The Third Quarterly Report 2016 Stock code :000413,200413 Abbreviation:Dongxu Optoelectronic, Dongxu B Announcement:2016-113 Dongxu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2016 October 2016 1 The Third Quarterly Report 2016 I. Important Notice The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. All of the directors presented the board meeting at which this Quarterly Report was examined. Mr. Li Zhaoting, The Company leader, Mr. Zhou Bo, Chief financial officer and the Mr.Gao Feipeng, the person in charge of the accounting department (the person in charge of the accounting )declare: the financial report carried in this report is authentic and completed 2 The Third Quarterly Report 2016 II. Main financial data and changes of shareholders I.Main financial data and financial index Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not. □ Yes √ No As at the end of the reporting Changed (%)over end of As at the end of last year period prev. year Gross assets(RMB) 39,342,234,739.38 28,798,623,253.33 36.61% Net assets attributable to the shareholders of the listed company 21,766,571,634.57 14,319,481,941.28 52.01% (RMB) Increase/decrease over Between beginning of Changed (%)over Reporting period the same period of last the year to the end of end of prev. year year(%) the report period Operating income(RMB) 1,379,624,393.30 38.15% 4,261,683,547.71 68.92% Net profit attributable to the shareholders of the listed company 255,873,197.91 -24.70% 801,836,908.63 8.37% (RMB) Net profit after deducting of non-recurring gain/loss attributable 158,346,261.62 49.41% 618,240,914.75 95.18% to the shareholders of listed company(RMB) Cash flow generated by business -- -- 1,629,350,095.12 22.47% operation, net(RMB) Basic earning per 0.06 -53.85% 0.20 -28.57% share(RMB/Share) Diluted gains per 0.06 -53.85% 0.20 -28.57% share(RMB/Share)(RMB/Share) Weighted average income/asset 1.51% -2.03% 5.23% -2.54% ratio(%) In RMB Amount from beginning of Items the year to the end of the Notes report period Non-current asset disposal gain/loss(including the write-off part -4,535.74 for which assets impairment provision is made) 3 The Third Quarterly Report 2016 Government subsidies recognized in current gain and loss(excluding those closely related to the Company’s business 195,277,780.91 and granted under the state’s policies) Gain/loss on loans obtained by entrusting others 2,165,094.33 Other non-operating income and expenditure beside for the above 711,781.87 items Less: Influenced amount of income tax 4,418,812.65 Amount of influence of minority interests(After tax) 10,135,314.84 Total 183,595,993.88 -- For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □ Applicable√ Not applicable None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 4 The Third Quarterly Report 2016 II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders In shares Total preference shareholders with Total number of common 314,070(including 296,583 shareholders holding A the voting power 0 shareholders at the period-end shares and 17,487 shareholders holding B shares) recovered at the end of the reporting period(if any) Shares held by the top 10 shareholders Amount of Pledging or freezing Share Properties of tradable shares Shareholder name proportion Quantity Status of the shareholder with Conditional Quantity % shares held Domestic Non Dongxu Group -State-owned legal 11.37% 561,483,467 Pledge 522,238,042 person Domestic Non Shijiazhuang Baoshi Electronic -State-owned legal 6.73% 332,382,171 Pledge 148,856,500 Group Co., Ltd. person China Fund Management Co., Ltd.-Huaxia Bank-TTCO Trust Co., Ltd.-TTCO Trust Co., Ltd. Other 4.51% 222,575,516 -Shunjing No.5 Single capital trust Minsheng Royal Fund Management Co., Ltd.-Ping An Bank-Ping An Trust-Ping An Other 3.71% 183,284,457 Wealth* Huitai No.163 Single Fund Trust Bosera Capital-Ping An Bank- Ping An Trust-Ping An Wealth* Other 3.38% 167,155,426 Huitai No.164 Single Fund Trust Guangzhou Securities-China Guangfa Bank-Guangzhou Securities No.2 Collective Asset Other 2.67% 131,964,809 Management Plan of Kunpeng Dingcheng Sws Mu Fund Management Other 2.25% 111,287,758 Co.,Ltd.