# SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

# FORM 10-K/A(AMENDMENT NO. 2)

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[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
                                       OF THE SECURITIES EXCHANGE ACT OF 1934
                                       For the fiscal year ended June 30, 2001
                                                         OR
                               [  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                                       OF THE SECURITIES EXCHANGE ACT OF 1934
                                 For the transition period from _______ to ________
                                            Commission file number 23103

APPLIED FILMS CORPORATION

                               (Exact name of registrant as specified in its charter)

|COLORADO  
(State of other jurisdiction of
incorporation or organization) | 84-1311581
(I.R.S. Employer
Identification No.)
|------------------------------------------------------------------------- | -----------------------------------------------

9586 I-25 Frontage Road, Longmont CO 80504

                                 (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (303) 774-3200
                         Securities registered pursuant to Section 12(b) of the Act:   None.
                             Securities registered pursuant to Section 12(g) of the Act:Common Stock, no par value
                                                 (Title of Class)

Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. YesX No_____

Indicate by check mark if
disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of Registrants
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendments to this Form 10-K.
______

The aggregate market value
of the total outstanding common stock of the Registrant, based on a per share
price of $21.00 as of June 29, 2001, was $143,486,721. As of June 29, 2001,
there were outstanding 6,832,701 shares of the Companys Common Stock (no
par value). The aggregate market value of the common stock held by
non-affiliates of the Registrant, based on a per-share price of $21.00 as of
June 29, 2001, was $112,699,692.

Documents Incorporated by
Reference: Portions of the Companys Proxy Statement for the 2001 Annual
Meeting of Shareholders are incorporated by reference into Part III of this
Report.



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## PORTION AMENDED

The Registrant hereby
amends Part IV Item 14 and the Exhibit Index as set forth herein.

# PART IV

ITEM 14:  Exhibits, Financial Statements, Schedules, and Reports on Form 8-K

(a)   The following documents are filed as part of this report:

1.  Financial Statements.

The Registrant's  consolidated  financial statements,  for the year ended June 30, 2001, together with the
Report of  Independent  Certified  Public  Accountants  are filed as part of this  Form 10-K  report.  See "ITEM 8:
Financial  Statements  and  Supplementary  Data." The  supplemental  financial  information  listed  and  appearing
hereafter should be read in conjunction with the financial statements included in this report.

2.  Financial Statement Schedules.

Financial Statements for
Suzhou NSG AFC Thin Films Electronics Co., Ltd, together with the report thereon
of PricewaterhouseCoopers dated 25 January 2002.

## SUZHOU NSG AFC THIN FILMS ELECTRONICS CO., LTD.

## FINANCIAL STATEMENTS AND
REPORT OF INDEPENDENT ACCOUNTANTS
31 DECEMBER 2001 AND 2000



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|
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|
|

# Report of Independent Accountants

To the Board of Directors of
    Suzhou NSG AFC Thin Films Electronics Co., Ltd.

In our opinion, the
accompanying balance sheet and the related statements of operations, of changes
in owners equity and of cash flows present fairly, in all material
respects, the financial position of Suzhou NSG AFC Thin Films Electronics Co.,
Ltd. (the Company) at 31 December 2001 and 2000, and the results of
its operations and its cash flow for the years then ended in conformity with
accounting principles generally accepted in the United States of America. These
financial statements are the responsibility of the Companys management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.

PricewaterhouseCoopers Zhong Tian
Certified Public Accountants Co., Ltd
 25 January 2002



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SUZHOU NSG AFC THIN FILMS ELECTRONICS CO., LTD.BALANCE SHEET
                                             31 DECEMBER 2001 AND 2000
                                           (Expressed in Renminbi Yuan)

`Note              2001                    2000

ASSETS

Current assets
   Cash and cash equivalents                                 3        15,752,165              16,169,378
   Accounts receivable
   - Third parties                                                    24,336,318              27,776,458
   - Related parties                                        10        13,149,688              42,409,704
   Inventories - Net                                         4        17,693,096              18,945,829
   Prepaid expenses and other receivables                              4,154,048              14,788,215
   Amount due from related parties                          10           190,325                 256,869
                                                                     -----------------------------------
Total current assets                                                  75,275,640             120,346,453

Fixed assets - Net                                           5       237,002,818             131,567,024
                                                                     -----------------------------------
Total assets                                                         312,278,458             251,913,477
                                                                     ===================================


