Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Dongxu Optoelectronic Technology Co., Ltd.
The Semi-annual Report 2016
August 2016
1
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
I. Important Notice, Table of Contents and Definitions
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the
Company hereby guarantees that there are no misstatement, misleading representation or important omissions in
this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the
contents hereof.
All the directors attended the board meeting for reviewing the semi-annual Report.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
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 )hereby confirm the
authenticity and completeness of the financial report enclosed in this semi-annual report.
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Table of Contents
2016 Semi-Annual Report
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Highlights and Business Highlights
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Financial Report
X. Documents available for inspection
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Definition
Terms to be defined Refers to Definition
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Dongxu Group Refers to Dong Xu Group Co., Ltd.
Baoshi Group Refers to Shijiazhuang Baoshi Electronics Group Co., Ltd
Dongxu Optoelectronic , Company, The
Refers to Dongxu Optoelectronic Technology Co., Ltd.
Company
Zhengzhou Xufei Refers to Zhengzhou Xufei Optoelectronic Technology Co., Ltd.
Dongxu（Yingkou）Optoelectronic Refers to Dongxu（Yingkou）Optoelectronic Display Co., Ltd.
Sichuan Xuhong Optoelectronic Refers to Sichuan Xuhong Optoelectronic Technology Co., Ltd.
Shijiazhuang Xuxin Refers to Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd.
Wuhu Dongxu Optoelectronic Technology Co., Ltd., was the
Wuhu Optoelectronic Refers to implementation unit of the non-public item to raise money for and invest
in of “The Project of Production Line for Panel Display Plate” in 2013
Wuhu Equipment Refers to Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.
Shijiazhuang Equipment Refers to Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd.
Dongxu（Kunshan）Display material Co., Ltd.， In 2015, was the
Dongxu (Kunshan ) Refers to implementation unit of the non-public item to raise money for and invest
in “Project of Production Line for the 5th-generation CF for TFT-LCD”.
Shanghai Tanyuan Huigu Refers to Shanghai Tanyuan Huigu New Material Technology Co., Ltd.
Beijing Xutan Refers to Beijing Xutan New Material Technology Co., Ltd.
Shenzhen Xuhui Refers to Shenzhen Xuhui Investment Holdings Co., Ltd.
Beijing Dongxu Huaqing Refers to Beijing Dongxu Huaqing Investment Co., Ltd.
Fuzhou Dongxu Optoelectronic Technology Co., Ltd.，In 2016, was the
implementation unit of the non-public item to raise money for and invest
Fuzhou Dongxu Refers to
in “Project of Production Line for the 8.5th-generation Glass glass
substrate for TFT-LCD”.
BOE Refers to BOE Technology Group Co., Ltd.
IVO Refers to Infovision Optoelectronics Co., Ltd.
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
CPT Refers to Chunchwa Picture Tubes Co., Ltd.
CRT Refers to Cathode Ray Tube
TFT-LCD Refers to Thin Film Transistor Liquid Crystal Display
A thin glass sheet with extremely smooth surface is a basic component of
constituting LCD display device as well as one of the critical basic
Glass substrate Refers to materials in panel display industry. The glass sheet can be divided into
various generations by its size, and the higher the generation is, the bigger
the size will be.
G5 glass substrate Refers to The size of the 5th-generation glass substrate is 1100 mm×1300 mm.
G6 glass substrate Refers to The size of the 6th-generation glass substrate is 1500 mm×1850 mm.
G8.5glass substrate Refers to The size of the 8.5th-generation glass substrate is 2200mm×2500mm
CF Refers to Critical original materials of LCD panel for realizing colorization display
A two-dimensional carbon material composed of carbon atoms closely
Polaroid Refers to and cyclically packed by benzene ring structures (ie, hexagonal
honeycomb structures)
A two-dimensional carbon material composed of carbon atoms closely
Single-layer grapheme Refers to and cyclically packed by benzene ring structures (ie, hexagonal
honeycomb structures)
Refers to two-dimensional carbon materials related to grapheme, with a
Grapheme materials Refers to
layer less than 10 carbon atoms
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
II. Basic Information of the Company
1. Company Information
Stock abbreviation Dongxu Optoelectronic, Dongxu B Stock code： 000413、200413
Stock abbreviation after
Dongxu Optoelectronic, Dongxu B
change (if any)
Stock exchange for listing： Shenzhen Stock Exchange
Name in Chinese 东旭光电科技股份有限公司
Chinese Abbreviation 东旭光电
English name (If any) Dongxu Optoelectronic Technology Co., Ltd.