-China Merchants 5 The Third Quarterly Report 2016 Bank-Huarun Shen State investment trust-Ruihua increase funds No. 2 Collective capital trust plan Penghua Fund-Ningbo Bank- Daye Trust-Daye TrustDongxu Other 2.25% 111,287,758 Optoelectronic increase funds II Single fund trust STAS Asset Management- Ningbo Bank-Minsheng Trust- China Minsheng TrustZhixin Other 2.25% 111,287,758 No.208 Dongxu Optoelectronic increase collective fund trust plan Domestic Non Shenzhen Taianer Information -State-owned legal 2.24% 110,492,845 Technology Co., Ltd. person Domestic Non Qianhai Equity Investment Fund -State-owned legal 2.24% 110,492,845 (LP) person Nuoan Fund-Industrial Securities-Nanjing Shuangan Other 2.24% 110,492,845 Assets Management Co., Ltd. Shares held by the Top 10 Shareholders of Non-restricted shares Number of the non-restricted shares Share type Shareholders’ Names held Share type Quantity RMB Common Shijiazhuang Baoshi Electronic Group Co., Ltd. 332,382,171 332,382,171 shares RMB Common Dongxu Group 121,600,770 121,600,770 shares RMB Common China Securities Finance Co., Ltd. 54,333,771 54,333,771 shares Bank of China-Huaxia New Economic Mixed RMB Common 36,608,098 36,608,098 Securities Investment Funds shares RMB Common Central Huijin Investment Ltd. 24,205,500 24,205,500 shares RMB Common Xie Xiantuan 16,188,700 16,188,700 shares RMB Common Wang Yong 7,430,000 7,430,000 shares Yinhua Funds-Agricultural Bank of China-Yinhua 6,632,927 RMB Common 6,632,927 6 The Third Quarterly Report 2016 CSI Financial Asset management Plan shares Foreign shares placed in China Merchants Securities(HK) Co., Ltd. 6,199,611 6,199,611 domestic exchange China Mensheng Bank-Yinhua Shenzhen 100 index RMB Common 4,995,557 4,995,557 securities investment fund shares Among the top ten shareholders holding non-restricted negotiable shares, Dongxu Group and Baoshi Group have relationship and constitute persons Explanation on shareholders participating in the margin taking concerted action. The Company does not know whether there is trading business relationship between the other top 8 shareholders holding non-restricted negotiable shares and between such shareholders and the other top 8 shareholders. The natural persons in the top ten Non-restricted common stockholders Participation of top 10 unconditional common share Xie Xiantuan holds 15,688.700 shares through stock account with credit shareholders in securities margin trading (if any) transaction and guarantee of Huatai Securities Co., Ltd., taking 0.32% of the total shares in the company. Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period. □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period. 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period □ Applicable √Not applicable III Significant Events I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes √ Applicable □ Not applicable Amount at the beginning Items in Amount at the end of Rate of No of period Reason for change statements period/ This period change(%) /Same period of last year Monetary Mainly due to sales increase and 1 22,239,580,714.19 12,409,510,170.26 79.21% capital will increase the funds in place 2 Other account 55,197,871.28 65.58% Mainly due to financial leases 7 The Third Quarterly Report 2016 receivable 91,394,960.37 lead to margin Construction in Mainly due to construction in 3 1,896,280,268.51 3,433,016,388.90 -44.76% process progress into fixed assets Other Mainly due to the project 4 non-current 243,279,174.31 52.46% prepayment is reclassified to this 370,900,829.95 assets subject Advances Mainly due to in advance to pay 5 97,920,689.41 255.35% received 347,957,086.36 back the principal Mainly due to Zhengzhou Xufei, Other account Shijiazhuang Xuxin new 6 539,796,113.78 -64.58% payable 191,189,379.56 shareholders to pay the original equity Non-current Mainly due to financial leases and 7 liability due in 1 1,665,978,540.07 876,987,200.00 89.97% borrowings increased year Long-term Mainly due to increase in 8 57,000,000.00 1561.51% account payable 947,062,155.36 financial leasing Deferred Mainly due to leaseback 9 246,925,387.61 41.33% income 348,982,112.26 leaseback Mainly due to the current high-end equipment and technical Operational 10 4,261,683,547.71 