, Tunghsu Optoelectronic Technology Co., Ltd.set up a wholly-owned subsidiary-Anhui Xuan Optoelectronic Technology Co., Ltd., With the registered capital of RMB 1 million and the paid-up capital of RMB10 million.
6.Other
IX. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
||||||||
|-|-|-|-|-|-|-|
|||||Share-holding ratio|||
|Subsidiary|Main operation|Registered place|Business nature|||Acquired way|
|||||Directly|Indirectly||
|||9 Huanghe Road,|||||
|||Shijiazhuang|||||
|Shijiazhuang|||||||
|||High-tech|Photoelectric||||
|Colour Bulb Co.,|Shijiazhuang|||81.26%||Establish|
|||Industrial|display material||||
|Ltd.|||||||
|||Development|||||
|||Area,|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||Shijiazhuang,||||
|||Hebei Province||||
|||No.36, Daowei 2||||
|||Road, Wanchun||||
|Wuhu Tunghsu||||||
|||Street , Wuhu||||
|Optoelectronic|||Photoelectric|||
||Wuhu|Economy||100.00%|Establish|
|Technology Co.,|||display material|||
|||Technology||||
|Ltd.||||||
|||Development||||
|||Zone||||
|||1/F, No.2||||
|||Business tower,||||
|||Huazhong||||
|Wuhan Tunghsu||||||
|||Shuguang||||
|Optoelectronic|||Photoelectric|||
||Wuhan|Software park,||100.00%|Establish|
|Technology Co.,|||display material|||
|||No.1Guanshan||||
|Ltd.||||||
|||Road,Donghu||||
|||Development||||
|||Zone, Wuhan||||
|||Room C17,||||
|||Building 1,||||
|Beijing Xufeng||||||
|||No.10, Xinghuo|Real estate|||
|Real Estate Co.,|Beijing|||100.00%|Establish|
|||Road, Technology|Development|||
|Ltd.||||||
|||City, Fengtai||||
|||District, Beijing||||
|||No.500, Pengxi||||
|Tunghsu||||||
|||North Road,||||
|（Kunshan）|||Photoelectric|||
||Kunshan|Economic||88.89%|Establish|
|Display Material|||display material|||
|||Development||||
|Co., Ltd.||||||
|||Area,Kunshan||||
|||66,No 3||||
|Zhengzhou Xufei||Jingnan Road,||||
|Optoelectronic||Econornic &|Photoelectric||Control|
||Zhengzhou|||100.00%||
|Technology Co.,||Technology|display material||combination|
|Ltd.||Development||||
|||Zone, Zhengzhou||||
|Shijiazhuang||No.377,Zhujiang||||
|Xuxin||Road, High-tech||||
||||Photoelectric||Control|
|Optoelectronic|Shijiazhuang|Area,||100.00%||
||||display material||combination|
|Technology||Shijiazhuang,||||
|Co.,Ltd.||Hebei||||
|Beijing Xutan||206, 2/F, Building|Industrial|||
||Beijing|||70.00%|Establish|
|New Material||2B,No.80,|application of|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Technology Co.,||Xingshikou Road,|graphene||||
|Ltd.||Haidian District,|||||
|||Beijing|||||
|||New Material|||||
|Jiangsu Jixing|||||||
|||Industry Zone,|Photoelectric|||Non control|
|New Material|Jiangsu|||100.00%|||
|||Youfang Town,|display material|||combination|
|Co., Ltd.|||||||
|||Yangzhong City|||||
|||1201-E18(Area)1|||||
|||2/F,No.1, 6-3|||||
|Beijing Tunghsu|||||||
|||Building,|||||
|Huaqing|||||||
||Beijng|Autornobile|Investment|70.00%||Establish|
|Investment Co.,|||||||
|||Museum East|||||
|Ltd.|||||||
|||Road, Fengtai|||||
|||District, Beijing|||||
|||(072) Room|||||
|||109,Supervision|||||
|||Building,|||||
|Fuzhou Tunghsu||Processing trade|||||
|Optoelectronic||Free zone,|Photoelectric||||
||Fuzhou|||87.25%|12.75%|Establish|
|Technology Co.,||Fuzhou,|display material||||
|Ltd.||Fujian.(No.9,|||||
|||Xinjiang Road,|||||
|||Xincuo Town,|||||
|||Fuqing City)|||||
|Wuhu Tunghsu||Room 302, A floo|||||
|Optoelectronic||r,Management Co|||||
||||Equipment and||||
|Equipment|Wuhu|mmittee of Jiangb||100.00%||Establish|
||||technical services||||
|Technology Co.,||ei Industry Zone,|||||
|Ltd.||Anhui Prov|||||
|||Room 02,|||||
|Shanghai|||||||
|||2/F,No.3|||||
|Tanyuan Huigu|||Industrial||||
|||Building, No.28,,||||Non control|
|New Material|Shanghai||application of|50.50%|||
|||Jiangcchuan East||||combination|
|Technology Co.,|||graphene||||
|||Road, Minhang|||||
|Ltd.|||||||
|||District ,Shanghai|||||
|||Room 201, A|||||
|||building, No.1,|||||
|Shenzhen Xuhui||Qianwan Road,|||||
|Investment Co.,|Shenzhen|Qianhai|Investment|100.00%||Establish|
|Ltd.||Shenzhen-Hongk|||||
|||ong Cooperation|||||
|||Zone, Shenzhen|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|||No.21, 15||||
|Tunghsu||Building, No.181,||||
||||||Non control|
|Construction|Sichuan|Erhuan Road,|Building Installing|100.00%||
||||||combination|
|Group Co., Ltd.||Jinniu District,||||
|||Chengdu||||
|||A, No .2898,||||
|Shanghai||||||
|||Huaning Road,|New Energy||Non control|
|Sunlong Bus Co.,|Shanghai|||100.00%||
|||Minhang|Autonobile||combination|
|Ltd.||||||
|||District ,Shanghai||||
|||No.177, Fubin||||
|Sichuan Xuhong||||||
|||Nortth Road,||||
|Optoelectronic|||Photoelectric||Control|
||Mianyang|Economic||100.00%||
|Technology Co.,|||display material||combination|
|||Development||||
|Ltd.||||||
|||Zone, Mianyang||||
|||28/F, Shenye||||
||||R&D and|||
|Shenzhen Sanbao||Shangcheng ,||||
||||manufacturing of|||
|Innovation||Huanggang Road,|||Non control|
||Shenzhen||robots and|67.00%||
|Intelligent Co.,||Hufu Street,|||combination|
||||intelligent electronic|||
|Ltd.||Futian District,||||
||||devices|||
|||Shenzhen||||
|Tunghsu||||||
|||No.19, Xincheng||||
|(Yingkou)|||Photoelectric||Control|
||Liaoning|Street, Yingkou||65.00%||
|Optoelectronic|||display material||combination|
|||City, Liaoning||||
|Display Co., Ltd.||||||
|||Strawinskylaan||||
|Tunghsu||||||
|||909, 1077XX|Overseas investment|||
|Optoelectronic|Holland|||100.00%|Establish|
|||Amsterdam, the|management|||
|EU.C.V||||||
|||Netherlands||||
|Anhui Xuan||||||
|||No.155, Quanjiao||||
|Optoelectronic|||Photoelectric|||
||Chuzhou|Road, Chuzhou ,||100.00%|Establish|
|Technology Co.,|||display material|||
|||Anhui||||
|Ltd.||||||
|||9 F. main||||
|||building,||||
|||recreation and||||
|Jiangsu xuheng|||Research and|||
|||sports center,||||
|new material co.|JiangSu||development of new|100.00%|Establish|
|||no.36, hanjing||||
|LTD|||material technology|||
|||avenue, yunlong||||
|||district, xuzhou||||
|||city||||

Note：It is filled in according to the sum of the shareholding proportion of each enterprise in the Group to these
subsidiaries
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report（2）Significant not wholly-owned subsidiaries
In RMB
||||||
|-|-|-|-|-|
|||Profit or loss attributable|||
||Holding proportion of||Dividend declared to|Closing balance of|
|Name||to non-controlling|||
||non-controlling interest||non-controlling interest|non-controlling interest|
|||interest|||
|Fuzhou Xufu|||||
|Optoelectronic|40.00%|15,261,279.63||127,875,221.16|
|Technology Co., Ltd..|||||
|Daosui Group|||||
||49.00%|12,848,583.00||86,002,179.03|
|Engineering Co., Ltd.|||||
|Shanghai Tanyuan Huigu|||||
|New Material|49.50%|10,138,966.40||63,373,844.58|
|Technology Co., Ltd.|||||
|Shenzhen Sanbao|||||
|Innovation Intelligent|33.00%|-4,201,903.25||39,491,171.47|
|Co., Ltd.|||||
|Tunghsu (Yingkou)|||||
|Optoelectronic Display|35.00%|90,685.60||93,893,249.25|
|Co., Ltd.|||||

(3) The main financial information of significant not wholly owned subsidiary
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Year-end balance||||||Year-beginning balance||||||
|||Non||Current|Non|||Non||Current|Non||
|Name|Current||Total|||Total|Current||Total|||Total|
|||current||Liabilitie|current|||current||Liabilitie|current||
||assets||assets|||liabilities|assets||assets|||liabilities|
|||assets||s|liabilities|||assets||s|liabilities||
|Fuzhou|||||||||||||
|Xufu|||||||||||||
|Optoelec|||||||||||||
||875,591,|556,167,|1,431,75|924,168,|188,000,|1,112,16|646,709,|423,862,|1,070,57|601,135,|188,000,|789,135,|
|tronic|||||||||||||
||098.65|620.87|8,719.52|474.44|000.00|8,474.44|574.39|686.32|2,260.71|214.70|000.00|214.70|
|Technolo|||||||||||||
|gy Co.,|||||||||||||
|Ltd..|||||||||||||
|Daosui|||||||||||||
|Group|||||||||||||
||2,167,50|202,708,|2,370,21|2,073,26|121,889,|2,195,15|1,703,23|212,928,|1,916,16|1,652,02|129,832,|1,781,85|
|Engineer|||||||||||||
||9,492.45|811.48|8,303.93|7,879.04|831.33|7,710.37|5,393.81|263.97|3,657.78|0,253.77|585.29|2,839.06|
|ing Co.,|||||||||||||
|Ltd.|||||||||||||
|Shanghai|54,919,7|89,462,4|144,382,|15,988,1|366,037.|16,354,1|29,877,8|84,534,6|114,412,|6,477,59|389,647.|6,867,24|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Tanyuan|12.81|17.94|130.75|24.61|32|61.93|54.31|00.13|454.44|8.47|55|6.02|
|Huigu|||||||||||||
|New|||||||||||||
|Material|||||||||||||
|Technolo|||||||||||||
|gy Co.,|||||||||||||
|Ltd.|||||||||||||
|Shenzhe|||||||||||||
|n Sanbao|||||||||||||
|Innovati|||||||||||||
||54,727,7|71,302,6|126,030,|5,342,55|1,017,59|6,360,14|||||||
|on|||||||||||||
||02.15|61.35|363.50|3.57|3.35|6.92|||||||
|Intellige|||||||||||||
|nt Co.,|||||||||||||
|Ltd.|||||||||||||
|Tunghsu|||||||||||||
|(Yingko|||||||||||||
|u)|||||||||||||
||325,578,|1,104,10|1,429,68|579,076,|582,339,|1,161,41|211,969,|938,694,|1,150,66|264,001,|618,655,|882,657,|
|Optoelec|||||||||||||
||183.83|4,232.11|2,415.94|971.21|018.30|5,989.51|695.83|935.81|4,631.64|895.95|410.98|306.93|
|tronic|||||||||||||
|Display|||||||||||||
|Co., Ltd.|||||||||||||

