Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 April 2017 1 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 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.Huang Jinliang, 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 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 II. Basic information about the company 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 Changes of this period over This period Same period of last year same period of last year Operating income(RMB) 2,169,628,215.08 1,581,690,834.17 37.17% Net profit attributable to the shareholders 392,782,644.51 347,750,532.74 12.95% of the listed company(RMB) Net profit after deducting of non-recurring gain/loss attributable to the shareholders of 290,972,061.96 269,369,501.10 8.02% listed company(RMB) Cash flow generated by business operation, -832,363,127.03 -934,819,444.05 -10.96% net(RMB) Basic earning per share(RMB/Share) 0.08 0.09 -11.11% Diluted gains per 0.08 0.09 -11.11% share(RMB/Share)(RMB/Share) Weighted average return on equity(%) 1.75% 2.40% -0.65% Changes of this period-end End of this period End of last period over same period-end of last year(%) Gross assets(RMB) 47,651,364,079.28 46,826,319,570.41 1.76% Net assets attributable to the shareholders 22,609,481,410.37 22,216,300,365.86 1.77% of the listed company(RMB) Items and amount of non-current gains and losses √ Applicable □ Not applicable In RMB Amount (Year-beginning to the Items Notes end of the report period.) Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s 143,037,216.39 policies) 3 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Gain/loss on loans obtained by entrusting others 1,613,345.11 Other non-operating income and expenditure beside for the above items 148,672.05 Less: Influenced amount of income tax 25,370,571.30 Amount of influence of minority interests(After tax) 17,618,079.70 Total 101,810,582.55 -- 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. 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 number of common 370,545(including 353,006 shareholders Total preference shareholders with the shareholders at the holding A shares and 17,539 shareholders voting power recovered at the end of the 0 period-end holding B shares) reporting period(if any) Shares held by the top 10 shareholders Amount of Pledging or freezing Properties of Share tradable shares Shareholder name Quantity Status of the shareholder proportion % with Conditional Quantity shares held Domestic Non Dongxu Group -State-owned 11.32% 558,968,800 Pledge 558,962,697 legal person Domestic Non Shijiazhuang Baoshi Electronic -State-owned 6.73% 332,382,171 Pledge 153,520,000 Group Co., Ltd. legal person China Fund Management Co., Ltd.-Huaxia Bank-TTCO Trust Co., Ltd.-TTCO Trust Other 4.51% 222,575,516 Co., Ltd.-Shunjing No.5 Single capital trust Minsheng Royal Fund Management Co., Ltd.-Ping An Other 3.71% 183,284,457 Bank-Ping An Trust-Ping An 4 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Wealth* Huitai No.163 Single Fund Trust Sws Mu Fund Management Co.,Ltd.-China Merchants Bank-Huarun Shen State Other 2.25% 111,287,758 investment trust-Ruihua increase funds No. 2 Collective capital trust plan Penghua Fund-Ningbo Bank -Daye Trust-Daye TrustDongxu Optoelectronic Other 2.25% 111,287,758 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 2.24% 110,492,845 Pledge 32,000,000 Technology Co., Ltd. legal person Domestic Non Qianhai Equity Investment -State-owned 2.24% 110,492,845 Pledge 110,492,845 Fund(LP) legal person Nuoan Fund-Xingye 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 Share type Shareholders’ Names shares held Share type Quantity RMB Common Shijiazhuang Baoshi Electronic Group Co., Ltd. 332,382,171 332,382,171 shares Minsheng Royal Fund Management Co., Ltd.