2,522,921,170.69 68.92% services, LCD glass substrate, income sapphire material sales revenue increased Mainly due to the increase in 11 Operational cost 2,883,454,282.36 1,526,856,989.57 88.85% sales revenue led to an increase in operating costs Mainly due to increase in the company's income and the corresponding expenditure of the 12 Sales expense 28,022,381.82 72.75% 48,408,463.62 shipping costs, wages and benefits, advertising and other increase Mainly due to provision for bad Asset 13 -4,875,826.03 217.72% debts is increased in the current impairment loss 5,739,824.95 period Non-operational Mainly due to reduction in 14 504,291,218.44 -61.09% income 196,230,891.80 government grants received Net cash flow Mainly due to increase funds in 15 8,960,824,235.97 2,105,064,497.79 325.68% generated by place 8 The Third Quarterly Report 2016 financing II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. √ Applicable □ Not applicable On July 28, 2016, the China Securities Regulatory Commission (CSRC) issued the Reply on Approval of Non-public Issuance of Shares by Dongxu Optoelectronic Technology Co.,Ltd by CSRC [2016] No. 1322 and approved the company’s non-public share-issuance of issuing no more than 1,104,928,457 new shares. On August 12, 2016, Zhongxing Caiguanghua Certified Public Accountants (Special General Partnership) issued the Capital Verification Report of ZXCGHSYZ (2016) No. 105007 to verify the non-public to issue 1,104,928,457 ordinary shares (A shares)(par value per share is RMB 1.00) with the issuing price of 6.29 yuan / share, and the company has totally raised RMB 6,949,999,994.53. On August 18, 2015, the company has completed the registration and trusteeship procedure of the shares issued in the non-public share-issuance in China Securities Depository and Clearing Co., Ltd Shenzhen Branch. August 26, 2016, the new shares have been listed on the Shenzhen Stock Exchange, the limited period of 12 months, is expected to be traded on August 26, 2017 (in case of non-trading days postponed) Description of the website for disclosing provisional Overview of material matters Date of disclosing announcements Non-public offering through China Securities Journal , Securities Times, Shanghai Securities May 19,2016 examination News ,Hong Kong Commercial Daily and www.cninfo.com.cn. The CSRC issued a formal hair China Securities Journal , Securities Times, Shanghai Securities July 28,2016 staling document News ,Hong Kong Commercial Daily and www.cninfo.com.cn. China Securities Journal , Securities Times, Shanghai Securities Listing Report August 25,2016 News ,Hong Kong Commercial Daily and www.cninfo.com.cn. III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period √ Applicable □ Not applicable Time of Period of Commitment Fulfillme Commitment Type Contents making commitme maker nt commitment nt If listed companies plans to sell tradable stocks Shijiazhuang through the bid trading system of Shenzhen Baoshi Share Stock Exchange and sell greater than 5% of Under Commitment on March 29, Long-term Electronics reduction shares within six months after the first sales, Fulfillme share reform 2007 effective Group Co., commitment will disclose the contents specified by the Form nt Ltd Guide to Prompt Announcement of Removing Restriction on Sales of Non-tradable Stocks of 9 The Third Quarterly Report 2016 Listed Companies through the prompt announcement of disclosing sales of listed companies. Commitment in the acquisition report or the report on equity changes Commitment made upon the assets replacement 1.From the date of commitment letter issued, except the managed hosting company for Dongxue Optoelectronic , this company and majority-owned subsidiaries do not in any way, directly or indirectly engaged in business and Dongxue Optoelectronic and its subsidiaries are the same, or similar, future Dongxue 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 the control relationship of Dongxu Optoelectronic Commitmen interests and its wholly-owned subsidiaries, ts on holding, or causing Dongxue Optoelectronic horizontal Commitments shares and its wholly-owned subsidiaries, Under competition, December Long-term made upon Li Zhaoting holding form business competition decisions. 