In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of current period||||Amount of previous period||||
|||||Cash flows||||Cash flows|
||||Total||||Total||
|Name|Businessincome|||from|Business|||from|
|||Net profit|Comprehensi|||Net profit|Comprehensi||
|||||operating|income|||operating|
||||ve income||||ve income||
|||||activities||||activities|
|Fuzhou Xufu|||||||||
|Optoelectroni|1,346,878,74|38,153,199.0|38,153,199.0|691,769,381.|431,614,395.|41,290,334.2|41,290,334.2|-72,064,807.1|
|c Technology|9.65|7|7|35|70|5|5|6|
|Co., Ltd..|||||||||
|Daosui|||||||||
|Group|1,861,703,06|26,141,288.1|26,141,288.1|-193,439,024.|314,838,576.|||65,139,015.2|
|||||||3,830,635.45|3,830,635.45||
|Engineering|5.12|2|2|46|30|||1|
|Co., Ltd.|||||||||
|Shanghai|||||||||
|Tanyuan|||||||||
|Huigu New|88,995,675.6|20,482,760.4|20,482,760.4||17,171,660.2|23,827,340.6|23,827,340.6||
|||||8,168,288.19||||6,575,862.80|
|Material|1|0|0||7|2|2||
|Technology|||||||||
|Co., Ltd.|||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|Shenzhen|||||||||
|Sanbao|||||||||
|||-12,733,040.1|-12,733,040.1|-11,678,623.7|||||
|Innovation|7,659,108.35||||||||
|||3|3|0|||||
|Intelligent|||||||||
|Co., Ltd.|||||||||
|Tunghsu|||||||||
|(Yingkou)|||||||||
||147,376,006.|||61,789,360.0|16,069,429.2|-13,043,965.2|-13,043,965.2||
|Optoelectroni||259,101.72|259,101.72|||||-7,604,917.03|
||85|||2|1|2|2||
|c Display|||||||||
|Co., Ltd.|||||||||

2. Equity in joint venture arrangement or associated enterprise
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
||||||||
|-|-|-|-|-|-|-|
|||||||Obtaining|
|Name of|Main Places of|Registration|Nature of|Shareholding Ratio (%)|||
|||||||Method|
|Subsidiary|Operation|Place|Business||||
|||||direct||indirect|
|Tunghsu Group||Shijiazhuang|||||
||Hebei||Finance|40.00%|Equity method||
|Finance Co., Ltd.||Hebei|||||

（2）Main financial information of Significant joint venture
(3) Main financial information of significant associated enterprise
In RMB
||||
|-|-|-|
||Closing balance/This period|Opening balance/Last period|
||Dongxu group finance co. LTD|Dongxu group finance co. LTD|
|Current assets|3,045,452,313.85|2,682,394,584.48|
|Non-current assets|28,093,049,900.77|9,907,461,970.78|
|Total of assets|31,138,502,214.62|12,589,856,555.26|
|Current liabilities|25,997,850,975.29|7,579,701,042.91|
|Total of Liabilities|25,997,850,975.29|7,579,701,042.90|
|Attributable to shareholders of the parent|||
||5,140,651,239.33|5,010,155,512.35|
|company|||
|Share of net assets calculated by stake|2,056,260,495.73|2,004,062,204.94|
|Book value of equity investment in|||
||2,056,260,495.73|2,004,062,204.94|
|associates|||
|Business income|520,973,281.19|123,282,711.28|
|Net profit|130,495,726.98|10,155,512.35|
|Total comprehensive income|130,495,726.98|10,155,512.35|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report (4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
||||
|-|-|-|
||Closing balance/This period|Opening balance/Last period|
|Joint venture:|--|--|
|The total number of shares in each of the|||
||--|--|
|following shares|||
|Associated enterprise：|--|--|
|Total investment book value|118,087,473.48|126,422,519.76|
|The total number of shares in each of the|||
||--|--|
|following shares|||
|--Net|12,167,760.85|601,000.00|
|Total comprehensive income|12,167,760.85|601,000.00|

 X. The risk related financial instruments
The Company faces a variety of financial risks in the course of operation: credit risk, market risk and liquidity risk. The Business Management Department of the Company management is fully responsible for the determination of risk management objectives and policies, and assumes the ultimate responsibility for the risk management objectives and policies. The Business Management Department of the Company reviews the effectiveness of the performed programs as well as the rationality of risk management objectives and policies through monthly work statement submitted by the Functional Department.
The objective of theCompany’s engagement in risk management is to obtain a proper balance between the risks and benefits, reduce therisks’ 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 newcustomers’ 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
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report risk and other price risks.
(1) Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flow of the financial instruments would fluctuate due to the market price changes. The interest rate risk faced by the Company mainly comes from short-term bank loans. The Company meets various short-term financing needs through establishing good bank-enterprise relationship as well as reasonably designing credit line, credit type and credit term to guarantee the sufficient bank credit line. In addition, the Company also reasonably reduces the fluctuation risk of interest rate by shortening the term of single loan and performing specially agreed prepayment term.
(2) Foreign Exchange Risk
Foreign exchange risk refers to the risk that the fair value or future cash flow of the financial instruments would fluctuate due to the market price changes. The Company would match the foreign currency incomes and expenses as far as possible to reduce the foreign exchange risk. On account of the small proportion of foreign financial assets and liabilities in the total assets,there’s no forward foreign exchange contract or currency swap contract signed by the Company in January 2018- 2017.
The foreign exchange risk faced by the Company mainly comes from the financial assets and financial liabilities priced by US dollar, Yen, Euro and GBP . For the amount of foreign currency financial assets and foreign currency financial liabilities converted into RMB, please refer to Note VII. In the notes to the consolidated financial statements, 71 foreign currency monetary items.
XI. Disclosure of fair value
XII.Related parties and related-party transactions
1. Parent company information of the enterprise
|||||||
|-|-|-|-|-|-|
||||||Vote right ratio of|
|||||Share ratio of parent||
|Parent company|||||parent company|
||Registration place|Nature|Registered capital|company against the||
|name|||||against the|
|||||company(%)||
||||||company(%)|
||No.369, Zhujiang|Investment ,||||
|Tunghsu Group|Road, High-tech|production and R &|36.8 billion|15.97%|21.85%|
||zone, Shijiazhuang|D, etc.||||

Explanation on parent company of the enterprise
During the reporting period, the paid-in capital of the parent company changed asfollows：
|||||
|-|-|-|-|
|Items|Opening balance|Indrease|Decerease|
|Paid-in capital|21,800,000,000.00|15,000,000,000.00||

 Ultimate controller of the Company is Li Zhaoting
Other note
Nil
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report 2.Subsidiary of the Enterprise
See details to Notes IX, Situation of the enterprise subsidiaries refer to the Notes.
3.Cooperative enterprise and joint venture
See Notes IX.
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in perviousperiod：
|||
|-|-|
|Name|Relation of other Related parties with the company|
|CUHK international business factoring co., Ltd|Associated enterprise|
|Tunghsu Group Finance Co., Ltd.|Associated enterprise|
|Zibo Bus Co., Ltd.|Associated enterprise|