English abbreviation (If any) Dongxu Optoelectronic
Legal Representative Li Zhaoting
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Gong Xin Wang Qingfei
No.5 Court, No.23 A Fuxing Road, No.5 Court, No.23 A Fuxing Road,
Contact address
Haidian District, Beijing Haidian District, Beijing
Tel 010-68297016 010-68297016
Fax 010-68297016 010-68297016
E-mail gongxin_dx@126.com baoshixzb@126.com
3. Other
(1). Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in
reporting period, found nore details in annual report 2015.
(2). Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
please find the Annual Report 2015.
(3). Change of business registration
Whether the registration has changed during the report period
Applicable
√ Applicable □Not applicable
Business license Tax registration Organization
Registration date Registration place
No. No. Code
Shijiazhuang
Registration at the beginning Administration for 911301001043959
January 7,2016 130111104395983 10439598-3
industry & 836
of the period
Commerce
Shijiazhuang
Registration at the end of the Administration for 911301001043959
April 28,2016 130111104395983 10439598-3
industry & 836
period
Commerce
The date of the announcement
of the designated website for
February 17,2016
the interim announcement（If
any）
Internet website designated by
CSRC for the interim
http://www.cninfo.com.cn
announcement of the
Company（If any）
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
III. Summary of Accounting data and Financial index
1.Major accounting data and /Financial indexs
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□ Yes √ No
Increase/decrease over the
Reporting period Same period of last year
same period of last year（%）
Operating income（RMB） 2,882,059,154.41 1,524,242,723.90 89.08%
Net profit attributable to the shareholders
545,963,710.72 400,081,730.63 36.46%
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 459,894,653.13 182,980,317.37 151.34%
listed company（RMB）
Cash flow generated by business operation,
1,281,108,942.94 54,777,798.87 2,238.74%
net（RMB）
Basic earning per share(RMB/Share) 0.14 0.15 -6.67%
Diluted gains per
0.14 0.15 -6.67%
share(RMB/Share)(RMB/Share)
Weighted average income/asset ratio（%） 3.79% 5.14% -1.35%
As at the end of the Changed （%）over end of
As at the end of last year
reporting period prev. year
Gross assets（RMB） 33,483,031,894.59 28,798,623,253.33 16.27%
Shareholders’ equity attributable to
14,568,550,417.60 14,319,481,941.28 1.74%
shareholders of the listed company（RMB）
II.The differences between domestic and international accounting standards
1. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not applicable
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
Not applicable
III.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Items Amount Notes
Fixed assets disposal of profits
Gains/Losses on the disposal of non-current assets -4,430.74
and losses
Government grants recognized in the current period, except
forthose acquired in the ordinary course of business or granted at
103,218,866.64 Government grants
certain quotas or amounts according to the country’s unified
standards
Gain/loss on loans obtained by entrusting others 1,500,000.00 Entrusted income
Other non-operating income and expenditure beside for the above
282,354.44
items
Less: Influenced amount of income tax 14,800,733.73
Amount of influence of minority interests 4,126,999.02
Total 86,069,057.59 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/itesm as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
IV. Report of the Board of Directors
I. General
2016 is an important year for the implementation of Dongxu Optoelectronic strategy, the Company in the
first half of 2016 mainly focuses on the construction of advanced generation substrate production lines, deepens
the market layout of the existing products, and vigorously promotes the lateral extension of the new material filed
and steadily promotes its production and business activities. In the first half of 2016, led by the Board of Directors
and the management, as well as with the tireless efforts of all staff, the Company’s leading position in the liquid
crystal glass substrate filed has been reinforced, with the smooth layout of the optoelectronic display materials and
graphene business, forming good industrial collaboration and clustering effects. During the reporting period, the
Company achieves an operating income of RMB 2.882 billion, an increase of 89.08 percent over the same period
in 2015 of RMB 1.524 billion; the net profit attributable to the parent Company of RMB 546 million, an increase
of 36.46 percent over the same period in 2015 of RMB 400 million.
The Company’s business in the first half of 2016 focuses on the following five aspects:
(1). Strengthen its leading position in the liquid crystal glass substrate, and fill in the localization
vacancy of generation 8.5
As of the reporting period, the Company has respectively ignited six G6 and seven G5 liquid crystal glass
substrate production lines, and five production lines of each are mass production. In the first half, the liquid
crystal glass substrate market is stabilized and good, the Company achieving sales income of RMB 537 million,
an increase of 22.25 percent, compared with the same period in 2015. With the pre-construction and the
accumulation of the operating experience, the yields of the Company’s G5 and G6 liquid crystal glass substrate
production lines continue to rise, up to over 90%. In the first quarter of 2016, Taiwan earthquake affected some
panel makers’ process, but because the Company has comprehensively covered the of mainstream customers in
mainland China and Taiwan, and it has higher industrial safety and stability, the earthquake didn’t affect the sales
of the glass substrates, and the market in Taiwan went back to normal in the second quarter. In addition, in
response to the upgrade pressure from the future display technology, the Company’s LTPS (low temperature
poly-silicon) glass substrate product development achieves substantive results.