3. Fulfillme related 22, 2011 effective issuance The company will not directly invest, purchase nt transaction and Dongxu Optoelectronic identical or similar and capital business enterprises and projects. occupation 4.If the assets owned by the Dongxu Optoelectronic . compete with , the company will adopt effective measures and give up the same business.5. If the reason of the oneself is the cause of horizontal competition with Baoshi Stock and resulted in losses to Baoshi Stock, the oneself will bear the relevant full responsibilities.6. Under the circumstance with in accordance with securities regulatory conditions, the oneself promised that all the stake that entrusted to the escrow company managed by Baoshi Stock will be injected 10 The Third Quarterly Report 2016 into Baoshi Stock. As long as the oneself is the actual controller of Baoshi Stock, the commitment is valid. 1.From the date of commitment letter issued, except the managed hosting company for Dongxue Optoelectronic , this company and majority-owned subsidiaries do not in any way, directly or indirectly engaged in business and Dongxue Optoelectronic and its subsidiaries are the same, or similar, future Dongxue 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 the control relationship of Dongxu Optoelectronic interests and its wholly-owned subsidiaries, holding, or causing Dongxue Optoelectronic shares and its wholly-owned subsidiaries, Dongxu holding form business competition decisions. 3. Group, The company will not directly invest, purchase Commitmen Dongxu and Dongxu Optoelectronic identical or similar ts on Optoelectronic business enterprises and projects. horizontal Investment 4.If the assets owned by the Dongxu Under competition, Long-term Co., Ltd., Optoelectronic . compete with , the company April 1,2012 Fulfillme related effective Shijiazhuang will adopt effective measures and give up the nt transaction Baoshi same business. 5. If the company has horizontal and capital Electronics competition with Dongxu Optoelectronic and occupation Group Co., lead to lose to it, the company will bear all the Ltd responsibilities.6. Before December 31, 2015, by way of designated placement, the company will transfer all the shares that Dongxu Optoelectronic Investment, entrusted to Zhengzhou Xufei company and all the shares that are entrusted to Baoshi Group, to Dongxu Optoelectronics; Before December 31, 2016, by way of designated placement, the company will transfer all the shares that Dongxu Group entrusted to Dongxu Yingkou and Sichuan Xuhong to Dongxu Optoelectronics. Within the time limit mentioned above, if there were the external factors such as a depression of industry as a whole, or the changes in regulatory requirements, which lead to the result that the shares of hosting company can not meet the 11 The Third Quarterly Report 2016 requirements of capital investment, Li Zhaoting, the actual controller, Dongxu Optoelectronic Investment , Dongxu Group and Baoshi Group as well as the company will actively negotiate with related parties, continue to entrust the above mentioned shares and the power of management to Dongxu Optoelectronics. Within the period when the company is still the controlling shareholder of Dongxu Optoelectronics, the commitments are in effect. Dongxu Group Co., Ltd. subscribed for 25.01% Share of the shares privately issued by the Company Dongxu April April Complete limited and promised that the period of sale restriction Group 18,2013 18,2016 d commitment of such shares was 36 months from the first day of listing. In view of:The main business of Dongxu Optoelectronic is the production of TFT-LCD glass substrate, and the company now is applying for non-public offering of ,bonds (2) Dongxu Group is the controlling shareholder of Dongxu Optoelectronic; and during the period of holding, Dongxu Group has signed patent license contracts separately with Dongxu Optoelectronic and its subsidiaries including Wuhu Dongxu Optoelectronic Science and Technology Co., Ltd. (hereinafter referred to as Wuhu Optoelectronic), Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. Other Valid for 5 Under Dongxu (hereinafter referred to as