LIABILITIES AND OWNERS' EQUITY

Current liabilities
   Short-term loans                                          6       106,685,794              31,489,920
   Accounts payable
   - Third parties                                                     5,111,579               3,044,108
   - Related parties                                        10        25,507,884              49,954,682
   Accrued expenses and other payables                                 8,154,249              18,378,713
   Amounts due to related parties                           10         2,571,588               2,147,022
                                                                     -----------------------------------
Total liabilities                                                    148,031,094             105,014,445
                                                                     -----------------------------------
Owners' equity
   Paid-in capital                                           7       139,141,910             110,896,306
   Retained earnings                                                  25,105,454              36,002,726

Total owners' equity                                                 164,247,364             146,899,032
                                                                     -----------------------------------
Commitments                                                 11

Total liabilities and owners' equity                                 312,278,458             251,913,477
                                                                     ===================================


The accompanying notes are an integral part of these financial statements.`



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SUZHOU NSG AFC THIN FILMS ELECTRONICS CO., LTD.STATEMENT OF OPERATIONS
                                   FOR THE YEAR ENDED 31 DECEMBER 2001 AND 2000
                                           (Expressed in Renminbi Yuan)

`Note             2001                    2000

Net sales                                                            184,318,438             291,484,694
                                                                     -----------------------------------

Cost of products sold                                                129,181,035             185,926,817
Selling and administrative expenses                                   19,160,154              23,310,727
Depreciation and amortization                                         16,675,428              10,054,553
Other costs and operating expenses                                       261,240                   2,998
                                                                     -----------------------------------
                                                                     165,277,857             219,295,095
                                                                     -----------------------------------
Income from operations                                                19,040,581              72,189,599
                                                                     -----------------------------------
Other income
   Interest income                                                        84,883                  66,830
   Others                                                              2,539,365                 853,533
                                                                     -----------------------------------
                                                                       2,624,248                 920,363
                                                                     -----------------------------------

Other expenses
   Interest cost incurred on loans                                     1,558,356               1,455,174
   Others                                                              1,234,510                 151,021
                                                                     -----------------------------------
                                                                       2,792,866               1,606,195
                                                                     -----------------------------------

Income before income taxes                                            18,871,963              71,503,767

Provision for taxes on income                                 9        1,523,631                       -
                                                                     -----------------------------------
Net income                                                            17,348,332              71,503,767
                                                                     ===================================


The accompanying notes are an integral part of these financial statements.`



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SUZHOU NSG AFC THIN FILMS ELECTRONICS CO., LTD.STATEMENT OF CHANGES IN OWNERS' EQUITY
                                   FOR THE YEAR ENDED 31 DECEMBER 2001 AND 2000
                                           (Expressed in Renminbi Yuan)

`Paid in                Retained
                                                 capital                earnings                 Total
                                                 -------                --------                 -----

Balance at 1 January 2001                    110,896,306              36,002,726           146,899,032

Net income                                             -              17,348,332            17,348,332

Capital contribution                          28,245,604             (28,245,604)                    -
                                             ---------------------------------------------------------
Balance at 31 December 2001                  139,141,910              25,105,454           164,247,364
                                             =========================================================

Balance at 1 January 2000                     52,989,776              22,405,489            75,395,265

Net income                                             -              71,503,767            71,503,767

Reinvestment of retained earnings
 as capital increase                          57,906,530             (57,906,530)                    -
                                             ---------------------------------------------------------
Balance at 31 December 2000                  110,896,306              36,002,726           146,899,032
                                             =========================================================


The accompanying notes are an integral part of these financial statements.`



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SUZHOU NSG AFC THIN FILMS ELECTRONICS CO., LTD.STATEMENT OF CASH FLOWS
                                   FOR THE YEAR ENDED 31 DECEMBER 2001 AND 2000
                                           (Expressed in Renminbi Yuan)

`2001                   2000

Cash flows from operating activities:
     Net income                                                       17,348,332             71,503,767
     Adjustments to reconcile net income to net cash
     generated from operating activities:
     Depreciation and amortization                                    16,520,628             10,054,553
     Decrease (Increase) in accounts receivable                       32,700,156            (35,554,027)
     Decrease (Increase) in inventories                                1,252,733            (12,260,923)
     Decrease (Increase) in prepaid expenses and
         other receivables                                            10,634,167             (8,631,319)
     (Decrease) Increase in accounts payable                         (22,379,327)            15,949,170
     (Decrease) Increase in accrued expenses and
         other payables                                              (10,224,464)            10,512,867
                                                                     ----------------------------------
Cash generated from operating activities                              45,852,225             51,574,088
                                                                     ----------------------------------