Through years of technical reserves as well as ongoing research and development, drawing on the valuable
experience in the successful operation of G5 and G6 liquid crystal glass substrate production lines, the Company
has mastered the core production technology of generation 8.5 TFT-LCD glass substrates. To grasp the industry
opportunities of the localization of liquid crystal glass substrates, closely follow the industry trend of the panel
display products towards large-size and advanced generation, maintain its leading position in the domestic market,
and strengthen the comprehensive competitiveness of the Company, in February 2016, the Company disclosed the
nonpublic offering plan, intended to invest the generation 8.5 liquid crystal glass substrate production line, and
this project was constructed to support the BOE generation 8.5 panel production line, situated in Rongqiao
Development Zone, Fuzhou, and officially started construction in March of this year.
(2). Continue to put forth the strength of high-end equipment business and expand intelligence
manufacturing based on panel display
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Glass substrate High-End Equipment and technical service, control system and other special equipment are
mostly customized products, as it involves the core technology, confidentiality of the production process, and
market competition, prior to 2014, the Company mainly provides design, production, manufacture, installation
and technical service of the outfit for its subordinate company TFT-LCD glass substrate production line and
hosting company aluminous cover glass production line. With the basic completion of the construction of its own
production line, based on years of experience in the field of electronic glass equipment manufacturing, its
high-end equipment business began to turn to the in vitro market and the Company develops in depth in the
The Company’s independent research and development (R & D) breaks through the foreign blockade and lays
a solid foundation for the front equipment with the highest-tech among the electronic equipment, against the
background of the equipment replaces the manual labor in the industry manufacture, and high- efficient
production, the Company’s High-End Equipment and technical service business continued to expand, and
gradually supplies products for the domestic high-end customers, but also gets involved in the panel industry
equipment supply. During the reporting period, the Company’s High-End Equipment and technical service
business achieved an operation income of RMB 1.68 billion, and it has developed and reserved a large number of
large group customers in intelligent application filed.
(3). Industrial cluster effects begins to show due to the core photoelectric display material layout
For the realization of the strategic objective of being “China’s largest manufacturer of optoelectronic display
materials”, closely follow the world trend of display technology and innovation, the Company, based on
continuously consolidating and enhancing the foundation of the principal industry of liquid crystal glass substrate,
combined with the main industry, continues to extend new business areas, and now it has successfully distributed
three high-end display materials including sapphire, color filter and polaroid. During the reporting period, the
Company carried out a partial sapphire business expansion and its market expansion is smooth, achieving an
operating income of RMB 220 million, an increase of 400% over the same period in 2015, and the current
products include large-size sapphire ingots, 2-6 inch sapphire crystal rods, 2 -6 inch sapphire substrates, optical
window materials, and it has the stable customers such as Xuzhou GAPSS OE Technology Co., Ltd., North
Microelectronics, and Sino Nitride Semiconductor Co., Ltd.
The Company’s 5th generation TFT-LCD color filter production line is under construction, and when
achieving the production target it will effectively increase the added value of the existing G5 liquid crystal glass
substrate products, and become a new profit growth point of the Company. In addition, in order to quickly seize
the domestic large-size liquid crystal panel business’ demand for polarizing plates, and effectively fill in the
domestic vacancy of original volume production of polaroid, in February 2016, the Company, cooperating with
the Sumitomo Chemical Company, one of the world’s top three polaroid production companies, jointly march
towards the polaroid industry, proposed to register a joint venture company, Wuxi Xuyou Material and
Technology Co., Ltd., the Company invested about RMB 500 million, holding 51%, and now the antitrust review
on the concentration of operations is conducted by the Commerce Department.
(4). Fit the trend of new urbanization construction, and maintain the stability of the construction and
installation services
As the Company’s traditional business, the construction and installation business plays an important role in
helping the production line construction, and contracting external projects, effectively reducing the Company’s
operating costs and enhancing the efficiency of the production line construction. With increasingly clear
development strategy of the Company, the main task of the construction and installation business is to serve the
existing core business, and play a role in production line construction and maintenance of factory buildings, and
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
on the other hand, against the background of the current new urbanization policies, the construction and
installation business shall use its advantages to maintain steady growth. The Company’s construction and
installation business is mainly done by Hebei Xubao and Sichuan Ruiyi, and achieved total operation income of
RMB 435 million during the reporting period, essentially flat with a year earlier.