Other note
4.Other related party
|||
|-|-|
|Other related party|Relationship with the Enterprisse|
|Tunghsu Technology Group Co., Ltd.|The shareholders of the company|
|Tunghsu Optoelectronic Investment Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd.|Controlled by the same actual controller|
|Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Baoshi Xuming Tube Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Baodong Electronic Co.,Ltd.|Controlled by the same actual controller|
|Hebei Baoshi Lighting Co., Ltd.|Controlled by the same actual controller|
|Jinzhou Xulong New Material Technology Co., Ltd.|Controlled by the same actual controller|
|Hebei Decoration Printing Machine Co., Ltd.|Controlled by the same actual controller|
|Chengdu Optoelectronic Technology Co., Ltd.|General Manager: Li Zhaotin|
|Shijiazhuang Xuling Electronic Technology Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Baoshi Electronic Group Co., Ltd.|Controlled by the same actual controller|
|Tibet Financial Leasing Co., Ltd.|A joint venture of the parent company|
|Tunghsu Group Finance Co., Ltd.|Joint venture of the company|
|Yinchuan Fengxiang Street Underground integrated Management||
||Controlled by the same actual controller|
|Co., Ltd.||
|Yixian Xuhua Park Construction Development Co., Ltd.|Controlled by the same actual controller|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|Guangdong Huakai Real estate Development Co., Ltd.|Controlled by the same actual controller|
|Li Qing|The spouse of the actual controller|
|Kunming Tunghsu Qiming Investment Development Co., Ltd.|Controlled by the same actual controller|
|Aahui Tunghsu Dabieshan Agricultural Technology Co., Ltd.|Controlled by the same actual controller|
|Dongguan Yijiu Real Estate Development Co., Ltd.|Controlled by the same actual controller|
|Tunghsu North Real Estate（Beijing）Co., Ltd.|Controlled by the same actual controller|
|Tunghsu Technology Development Co., Ltd.|Controlled by the same actual controller|
|Tunghsu Lantian New Energy Co., Ltd.|Controlled by the same actual controller|
|Fujian Hengda Investment Co., Ltd.|Controlled by the same actual controller|
|Hunan Baoan Hongji Real Estate Development Co., Ltd.|Controlled by the same actual controller|
|Huiyin Jinkong Asset Management Co.,Ltd.|Controlled by the same actual controller|
|Huidong Baoan Hongji Real Estate Development Co., Ltd.|Controlled by the same actual controller|
|Huidong Baoan Jinan Real Estate Development Co., Ltd.|Controlled by the same actual controller|
|Shenzhen Hongji Property Management Co., Ltd.|Controlled by the same actual controller|
|Chengzhou Zhexu Real Estate Co., Ltd.|Controlled by the same actual controller|
|Zhangzhou Shenghuawu Real Estate Development Co., Ltd.|Controlled by the same actual controller|
|Chongqing Tunghsu Qide Real Estate Co., Ltd.|Controlled by the same actual controller|
|Baoshi Group, Industry & Trade Company Mineral Water||
||Controlled by the same actual controller|
|Factory||
|Shanghai Anxuan Autormation Technology Co., Ltd.|Controlled by the same actual controller|
|Tibet Xuri Asset Management Co., Ltd.|Controlled by the same actual controller|
|Beijing Hexie Guanglu Technology Co., Ltd.|Controlled by the same actual controller|
|Chengdu Taiyisi Technology Co., Ltd.|Controlled by the same actual controller|
|Beijing Zhonghuan Xinrong Trade Co., Ltd.|Controlled by the same actual controller|
|Tunghsu Chuanzhi（Beijing）Cultural Media Co., Ltd.|Controlled by the same actual controller|
|Tunghsu International Investment Group Co., Ltd.|Controlled by the same actual controller|
|Tunghsu KechuangTechnology Industry Development Co., Ltd.|Controlled by the same actual controller|
|Fujian Tunghsu Qiming Real Estate Co., Ltd.|Controlled by the same actual controller|
|Hangzhou Yuanbang Real Estate Development Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Tunghsu Medical Equipment Co., Ltd.|Controlled by the same actual controller|
|Tibet Tunghsu Electric Power Engineering Co., Ltd.|Controlled by the same actual controller|
|Zhangzhou Nanrong Real Estate Development Co., Ltd.|Controlled by the same actual controller|
|Zhongshan Shenzhong Real Estate Development Co., Ltd.|Controlled by the same actual controller|
|Zhongshan Shenzhong Real Estate Investment Co., Ltd|Controlled by the same actual controller|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||
|-|-|
|Tunghsu Honghai Environmental Protection Technology Co.,Ltd.|Controlled by the same actual controller|
|Jinzhou Xulong New Material Co., Ltd.|Controlled by the same actual controller|
|Tunghsu Lantian New Energy Co., Ltd.|Controlled by the same actual controller|
|Huizhou Dexin Real Estate Co., Ltd.|Controlled by the same actual controller|
|Xudong Machinery Industry Co., Ltd.|Controlled by the same actual controller|
|Tunghsu (HK) Holding Co., Ltd.|Controlled by the same actual controller|
|Zhongshan Donghong Real Estate Development Co., Ltd.|Controlled by the same actual controller|
|Anhui Tunghsu Dangtu Solar Energy Technology Co., Ltd.|Controlled by the same actual controller|

5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount of current|Amount of previous|||
||Content of related|||Over the trading limit||
|Related parties|||||Amount of last period|
||transaction|period|period|or not?||
|Chengdu China||||||
||Glass substrate|||||
|Optoelectronic||||||
||semi-finished|20,000,000.00||||
|Technology Co.,||||||
||product|||||
|Ltd.||||||
|Shijiazhuang||||||
|Baoshi Zhonghe|Doors and|||||
|||8,963,488.82|||289,743.58|
|Steel Plastic Shape|windows|||||
|Co., Ltd.||||||
|Chengdu China||||||
|Optoelectronic|Equipment|||||
|||1,064,512.80||||
|Technology Co.,|Material|||||
|Ltd.||||||
|Chengdu Taiyisi||||||
||Equipment|||||
|Technology Co.,||361,965.81||||
||Material|||||
|Ltd.||||||
|Tunghsu Honghai||||||
|Environmental||||||
||Combustion|||||
|Protection||340,517.24||||
||machine|||||
|Technology||||||
|Co.,Ltd.||||||
|Anhui Tunghsu||||||
||Camellia Oi|48,364.00||||
|Dabieshan||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Agricultural||||
|Science &||||
|Technology Co.,||||
|Ltd.||||
|Shijiazhuang Bofa||||
|Mechanical|A frame||568,390.00|
|Equipment Co., Ltd||||
|Shijiazhuang||||
|Baoshi Electronic|Electromechanical|||
|||1,196,581.20||
|vacuum Glass Co.,|equipment|||
|Ltd.||||
|Shijiazhuang||||
|Baoshi Electronic|Energy|908,190.45|792,773.07|
|Group Co., Ltd.||||
|Shijiazhuang||||
|Baoshi Electronic|Security fee||630,779.00|
|Group Co., Ltd.||||
|Total||32,883,620.32|2,281,685.65|

 Related transactions on sale goods and receiving services
In RMB
|||||
|-|-|-|-|
|Related parties|Content of related transaction|Amount of current period|Amount of previous period|
|Anhui Tunghsu Kangtu Solar||||
||Spares|274,310.34||
|Energy Technology Co., Ltd.||||
|Beijing Hexie Guanglu||||
||Construction|287,179.49||
|Technology Co., Ltd.||||
|Beijing Zhonghuan Xinrong||||
||Construction|196,132,742.57||
|Trade Co., Ltd.||||
|Chengdu Taiyisi Technology||||
||Construction|23,131.62||
|Co., Ltd.||||
|Chengdu China Optoelectronic||||
||Construction|14,647.38||
|Technology Co., Ltd.||||
|Chengdu China Optoelectronic||||
||Traction roll project|611,459.82|1,851,454.70|
|Technology Co., Ltd.||||
|Chengdu China Optoelectronic||||
||Sales of alkyne|3,439.66||
|Technology Co., Ltd.||||
|Dongguan Yijiu Real Estate||||
||Construction|7,435,707.37||
|Development Co., Ltd.||||
|Tunghsu North Real Estate|Construction|54,568.04||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|(Beijing) Co., Ltd.||||
|Tunghsu North Real Estate||||
||Alkyne|71,503.37||
|(Beijing) Co., Ltd.||||
|Tunghsu||||
|Chuangzhi(Beijing)Cultural|Robot|175,862.12||
|Media Co., Ltd.||||
|Tunghsu International||||
||Spares|8,892.24||
|Investment Group Co., Ltd.||||
|Tunghsu Group|Equity custody income|235,849.06||
|Tunghsu Group|Construction|648,458.60||
|Tunghsu Group|Glass|34,482.76||
|Tunghsu Group|Lamps||8,717.94|
|Tunghsu Group|Spares|253,922.41||
|Tunghsu Group|Equipment||20,085,470.09|
|Tunghsu Kechuang Technology||||
||Spares|247,586.21||
|Industry Development Co., Ltd.||||
|Tunghsu Technology||||
||Construction|9,771,017.46||
|Development Co., Ltd.||||
|Tunghsu Technology Group||||
||Efficient lightbulb|811.97|5,384.62|
|Co., Ltd.||||
|Tunghsu Lantian New||||
||Graphene|39,490,909.09|34,102.56|
|EnergyCo., Ltd.||||
|Fujian Tunghsu Real Estate Co.,||||
||Construction|9,178,396.21||
|Ltd.||||
|Fujian Tunghsu Qiming Real||||
||Sales of alkyne|33,456.70||
|Estate Co., Ltd.||||
|Guangdong Huakai Real Estate||||
||Construction|46,479,358.32|50,231,982.84|
|Development Co., Ltd.||||
|Hangzhou Yuanbang Real||||
||Spares|3,008.62||
|Estate Development Co., Ltd.||||
|Hunan Baoan Hongji Real||||
||Construction|28,799,566.55||
|Estate Development Co., Ltd.||||
|Huiyin Gold Control Asset|Construction|387,177.52||
|Management Co., Ltd.||||
|Huidong Baoan Hongji Real||||
||Construction|80,564,662.74||
|Estate Development Co., Ltd.||||
|Huidong Baoan Jinan Real|Construction|313,409,269.67||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Estate Development Co., Ltd.||||
|Jinzhou Xulong New Material||||
||Construction||2,334,172.94|
|Co., Ltd.||||
|Kunming Tunghsu Qiming||||
|Investment Development Co.,|Construction|472,417,467.35|57,628,263.37|
|Ltd.||||
|Kunming Tunghsu Qiming||||
|Investment Development Co.,||15,474.14||
|Ltd.||||
|Shanghai Anxuan Automation||||
||Part|184,745.94||
|Technology Co., Ltd.||||
|Shenzhen Hongji Property||||
||Construction|263,333.34||
|Management Co., Ltd.||||
|Shengzhou Zhexu Real Estate||||
||Construction|132,136,363.64||
|Co., Ltd.||||
|Shengzhou Zhexu Real Estate||||
||Sales of alkyne|20,520.34||
|Co., Ltd.||||
|Shijiazhuang Baoshi||||
|Large-diameter plastic tube Co.,|Construction|594,000.00||
|ltd.||||
|Shijiazhuang Bofa Mechanical t||||
||A frame||7,285,897.44|
|Co., Ltd.||||
|Ningxia Xutang New Material||||
||Sales material||11,964.11|
|Technology Co., Ltd.||||
|Shijiazhuang Tunghsu Medical||||
||Construction|3,636,363.60||
|Equipment Co., Ltd.||||
|Tibet Tunghsu Electric Power||||
||Speres|3,275.86||
|Engineering Co., Ltd.||||
|Tibet Financial Leasing Co.,||||
||Graphene||5,115.39|
|Ltd.||||
|Tibet Xuri Capital Management||||
||Robot|8,448.28||
|Co., Ltd.||||
|Yixian Xuhua Park||||
|Construction Development Co.,|Construction|58,744,654.57|41,574,488.29|
|Ltd.||||
|Yinchuan Fengxiang Street||||
|Comprehensive Construction|Construction|52,741,795.14|336,755,509.90|
|Management Co., Ltd.||||
|Zhangzhou Nancai Real Estate|Construction|3,517.24||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Development Co., Ltd.||||
|Zhangzhou Nanrong Real||||
||Alkene|6,879.31||
|Estate Development Co., Ltd.||||
|Zhangzhou Shenghua Real||||
||Construction|159,100,004.55||
|Estate Development Co., Ltd.||||
|Zhangzhou Shenghua Real||||
||Spares|8,732.98||
|Estate Development Co., Ltd.||||
|Zhongshan Shenzhong||||
|Zhangzhou Shenghua Real|Construction|388,042,917.70||
|Estate Development Co., Ltd.||||
|Zhongshan Shenzhong Real||||
||Construction|51,747,572.82||
|Estate Investment Co.,Ltd.||||
|Chongqing Tunghsu Qide Real||||
||Construction|72,347,034.55||
|Estate Co., Ltd.||||
|Huizhou Dexin Real Estate Co.,||||
||Construction|84,628,947.48||
|Ltd.||||
|Total||2,211,283,426.74|517,812,524.19|