-Ping An RMB Common Bank-Ping An Trust-Ping An Wealth* Huitai No.163 Single 183,284,457 183,284,457 shares Fund Trust RMB Common Dongxu Group 119,086,103 119,086,103 shares HuaAn Future Asset-ICBC-No.1 Asset Management Plan of RMB Common 96,774,193 96,774,193 Dongxu Optoelectronic’s Private Placement shares 5 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Bosera Capital-Ping An Bank- Ping An Trust-Ping An RMB Common 83,610,154 83,610,154 Wealth* Huitai No.164 Single Fund Trust shares Bosera Capital-Ping An Bank- Ping An Trust-Ping An RMB Common 34,078,650 34,078,650 Wealth* Huitai No.164 Single Fund Trust shares RMB Common Huijin Asset Management Co., Ltd. 24,205,500 24,205,500 shares RMB Common Xie Xiantuan 17,044,700 17,044,700 shares Foreign shares placed in Cuiyi International Marble Co., Ltd. 6,693,699 6,693,699 domestic exchange RMB Common China Securities Finance Co., Ltd. 6,380,178 6,380,178 shares Among the shareholders , Dongxu Group and Baoshi Group have relationship and constitute persons taking concerted action. The Explanation on shareholders participating in the margin company does not know whether there is relationship between other trading business shareholders or whether they are persons taking concerted action defined in Administrative Measures Relating to Acquisitions of Listed Companies. The natural persons in the top ten Non-restricted common Participation of top 10 unconditional common share stockholders Xie Xiantuan holds 15,688.700 shares through stock shareholders in securities margin trading (if any) account with credit 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 6 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 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 This period Same period of last Increase/ Financial index Main reason for change (RMB) year(RMB) decrease Mainly due to the maturity of the Notes receivable 34,770,496.61 55,340,287.95 -37.17% notes due. Mainly due to the increase in purchasi Prepayments 2,196,690,299.68 862,432,895.10 154.71% ng stockings for business growth Other account Mainly due to the increase in bid 381,737,647.00 186,071,085.24 105.16% receivable bond. Long-term equity Mainly due to increase in equity 492,115,861.67 72,354,803.70 580.14% investment investment. Construction in process 2,482,099,182.83 1,772,629,310.84 40.02% Mainly due to the construction line. Mainly due to the carrying out of Engineering material - 304,468.05 -100.00% engineering materials. Mainly due to advance construction Other non-current assets 204,077,242.49 387,151,100.41 -47.29% projects transferred to construction in progress. Notes payable 218,575,592.00 393,136,676.05 -44.40% Mainly due to the payment due. Mainly due to the increase in advance Advance payment 1,031,020,944.43 414,078,061.38 148.99% payment Mainly due to the increase in the size Interest payable 150,385,512.24 81,610,513.91 84.27% of the financing caused by the increase in interest increase in interest Mainly dividends due to the current Dividend payable - 30,000,000.00 -100.00% payment due. Mainly due to increase market Business income 2,169,628,215.08 1,581,690,834.17 37.17% development efforts to bring income increased Mainly due to an increase in the Business cost 1,492,560,110.09 1,052,404,374.82 41.82% corresponding increase in income. Mainly due to the increase in Financial expenses 162,325,432.04 50,573,117.41 220.97% financial fees due to the vote. Mainly due to the recovery of some Asset impairment loss -545,763.05 406,342.06 -234.31% of the current bad debts. Mainly due to the recognition of the Investment income -1,038,942.03 -219,626.96 373.05% investment income of associates. Non-operational income 143,411,376.32 95,857,790.53 49.61% Mainly due to the increase in 7 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 government subsidies received. Net cash flow arising Mainly due to the construction of the from investment -937,650,599.60 -465,514,552.86 101.42% production line and increase the activities investment of associates. Mainly due to the increase in Net cash flow arising -64,865,997.36 -424,474,217.67 -84.72% borrowings and the increase in capital from financing activities of subsidiaries II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. √Applicable □Not applicable 1. On March 20, 2017, the Proposal about the Plan and its Summary of the company’s Share Issuance and Paying Cash to Purchase the Asset and Raise Matching Funds and the Related Transaction (Revised) and the relevant proposal were examined and approved in the eleventh meeting of the eighth session board of directors. (For details, please see the relevant company’s announcements disclosed on http://www.cninfo.com.cn on March 21). 