(5). Parallel the asset acquisition and industrial fund, and complete the multi-point distribution of
graphene business
Based on graphene’s excellent performance in heat conduction and electrical conduction and transparency,
the Company, as a leader in the field of optoelectronic display, is particularly concerned about its development
and application in the field of flexible display, with the continuous progress of graphene business, the Company
began to do a broader strategic layout of the graphene industry. In March 2016, the Company completed the
acquisition of Shanghai Tanyuan Huigu Co., Ltd. through acquisition and capital increase, which is a company
focusing on the mass production and application of grapheme, owing grapheme production technology, grapheme
-based lithium-ion material and battery production technology, and this acquisition is significant for the Company
to promote the industrialization of graphene. Currently, Shanghai Tanyuan Huigu and Beijing Xutan jointly
become the promotion platform for the Company’s industrial development and research and industrialization.
In addition to the development and research and industrialization platform, in March 2016, the Company
incorporated a wholly owned subsidiary, Shenzhen Xuhui Investment, together with the Beijing Dongxu Huaqing,
become the Company’s graphene industry consolidation and investment and financing platform. During the
reporting period, the Company set up the graphene industry development funds of a scale of RMB 100 million
and of a scale of RMB 200 million respectively with the Administrative Committee of the New Energy Industrial
Park in Taizhou and the People’s Government of Jingyang District, Deyang, and the establishment of the industry
funds contributes to accelerating the Company’s layout of graphene industry. In addition, the Company signed the
Strategic Cooperation Agreement respectively with Tianjin Dongli, China Innovation Alliance of the Graphene
Industry (CGIA), Beijing Institute of Collaborative Innovation (BICI) to practice the global development strategy,
and signed Strategic Framework Agreement with the Catalan Institute of Nanoscience and Nano Technology
(ICN2) in Spain to develop the technical exploration, industrial application development, product promotion and
information sharing and cooperation on graphene and other materials.
2.Main business analysis
Year-on-year changes in major financial statistics
In RMB
This report period Same period last year YOY change（%） Cause change
Mainly due to the large
year-on-year increase in
Operating income 2,882,059,154.41 1,524,242,723.90 89.08% sales of high-end
equipment and technical
services.
Mainly due to the
corresponding costs
Operating cost 1,938,309,643.65 882,046,270.04 119.75%
increased as the revenue
increased
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Mainly due to the sales
increased which led to
Sale expenses 31,577,716.56 15,959,542.69 97.86%
the increase of freight
and labor costs.
Mainly due to the
increase over the same
Administrative expenses 236,706,264.85 164,106,222.01 44.24% period last year in wages
and welfare, research and
development expenses
Mainly due to the
increase of labor costs
Financial expenses 94,439,392.61 150,308,723.11 -37.17% and R&D expenses
compared to the last
period
Income tax expenses 90,283,601.51 81,096,961.02 11.33%
R & D Investment 45,720,772.21 41,430,754.32 10.35%
Mainly due to the
Cash flow generated by
1,281,108,942.94 54,777,798.87 2,238.74% increase in collection of
business operation, net
sales payment
Mainly due to the
payment paid for
Net cash flow generated
-607,815,301.45 -411,058,599.42 47.87% purchasing the equity of
by investment
Xuxin Company and
Xufei Company
Net cash flow generated Mainly due to the
3,091,864,784.09 1,690,487,611.80 82.90%
by financing increase in borrowing.
Net increasing of cash
3,774,917,627.41 1,334,219,848.90 182.93%
and cash equivalents
Major changes in profit composition or cources during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Delay of future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
□ Applicable √ Not applicable
No future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
Implementation of business plans disclosed in previous periods in this period.
During the reporting period, the Company efficiently operates the existing G5 and G6 glass substrate
production line and maintains the production and sales of medium-and-low generation glass substrates, and at the
same time, actively promotes the construction schedule of each raising investment projects. The Company’s
non-public offering equity investment projects in 2013- 6th generation TFT-LCD crystal glass substrate
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
production line, 1-5 line achieves mass production, the yield of line 6 rises steadily, and the overall production
line yield is rising; one of the Company’s non-public offering of equity investment projects in 2015, “the 5th
generation TFT-LCD using color filter production line project” construction is actively promoted, upon achieving
the production target, it will enhance the Company’s added-value of G5 glass substrate products, and promote the
Company’s business growth; the Company’s non-public offering raising investment project in 2016, “the
advanced generation including generation 8.5 glass substrate production line,” also enters the preparation stage.
As of the disclosure of this report, the Company’s non-public offering funds in 2016 is in place, and completes the
registration and listing of new shares, and in the future it will accelerate the construction of raising investment
projects.