 Note
Nil
（2）Related trusteeship or contracting
Related custody/contracting situation statement
Nil
Related management/out of the package situation
Nil
(3) Information of related lease
Related lease situation description
Nil
（4）Status of related party guarantee
As a guarantor for the company
In RMB
||||||
|-|-|-|-|-|
|||||Execution accomplished|
|Guarantor|Guarantee amount|Start date|End date||
|||||or not|

As a secured party for the company
In RMB
||||||
|-|-|-|-|-|
|||||Execution accomplished|
|Guarantor|Guarantee amount|Start date|End date||
|||||or not|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Tunghsu Group Co., Ltd.|||||
|and its 40 million shares|||||
|of Tunghsu|425,000,000.00|November 7,2016|June 20,2024|No|
|Optoelectronics|||||
|Technology Co., Ltd.|||||
|Tunghsu Group , Li|||||
||17,792,407.79|June 16,2016|June 16,2019|No|
|Zhaoting|||||
|Tunghsu Group、Li|||||
||300,000,000.00|April 1,2014|April 11,2022|No|
|Zhaoting、Li Qing|||||
|Tunghsu Group、 Li|||||
||150,000,000.00|April 22,2015|April 11,2022|No|
|Zhaoting、Li Qing|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd.,|100,000,000.00|March 27,2018|March 27,2019|No|
|Tunghsu Group|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd.,|100,000,000.00|March 28,2018|March 28,2019|No|
|Tunghsu Group|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd.,|110,000,000.00|December 28,2018|December 28,2019|No|
|Tunghsu Group|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd.,|70,000,000.00|March 27,2018|March 15,2019|No|
|Tunghsu Group|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd.,|30,000,000.00|April 2,2018|March 15,2019|No|
|Tunghsu Group|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd., Li|60,000,000.00|March 1,2018|March 1,2019|No|
|Zhaoting|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd.,|50,000,000.00|March 30,2018|March 29,2019|No|
|Tunghsu Group|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd., Li|92,350,746.73|September 30,2018|September 29,2021|No|
|Zhaoting|||||
|Tunghsu Optoelectronic|||||
|Investment Co., Ltd.,|||||
|Tunghsu Group, Li|1,000,000,000.00|December 7,2018|December 6,2019|No|
|Zhaoting, Tunghsu|||||
|Optoelectronic|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Technology Co., Ltd.|||||
|Tunghsu Group|50,000,000.00|July 26,2018|July 26,2019|No|
|Tunghsu Group|95,000,000.00|March 19,2018|March 12,2019|No|
|Tunghsu Group|90,000,000.00|April 12,2018|April 2,2019|No|
|Tunghsu Group|15,000,000.00|June 12,2018|May 7,2019|No|
|Tunghsu Group , Li|||||
||115,000,000.00|October 31,2017|October 31,2019|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||98,000,000.00|July 7,2017|July 6,2019|No|
|Zhaoting|||||
|Tunghsu Group,|||||
|Tunghsu Optoelectronic|20,000,000.00|September 26,2018|September 26,2019|No|
|Technology Co., Ltd.|||||
|Tunghsu Group, Li|||||
|Zhaoting, Tunghsu|||||
||25,000,000.00|December 3,2018|December 2,2019|No|
|Optoelectronic|||||
|Technology Co., Ltd.|||||
|Tunghsu Group, Li|||||
|Zhaoting, Tunghsu|||||
||400,000,000.00|November 30,2016|November 30,2019|No|
|Optoelectronic|||||
|Technology Co., Ltd.|||||
|Tunghsu Group, Li|||||
||200,000,000.00|May 27,2016|May 26,2019|No|
|Zhaoting|||||
|Tunghsu Group, Li|||||
||100,000,000.00|March 3,2017|March 2,2019|No|
|Zhaoting|||||
|Tunghsu Group, Li|||||
||136,301,749.37|November 7,2017|November 7,2020|No|
|Zhaoting|||||
|Tunghsu Group, Li|||||
||180,000,000.00|November 10,2017|November 15,2022|No|
|Zhaoting|||||
|Tunghsu Group, Li|||||
|Zhaoting, Tunghsu|||||
||40,000,000.00|February 9,2018|February 8,2019|No|
|Optoelectronic|||||
|Technology Co., Ltd.|||||
|Tunghsu Group, Li|||||
|Zhaoting, Tunghsu|||||
||40,000,000.00|February 12,2018|February 11,2019|No|
|Optoelectronic|||||
|Technology Co., Ltd.|||||
|Tunghsu Group, Li|||||
||206,466,015.69|November 6,2017|November 6,2020|No|
|Zhaoting|||||
|Tunghsu Group, Li|200,000,000.00|June 26,2018|June 24,2019|No|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Zhaoting|||||
|Tunghsu Group, Li|||||
||80,000,000.00|September 18,2018|September 18,2019|No|
|Zhaoting|||||
|Tunghsu Group, Li|||||
||40,000,000.00|September 28,2018|September 27,2019|No|
|Zhaoting|||||
|Tunghsu Group, Li|||||
||80,000,000.00|September 30,2018|September 27,2019|No|
|Zhaoting|||||
|Tunghsu Group|200,000,000.00|June 8,2018|June 8,2019|No|
|Tunghsu Group|45,000,000.00|May 28,2018|May 28,2019|No|
|Tunghsu Group|135,000,000.00|June 27,2018|June 27,2019|No|
|Tunghsu Group|46,225,932.79|October 12,2018|October 12,2021|No|
|Tunghsu Group|30,000,000.00|July 26,2018|March 20,2020|No|
|Tunghsu Group|50,000,000.00|November 1,2018|June 20,2020|No|
|Tunghsu Group|54,306,914.36|May 25,2016|May 20,2019|No|
|Tunghsu Group, Li|||||
||200,000,000.00|November 26,2018|November 26,2019|No|
|Zhaoting|||||
|Tunghsu Group, Li|||||
||98,000,000.00|November 6,2018|November 6,2019|No|
|Zhaoting|||||
|Tunghsu Group, Li|||||
||200,000,000.00|November 26,2018|November 25,2019|No|
|Zhaoting|||||
|Tunghsu Group, Li|||||
||100,000,000.00|December 11,2018|December 11,2019|否|
|Zhaoting|||||
|Tunghsu Group|85,000,000.00|September 18,2017|September 15,2022|No|
|Tunghsu Group|170,000,000.00|September 18,2017|September 15,2022|No|
|Tunghsu Group|170,000,000.00|September 18,2017|September 15,2022|No|
|Tunghsu Group|85,000,000.00|Septemer 18,2017|September 15,2022|No|
|Tunghsu Group|170,000,000.00|October 31,2017|September 15,2022|No|
|Tunghsu Group|170,000,000.00|October 31,2017|September 15,2022|No|
|Tunghsu Group|100,000,000.00|July 11,2018|July 10,2019|No|
|Tunghsu Group|200,000,000.00|September 27,2018|September 26,2019|No|
|Tunghsu Group|20,000,000.00|November 5,2018|November 5,2019|No|
|Tunghsu Group|100,000,000.00|December 11,2018|December 10,2019|No|
|Tunghsu Group|345,000,000.00|January 28,2013|January 27,2021|No|
|Tunghsu Group|27,742,800.00|January 28,2013|January 27,2021|No|
|Tunghsu Group, Li|||||
||133,782,675.98|May 31,2016|May 30,2021|No|
|Zhaoting|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Tunghsu Group|50,000,000.00|February 7,2018|December 6,2019|No|
|Tunghsu Group|50,000,000.00|December 4,2018|December 4,2019|No|
|Tunghsu Group , Li|||||
||200,000,000.00|May 15,2017|May 15,2019|No|
|Zhaoting , Li Qing|||||
|Tunghsu Group , Li|||||
||300,000,000.00|June 2,2017|June 2,2019|No|
|Zhaoting , Li Qing|||||
|Tunghsu Group , Li|||||
||299,550,000.00|June 7,2016|June 7,2019|No|
|Zhaoting , Li Qing|||||
|Tunghsu Group , Li|||||
||450,000,000.00|September 30,2016|September 29,2021|No|
|Zhaoting|||||
|Tunghsu Group|200,000,000.00|March 15,2018|March 15,2019|No|
|Tunghsu Group|450,000,000.00|June 13,2018|June 13,2019|No|
|Tunghsu Group|250,000,000.00|July 28,2018|July 28,2019|No|
|Tunghsu Group|10,000,000.00|September 26,2018|September 25,2019|No|
|Li Zhaoting|480,000,000.00|December 21,2018|December 21,2019|No|
|Li Zhaoting|1,800,000,000.00|October 16,2018|October 15,2019|No|
|Tunghsu Group|100,000,000.00|April 5,2017|March 14,2018|Yes|
|Tunghsu Group|100,000,000.00|June 19,2017|March 14,2018|Yes|
|Tunghsu Group|45,000,000.00|April 1, 2017|March 23,2018|Yes|
|Tunghsu Group|45,000,000.00|April 10,2017|March 31,2018|Yes|
|Tunghsu Group ,Li|||||
||150,000,000.00|May 26,2016|April 26,2018|Yes|
|Zhaoting, Li Qing|||||
|Tunghsu Group ,Li|||||
||159,000,049.50|June 8,2016|April 8,2018|Yes|
|Zhaoting, Li Qing|||||
|Tunghsu Group ,Li|||||
||40,999,950.50|June 21, 2016|April 21,2018|Yes|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||38,000,000.00|April 20,2017|April 19,2018|Yes|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||20,000,000.00|June 30,2017|June 29,2018|Yes|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||22,000,000.00|July 7,2017|July 6,2018|Yes|
|Zhaoting|||||
|Tunghsu Group|10,000,000.00|June 20,2017|April 25,2018|Yes|
|Tunghsu Group|30,000,000.00|June 20,2017|Aprlil 20,2018|Yes|
|Tunghsu Group, Li|||||
||387,700,000.00|April 29,2016|April 28,2018|Yes|
|Zhaoting, Li Qing|||||
|Tunghsu Group|100,000,000.00|May 17,2016|May 17,2018|Yes|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Tunghsu Group|100,000,000.00|May 20,2016|May 20,2018|Yes|
|Tunghsu Group, Li|||||
||150,000,000.00|May 19,2016|May 18,2018|Yes|
|Zhaoting, Li Qing|||||
|Tunghsu Group|81,500,000.00|May 26,2016|May 26,2018|Yes|
|Tunghsu Group|40,000,000.00|May 9,2017|May 8,2018|Yes|
|Tunghsu Group|160,000,000.00|May 11,2017|May 10,2018|Yes|
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd. Li|75,000,000.00|May 31,2017|May 31,2018|Yes|
|Zhaoting|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd. Li|30,000,000.00|June 9,2017|June 9,2018|Yes|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||400,000,000.00|August 15,2017|June 29,2018|Yes|
|Zhaoting|||||
|Tunghsu Group|100,000,000.00|July 7,2017|July 6,2018|Yes|
|Tunghsu Group|20,000,000.00|July 26,2017|July 6,2018|Yes|
|Tunghsu Group|100,000,000.00|July 31,2017|July 30,2018|Yes|
|Tunghsu Group , Li|||||
||30,000,000.00|May 22,2018|May 22,2019|Yes|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||400,000,000.00|August 15,2017|August 15,2018|Yes|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||50,000,000.00|August 3,2017|August 2,2018|Yes|
|Zhaoting|||||
|Tunghsu Group|199,000,000.00|February 24,2017|August 23,2018|Yes|
|Tunghsu Group|50,000,000.00|August 24,2017|August 24,2018|Yes|
|Tunghsu Group , Li|||||
||80,000,000.00|October 20,2015|October 15,2018|Yes|
|Zhaoting|||||
|Tunghsu Group|204,000,000.00|March 29,2017|September 28,2018|Yes|
|Tunghsu Group , Li|||||
||42,000,000.00|April 10,2018|October 10,2018|Yes|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||38,000,000.00|April 11,2018|October 11,2018|Yes|
|Zhaoting|||||
|Tunghsu Group|97,000,000.00|April 27,2017|October 26,2018|Yes|
|Li Zhaoting|400,000,000.00|October 19,2017|October 19,2018|Yes|
|Tunghsu Group, Li|||||
||200,000,000.00|October 26,2017|October 26,2018|Yes|
|Zhaoting|||||
|Tunghsu Group|25,000,000.00|October 19,2017|October 19,2018|Yes|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Tunghsu Group|50,000,000.00|October 122017|October 10,2018|Yes|
|Tunghsu Group|100,000,000.00|October 26,2017|October 26,2018|Yes|
|Tunghsu Group|25,000,000.00|October 20,2017|October 19,2018|Yes|
|Tunghsu Group|100,000,000.00|September 26,2013|April 11,2022|Yes|
|Tunghsu Group, Li|||||
||200,000,000.00|November 30,2017|November 30,2018|Yes|
|Zhaoting|||||
|Tunghsu Group|50,000,000.00|November 1,2017|November 1,2018|Yes|
|Tunghsu Group|20,000,000.00|November 16,2017|November 15,2018|Yes|
|Tunghsu Group|50,000,000.00|December 1,2017|November 30,2018|Yes|
|Tunghsu Group, Li|||||
||100,000,000.00|November 13,2017|November 12,2018|Yes|
|Zhaoting|||||
|Tunghsu Group|220,000,000.00|March 17,2016|March 17,2028|Yes|
|Tunghsu Group|280,000,000.00|June 16,2016|June 16,2028|Yes|
|Tunghsu Group|50,000,000.00|December 28,2017|December 27,2018|Yes|
|Tunghsu Group|200,000,000.00|December 22,2017|December 22,2018|Yes|
|Li Zhaoting|560,000,000.00|December 15,2017|December 15,2018|Yes|
|Tunghsu Group|100,000,000.00|January 31,2018|December 31,2018|Yes|
|Tunghsu Group, Li|||||
||200,000,000.00|December 27,2016|December 27,2018|Yes|
|Zhaoting, Li Qing|||||
|Tunghsu Group, Li|||||
||200,000,000.00|December 29,2016|December 29,2018|Yes|
|Zhaoting, Li Qing|||||
|Tunghsu Group, Li|||||
||100,000,000.00|December 23,2016|December 23,2018|Yes|
|Zhaoting, Li Qing|||||
|Tunghsu Group|200,000,000.00|December 15,2016|December 15,2018|Yes|
|Tunghsu Group|100,000,000.00|December 29,2017|December 27,2018|Yes|
|Tunghsu Group, Li|||||
||166,666,666.66|January 6,2017|January 6,2019|Yes|
|Zhaoting|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd., Li|142,500,000.00|June 26,2018|January 26,2019|Yes|
|Zhaoting|||||
|Tunghsu Optoelectronic|||||
|Technology Co., Ltd., Li|150,000,000.00|June 26,2018|January 26,2019|Yes|
|Zhaoting|||||
|Dong xu group co. LTD|445,000,000.00|January 28,2013|January 27,2021|None|
|Dong xu group co. LTD|34,316,000.00|January 28,2013|January 27,2021|None|
|Hangzhou yuanbang real|480,000,000.00|||None|
|||December 21,2018|December,21,2019||
|estate development co.|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|LTD|||||
|Tunghsu Group, Li|20,000,000.00||December,18,2019|None|
|||December 29,2018|||
|Zhaoting|||||
|Dong xu group co. LTD|50,000,000.00|November 29,2018|Novemberr28,2019|None|
|Dong xu group co. LTD,|20,833,333.28||January,06,2019|None|
|||January 06,2017|||
|Li Zhaoting|||||