Wuhu Equipment) February Commitmen years Fulfillme Group and Shijiazhuang Dongxu Optoelectronic 8,2015 t nt Equipment Technology Co., Ltd. (hereinafter referred to as Shijiazhuang Equipment). For this purpose, Dongxu Group has made following promises: Any patents related to panel display glass substrate not included in the aforesaid Contract on the Licensing of Patent Exploitation obtained by Dongxu Group in the future, Dongxu 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 12 The Third Quarterly Report 2016 the former patent licensing contract. After the company successfully completed the issuance of corporate bonds, whether Dongxu group control the company during the duration of the bonds, Dongxu 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. Dongxu investment/Baoshi group promised the net profit level of the next three years and profit compensation scheme in respective to Xuxin Optoelectronic Technology Co., Ltd as follows: The Net profits after deducting non-recurring gain or loss that are attributable to Xuxin Optoelectronic Technology Co., Ltd in year 2015, year 2016, year 2017, year 2018 shall Dongxu accordingly be not less than Optoelectronic Performance RMB23.3488million, RMB55.4205million, Investment commitment RMB 86.6277million, RMB 158.345 million. If Co., Ltd., and Under any year’s actual net profits are less than the March December Shijiazhuang compensatio Fulfillme estimated profits as aforesaid within the 2,2015 31,2018 Baoshi n nt compensation period, Baoshi group shall make Electronics arrangement up the difference in accordance with the Group Co., s aforesaid principles in cash to Dongxu Ltd Optoelectronic Technology Co., Ltd; If the actual net profits are not less than the estimated profits, there is no need for Dongxu investment Baoshi group to carry out the compensation. The compensation period includes the year contained the date on which the transaction completed and the subsequent two consecutive accounting years. In view of: The main business of Dongxu Optoelectronic is the production of TFT-LCD glass substrate, and Other Under Dongxu the company now is applying for non-public June 17, Long-term Commitmen Fulfillme Group offering of stock; (2) Dongxu Group is the 2015 effective t nt controlling shareholder of Dongxu Optoelectronic; and during the period of holding, Dongxu Group has signed patent 13 The Third Quarterly Report 2016 license contracts separately with Dongxu Optoelectronic and its subsidiaries including Wuhu Dongxu Optoelectronic Science and Technology Co., Ltd. (hereinafter referred to as Wuhu Optoelectronic), Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. (hereinafter referred to as Wuhu Equipment) and Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd. (hereinafter referred to as Shijiazhuang Equipment). For this purpose, Dongxu Group has made following promises: within the term of validity involving patent right stated in patent license contracts, whether Dongxu Optoelectronic is in the control of Dongxu Group or not, Dongxu Group promises that when the above mentioned patent license contracts expire, the group will unconditionally renew the contracts with Dongxu Optoelectronic and its subsidiaries (Wuhu Optoelectronic, Wuhu Equipment, Shijiazhuang Equipment and etc) according to the terms of original contracts based on the requirements of Dongxu Optoelectronic. To avoid the horizontal competition with the issuer, the company’s actual controller-Zhaoting, Li and the holding company-Dongxu 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 Commitmen indirectly controlled by the controller or ts on holding company have no horizontal horizontal Li Zhaoting; competitions with Dongxu Optoelectronic December Under competition, Long-term Dongxu Technology Co., Ltd. 2. Any other companies 16, Fulfillme related effective Group controlled by the actual controller or holding 2015 nt transaction company shall avoid businesses identical or and capital similar to the company may lead to a occupation competitive relation and cannot do any harm activities to Dongxu Optoelectronic Technology Co., Ltd and companies controlled by Dongxu Optoelectronic Technology Co., Ltd as long as there