2. On March 24, 2017, the company received the Inquiry Letter about the Major Asset Restructuring of Dongxu Optoelectronic Technology Co., Ltd (No.6- [2017] Permission-type Inquiry Letter about Restructuring) issued by the management department of Shenzhen Stock Exchange. So the company has made the corresponding supplement and perfection to the Plan of Dongxu Optoelectronic Technology Co., Ltd’s Share Issuance and Paying Cash to Purchase the Asset and Raise Matching Funds and the Related Transaction and the relevant documents. And on March 28, the company disclosed the reply for the Inquiry Letter and the perfection-completed Dongxu Optoelectronic Technology Co., Ltd’s Share Issuance and Paying Cash to Purchase the Asset and Raise Matching Funds and the Related Transaction (Revised) and the relevant supplementary documents. 3. As of now, the company and the relevant intermediaries are actively promoting the audit, evaluation and other work related to the restructuring. When the relevant work is completed, the company will held the board meeting to deliberate the relevant matters of this major asset restructuring, which will be further submitted to the general shareholders’ meeting for deliberation, then after the approval by the general shareholders’ meeting, it will be reported to CSRC etc authoritative institution for approval. According to No.10 Guidance for Business Handling of Listed Companies-Major Asset Restructuring and the relevant provisions of Shenzhen Stock Exchange, the company will timely perform the subsequent approval procedures and the obligation of information disclosure. Description of the website for disclosing Overview of material matters Date of disclosing provisional announcement Summary of the company’s Share Issuance and Paying Cash to Purchase the Asset and Raise Matching Funds March 21,2017 http://www.cninfo.com.cn and the Related Transaction Summary of the company’s Share Issuance and Paying Cash to Purchase the Asset and Raise Matching Funds March 28,2017 http://www.cninfo.com.cn and the Related Transaction (Revised) 8 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period □ Applicable √ Not applicable The company has no commitments completed in period and those without completed till lend of the period from actual controller, shareholders, related parties, purchaser and companies. IV.Prediction of Business performance for January- June 2017 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. Investments in derivatives □ Applicable √ Not applicable There is no derivative investment during the report period. VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference □ Applicable √ Not applicable The Period has no research, communication and written inquiry from the investors in the report period. VIII. External guarantee get out of line □ Applicable √Not applicable The Company has no external guarantee get out of the line in the Period IX. Controlling shareholder and its related parties occupying non-business capital of the listed company □ Applicable √Not applicable There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period 9 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 IV. Financial Statement I. Financial statement 1. Consolidated balance sheet Prepared by:Dongxu Optoelectronic Technology Co., Ltd. March 31,2017 In RMB Items At the end of term Beginning of term Current asset: Monetary fund 24,179,709,619.79 26,056,117,216.86 Settlement provision Outgoing call loan Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable 34,770,496.61 55,340,287.95 Account receivable 1,402,659,640.10 1,652,714,640.77 Prepayments 2,196,690,299.68 862,432,895.10 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Interest receivable Dividend receivable Other account receivable 381,737,647.00 186,071,085.24 Repurchasing of financial assets Inventories 3,377,577,211.05 2,688,967,436.27 Assets held for sales Non-current asset due in 1 year Other current asset 3,149,357,345.49 3,203,453,317.38 Total of current assets 34,722,502,259.72 34,705,096,879.57 Non-current assets: 10 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Loans and payment on other’s behalf disbursed Disposable financial asset Expired investment in possess Long-term receivable Long term share equity investment 492,115,861.67 72,354,803.70 Property investment Fixed assets 