Cash flows used in investing activities:
     Acquisition of fixed assets                                    (121,956,422)           (55,098,837)
                                                                     ----------------------------------

Cash flows from financing activities:
     Proceeds from short-term loans                                   75,195,874              5,446,825
     Increase in amounts due to related parties                          491,110                417,731
                                                                     ----------------------------------
Net cash generated from financing activities                          75,686,984              5,864,556
                                                                     ----------------------------------

Net (decrease) increase in cash and cash equivalents                    (417,213)             2,339,807

Cash and cash equivalents at beginning of year                        16,169,378             13,829,571
                                                                     ----------------------------------
Cash and cash equivalents at end of  year                             15,752,165             16,169,378
                                                                     ==================================

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION

Cash paid during the year for
      interest (net of interest capitalised)                           1,023,308              1,517,527
                                                                     ==================================

INVESTING AND FINANCING ACTIVITIES THAT DO NOT INVOLVE
CASH RECEIPTS AND PAYMENTS

Reinvestment of retained earnings as capital increase                 28,245,604             57,906,530
                                                                     ==================================

The accompanying notes are an integral part of these financial statements.`



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SUZHOU NSG AFC THIN FILMS ELECTRONICS CO., LTD.NOTES TO THE FINANCIAL STATEMENTS
                                   FOR THE YEAR ENDED 31 DECEMBER 2001 AND 2000
                                           (Expressed in Renminbi Yuan)

|1 | THE COMPANY
Suzhou NSG AFC Thin Films Electronics Co., Ltd. ("the Company") is a wholly foreign owned enterprise
established on 10 July 1998 with an operating period of 50 years.  The equity owners of the Company are Nippon
Sheet Glass Co., Ltd. and Applied Film Corporation who own equity interests of the Company of 50% and 50%
respectively.  The Company commenced its production in April 1999.  The principal activities of the Company
are the manufacture, process and sales of ITO coated glass for TN-type LCD (Liquid Crystal Display) and
STN-type LCD, except transparent electroconductive thin film on micro color filter.
As resolved in the 8th
meeting of the Board of Directors held on 31 October 2000, the total investment
of the Company had been increased from US$29.99 million to US$40.49 million and
the registered capital had been increased from US$13.395 million to US$18.645
million by reinvesting retained earnings. In addition, the business scope had
also been changed to production and sales of ITO-coated glass substrate for TN
and STN LCD (including color filter), reflective coating onto glass substrate
for color STN, and providing after sale services. The aforementioned increase in
total investment, increase in the registered capital and changes in business
scope had been approved by the relevant authorities. 
As of 31 December 2001,
US$10,470,000 of retained earnings had been reinvested as capital increase.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|- | ------------------------------------------

| | a | Basis of Preparation
The Company maintains its books and prepares its statutory accounts in accordance
with the accounting principles and relevant financial regulations applicable to
foreign investment companies in the Peoples Republic of China (the
PRC). These accounting policies and bases differ in certain respects from
accounting principles generally accepted in the United States of America
(US GAAP). These financial statements incorporate adjustments made
to the statutory accounts so as to conform with US GAAP.
         The principal adjustment made to the statutory financial statements of the Company in order to
         confirm with US GAAP is as follows:
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Adjustment to recognize the deferred pre-operating expenses as selling and
administrative expenses when incurred. In accordance with the PRC accounting
regulations, the pre-operating expenses are capitalized as the start-up costs
and shall be amortized over 5 years commencing from the start date of commercial
operations.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b | Accounting estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from these estimates.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|- | ------------------------------------------------------

| | c | Foreign Currency Transactions
Except for in the accounting for paid-in capital as described below, transactions
denominated in foreign currencies are translated into Renminbi at the exchange
rates stipulated by the Peoples Bank of China prevailing on the first day
of the month in which the transactions took place. Monetary assets and
liabilities expressed in foreign currencies at the balance sheet date are
translated into Renminbi at the exchange rates stipulated by Peoples Bank
of China at the balance sheet date. Exchange differences arising from these
cases are included in the current results of operations.
Contributions to paid-in capital made in foreign currencies are credited to paid-in capital at
exchange rates stipulated by the Peoples Bank of China prevailing at the
contribution dates.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | d | Inventories
Inventories are stated at the lower of cost or market value, with cost being determined on the
monthly weighted average basis.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------