3. Business composition
In RMB
Increase/decrease Increase/decrease
Increase/decrease
of rincipal of gross profit
of reverue in the
Gross profit business cost over rate over the
Turnover Operation cost same period of
rate(%) the same period same period of
the previous
of previous year the previous year
year(%)
(%) (%)
Industry
High-end
equipment and
1,679,753,266.20 980,987,330.23 41.60% 190.28% 404.37% -24.79%
Technology
serves
Glass substrate 536,992,475.55 359,694,368.28 33.02% 22.25% 34.39% -6.05%
Sapphire materia 220,217,237.68 186,587,859.61 15.27% 406.97% 407.44% -0.08%
Construction
435,478,796.37 408,310,315.97 6.24% 0.63% 9.96% -7.95%
Installation
Electric vacuum
glass devices and
-100.00% -100.00%
supporting
electronic device
Other 6,157.72 54,490.31 -784.91%
Total 2,872,447,933.52 1,935,634,364.40 32.61% 91.95% 121.65% -9.03%
Products
High-end
equipment and
1,679,753,266.20 980,987,330.23 41.60% 190.28% 404.37% -24.79%
Technology
serves
Glass substrate 536,992,475.55 359,694,368.28 33.02% 22.25% 34.39% -6.05%
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Sapphire materia 220,217,237.68 186,587,859.61 15.27% 406.97% 407.44% -0.08%
Construction
435,478,796.37 408,310,315.97 6.24% 0.63% 9.96% -7.95%
Installation
Electric vacuum
glass devices and
-100.00% -100.00%
supporting
electronic device
Other 6,157.72 54,490.31 -784.91%
Total 2,872,447,933.52 1,935,634,364.40 32.61% 91.95% 121.65% -9.03%
Area
China mainland 2,660,048,543.83 1,748,410,018.96 34.27% 91.28% 118.29% -8.13%
Hongkong,
Macao and 212,399,389.69 187,224,345.44 11.85% 100.77% 158.92% -19.80%
Taiwan
Total 2,872,447,933.52 1,935,634,364.40 32.61% 91.95% 121.65% -9.03%
4. Analysis On core Competitiveness
The Company has disclosed four core competencies in 2015 Annual Report, and they are respectively “strong
independent innovation and R & D strength”, “domestic industry leading position advantage”, “significant
geographical and cost advantages” and “flexible and efficient management and incentive mechanism”, in the first
half of 2016, the Company’s core competencies is further consolidated and deepened, without other significant
changes.
5. Analysis on investment Status
1. External Equity investment
（1）External investment
√Applicable □ Not applicable
External investment
Investment amount (January-June Investment Amount (January-June
Change rate（%）
2016)(RMB) 2015)(RMB)
1,102,954,500.00 319,845,300.00 244.84%
Particulars of investees
Name Principal business Proportion in the investees’ equity（%）
Technology research and development,
Shanghai Tanyuan Huigu New Material
technology transfer, technical service and 50.50%
Technology Co., Ltd.
technical consultation for new material and
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
equipment areas, and sales of nanometer
materials
Investment, construction and operation of
photoelectric display glass substrate industry,
relevant technology development, technical
Fuzhou Dongxu Optoelectronic consultation, technical service and technology
100.00%
Technology Co., Ltd. transfer; design and sales of mechanical
equipment and electronic products; import and
export of various self-run and agent products
and technologies
Constructional engineering, hydraulic and
hydro-power engineering, municipal public
works, highway engineering, urban and
roadway lighting engineering, electric power
engineering, water-proof, anti-corrosion and
insulation engineering, highway traffic
engineering, highway pavement engineering,
highway subgrade engineering, building
mechanical and electrical installation works,
special engineering, curtain wall engineering,
steel structure engineering, river and lake
Sichuan Ruiyi Construction Engineering
regulation engineering, fire-fighting equipment 100.00%
Co., Ltd.
engineering, bridge engineering, architectural
decoration and finishing engineering,
electronic and intelligent engineering,
landscape engineering, ancient architectural
engineering, environmental protection
engineering, communication engineering,
transmission and transformation project,
electromechanical engineering and
petrochemical engineering; engineering survey
design; project management service; import
and export; commodity wholesale and retail.
Sales of optoelectronic device and other
Dongxu (Kunshan )Display Material Co.,
electronic devices; import and export of goods 80.00%
Ltd.
and technology.
Investment management, project investment;
Shenzhen Xuhui Investment Holdings Co. management consultation; asset management;
100.00%
Ltd. equity investment management.
Processing and sales of GG8.5TFT-LCD glass
Fuzhou Xufu Optoelectronics Technology substrate; import and export of various self-run
100.00%
Co., Ltd and agent products and technologies
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Investment in photoelectric display
Fuzhou Dongxu Investment Co., Ltd. glass substrate industry and investment 100.00%
management
Taizhou Dongxu Graphene Industry External investment with self-owned assets,
Investment Fund Management Center investment management and 25.74%
(limited partnership) informationconsultation for graphene industry.