Note
Nil
(5) Inter-bank lending of capital of relatedparties：
(6) Related party asset transfer and debt restructuring
In RMB
|||||
|-|-|-|-|
|||Amount of current period|Amount of previous period|
|Related party|Content|||
||51% equity of Xuyou|||
|Tunghsu Technology Group||||
||Electronic Materials|550,000,000.00||
|Co., Ltd.||||
||Technology (Wuxi) Co., Ltd.|||
|Total||550,000,000.00||

(7) Rewards for the key management personnel
In RMB
||||
|-|-|-|
||Amount of current period|Amount of previous period|
|Items|||
|Rewards for the key management|||
||817.48|837.29|
|personnel|||

（8）Other related transactions
（5）Fund settlement business
As approved by the resolution of the shareholders' meeting of the Company, the Company and Tunghsu Group Finance Co., Ltd. (hereinafter referred to as "Tunghsu Finance Company") carried out partial capital settlement business. As of December 31, 2018, the capital settlement between the Company and its subsidiaries and Tunghsu Finance Company was as follows:
||||
|-|-|-|
|Name|Opening balance|Increase in the currentperiod|
|I. Deposits stored in Tunghsu Finance Company|5,838,232,555.01|73,647,041,005.91|
|II. Acceptance bill stored in Tunghsu Finance Company|||
|III. Entrusting Tunghsu Finance Company to issueacceptance bill|||
|IV. Carry out bill discounting to Tunghsu Finance Company|||
|V. Loan from Tunghsu Finance Company|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||
|-|
|VI. Handling non-recourse factoring of accounts receivableto Tunghsu Finance Company|

Continue
|||
|-|-|
|Name|Closing balance|
|I. Deposits stored in Tunghsu Finance Company|8,120,033,554.74|
|II. Acceptance bill stored in Tunghsu Finance Company||
|III. Entrusting Tunghsu Finance Company to issue acceptance bill||
|IV. Carry out bill discounting to Tunghsu Finance Company||
|V. Loan from Tunghsu Finance Company||
|VI. Handling non-recourse factoring of accounts receivable toTunghsu Finance Company||