8,823,279,226.02 8,952,341,070.47 Construction in progress 2,482,099,182.83 1,772,629,310.84 Engineering material 304,468.05 Fixed asset disposal Production physical assets Gas & petrol Intangible assets 573,860,526.28 578,194,545.68 R & D petrol Goodwill 33,935,384.57 33,935,384.57 Long-germ expenses to be amortized 11,779,218.07 11,756,506.76 Deferred income tax asset 307,715,177.63 312,555,500.36 Other non-current asset 204,077,242.49 387,151,100.41 Total of non-current assets 12,928,861,819.56 12,121,222,690.84 Total of assets 47,651,364,079.28 46,826,319,570.41 Current liabilities Short-term loans 5,120,160,795.48 4,940,816,200.13 Loan from Central Bank Deposit received and hold for others Call loan received Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Bill payable 218,575,592.00 393,136,676.05 Account payable 1,020,947,159.86 1,165,418,491.73 Advance payment 1,031,020,944.43 414,078,061.38 Selling of repurchased financial assets Fees and commissions receivable Employees’ wage payable 38,235,603.09 42,851,392.30 11 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Tax payable 195,846,397.32 224,310,530.71 Interest payable 150,385,512.24 81,610,513.91 Dividend payable 30,000,000.00 Other account payable 113,964,891.66 114,993,136.80 Reinsurance fee payable Insurance contract provision Entrusted trading of securities Entrusted selling of securities Liabilities held for sales Non-current liability due in 1 year 1,463,303,072.23 1,618,589,512.42 Other current liability 82,791,544.65 85,535,473.05 Total of current liability 9,435,231,512.96 9,111,339,988.48 Non-current liabilities: Long-term loan 6,661,139,049.99 6,596,159,000.00 Bond payable 5,656,200,882.00 5,653,912,494.73 Including:preferred stock Sustainable debt Long-term payable 1,436,148,668.94 1,514,308,568.67 Long-term payable employees’s remuneration Special payable Expected liabilities Deferred income 359,740,447.77 380,949,662.27 Deferred income tax liability 407,355.23 413,257.79 Other non-current liabilities 500,000,000.00 500,000,000.00 Total non-current liabilities 14,613,636,403.93 14,645,742,983.46 Total of liability 24,048,867,916.89 23,757,082,971.94 Owners’ equity Share capital 4,939,928,983.00 4,939,928,983.00 Other equity instrument Including:preferred stock Sustainable debt Capital reserves 15,207,609,210.89 15,207,210,810.89 Less:Shares in stock 4,422,320.00 4,422,320.00 Other comprehensive income 12 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Special reserves Surplus reserves 188,044,070.48 188,044,070.48 Common risk provision Undistributed profit 2,278,321,466.00 1,885,538,821.49 Total of owner’s equity belong to the parent company 22,609,481,410.37 22,216,300,365.86 Minority shareholders’ equity 993,014,752.02 852,936,232.61 Total of owners’ equity 23,602,496,162.39 23,069,236,598.47 Total of liabilities and owners’ equity 47,651,364,079.28 46,826,319,570.41 Legal Representative: Li Zhaoting Person in charge of accounting:Huang Jinliang Accounting Dept Leader: Gao Feipeng 2.Parent Company Balance Sheet In RMB Items Year-end balance Year-beginning balance Current asset: Monetary fund 11,296,266,230.86 16,951,756,537.76 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable 790,800.00 946,400.00 Account receivable 25,105,051.19 19,896,753.26 Prepayments 3,727,405.89 4,280,852.37 Interest receivable Dividend receivable 570,000,000.00 Other account receivable 6,913,759,450.14 4,925,419,456.78 Inventories 480,521,676.71 500,254,494.97 Assets held for sales Non-current asset due in 1 year Other current asset 1,997,569,211.84 2,000,019,211.84 Total of current assets 20,717,739,826.63 24,972,573,706.98 Non-current assets: Disposable financial asset Expired investment in possess Long-term receivable Long term share equity investment 15,540,652,418.72 11,373,791,986.49 13 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Property investment Fixed assets 48,255,813.56 49,516,721.87 Construction in progress Engineering material Fixed asset disposal Production physical assets Gas & petrol Intangible assets 9,867,728.90 9,951,171.11 R & D petrol Goodwill Long-germ expenses to be amortized Differed income tax asset 3,712,603.85 3,712,603.85 Other non-current asset Total of non-current assets 15,602,488,565.03 11,436,972,483.32 Total of