| | e | Fixed Assets
Fixed assets are stated at cost. Assets with acquisition costs in excess of Rmb 2,000
and useful lives over two years or assets used for production purposes are
capitalised. Expenditures for maintenance and repairs are charged to expenses as
incurred; expenditures for betterments and major renewals are capitalised.
Depreciation is provided under the straight-line method over the estimated useful lives of
the assets. The estimated useful lives are determined based upon the service
lives guideline prescribed by the government. The salvage values of fixed assets
are 10% of their costs.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The useful lives of the fixed assets are as follows:
Building 
Machinery and equipment 
Office equipment 
Other equipment 
Leasehold improvements | 20 years
           10 years
            5 years
         5-10 years
           10 years | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------- | 

| | f | Recognition of Revenue and Expenses
Revenue is recognised upon shipment of products.  Expenses are recognised when incurred.
| | - | ----------------------------------------------------------------------------------------------------------------------------

| | g | Income taxes
The Company accounts for income taxes under the Balance Sheet Liability Method.
Under this method, deferred tax assets and liabilities are recognised based on
differences between financial statements and tax bases of assets and
liabilities, subject to a valuation allowance based upon the likelihood of
realization.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | h | Cash and cash equivalents
For purposes of the statement of cash flows, the Company considers cash on hand and
demand deposits with financial institutions with an original maturity of three
months or less to be cash.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|3 | CASH
|- | ----

`2001                    2000

   Demand accounts                                                    15,718,695              16,118,930
   Cash on hand                                                           33,470                  50,448
                                                                     -----------------------------------
                                                                      15,752,165              16,169,378
                                                                     ===================================`

|4 | INVENTORIES
|- | -----------

`2001                    2000

   Raw materials                                                       8,972,727               7,387,784
   Finished goods                                                      8,720,369              11,558,045
                                                                     -----------------------------------
                                                                      17,693,096              18,945,829
                                                                     ===================================`

|5 | FIXED ASSETS
|- | ------------

`2001                    2000

   Building                                                              681,020                 681,020
   Plant and machinery                                               262,704,384             130,929,008
   Office equipment                                                    1,964,869                 927,761
   Other equipment                                                     1,577,821                 767,049
   Leasehold improvements                                              2,956,511               2,956,511
   Construction in progress                                                    -              11,666,833
                                                                     -----------------------------------
                                                                     269,884,605             147,928,182
   Less: accumulated depreciation and amortisation                  (32,881,787)            (16,361,158)
                                                                     -----------------------------------
                                                                     237,002,818             131,567,024
                                                                     ===================================`

|6 | SHORT-TERM LOANS
|- | ----------------

`2001                    2000


   Short-term bank loans                                             106,685,794              31,489,920
                                                                     ===================================`

| | As at 31 December 2001, 50%
of the above loans were guaranteed by Nippon Sheet Glass Co., Ltd. by issuing an
irrevocable official letter of guarantee; the remaining 50% of loans were
guaranteed by Applied Films Corporation by issuing an irrevocable stand-by
letter of credit. The related interest rates ranged from 2.66% to 6.14% per
annum in 2001.
As at 31 December 2000, 50% of the short-term loans were guaranteed by Nippon Sheet Glass Co., Ltd. by issuing an
irrevocable official letter of guarantee; the remaining 50% of loans were
guaranteed by Applied Films Corporation by issuing an irrevocable stand-by letter of credit. The
related interest rates ranged from 6.14% to 7.4% per annum in 2000.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|7 | PAID-IN CAPITAL AND RETAINED EARNINGS
|- | -------------------------------------

`Paid-in capital              Retained earnings                    Total

   At 1 January 2001                 110,896,306                     36,002,726              146,899,032