6. Payables and receivables of the related party
（1）Receivables
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount at year end||Amount at year begiing||
|Name|Related party|||||
|||Balance of Book|Bad debt provision|Balance of Book|Bad debt provision|
||Chengdu China|||||
|Account receivable|Optoelectronic|874,842.20||629,722.6||
||Technology Co., Ltd.|||||
||Hebei Baoshi Energy|||||
|Account receivable|saving lighting|||43,600.00||
||technology Co., Ltd.|||||
||Guangdong Huakai|||||
||Real Estate|||||
|Account receivable||30,096,793.88||19,184,644.15||
||Development Co.,|||||
||Ltd.|||||
||Jinzhou Xulong|||||
|Account receivable|Solar Energy|2,449,198.07||2,449,198.07||
||Technology Co., Ltd.|||||
||Kunming Tunghsu|||||
||Qiming Investment|||||
|Account receivable||247,253,556.82||29,110,261.39||
||Development Co.,|||||
||Ltd.|||||
||Yinchuan Fengxiang|||||
||Street|||||
|Account receivable|Comprehensive|107,844,476.63||173,363,844.40||
||Construction|||||
||Management Co.,|||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
||Ltd.||
||Anhui Tunghsu||
|Account receivable|Kangtu Solar Energy|222,740.00|
||Technology Co., Ltd.||
||Baoan Hongji Real||
|Account receivable|Estate Group Co.,|35,392,973.72|
||Ltd.||
||Beijing Hexie||
|Account receivable|Guanglu Technology|138,000.00|
||Co., Ltd.||
||Beijing Zhonghuan||
|Account receivable|Xinrong Trade Co.,|215,747,350.00|
||Ltd.||
||Dongguan Yijiu Real||
|Account receivable|Estate Development|996,344.71|
||Co., Ltd.||
||Tunghsu Chuangzhi||
|Account receivable|（Beijing）Cultural|204,000.00|
||Media Co., Ltd.||
||Tunghsu Technology||
|Account receivable|Development Co.,|4,133,892.00|
||Ltd.||
||Fujian Tunghsu||
|Account receivable|Qiming Real Estate|3,389,184.77|
||Co., Ltd.||
||Hunan Baoan Hongji||
||Real Estate||
|Account receivable||19,459,762.15|
||Development Co.,||
||Ltd.||
||Huidong Baoan||
||Hongji Real Estate||
|Account receivable||32,810,756.93|
||Development Co.,||
||Ltd.||
||Huidong Ban Jinan||
||Real Estate||
|Account receivable||256,023,829.26|
||Development Co.,||
||Ltd.||
||Huizhou Dexin Real||
|Account receivable||67,266,007.88|
||Estate Co., Ltd.||
|Account receivable|Shanghai Anxuan|109,032.00|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Automation|||
||Technology Co., Ltd.|||
||Shenzhen Hongji|||
||Property|||
|Account receivable||15,405.00||
||Management Co.,|||
||Ltd.|||
||Shengzhou Zhexu|||
|Account receivable||85,658,187.65||
||Real Estate Co., Ltd.|||
||Tibet Xuri Capital|||
|Account receivable|Management Co.,|9,800.00||
||Ltd.|||
||Zhangzhou|||
||Shenghua Real|||
|Account receivable||128,070,429.45||
||Estate Development|||
||Co., Ltd.|||
||Zhongshan|||
||Shenzhong Real|||
|Account receivable||193,677,332.40||
||Estate Development|||
||Co., Ltd.|||
||Zhongshan|||
||Shenzhong Real|||
|Account receivable||42,197,817.95||
||Estate Development|||
||Co., Ltd.|||
||Chongqing Tunghsu|||
|Account receivable|Qide Real Estate|57,086,524.08||
||Co., Ltd.|||
||Hebei Baoshi Energy|||
|Prepayments|saving lighting|60,000.00|60,000.00|
||technology Co., Ltd.|||
||Hebei Decoration|||
|Prepayments|Printing Machinery|835,680.87|835,680.87|
||Co., Ltd.|||
||Tunghsu Technology|||
|Prepayments||4,000.00||
||Group Co., Ltd.|||
||Zhongshan|||
||Shenzhong Real|||
|Prepayments||1,347,924.53||
||Estate Development|||
||Co., Ltd.|||
||Huidong Baoan|||
|Other receivable|Hongji Real Estate|4,020,000.00||
||Development Co.,|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Ltd.|||
||Huizhou Dexin Real|||
|Other receivable||500,000.00||
||Estate Co., Ltd.|||
||Chongqing Tunghsu|||
|Other receivable|Qide Real Estate|1,050,000.00||
||Co., Ltd.|||
||Shijiazhuang Baoshi|||
|Other non-current||||
||Electronic vacuum||420,000.00|
|assets||||
||Glass Co., Ltd.|||
|Other non-current||||
||Tunghsu Group|73,876,642.13|132,132,857.44|
|assets||||

（2）Payables
In RMB
|||||
|-|-|-|-|
|Name|Related party|Book balance at year end|Book balance at year beginning|
||Shijiazhuang Bofa Machinery|||
|Account payable|||55,444.45|
||Co., Ltd.|||
||Shijiazhuang Baoshi Xuming|||
|Account payable||14,948.00|14,948.00|
||Pipe Co., Ltd.|||
||Shijiazhuang Baoshi Electronic|||
|Account payable||6,344.16|6,344.16|
||vacuum Glass Co., Ltd.|||
||Shijiazhuang Baoshi|||
|Account payable|Large-diameter plastic tube Co.,|533,942.80|533,942.80|
||ltd|||
||Shijiazhuang Baoshi Zhonghe|||
|Account payable||3,483,519.11|30,296.40|
||Steel Plastic Shape Co., Ltd.|||
||Shijiazhuang Xuling Electronic|||
|Account payable||1,320,164.09|1,320,164.09|
||Technology Co., Ltd.|||
||Tunghsu Honghai|||
|Account payable|Environmental Protection|276,500.00||
||Technology Co., Ltd.|||
|Advance revenue|Tunghsu Group|47,075,980.50|46,176,000.00|
||Chengdu China Optoelectronic|||
|Advance revenue||||
||Technology Co., Ltd.|||
||Yixian Xuhua Garden|||
|Advance revenue|Construction Development Co.,|110,259,360.60|3,852,318.00|
||Ltd.|||
|Advance revenue|Hangzhou Yuanbang Real|100,000,000.00||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
||Estate Development Co., Ltd.|||
||Zhongshan Donghong Real|||
|Advance revenue||3,318,850.80||
||Estate Development Co., Ltd.|||
||Jinzhou Xuguang New Material|||
|Other payable||||
||Technology Co., Ltd.|||
|Other payable|Baoshi Group|722,000.00|722,000.00|
|Other payable|Tunghsu Group|275,490,964.33|470,099,941.55|
||Shijiazhuang Baoshi Electronic|||
|Other payable||4,768,691.30|4,700,985.30|
||vacuum Glass Co., Ltd.|||
||Shijiazhuang Baoshi Xuming|||
|Other payable||97,031.00|97,031.00|
||Pipe Co., Ltd.|||
||Tunghsu Optoelectronic|||
|Other payable||||
||Investment Co., Ltd.|||
||Chengdu China Optoeelctronic|||
|Other payable||6,850.92||
||Technology Co., Ltd.|||
||Huidong Baoan Jinan Real|||
|Other payable||4,008,400.00||
||Estate Development Co., Ltd.|||
||Tibet Xuri Capital Management|||
|Other payable||8,000,000.00||
||Co., Ltd.|||
||Tunghsu (HK) Holding Co.,|||
|Other payable||782,250.00||
||Ltd.|||
||Zhongshan Shenzhong Real|||
|Other payable||339,000,000.00||
||Estate Development Co., Ltd.|||

7. Related party commitment
Nil
XIII. Stock payment
1. The Stock payment overall situation
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report□ Applicable√ Not applicable
2. The Stock payment settled by equity
□ Applicable√ Not applicable
3. The Stock payment settled by cash
□ Applicable√ Not applicable
4. Modification and termination of the stock payment
Nil
5.Other
Nil
XIV. Commitments
1.Importance commitment events
Important commitments of existence of balance sheet date
Important commitments not required to be disclosed by the company as of December 31, 2018
2. Contingency
(1).The plaintiff Chongqing Mingyi Labor Service Co., Ltd. requested the amount of 5 million yuan in project compensation and the interest from August 1, 2011. The No. 2370 Case of (2017) CHUAN 1130 MINCHU of the People's Court of Shunqing District of Nanchong City was held at 15:30 on July 26th, 2017, and the case was transferred to the Intermediate People's Court of Chengdu for railway transportation. The case was handed over to the Chengdu IntermediatePeople’s Court for Railway Transportation. On December 18, 2017, the court accepted the case for the first instance and informed the Plaintiff and the Defendant to supplement data, First instance judgment result: Daosui paid RMB 1.5 million and bore the acceptance fee of RMB 14,040. Daosui Company appealed, with a court held at 9:30 am on March 4, 2019 and waiting for the result of the second instance.
(2). Construction project contract disputes. Plaintiff: Chongqing Minyi Labor Service Co., Ltd., Defendant: Daosui Group Engineering Co., Ltd.,Road&bridge International Co., Ltd., Third Party: Earth and Rock Engineering Branch of Sichuan Nanchong Hongcheng Construction Engineering Co., Ltd., Litigation Request: Litigation request: Daosui Group Engineering Co., Ltd. pays 4,260,061 yuan for on-site material equipment and interest on January 23, 2011;Road&bridge International Co., Ltd. and the third party bear joint responsibility for payment within the scope of 2,75,721.63 yuan of on-site materials and equipment received. The No. 2371 case of (2017) CHUAN 1302 MINCHU of People's Court of Shunqing District of Nanchong City was held at 15:30 on July 27th, 2017, and the case was transferred to the IntermediatePeople’s Court of Chengdu for railway transportation. The case was handed over to the Chengdu IntermediatePeople’s Court for Railway Transportation. On December 18, 2017, the court accepted the case for the first instance and informed the Plaintiff and the
Defendant to supplement data, First instance judgment result: Daosui paid RMB 2,300,720.63 and interest and
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report bore the acceptance fee of RMB 21,591.00, and Nanchong Hongcheng Construction Company assumed joint and several liabilities. Daosui Company has appealed and is now waiting for the judgment result.
(3) Private lending disputes. Plaintiff: Ye Pingyuan, defendant: He Yuanyuan, Daosui Group, plaintiff's request: immediate repayment of the loan principal amount of 3.3 million yuan and interests of 726,000 yuan during the period, overdue interests and penalty interests, etc.; a total of 80,000 yuan forlawyers’ 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. ThePeople’s Court of Nanan District, Chongqing City accepted and issued the No. 5009 and No.5010 notice of respondence to action of (2017)YU 0108 ZI to Daosui Group on February 5,2018. (2017) Yu 0108 Zi No. 5009 first instance judgment result: He Yuanyuan and Daosui Group repaid the principal amount of RMB 3.3 million and interest, Daosui Company appealed, second instance judgment result: abrogated the first instance judgment, remanded it to the court of first instance for retrial, and now it is in the remanding and retrial stage. (2017) Yu 0108 Zi No. 5010 first instance judgment result: He Yuanyuan and Daosui Group repaid the principal amount of RMB 2.7 million and interest, Daosui Company appealed, second instance judgment result: abrogated the first instance judgment, remanded it to the court of first instance for retrial, and now it is in the remanding and retrial stage.
(4) Non-governmental loan dispute, plaintiff: Ye Pingyuan, defendant: He Yuanyuan and Daosui Group. Plaintiff requests: immediate repayment of loan principal of 2,700,000.00 yuan and interest of 972,000.00 yuan, overdue interest and default interest, etc.; Payment of 50,000.00 yuan in legal fees, travel expenses and property preservation guarantee fees for realizing creditor's rights. The Nan'an District People's Court of Chongqing accepted the case and issued the No.5010 notice of respondence to action on February 5, 2018 to Daosui Group. (5) Construction project contractdisputes，Plaintiff: Nanchong Jian'an Labor Service Co., Ltd., Defendant: Road and Bridge International Co., Ltd., Third party: Daosui Group. Plaintiff's request: Payment of RMB 3,850,838.84. Pleadings, summons, notice of respondence to action, notice of evidence sent by Shunqing District Court in Nanchong City were received on July 30, 2018. The Company filed application for jurisdiction objection on July 31, 2018. and The written verdict sent by Shunqing District Court in Nanchong City was received on September 26, 2018: The case was transferred to Chengdu Railway Transportation Court for trial. Pleadings, summons, notice of respondence to action, notice of evidence and notice of members of the collegiate bench sent by Chengdu Railway Court were received on November 29, 2018. It was scheduled to be heard at 2:30 p.m. on December 19, 2018, and is now waiting for the judgment of first instance.
(6). In March 2016, Daosui Group Engineering Co., Ltd. filed a lawsuit to the owner of Inner Mongolia Zhunxing Heavy-duty Highway Co., Ltd. for payable quality guarantee deposit, totaling amount of RMB 103,000,000 Yuan, and the owners raised objections to jurisdiction. The first instance ruling was arbitrated by Beijing Arbitration Commission, and Daosui Group Engineering Co., Ltd. appealed. Through judgment of the Supreme Court, it decided to be arbitrated by Beijing Arbitration Commission on September 27, 2016. The case is in a state of suspension, waiting for the Company to apply for arbitration from Beijing Arbitration Commission. In the same year, Daosui Group Engineering Co., Ltd. counterclaimed AZ-1 and AZ-2 parts except for the quality guarantee deposit. After the counterclaim, the owner filed an objection to jurisdiction and the first instance judged to be arbitrated by Beijing Arbitration Commission. The Company appealed, and the second instance of the Supreme Court judged to be prosecuted by Inner Mongolia High Court in July, 2017. On September 10, 2017, the complaint was resubmitted. Inner Mongolia High Court accepted the case and has not held a court until the
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report reporting date.
(7). Shanghai Sunlong Bus Co., Ltd. provides foreign guarantees to banks or financial leasing companies for car buyers who purchase cars through financial leasing. As of December 31, 2018, the amount of foreign guarantees is RMB425,103,861.08
（2）The Company have no significant contingency to disclose, also should be stated
The was no significant contingency in the Company.
3.Other
Nil
XV. Post-balance-sheet events
1. Significant events had not adjusted
2. Profit distribution
|||
|-|-|
|The profit or dividend to be distributed|401,117,508.26|
|Profits or dividends declared after deliberation and approval|401,117,508.26|