assets 36,320,228,391.66 36,409,546,190.30 Current liabilities Short-term loans 3,495,500,000.00 3,242,500,000.00 Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Bill payable 159,820,750.00 Account payable 147,097,068.96 147,012,816.26 Advance payment 1,450,587.90 10,587.90 Employees’ wage payable 3,698,829.66 3,700,741.68 Tax payable 23,855,398.98 20,970,299.00 Interest payable 142,871,638.05 72,569,720.24 Dividend payable Other account payable 2,848,197,520.85 2,889,692,312.04 Liabilities held for sales Non-current liability due in 1 year 230,000,000.00 400,005,000.00 Other current liability Total of current liability 6,892,671,044.40 6,936,282,227.12 Non-current liabilities: Long-term loan 2,972,216,666.66 2,887,600,000.00 14 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Bond payable 5,656,200,882.00 5,653,912,494.73 Including:preferred stock Sustainable debt Long-term payable Employees’ wage Long-term payable Special payable Expected liabilities Differed income Differed income tax liability Other non-current liabilities Total of Non-current liabilities 8,628,417,548.66 8,541,512,494.73 Total of liability 15,521,088,593.06 15,477,794,721.85 Owners’ equity Share capital 4,939,928,983.00 4,939,928,983.00 Other equity instrument Including:preferred stock Sustainable debt Capital reserves 15,130,590,136.27 15,130,191,736.27 Less:Shares in stock 4,422,320.00 4,422,320.00 Other comprehensive income Special reserves Surplus reserves 169,054,846.15 169,054,846.15 Undistributed profit 563,988,153.18 696,998,223.03 Total of owners’ equity 20,799,139,798.60 20,931,751,468.45 Total of liabilities and owners’ equity 36,320,228,391.66 36,409,546,190.30 3.Consolidated Income statement In RMB Items Amount in this period Amount in last period I. Income from the key business 2,169,628,215.08 1,581,690,834.17 Incl:Business income 2,169,628,215.08 1,581,690,834.17 Interest income Insurance fee earned 15 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Fee and commission received II. Total business cost 1,776,134,801.77 1,250,579,052.09 Incl:Business cost 1,492,560,110.09 1,052,404,374.82 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Net amount provided as insurance contract reserves Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 16,241,789.34 15,952,780.71 Sales expense 13,183,661.54 13,736,690.70 Administrative expense 92,369,571.81 117,505,746.39 Financial expenses 162,325,432.04 50,573,117.41 Asset impairment loss -545,763.05 406,342.06 Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) -1,038,942.03 -219,626.96 Incl: investment gains from affiliates -1,038,942.03 Gains from currency exchange(“-”for loss) III. Operational profit(“-”for loss) 392,454,471.28 330,892,155.12 Add :Non-operational income 143,411,376.32 95,857,790.53 Including:Income from disposal of non-current assets Less:Non business expenses 225,487.88 6,257.47 Incl:Loss from disposal of non-current assets 1,872.47 IV.Total profit(“-”for loss) 535,640,359.72 426,743,688.18 Less:Income tax expenses 104,779,195.80 60,750,772.80 V. Net profit 430,861,163.92 365,992,915.38 Net profit attributable to the owners of parent company 392,782,644.51 347,750,532.74 Minority shareholders’ equity 38,078,519.41 18,242,382.64 VI. Other comprehensive income Net of profit of other comprehensive income attributable to o wners of the parent company. (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 16 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 1.Re-measurement of defined benefit plans of changes in net debt or net assets 2.Other comprehensive income under the equity method inves tee can not be reclassified into profit or loss. (II) Other comprehensive income that will be reclassified into pro fit or loss. 1.Other comprehensive income under the equity method inves tee can be reclassified into profit or loss. 2.Gains and losses from changes in fair value available for sal e financial assets 3.Held-to-maturity investments reclassified to gains and losse s of available for sale financial assets 4.The effective portion of cash flow hedges and losses 5.Translation differences in currency financial statements 6.Other Net of profit of other comprehensive income attributable to M inority shareholders’ equity VII. Total comprehensive income 430,861,163.92 