   Net profit                                  -                     17,348,332               17,348,332
   Capital increase by
     reinvesting retained earnings    28,245,604                    (28,245,604)                       -
                                     -------------------------------------------------------------------
   At 31 December 2001               139,141,910                     25,105,454              164,247,364
                                     ===================================================================`

| | As approved by the competent authorities, Rmb 28,245,604 of retained earnings had been reinvested as capital
increase in 2001.
In accordance with the Provision of the People's Republic of China on Administration of Financial Affairs
Enterprises with Foreign Investment and the Income Tax Law of Foreign Enterprises, the retained earnings as of 31
December 2001 and 2000 were approximately Rmb 20,853,000 and Rmb 29,660,000, respectively, for local statutory
purposes.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8 | PENSION SCHEME
The Company is required to participate in a Suzhou Municipal Government pension scheme whereby it shall
contribute to a government-managed pension fund at the rate of 20% of the monthly gross wages of existing
national employees.  Under the scheme, retirement benefits of existing and future retired employees are provided
by the government-managed fund and the Company has no further obligation beyond the monthly contributions.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9 | PROVISION FOR TAXES ON INCOME
In computing the enterprise income taxes, the Company is subject to the Law of Income Tax for Enterprises with Foreign
Investment and Foreign Enterprises of the People's Republic of China ("the Income Tax Law").
Being a manufacturing enterprise with foreign investment, the Company is entitled to a two year tax holiday commencing
from the first profit-making year. For the three years following the tax holiday, the Company's income is to
be taxed at 50% of enacted rate. Losses incurred by the Company may be carried forward for five years with no
carrybacks. The first profit-making year is the first year in which the Company generates taxable income after
taking into account the loss carryforward.
The Company's first profit making year is 1999.  Corporate income tax has been provided at the rate of 7.5%
based on the taxable income for the year ended 31 December 2001 (2000: nil).
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|10 | RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
Names and relationships of related parties are summarised as follows:
|-- | ------------------------------------------------------------------------------------------------------------------

| | Name of related party 
Applied Film Corporation ("AFC") 
Nippon Sheet Glass Co., Ltd. ("NSG") 
Suzhou NSG Electrics Co., Ltd. ("SNSG") 
Nippon Sheet Glass Purchase and Supply 
Co., Ltd. ("NSGPS"). 
NSG Engineering Co., Ltd. ("NSG Engineering") | Relationship with the Company
One of the Company's equity owners
One of the Company's equity owners
Affiliated company
Affiliated company
Affiliated company
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Significant transactions with related parties are summarised as follows:                                                                                                                                                                           

| | a | Sales
| | - | -----

`2001                      2000

     NSG                                                      58,646,822                68,548,230
     AFC                                                      21,273,269                97,777,858
     SNSG                                                      5,046,711                 2,877,918
                                                             -------------------------------------
                                                              84,966,802               169,204,006
                                                             =====================================`

| | Sales to the related parties represented 46.10% and 58.05% of the Company's total sales in 2001 and
2000, respectively.
| | -----------------------------------------------------------------------------------------------------------------------

| | b | Purchases
| | - | ---------

`2001                      2000

     SNSG                                                     74,892,190               143,935,601
     NSGPS                                                     3,461,077                11,733,606
     AFC                                                       3,310,840                 5,675,383
     NSG                                                         696,182                   108,578
                                                             -------------------------------------
                                                             82,360,289                161,453,168
                                                             =====================================`

| | Purchases from the related parties represented 81.74% and 92.5% of the Company's total purchases in 2001 and
2000, respectively.
| | --------------------------------------------------------------------------------------------------------------------------------

| | c | Acquisition of fixed assets
| | - | ---------------------------

`2001                      2000

     NSG Engineering                                          79,739,686                         -
     AFC                                                       7,573,089                39,290,014
     NSGPS                                                       165,543                   803,685
                                                             -------------------------------------
                                                              87,478,318                40,093,699
                                                             =====================================`



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|10 | RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (Continued)
|-- | --------------------------------------------------------

| | d | Accounts Receivable
| | - | -------------------

`2001                      2000

     NSG                                                       8,769,466                22,415,450
     AFC                                                       2,812,775                18,583,412
     SNSG                                                      1,546,247                 1,410,842
     NSG Engineering                                              21,200                         -
                                                             -------------------------------------
                                                              13,149,688                42,409,704
                                                             =====================================`

| | e | Other Receivables
| | - | -----------------

`2001                      2000

     SNSG                                                        190,325                    64,284
     AFC                                                               -                   192,585
                                                             -------------------------------------
                                                                 190,325                   256,869
                                                             =====================================`