 3. Sales return
4.Notes of ohter significant events
1. In April 2019, Tunghsu Construction Group Co., Ltd. signed a equity transfer framework agreement. to transfer70% of the equity of Zhongcheng National construction co., Ltd. held at an estimated price of RMB 140 million. XVI. Other signifiant enents
XVII. Notes s of main items in financial reports of parent company
1.Notes receivable& account receivable
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Notes receivable|50,000.00|200,000.00|
|Account receivable|176,563,926.23|23,837,262.59|
|Total|176,613,926.23|24,037,262.59|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report（1）Notes receivable
（1）Classification Notes receivable
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Bank acceptance|50,000.00|200,000.00|
|Total|50,000.00|200,000.00|

（2）Notes receivable pledged by the Company at the period -end
In RMB
|||
|-|-|
|Items|Amount|

（3）Notes receivable endorsed or discounted by the Company as at June 30.2018 but not expired on the balance sheet date
In RMB
||||
|-|-|-|
||Amount derecognized as at December|Amount underecognized as at January|
|Items|||
||31,2018|1,2018|

（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract or agreement
（2）Account receivable
（1）Account receivable classified by category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year-beginning|||||
||Book Balance||Bad debt provision|||Book Balance||Bad debt provision|||
|Category|||||Book||||||
|||||||||||Book value|
||Amount|Proportio|Amount|Proportio||Amount|Proportio|Amount|Proportion(||
||||||value||||||
|||n(%)||n(%)|||n(%)||%)||
|Account receivables|||||||||||
|provided bad debt|176,852,||288,862.||176,563,9|24,456,||619,428.9||23,837,262.|
|||100.00%||0.16%|||100.00%||2.53%||
|provision in credit|788.81||58||26.23|691.50||1||59|
|risk groups|||||||||||
||176,852,||288,862.||176,563,926.23|24,456,||619,428.9||23,837,262.59|
|Total||100.00%||0.16%|||100.00%||2.53%||
||788.81||58|||691.50||1|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report Receivable accounts with large amount individually and bad debt provisions were provided.
□ Applicable√ Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Account reivable|Provision for bad debts|Proportion%|
|Within item 1 year||||
|Within credit period|82,500,000.00|||
|Within 1 year after credit period||||
|Wubtotal within 1 year|82,500,000.00|||
|4-5 years|34,668.39|24,267.87|70.00%|
|Over 5 yers|264,594.71|264,594.71|100.00%|
|Total|82,799,263.10|288,862.58||

Note：
In the groups, accounts receivable adopting balance percentage method to withdraw bad debtprovision：□ Applicable√ Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
B In the groups, accounts receivable adopting other methods to accrue bad debt provision
|||
|-|-|
|Group Name|Year-end balance|
|Other group|94,053,525.71|

Continued：
Group Name Year-beginning balance Provision for bad debts
Other group 23,220,877.08
（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00;The amount of the reversed or collected part during the reporting period was of RMB330,566.33.
Where the current bad debts back or recover significant amounts:Nil
（3）The current accounts receivable write-offs situation
The important write-off of accountsreceivable：
Note：
Nil
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report（4）The ending balance of other receivable owed by the imputation of the top five parties
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is RMB169,546,593.20, which accounts for95.87%% of the total receivables. The total amount of closing balance for corresponding accrued bad-debt provision is RMB0.00.
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Nil
Othernote：
Nil
4.Other accounts receivable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year- beginning|
|Interest receivable|7,521,489.86|41,868,921.15|
|Dividend receivable|500,000,000.00|665,000,000.00|
|Other|5,774,153,829.41|4,790,712,672.70|
|Total|6,281,675,319.27|5,497,581,593.85|

（1）Interest receivable
1) Classification of interest receivable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year- beginning|
|Fixed deposit|7,521,489.86|41,868,921.15|
|Total|7,521,489.86|41,868,921.15|

 2) Important overdue interest
Nil
Othernote：
Nil
（2）Dividend receivable
1) Dividend receivable
In RMB
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Items|Balance in year-end|Balance in year- beginning|
|Wuhu Tunghsu Equipment Technology|||
||500,000,000.00|665,000,000.00|
|Co., Ltd.|||
|Total|500,000,000.00|665,000,000.00|

（2）Significant dividend receivable aged over 1 year
Othernote：
Nil
(3)Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Balance in year-end|||||Balance in year- beginning|||||
||Book Balance||Bad debt provisionProportioAmountn(%)|||Book Balance||Bad debt provision|||
|Category|||||Book||||||
||Amount|Proportio|||||Proportio||Proportion(|Book value|
||||Amount||value|Amount||Amount|||
|||n(%)|||||n(%)||%)||
|Other account|5,775,788,977.98|||0.03%|||||||
|||||||4,792,3|||||
|receivables provided|||1,635,14||5,774,153|||1,590,109||4,790,712,6|
|||100.00%||||02,782.|100.00%||0.03%||
|bad debt provision in|||8.57||,829.41|||.46||72.70|
|||||||16|||||
|credit risk groups|||||||||||
||5,775,788,977.98|||0.03%|5,774,153,829.41|4,792,3||||4,790,712,672.70|
||||1,635,14|||||1,590,109|||
|Total||100.00%||||02,782.|100.00%||0.03%||
||||8.57|||||.46|||
|||||||16|||||

Other receivable accounts with large amount and were provided had debt provisions individually at end of period.□Applicable√Not applicable
Other receivable of combinational withdrawing bad debt provision by aging analysis method
√Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Other receivable|Provision for bad debts|Proportion(%)|
|WithinItem 1 year||||
|Within credit period||||
|Within 1 year after credit period|469,830.82|23,491.54|5.00%|
|Subtotal within 1 year|469,830.82|23,491.54|5.00%|
|Over 3 years|1,686,460.99|1,611,657.03||
|4-5 years|249,346.55|174,542.59|70.00%|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|Over 5 years|1,437,114.44|1,437,114.44|100.00%|
|Total|2,156,291.81|1,635,148.57||

Note：
Nil
Other receivable account in Group on which bad debt provisions were provided on percentagebasis：
□Applicable√Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in theportfolio：
□Applicable√Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB45,039.11, the acount collected or switches back amounting to RMB 0.00. Significant amount of reversed or recovered bad debtprovision：Nil
(3)The actual write-off other accounts receivable
Note：
Nil
(4) Other account receivables category by nature of money
In RMB
||||
|-|-|-|
|Naature|Ending book balance|Beginning book balance|
|Deposit|29,065,478.16|31,693,666.66|
|Personal Official borrowing|163,295.56|159,109.89|
|Related current account|5,743,653,445.32|4,728,633,349.92|
|Current account||28,846,088.84|
|Persona Returnable Insurance|603,814.14|446,555.34|
|Other|2,302,944.80|2,524,011.51|
|Total|5,775,788,977.98|4,792,302,782.16|

 (5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party In RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of the||
|||||total year end||
||||||Closing balance of|
|Name|Nature|Closing balance|Aging|balance of the||
||||||bad debt provision|
|||||accounts||
|||||receivable(%)||
|Wuhu Tunghsu|Current account|2,210,541,471.94|Within credit period|38.27%||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Optoelectronic|||||
|Technology Co., Ltd.|||||
|Shanghai Sunlong|||||
||Current account|1,533,274,072.27|Within credit period|26.55%|
|Bus Co., Ltd.|||||
|Wuhu Tunghsu|||||
|Optoelectronic|||||
||Current account|1,269,060,118.34|Within credit period|21.97%|
|Equipment|||||
|Technology Co., Ltd.|||||
|Fuzhou Xufu|||||
||||Within 1 year after||
|Optoelectronic|Current account|282,538,999.97||4.89%|
||||credit period||
|Technology Co., Ltd.|||||
|||||0.00%|
|Shijiazhuang Xuxin|||||
|Optoelectronic|Current account|179,448,608.11|1-2 years|3.11%|
|Technology Co., Ltd.|||||
|Total|--|5,474,863,270.63|--||