Dongxu（DeYang）Graphene Industry Equity investment of private companies，
Development Fund Of The Partnership investment management and related consulting 20.80%
（limited partnership） services
（2）Holding of the equipty in financial enterprises
□Applicable√Not applicable
（3）Investment in Securities
□ Applicable √ Not applicable
The Company had no investment in securities in period.
（4） Statement of holding equities in other PLCs
The Company was not holding shares of any other PLC as of the end of report period.
2.Entrusted Financing , investment in derivative products and entrusted loan
（1）Trust financing
□ Applicable √ Not applicable
The company had no trust financing in the reporting period.
（2）Derivative investment
□ Applicable √ Not applicable
The company had no derivative investment in the reporting period.
(3) Trusted loans
□ Applicable √ Not applicable
No trusted loans in the report period.
3.Application of the raised capital
√ Applicable □ Not applicable
17
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
（1）General application of the raised funds
√ Applicable □ Not applicable
In RMB
Total amount of the raised capital 1,403,880
Total raised capital invested in the report period 21,211.35
Total accumulative raised capital invested 1,078,681.19
Amount of raised capital of which the purpose was
0
changed in the report period
Accumulative amount of raised capital of which the
0
purpose has been changed
Proportion of raised capital of which the purpose has
0.00%
been changed (%)
Notes to use of raised capital
(I) The amount of funds raised and credited into account
1. In 2015, the China Securities Regulatory Commission (CSRC) issued the [2015] No. 2270 text on the Approval of the
Non-Public Offerings of Dongxu Optoelectronic Technology Co., Ltd. and approved that the number of the Company’s new
non-public offerings should be less than 1186.9436 million. As of November 13, 2015, the Company has actually issued shares of
1173.0205 million, the face value is RMB 1 per share and the issue price is RMB 6.82 per share, a total of RMB 8000 million.
Deducting the distribution-related fee (excluding tax) of RMB 59.4767 million, the actual net proceeds are RMB 794.5232.
Zhongxingcai Guanghua Certified Public Accountants LLP issued the Zhongxingcai Guanghua verification Zi (2015) No. 05007
capital verification report in November 26, 2015.
2. In 2013, the China Securities Regulatory Commission (CSRC) issued the [2012] No. 1661 text on the Approval of the
Non-Public Offerings of Shijiazhuang Gem Electronic Glass Co., Ltd. to approve the non-public offering in 2013, the Company,
through the non-public offerings, issued towards eight specific investors including TUNGHSU GROUP, 520 million shares at an
issue price of RMB 9.69 per share, and the total raise funds is RMB 5038.80 million, and deducting the distribution-related fee of
RMB 77.736 million, the net proceeds is RMB 4961.064 million. The above-mentioned funds are all in place on April 3, 2013, and
have been verified by the Zhongxingcai Guanghua verification Zi (2013) No. 5003 Verification Report issued by the Zhongxingcai
Guanghua Certified Public Accountants LLP (formerly known as “Zhongxingcai Guanghua Certified Public Accountants Co.,
Ltd.”).
3. 15 Dongxu Bonds approved according to the approval of the [2015] No. 635 text on the Approval of Public Offering of
Corporate Bonds of Dongxu Optoelectronic Technology Co., Ltd. issued by the China Securities Regulatory Commission (CSRC),
that the Company issues public corporate bonds of RMB 1 billion (the number is ten million), the face value is RMB 100 each, and
the issue price is the face value. The bond is 5-year fixed rate (Attached with by the end of the third year, the option of the
Company raising the coupon rate and investors recover). The coupon rate is 6.00%, the total fund raised is RMB 10 million, after
deducting underwriting fees, the amount is RMB 987 million. It has been verified by the Zhongxingcai Guanghua verification Zi
(2015) No. 05004 Verification Report issued by the Zhongxingcai Guanghua Certified Public Accountants LLP.
(II) The balance of the raise funds: as of June 30, 2016, the balance of the account for the non-public offering raise funds of
the Company in 2015 is RMB 2919.3518 million (including interest income of RMB 27.3066 million); the balance of the account
for the non-public offering raise funds of the Company in 2013 is RMB 251.2072 million (including interest income of RMB
18
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
1.2072 million); the balance of the account for the raise funds of 15 Dongxu Bonds is RMB0.3376 million .