| | f | Accounts Payable
| | - | ----------------

`2001                      2000

     SNSG                                                     22,285,686                46,060,624
     NSG                                                       2,079,467                         -
     AFC                                                         568,734                 2,172,914
     NSGPS                                                       573,997                 1,721,144
                                                             -------------------------------------
                                                              25,507,884                49,954,682
                                                             =====================================`

| | g | Other Payables
| | - | --------------

`2001                      2000

     SNSG                                                      1,520,924                   454,600
     NSG                                                         495,389                   774,057
     AFC                                                         442,982                   777,022
     NSG Engineering                                              62,683                         -
     NSGPS                                                        49,610                   141,343
                                                             -------------------------------------
                                                               2,571,588                 2,147,022
                                                             =====================================`

| | h | Royalty
| | - | -------

| | According to the know-how license agreements entered into with NSG and AFC, the Company
 shall pay a royalty of 1.05% of net sales each to NSG and AFC.  As of 31 December 2001 and
 2000, Rmb 3,827,640 and Rmb 5,077,872 of such royalty were accordingly accrued for 2001
 and 2000, respectively.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|10 | RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (Continued)
|-- | --------------------------------------------------------

| | i | Guarantee
| | - | ---------

| | As of 31 December 2001, 50% of the short-term loans of Rmb 106,685,794 were
guaranteed by Nippon Sheet Glass Co., Ltd. by issuing an irrevocable official
letter of guarantee; the remaining 50% of the aforementioned loans were
guaranteed by Applied Films Corporation by issuing an irrevocable stand-by
letter of credit.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | j | Lease commitment
| | - | ----------------

| | The Company has entered into a lease agreement with NSG for using a factory
building. The future rental payment under the agreement is approximately Rmb
3,118,000 each year.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11 | COMMITMENTS
Capital expenditure contracted but not recognised in the financial statements is as follows :
|-- | ---------------------------------------------------------------------------------------------------------

`2001                  2000
                                                                             US$                   US$

   Property, plant and equipment                                       1,303,670             2,158,430
                                                                     ===================================`



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3.  Exhibits.

Reference is made to the Exhibit Index which is found on the last page of the body of this Form 10-K
Annual Report preceding the exhibits.

(b)   Reports on Form 8-K

The  Registrant  did not file any  reports on Form 8-K during  the last  quarter of the fiscal  year ended
June 30, 2001.

(c)   Exhibits

The response to this portion of Item 14 is submitted as a separate section of this report.

(d)   Financial Statement Schedules

The response to this section of Item 14 is submitted as a separate section of this report.



---

# SIGNATURES

Pursuant  to the  requirements  of  Section  13 or  15(d) of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  amendment  to the Form 10-K  Annual  Report  to be signed on its  behalf by the
undersigned, thereunto duly authorized.

| | APPLIED FILMS CORPORATION
| | -------------------------

| | By: | /s/ Thomas T. Edman
Thomas T. Edman, President
May 17, 2002 | 
| | --- | ----------------------------------------------------------- | 

Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,  this  amendment to the Form 10-K
Annual Report has been signed by the following persons in the capacities indicated on May 17, 2002.

|Signatures                                       |  | Title                                                                             
|------------------------------------------------ |  | ----------------------------------------------------------------------------------
|/s/ Thomas T. Edman
Thomas T. Edman              |  | President, Chief Executive Officer and Director
(principal executive officer)     
|/s/ Lawrence D. Firestone
Lawrence D. Firestone  |  | Chief Financial Officer and Treasurer (principal
accounting and financial officer)
|/s/ Richard P. Beck*
Richard P. Beck             |  | Director                                                                          
|/s/ John S. Chapin*
John S. Chapin               |  | Director                                                                          
|/s/ Chad D. Quist*
Chad D. Quist                 |  | Director                                                                          
|/s/ Vincent Sollitto, Jr.*
Vincent Sollitto, Jr. |  | Director                                                                          

|* By: | /s/ Lawrence D. Firestone
     Lawrence D. Firestone
     Attorney-in-Fact for each of the
     above-named directors | 
|----- | --------------------------------------------------------------------------------------------------------------------- | 