(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil (8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts receivable
Nil
Othernote：
Nil
3.Long-term equity investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-Beginning balance|||
|Items||Impairment|||Impairment||
||Book Balance||Book value|Book Balance||Book value|
|||provision|||provision||
|Investment in|24,708,559,881.5||24,330,387,231.6|21,269,035,359.7||20,890,862,709.8|
|||378,172,649.84|||378,172,649.84||
|subsidiaries|1||7|1||7|
|Investment in|||||||
|joint ventures and|2,174,347,969.22||2,174,347,969.22|2,129,502,187.30||2,129,502,187.30|
|associates|||||||
|Total|26,882,907,850.7|378,172,649.84|26,504,735,200.8|23,398,537,547.0|378,172,649.84|23,020,364,897.1|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||
|-|-|-|-|
|3|9|1|7|

（1）Investment to the subsidiary
In RMB
||||||||
|-|-|-|-|-|-|-|
||||||Withdrawn||
|||||||Closing balance|
||||||impairment||
|Name|Opening balance|Increase|Decrease|Closing balance||of impairment|
||||||provision in the||
|||||||provision|
||||||reporting period||
|Wuhu Tunghsu|||||||
|Optoelectronic|||||||
|Equipment|290,900,000.00|||290,900,000.00|||
|Technology Co.,|||||||
|Ltd.|||||||
|Shijiazhuang|||||||
|Xuxin|||||||
|Optoelectronic|1,966,568,609.92|||1,966,568,609.92|||
|Technology Co.,|||||||
|Ltd|||||||
|Zhengzhou Xufei|||||||
|Optoelectronic|||||||
||1,791,853,741.58|||1,791,853,741.58|||
|Technology Co.,|||||||
|Ltd.|||||||
|Sichuan Xuhong|||||||
|Optoelectronic|||||||
||1,221,178,272.58|800,000,000.00||2,021,178,272.58|||
|Technology Co.,|||||||
|Ltd.|||||||
|Wuhu Tunghsu|||||||
|Optoelectronic|||||||
||4,711,064,000.00|||4,711,064,000.00|||
|Technology Co.,|||||||
|Ltd.|||||||
|Fuzhou Tunghsu|||||||
|Optoelectronic|||||||
||1,745,000,000.00|||1,745,000,000.00|||
|Technology Co.,|||||||
|Ltd.|||||||
|Wuhan Tunghsu|||||||
|Optoelectronic|||||||
||3,247,200.00|||3,247,200.00|||
|Technology Co.,|||||||
|Ltd.|||||||
|Fuzhou Xufu|||||||
||24,000,000.00|||24,000,000.00|||
|Optoelectronic|||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Technology Co.,||||||
|Ltd.||||||
|Shenzhen Xuhui||||||
|Investment Co.,|100,000,000.00|||100,000,000.00||
|Ltd.||||||
|Xuyou Electric||||||
|Material||||||
||570,628,050.30||570,628,050.30|||
|Technology||||||
|（Wuxi）Co., Ltd.||||||
|Tunghsu||||||
|（Yingkou）||||||
|||166,771,734.60||166,771,734.60||
|Optoelectroinc||||||
|Display Co., Ltd.||||||
|Shijiazhuang||||||
|Colour Bulb Co.,|439,341,956.80|||439,341,956.80|378,172,649.84|
|Ltd||||||
|Jiangsu Jixing||||||
|New Material Co.,|222,345,300.00|75,000,000.00||297,345,300.00||
|Ltd.||||||
|Tunghsu||||||
|（Kunshan）||||||
||800,000,000.00|200,000,000.00||1,000,000,000.00||
|Display Material||||||
|Co., Ltd.||||||
|Beijing Xutan||||||
|New Material||||||
||10,500,000.00|||10,500,000.00||
|Technology Co.,||||||
|Ltd.||||||
|Beijing Xufeng||||||
|Real Estate Co.,|470,000,000.00|||470,000,000.00||
|Ltd.||||||
|Tunghsu||||||
|Construction|3,000,453,728.53|||3,000,453,728.53||
|Group Co.,Ltd.||||||
|Shanghai Sunlong||||||
||3,800,000,000.00|2,100,000,000.00||5,900,000,000.00||
|Bus Co., Ltd.||||||
|Shenzhen Sanbao||||||
|Chuangxin||157,598,587.50||157,598,587.50||
|Inteligent Co., Ltd.||||||
|Beijing Tunghsu||||||
|Huaqing|3,500,000.00|||3,500,000.00||
|Investment Co.,||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
|||||||
|-|-|-|-|-|-|
|Ltd.||||||
|Shanghai Tanyuan||||||
|Huigu New||||||
|Material|73,454,500.00|||73,454,500.00||
|Technology Co.,||||||
|Ltd.||||||
|Taizhou Tunghsu||||||
|graphene Industry||||||
|Investment Fund|25,000,000.00|||25,000,000.00||
|Management||||||
|Center||||||
|Fuzhou Tunghsu||||||
|Investment||||||
|||500,000,000.00||500,000,000.00||
|Development Co.,||||||
|Ltd.||||||
|Anhui Xuan||||||
|Optolectronic||||||
|||10,000,000.00||10,000,000.00||
|Technology Co.,||||||
|Ltd.||||||
|Tunghsu||||||
|Optoelectronic||782,250.00||782,250.00||
|EU.C.V(Holland)||||||
||21,269,035,359.71|||24,708,559,881.51|378,172,649.84|
|Total||4,010,152,572.10|570,628,050.30|||

（2）Investment to joint ventures and associated enterprises
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase /decrease in reporting period||||||||||
||||||||||||Closing|
||||||Adjustme|||||||
|||||||||Withdraw|||balance|
||||Decrease|Gain/loss|nt of||Declarati|||||
||Opening|Add||||Other||n||Closing|of|
|Name||||||||||||
||||d|of|other||on of cash|||||
||balance|investmen||||equity||impairme|Other|balance|impairme|
||||investmen|Investme|comprehe||dividends|||||
|||t||||changes||nt|||nt|
||||t|nt|nsive||or profit|||||
|||||||||provision|||provision|
||||||income|||||||
|I. Joint ventures||||||||||||
|II. Associated enterprises||||||||||||
|Tunghsu||||||||||||
|Group|2,004,062|||52,198,29||||||2,056,260||
|Finance|,204.94|||0.80||||||,495.74||
|Co., Ltd.||||||||||||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||||
|-|-|-|-|-|
|Tunghsu(|||||
|Deyang)|||||
|Graphen|||||
|e|||||
||19,454,20|19,517,09|||
|Develop|||62,892.62||
||0.71|3.33|||
|ment|||||
|Fund|||||
|Partners|||||
|hip（LP）|||||
|Zibo Bus|32,678,81||9,137,725|41,816,53|
|Co., Ltd.|3.57||.63|9.20|
|Zhongda|||||
|Chengx|||||
|in|||||
|Internat|||||
|ional|73,306,96||2,963,966|76,270,93|
|Comm|8.08||.20|4.28|
|ercial|||||
|Factori|||||
|ng Co.,|||||
|Ltd.|||||
||2,129,502|19,517,09|64,362,87|2,174,347|
|Subtotal|||||
||,187.30|3.33|5.25|,969.22|
||2,129,502,187.30|19,517,09|64,362,87|2,174,347,969.22|
|Total|||||
|||3.33|5.25||

（3）Other notes
4.Business income and Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Main business|127,730,245.51|92,810,680.07|188,688,625.35|135,848,152.08|
|Other business|64,466,696.29|60,182,760.63|35,347,620.01|22,002,680.00|
|Total|192,196,941.80|152,993,440.70|224,036,245.36|157,850,832.08|

 5. Investment income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Income from long-term equity investment|||
||479,371,949.70|665,000,000.00|
|measured by adopting the cost method|||
|Investment loss through disposal of|||
||64,362,875.25|4,680,716.60|
|long-term equity investment|||
|Disposal of long-term equity investment|||
||-1,209,669.93||
|income|||
|Financing income|13,923,452.07|59,030,191.76|
|Total|556,448,607.09|728,710,908.36|

 XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Amount|Notes|
|Gains/Losses on the disposal of non-current|||
||3,450,757.10||
|assets|||
|Government grants recognized in the current|||
|period, except for those acquired in the|||
|ordinary course of business or granted at|124,464,054.70||
|certain quotas or amounts according to the|||
|country’s unified standards|||
|Gains and losses from assets under trusted|||
||14,623,990.55||
|investment or Management|||
|Net gain/loss of current term from|||
|consolidation of subsidiaries under common|||
||-11,435,425.33||
|control from beginning of term to the|||
|consolidation date|||
|Entrusted with the operating of the trust to|||
||707,547.18||
|obtain fee income|||
|Other non-operating income and expenditure|||
||10,172,838.56||
|beside for the above items|||
|Other gains or losses satisfying the definition|||
||552,086.75||
|of extraordinary gains or losses|||
|Less: Influenced amount of income tax|20,174,896.94||
|Amount of influence of minority interests|||
||4,628,919.46||
|（After tax）|||

Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
||||
|-|-|-|
|Total|117,732,033.11|--|

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
2 Return on net assets and earnings per share
|||||
|-|-|-|-|
|||Earnings per share||
|Profit of the report period|Return on net assets . Weighted（%）|||
|||Basic earnings per share|Diluted gains per share|
|Net profit attributable to the||0.38|0.38|
|Common stock shareholders of|6.83%|||
|Company.||||
|Net profit attributable to the||||
|Common stock shareholders of||||
||6.44%|0.36|0.36|
|Company after deducting of||||
|non-recurring gain/loss.||||

3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable√Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable√Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report XII. Documents available for inspection
1.The original annual report bearing the signature of the Chairman of the Board of Directors of the Company; 2.The text of the financial report bearing the seal and signature of the Legal representative of the Company, financial controller and the person in charge of accounting organ
3.Original audit report seal with accounting firms and signature and seal from CPA;
4.Originals of all documents and manuscripts of public Notices of the Company Disclosed in public in the newspapers as designated by China Securities Regulatory Commission.
【Note】This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall prevail.
Tunghsu Optoelectronic Technology Co., Ltd.
Chairman: Wang Lipeng
Issue day approved by the Board ofDirectors：April 29,2019