are no alterations of the actual controller and the holding company. Any businesses opportunities under the main business scope of 14 The Third Quarterly Report 2016 Dongxu 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 Dongxu 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 competition. Dongxu Group;Changj The company, one of the subscription objects, iang Securities promised that after Dongxu Optoelectronic (Shanghai )As Technology Co., Ltd completed the non public set issuance of shares to the company and specific Management objects for raising funds, the shares (New Co., shares) issued by Dongxu Optoelectronic Ltd.;Kunshan Share Technology Co., Ltd and subscribed by the Under Development December16 December limited company shall not be transferred to any others Fulfillme Zone State ,2015 16,2018 commitment in 36 months commenced from the publicly nt Investment listed date of the new shares. As a result of the Co., issuance of new shares by the Company to the Ltd.;Beijing Company, the shareholding of Dongxu Yingfei Hailin Optoelectronic Co., Ltd. by Dongxu Investment Optoelectronic Co., Ltd. will also be subject to Center the above commitments. (Limited partnership). Guangzhou Securities Co., Ltd., Huaan It was promised that after Dongxu Future Asset Optoelectronic Technology Co., Ltd completed Management the non public issuance of shares to the (Shanghai) Share Under company and specific objects for raising funds, December16 December Co., limited Fulfillme the new shares subscribed by the company shall ,2015 16,2016 Ltd.;Minsheng commitment nt not be transferred to any others in 12 months Bank Fund commenced from the publicly listed date of the Management new shares Co., Ltd.; Boshi Assets Management 15 The Third Quarterly Report 2016 Co., Ltd. In view of: Dongxu Optoelectronic Technology Co., Ltd. is applying for public offering of corporate bonds, and the total scale of bonds will not exceed 1 billion yuan. 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 Dongxu To raise satisfied. The company promises: 1. The funds Under Optoelectronic funds to use February 10, Valid for 5 raised through the public offering of corporate Fulfillme Technology the 2016 years bonds will not be directly or indirectly invested nt Co., Ltd. commitment 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. The term of validity of the promises is consistent with the duration of the corporate bonds issued in the company this time. Qianhai The subscription of this issue a total of nine, Equity namely Qianhai Equity Investment Fund Investment (LP);AEGON-Industrial Fund,Shenzhen Fund Taianer Information Technology Co., (LP);AEGON- Ltd.,Penghua Fund Management Co., Industrial Ltd.;China Fund Management Co., Ltd.,China Fund;Shenzhe Life AMP Asset Management Co., Ltd.,Nuoan n Taianer Fund Management Co., Ltd.,Zhongou STAS Information Share Asset Management(Shanghai)Co., Ltd. And Under August August Technology limited Sws Mu Fund Management Co., Ltd.The Fulfillme 26,2016 25,2017 Co., commitment aforesaid issuer has issued the following nt Ltd.;Penghua commitments on the non-public issue of shares: Fund The allocated shares shall not be transferred Management within 12 months from the date of listing of the Co., new shares and apply for new shares in the new Ltd.;China shares within 12 months Increase the shares to Fund lock. Management Co., 16 The Third Quarterly Report 2016 Ltd.;China Life AMP Asset Management Co., Ltd.;Nuoan Fund Management Co., Ltd.;Zhongou STAS Asset Management( Shanghai)Co., Ltd.;Sws Mu Fund Management Co., Ltd. Equity incentive commitment Jixing New Material Investment (HK) Co., Ltd. and Lubao, Wang (The legal representative of the company (HK)) jointly promised that the net profits after tax attributable to Jixing New Performance Material Investment Co., Ltd in year 2015, year Wang Lvbao, commitment 2016, year 2017 shall accordingly be not less Jixing New and Under than RMB30 million, RMB60 million, RMB January Long-term Material compensatio Fulfillme 100 million. If the net profits attributable to 20,2015 effective Investment n nt Jixing New Material Investment Co., Ltd after (HK) Co., Ltd. arrangement audited in any