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EXHIBIT INDEX

|Exhibit No. | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1*        | Amended and Restated Articles of Incorporation of Applied Films Corporation, as amended.                                                                                                                                                                                                                                                                                                                                                                                                                     
|3.2         | Amended and  Restated  Bylaws of Applied  Films  Corporation  are  incorporated  by  reference to
Exhibit 3.2 of Registrant's Registration Statement on Form S-1, as amended (Reg. No. 333-35331).                                                                                                                                                                                                                                                                                                           
|10.1        | 1993 Stock Option Plan is  incorporated  by reference to Exhibit 4 of  Registrant's  Registration
Statement on Form S-8 (Reg. No. 333-51175).                                                                                                                                                                                                                                                                                                                                                                
|10.2        | 1997  Stock  Option  Plan,  as  amended,   is  incorporated  by  reference  to  Exhibit  10.2  of
Registrant's Registration Statement on Form S-1, as amended (Reg. No. 333-35331), by reference
to Exhibit 4.2 of Registrant's Registration Statement on Form S-8 (Reg. No. 333-47967, by
reference to Exhibit 4.2 of Registrant's Registration Statement on Form S-8 (Reg. No.
333-38426) and by reference to Exhibits 4.2 and 4.3 of Registrant's Registration Statement on
Form S-8 (Reg. No. 333-56376).
|10.3        | Employee  Stock  Purchase  Plan,  as amended,  is  incorporated  by  reference to Exhibit 10.3 of
Registrant's Registration Statement on Form S-1, as amended (Reg. No. 333-35331), by reference
to Exhibit 4 to the Registrant's Registration Statement on Form S-8 (Reg. No. 333-47951) and by
reference to Exhibit 4.2 on Registrant's Registration Statement on Form S-8 (Reg. No.
333-56378).                                                                                                           
|10.4        | Form of Indemnity  Agreement between  Registrant and each of its Directors and Executive Officers
is incorporated by reference to Exhibit 10.4 of Registrant's Registration Statement on Form
S-1, as amended (Reg. No. 333-35331).                                                                                                                                                                                                                                                                          
|10.5        | Lease Agreement dated January 30, 1998, between 9586 East Frontage Road,
Longmont, CO 80504 LLC and Registrant is incorporated by reference to Exhibit
10.9 of Registrants Quarterly Report on Form 10-Q for the fiscal quarter
ended December 27, 1997.                                                                                                                                                                                                                                                    
|10.6        | Agreement,  dated as of November 18, 1997,  between  Nippon Sheet Glass Co., Ltd., NSG Fine Glass
Co., Ltd. and Registrant is incorporated by reference to Exhibit 10.8 of Registrant's Annual
Report on Form 10-K for the fiscal year ended June 27, 1998.                                                                                                                                                                                                                                                  
|10.7        | Amended and Restated Credit Agreement, dated as of September 17, 1999, between
Registrant and Bank One, Michigan is incorporated by reference to Exhibit 10.7
of Registrants Annual Report on Form 10-K for the fiscal year ended July
3, 1999.                                                                                                                                                                                                                                                             
|10.8        | Security Agreement dated June 30, 1994, between Registrant and Bank One,
Michigan, formerly NBD Bank, is incorporated by reference to Exhibit 10.5 of
Registrants Registration Statement on Form S-1, as amended (Reg.
333-35331).                                                                                                                                                                                                                                                                          
|10.9        | Outside  Director  Stock  Option  Plan  is  incorporated  by  reference  to  Exhibit  4.1 of  Registrant's
Registration Statement on Form S-8 (Reg. No. 333-95367).                                                                                                                                                                                                                                                                                                                                          
|10.10       | Share Purchase and Exchange Agreement dated October 18, 2000, between
Registrant, AFCO GmbH & Co. KG, Balzers Process Systems GmbH and Unaxis
Holding AG is incorporated by reference to Exhibit 2.1 of Registrants
Current Report on Form 8-K/A dated December 31, 2000.                                                                                                                                                                                                                                   
|10.11       | Amendment Agreement dated December 29, 2000, between Registrant, AFCO GmbH &
Co. KG, Balzers Process Systems GmbH and Unaxis Holding AG is incorporated by
reference to Exhibit 2.2 of Registrants Current Report on Form 8-K/A dated
December 31, 2000.                                                                                                                                                                                                                                                    
|10.12       | Contribution Agreement dated December 29, 2000, between Balzers Process Systems
GmbH and Leybold Coating GmbH & Co. KG is incorporated by reference to
Exhibit 2.3 of Registrants Current Report on Form 8-K/A dated December 31,
2000.                                                                                                                                                                                                                                                                     
|10.13       | Bravo Intellectual Property License Agreement dated December 31, 2000, between
Balzers Process Systems GmbH and Leybold Coating GmbH & Co. KG is
incorporated by reference to Exhibit 2.4 of Registrants Current Report on
Form 8-K/A dated December 31, 2000.                                                                                                                                                                                                                                              
|10.14       | Newco Intellectual Property License Agreement dated December 31, 2000, between
Balzers Process Systems GmbH and Leybold Coating GmbH & Co. KG is
incorporated by reference to Exhibit 2.5 of Registrants Current Report on
Form 8-K/A dated December 31, 2000.                                                                                                                                                                                                                                              
|10.15       | Registration Rights Agreement dated December 31, 2000, between Registrant and
Balzers Process Systems GmbH is incorporated by reference to Exhibit 2.6 of
Registrants Current report on Form 8-K/A dated December 31, 2000.                                                                                                                                                                                                                                                                                 