（2）Promised projects of raised capital
√ Applicable □ Not applicable
In RMB’0000
Date
Accumul Investme
when the
Total ated nt Has any
Project Total Amount project Benefit
raised amount progress Has the material
changed(i investme inested in has realized
Committed investment capital invested ended the predicted change
ncluding nt after the reached in the
projects and investment invested at the end reporting result be taken
partial adjustme reporting the reporting
as of the period(% realized place in
change) nt (1) period predicted period
commited reporting )(3)=(2)( feasibility
applicabl
period(2) 1)
e status
Committed investment projects
Project of Production
Line for the Decembe
No 300,000 300,000 10,708.42 3.57% No No
5th-generation CF for r 31,2017
TFT-LCD
Xufei Optoelectronic
Decembe
100% equity No 177,000 177,000 7,408.33 177,000 100.00% 6,008.07 Yes No
r 31,2015
acquisition
Xuxin Optoelectronic
Decembe
100% equity No 198,000 198,000 13,803.02 198,000 100.00% 1,261.88 \Yes No
r 31,2015
acquisition
Supplement current Decembe
No 125,000 125,000 121,537 97.23% Yes No
capital r 31,2015
Panel display galass
substrate project of
471,469.5 Decembe
Wuhu Dongxu No 496,106.4 496,106.4 95.03% No No
3 r 31,2016
Optoelectronic
Technology Co., Ltd.
Supplement current
captial（Corporation No 100,000 100,000 99,966.29 99.97% Yes No
Bond）
Subtotal of promised 1,396,106 1,396,106 1,078,681
-- 21,211.35 -- -- 7,269.94 -- --
investment projects .4 .4 .24
Investment of excessive raised capital
None No
19
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
1,396,106 1,396,106 1,078,681
Total -- 21,211.35 -- -- 7,269.94 -- --
.4 .4 .19
Wuhu Optoelectronic panel display glass substrate production line project adopts the mode of stage
Reason or situation construction, stage production and achieves benefits by stages, and the project is not fully put into
thatnot on schedule production, so it isn’t applicable. Some production lines of the 5th Generation TFT-LCD Color filters (CF)
(on specific project) production line project are under construction, so they are not applicable.
Notes to major
changesin project None
feasibility
Amount, application Not applicable
and application
progress of the
unbooked proceeds
About the change of Not applicable
the implementation
site of the projects
invested with the
proceeds
Adjustment of the Not applicable
implementation way of
investment funded by
raised capital
Applicable
(1) On April 17, 2013，The 36th Meeting of the sixth Board of Directors of the Company has examined
andapproved the “Proposal on the Replacement of the Self-funancing Funds pre-put into Investment Project
with the RAISED Funds”, and agreed the company to make arrangement for the funds-raising on the
replacement of the pre-investment based on the plan of non-public issuance of stocks, with the pre-invested
self-financing funds of RMB 2,077,426,324.50 replaced by the raised funds. The company's
About the initial independent directors, the board of supervisors and the sponsor of Guangzhou Securities all
investment in the issued the clear consent.A special audit report- No.5002-Zhongxin Cai Guan Hua specially Certified
projects planned to be (2013) pertain to the item of replacing the funds pre-invested in the project which should be invested by the
invested with the funds raised was issued by Zhongxincai Guanhua Certified Public Accountants (LLP).
proceeds and the (2)On December 29, 2015, the 46th meeting of the 7th board of directors and the 18th meeting of the 7th
replacement board of supervisors of the Company examined and adopted “Proposal on Using the Raised Fund to
Replace the Self-raised Fund of the Advanced Invested Item to Raise Money for and Invest ”, The
amount of RMB 107.0842 million of self-collected funds, used by the company, which was
in advance put into the project of “The 5th generation TFT-LCD color filter (CF) production
line” that was set to be invested by the raised funds. which had been audited and certified by by
Zhongxincai Guanhua Certified Public Accountants (special general partnership) with the report of
No.5037 Zhongxincai Guanhua specially Certified (2015) provided.
Using the idle Applicable
20
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
proceeds to On May 29, 2015, the 37th Meeting of the 7th Board of Directors of the company deliberated and
supplement the approved Proposal of Using Partial Idle Raised Fund to Supplement Circulating Fund, which agreed the
working capital on company to use the idle raised fund valuing 250 million yuan (taking 5.04% of the actual net raised fund)
temporary basis to temporarily supplement the circulating fund of the company. Service life lasts for 12 months since the
approval date by the Board of Directors. The company will return to the special account for fund-raising in
time when the fund used to supplement the circulation is due. The above-mentioned funds raised are
returned and stored in the company’s dedicated account for the funds raised on May 26,
2016.
Balance of the Notes
proceeds in process of
project implementation
and the cause
About application and
As of the end of the reporting period, there was no change for the investment purpose of the raised funds
status of the proceeds
and the raised funds that have not yet been used were all in the special account
unused
Problems existing in
The company strictly accordance with "use of funds raised management system" and "raise funds tripartite
application of the
regulatory agreement" to raise funds and special accounts storage use, and timely, truely, accurately and
proceeds and the
completely disclosure of the deposit and use of proceeds, there is no violation circumstances.
information disclosure
or other issues
（3）Changes of raised funds projects
□ Applicable√ Not applicable
There is no change in raised funds in company reporting period.