year of year 2015, year 2016 and Other s year 2017 are less than the promised net profits, commitments the difference shall be compensated by Jixing made to New Material Investment (HK) Co., Ltd. and minority Lubao, Wang in cash. shareholders Not act in excess of authority to interfere the Dongxu Other Under company’s management and operating February Long-term Group,Li Commitmen Fulfillme activities, not encroach on the interests of the 6,2016 effective Zhaoting t nt company. Li Zhaoting, (a) Promised that not freely or unfairly transfer Zhou Bo,Niu interests to other units or individuals, nor adopt Other Under Jianlin, Gong other ways to jeopardize the company’s February Long-term Commitmen Fulfillme Xin, Lu interests. (b) Promised that restrict the post 6,2016 effective t nt Guihua, Mu consumer behaviors of the directors and senior Tiehu, Zhang management personnel. (c) Promised that not 17 The Third Quarterly Report 2016 Shuangcai, use the company's assets to engage in the Shi Zhiqiang , investment &consuming activities which are Liu irrelevant to perform the duties. (d) Promised Wentai,Xiao that the salary system set up by the board of Zhaoxiong directors or the Remuneration Committee is and Zhou Bo relevant to the implementation status of the company’s fill-up return measures. (e) Promised that the vesting conditions of the company’s equity incentive are relevant to the implementation status of the company’s fill-up return 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 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. To ensure Dongxu Optoelectronic Technology Co., Ltd realizing expected benefits on the M&A of Shanghai Tanyuan Huigu New Materials Technology Co., Ltd, the promisee voluntarily promised the profits of Shanghai Performance Guo Shouwu, Tanyuan Huigu New Materials Technology Co., commitment Ma Shengjie, Ltd for the next three years as follows: (a) and Under Wu Haixia , Business performance commitment: the net March December compensatio Fulfillme Shen profits of Shanghai Tanyuan Huigu New 8,2016 31,2019 n nt Wenzhuo and Materials Technology Co., Ltd in year-2016, arrangement Shen Li year-2017, year-2018 shall accordingly not be s less than RMB 5 million, RMB 10 million, RMB 20 million. (b) Compensation mode: if the net profits of Shanghai Tanyuan Huigu New Materials Technology Co., Ltd in year-2016, year-2017, year-2018 accordingly do not reach 18 The Third Quarterly Report 2016 the promised net profits, the promised party shall fully compensate the difference by cash. Executed timely Yes or not? Notes: The above-mentioned commitment party Mu Tiehu, Zhou Bo, Niu Jianlin, Shi Zhiqiang, Xiao Zhaoxiong have been elected as a director of the board of directors is no longer a senior executive positions. IV.Prediction of Business performance for 2016 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason. □ Applicable√ Not applicable V. Investment in securities □ Applicable √Not applicable No Securities investment in period VI. Investment in derivatives □ Applicable √Not applicable There is no derivative investment during the report period. VII. Registration form of such Activities as Reception, Research, Communication, Interview in the Reporting Period √Applicable □Not applicable Reception time Way of reception Types of visitors Basic index Shenzhen Stock Exchange site February 18,2016 By Phone Organization interactive company zone Shenzhen Stock Exchange site March 10,2016 Field research Organization interactive company zone Shenzhen Stock Exchange site September 8,2016 Field research Organization interactive company zone January 1,2016 to September 30,2016 By Phone Individual None VIII. Outward Guarantee against the Regulations □ Applicable √ Not applicable The Company had no guarantee outside against the regulation in the reporting period. IX. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related Parties □ Applicable √ Not applicable The Company had no non-operational fund occupation from controlling shareholders and its related party. 19 The Third Quarterly Report 2016 Dongxu Optoelectronic Technology Co., Ltd. Board Chairman: Li Zhaoting Issue day approved by the Board of Directors:October 31,2016 20