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|10.16  | Securities Purchase Agreement dated January 16, 2001, between Registrant and the
purchasers identified on the signature pages thereto is incorporated by
reference to Exhibit 10.1 of Registrants Current Report on Form 8-K dated
January 16, 2001.
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.17  | Registration Rights Agreement dated January 16, 2001, between Registrant and the
investors identified on the signature pages thereto is incorporated by reference
to Exhibit 10.2 of Registrants Current Report on Form 8-K dated January
16, 2001. 
|10.18  | Common  Stock  Warrant No. 1 dated  January 16,  2001 is  incorporated  by  reference  to Exhibit  10.3 of
Registrant's Current Report on Form 8-K dated January 16, 2001.                                                                           
|10.19  | Common  Stock  Warrant No. 2 dated  January 16,  2001 is  incorporated  by  reference  to Exhibit  10.4 of
Registrant's Current Report on Form 8-K dated January 16, 2001.                                                                           
|10.20  | Common  Stock  Warrant No. 3 dated  January 16,  2001 is  incorporated  by  reference  to Exhibit  10.5 of
Registrant's Current Report on Form 8-K dated January 16, 2001.                                                                           
|10.21  | Common  Stock  Warrant No. 4 dated  January 16,  2001 is  incorporated  by  reference  to Exhibit  10.6 of
Registrant's Current Report on Form 8-K dated January 16, 2001.                                                                           
|10.22* | Lease Agreement  between RWE Systems  Immobilren GmbH & Co.  KG/Lahmeyer  Grandbesitz  GmbH & Co.
KG and Applied Films GmbH & Co. KG dated January 31, 2001 for the Alzenau, Germany facility.                                                       
|10.23* | Commercialization Agreement between The Coca-Cola Company, KRONES AG and Applied
Films GmbH & Co. KG (as assignee of Balzers Process Systems GmbH) effective
September 1, 2000.                                                                      
|11.1   | Statement re: computation of per share earnings.                                                                                                                                                                                                     
|21.1   | Subsidiary  of  Applied  Films  Corporation  is  incorporated  by  reference  to  Exhibit  21  of
Registrant's Registration Statement on Form S-1, as amended (Reg. No. 333-59984).                                                                  
|23.1*  | Consent of Arthur Andersen LLP.                                                                                                                                                                                                                      
|23.2   | Consent of PriceWaterhouseCoopers.                                                                                                                                                                                                                   
|24.1*  | Power of Attorney (included on the signature page to the Applied Films
Corporation Form 10-K for the year ended July 1, 2000.                                                                                                                        

*  Previously filed.



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# EXHIBIT 23.2

PricewaterhouseCoopers Zhong Tian
                                                                             Certified Public Accountants Co., Ltd.
                                                                                          12th Floor, Shui On Plaza
                                                                                              333 Huai Hai Zhong Lu
                                                                                                    Shanghai 200021
                                                                                         People's Republic of China
                                                                                       Telephone +86 (21) 6386-3388
                                                                                       Facsimile +86 (21) 6386 3300

CONSENT OF INDEPENDENT ACCOUNTANTS

16 May 2002

As independent public
accountants, we hereby consent to the incorporation by reference in the
Registration Statements of Applied Films Corporation of our report dated 25
January 2002 relating to the financial statements of Suzhou NSG AFC Thin Films
Electronics Co., Ltd. for the year ended 31 December 2001 and 2000, which
appears in the Annual Report to the Shareholders on Form 10-K.

PricewaterhouseCoopers Zhong Tian
Certified Public Accountants Co., Ltd.