365,992,915.38 Total comprehensive income attributable to the owner of the 392,782,644.51 347,750,532.74 parent company Total comprehensive income attributable minority 38,078,519.41 18,242,382.64 shareholders VIII. Earnings per share (I)Basic earnings per share 0.080 0.09 (II)Diluted earnings per share 0.080 0.09 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB 0, last period the combined party realized RMB 0. Legal Representative: Li Zhaoting Person in charge of accounting:Huang Jinliang Accounting Dept Leader: Gao Feipeng 4. Income statement of the Parent Company In RMB Items Amount in this period Amount in last period I. Income from the key business 29,487,874.98 227,019,059.10 17 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Less:Business cost 23,208,786.32 132,893,796.16 Business tax and surcharge 475,331.94 42,000.00 Sales expense 13.00 Administrative expense 13,924,710.85 13,225,719.79 Financial expenses 123,855,490.95 37,597,734.18 Asset impairment loss Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) -1,039,567.77 -219,626.96 Incl: investment gains from affiliates -1,039,567.77 II. Operational profit(“-”for loss) -133,016,012.85 43,040,169.01 Add :Non-operational income 5,943.00 38,666.93 Including:Income from disposal of non-current assets Less:Non business expenses Incl:Loss from disposal of non-current assets III.Total profit(“-”for loss) -133,010,069.85 43,078,835.94 Less:Income tax expenses IV. Net profit(“-”for net loss) -133,010,069.85 43,078,835.94 V.Net of profit of other comprehensive income (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit plans of changes in net debt or net assets 2.Other comprehensive income under the equity method inves tee can not be reclassified into profit or loss. ( II ) Other comprehensive income that will be reclassified into pro fit or loss. 1.Other comprehensive income under the equity method inves tee can be reclassified into profit or loss. 2.Gains and losses from changes in fair value available for sal e financial assets 3.Held-to-maturity investments reclassified to gains and losse s of available for sale financial assets 4.The effective portion of cash flow hedges and losses 18 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 5.Translation differences in currency financial statements 6.Other VI. Total comprehensive income -133,010,069.85 43,078,835.94 VII. Earnings per share: (I)Basic earnings per share (II)Diluted earnings per share 5. Consolidated Cash flow statement In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or rending of services 3,032,833,392.14 1,492,494,598.14 Net increase of customer deposits and capital kept for brother company Net increase of loans from central bank Net increase of inter-bank loans from other financial bodies Cash received against original insurance contract Net cash received from reinsurance business Net increase of client deposit and investment Net increase of the financial assets that are measured at fair value and whose movement is counted to the current gain and loss Cash received as interest, processing fee and commission Net increase of inter-bank fund received Net increase of repurchasing business Tax returned 104,894,730.99 102,343,332.12 Other cash received from business operation 97,516,700.43 155,626,401.01 Sub-total of cash inflow 3,235,244,823.56 1,750,464,331.27 Cash paid for purchasing of merchandise and services 2,665,116,957.15 2,282,862,743.80 Net increase of client trade and advance Net increase of savings n central bank and brother company Cash paid for original contract claim Cash paid for interest, processing fee and commission Cash paid for policy dividend Cash paid to staffs or paid for staffs 126,878,772.15 140,977,434.66 19 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Taxes paid 249,038,224.88 187,365,571.21 Other cash paid for business activities 1,026,573,996.41 74,078,025.65 Sub-total of cash outflow from business activities 4,067,607,950.59 2,685,283,775.32 Cash flow generated by business operation, net -832,363,127.03 -934,819,444.05 II.Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 6,120,000.00 Sub-total of cash inflow due to investment activities 6,120,000.00 Cash paid for construction of fixed assets, intangible assets 516,959,129.80 164,168,185.45 and other long-term assets Cash paid as investment 420,800,000.00 Net increase of loan against pledge Net cash received from subsidiaries and other operational -108,530.20 307,466,367.41 units Other cash paid for investment activities Sub-total of cash outflow due to investment activities 937,650,599.60 471,634,552.86 Net cash flow generated by investment -937,650,599.60 -465,514,552.86 III.Cash flow generated by financing Cash received as investment 102,000,000.00 500,000.00 Incl: Cash received as investment from minor shareholders 102,000,000.00 500,000.00 Cash received as loans 1,081,719,662.01 575,000,000.00 Cash received from bond placing Other financing –related ash received 67,096,096.38 259,587,557.66 Sub-total of cash inflow from financing activities 1,250,815,758.39 835,087,557.66 982,470,416.67 1,055,801,800.00 Cash paid as dividend, profit, or interests 228,467,740.79 161,509,621.90 Incl: Dividend and profit paid by subsidiaries to minor 30,000,000.00 shareholders Other cash paid for financing activities 104,743,598.29 42,250,353.43 Sub-total of cash outflow due to financing activities 1,315,681,755.75 1,259,561,775.33 20 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 Net cash flow generated by financing -64,865,997.36 -424,474,217.67 IV. Influence of exchange rate alternation on cash and cash 16,374,381.48 2,714,265.17 equivalents V.Net increase of cash and cash equivalents -1,818,505,342.51 -1,822,093,949.41 Add: balance of cash and cash equivalents at the beginning of 25,037,335,091.60 11,964,769,404.73 term VI ..Balance of cash and cash equivalents at the end of term 23,218,829,749.09 10,142,675,455.32 6. Cash Flow Statement of the Parent Company In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or rending of services 2,107,000.00 260,102,617.67 Tax returned 77,000.00 Other cash received from business operation 57,349,385.06 159,509,303.96 Sub-total of cash inflow 59,456,385.06 419,688,921.63 Cash paid for purchasing of merchandise and services 7,381,636.42 339,861,960.78 Cash paid to staffs or paid for staffs 3,499,302.53 3,129,144.31 Taxes paid 4,656,775.49 8,001,056.42 Other cash paid for business activities 2,158,426,007.88 485,075,155.07 Sub-total of cash outflow from business activities 2,173,963,722.32 836,067,316.58 Cash flow generated by business operation, net -2,114,507,337.26 -416,378,394.95 II.Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains 570,000,000.00 Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 6,120,000.00 Sub-total of cash inflow due to investment activities 570,000,000.00 6,120,000.00 Cash paid for construction of fixed assets, intangible assets 8,200.00 and other long-term assets Cash paid as investment 4,167,900,000.00 1,392,801,140.00 Net cash received from subsidiaries and other operational 21 Dongxu Optoelectronic Technology Co., Ltd. The First Quarterly Report 2017 units Other cash paid for investment activities Sub-total of cash outflow due to investment activities 4,167,900,000.00 1,392,809,340.00 Net cash flow generated by investment -3,597,900,000.00 -1,386,689,340.00 III.Cash flow generated by financing Cash received as investment Cash received as loans 869,666,666.66 430,000,000.00 Cash received from bond placing Other financing –related ash received Sub-total of cash inflow from financing activities 869,666,666.66 430,000,000.00 Cash to repay debts 702,050,000.00 860,000,000.00 Cash paid as dividend, profit, or interests 87,863,786.81 50,054,483.17 Other cash paid for financing activities 22,835,849.49 Sub-total of cash outflow due to financing activities 812,749,636.30 910,054,483.17 Net cash flow generated by financing 56,917,030.36 -480,054,483.17 IV. Influence of exchange rate alternation on cash and cash equivalents V.Net increase of cash and cash equivalents -5,655,490,306.90 -2,283,122,218.12 Add: balance of cash and cash equivalents at the beginning of 16,951,756,537.76 9,835,157,652.41 term VI ..Balance of cash and cash equivalents at the end of term 11,296,266,230.86 7,552,035,434.29 II. Auditor’ report Is the First Quarterly Report be audited? □ Yes √No The First Quarterly report is not audited. Dongxu Optoelectronic Technology Co., Ltd. Board Chairman: Li Zhaoting Issue day approved by the Board of Directors:April 28,2017 22