（4）Fund-raising project
Fund-raising project overview Disclosure date Disclosure index
Special report on the depositing and use
information of the raised funds in 2015 by February 6,2016 http://www.cninfo.com.cn
the board of directors
Special report on the depositing and use
information of the raised funds in the first August 30,2016 http://www.cninfo.com.cn
half year of 2016 by the board of directors
4. Analysis on principal subsidiaries and Mutual Shareholding Companies
√Applicable □Not applicable
Particulars about the principal subsidiaries and Mutual shareholding companies
In RMB
Company Company Sectors Leading Registered Operating
Total assets Net assets Tumover Net Profit
Name type engaged in products capital profit
21
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
and services
Zhengzhou
Xufei
Optoelectro Manufactur Glass 1,650,000,0 4,792,834,1 1,858,384,8 419,879,11 63,438,76 60,080,656.3
Subsidiary
nic ing substrate 00.00 49.57 38.44 1.71 3.63 4
Technology
Co., Ltd.
Wuhu
Dongxu High-End
Optoelectro Equipment
Manufactur 98,000,000. 6,837,412,2 1,958,604,5 1,423,880,4 461,670,0 473,976,590.
nic Subsidiary and
ing 00 92.77 72.19 84.78 90.88 50
Equipment Technology
Technology serves
Co., Ltd
5. Major projects invested by non-raised fund
□ Applicable√ Not applicable
The company had no major projects invested by non-raised fund in the reporting period.
VI. Prediction of business performance for January –September 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
VII. Explanation of the Board of Directors and the Supervisor Committee concerning the “Non-standard
audit report ” issued by the CPAs firm for the reporting period
□ Applicable √ Not applicable
VIII.Explanation by the Board of Directors about the “ non-standard audit report “ for last year.
□ Applicable √ Not applicable
IX. Profit distribution carried out in the report period
Execution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the report
period.
√ Applicable □Not applicable
On February 29, 2016, the company held the 2015 annual general shareholder meeting in which the 2015
annual profit distribution plan was examined and approved. The company's 2015 annual profit distribution plan
22
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
was: based on the company’s total share capital of 3,835,000,526 shares on the date of January 31, 2016, the
company will distribute cash dividends of RMB 0.70 per 10 shares (Tax inclusive) to all the shareholders by using
the undistributed profits, with no share-increasing by converting capital reserve into share capital.
The date of record of A-shares of this profits distribution is: April 25, 2016; the ex-dividend and ex-right date is:
April 26, 2016; the last trading day of B shares: April 25, 2016, the date of record is: April 28, 2016, the
ex-dividend and ex-right date is: April 26, 2016
This profits distribution plan had been completed on April 28, 2016.
Special explanation on cash dividend policy
Comply with the Articles of Association or resolution made at
Yes
the General Shareholders' Meeting
Clear and definite distribution standard and proportion Yes
Decision-making procedure and mechanism Yes
Independent directors fulfill their duties Yes
Middle and small shareholders express their opinions and
Yes
daims.There rights are well protected
Cash dividend distribution policies are adjusted or revised Until the end of the reporting period, the company has not
accoring to law. adjusted or changed the cash-dividend policy.
X. Preplan for profit distribution and turning capital reserve into share capital in the reporting period
□ Applicable √ Not applicable
The Company planed that no to distribute cash dividend, bonus shares and there was no turning of capital reserve
into share capital.
XI. Particulars about researches, visits and interviews received in this reporting period
√Applicable □ Not applicable
Discussion topics and
Reception time Reception place Way of reception Types of visitors Vistors rece3ived
provision of materials
The summary of operations
of 2015, the application
February 18,2016 Beijing By phone Organization Organization
direction and industrial
prospects of graphene, etc
Onsite Overall profile of the
March 10,2016 Beijing investigation Organization Organization company, overview of
graphene business, etc.
Fundamentals of the
January 1 ,2016-- company, the main
Beijing By phone Individual Individual
June 30,2016 business, the information of
graphene battery, etc.
23
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
V. Important Events
I、Administrative position
The company has, strictly in accordance with The Company Law, The Securities Law, Standardize
Operational Guidelines for Listed Companies on the Main Board of Shenzhen Stock Exchange and the
requirements of relevant laws and regulations, continued to improve the corporate governance structure and the
internal control system, carry out in-depth activities of corporate governance, raise the level of standardized
operation and soundly safeguard the legitimate rights and interests of all shareholders. As of the end of the
reporting period, the company's internal governance structure was complete, sound and clear, which is in line with
The Company Law, the Articles of Association of the Company and other relevant laws, regulations and
regulatory documents. During the reporting period, the company was honest in operations and utilized
standardized operations, timely performed the obligation of information disclosure. The general shareholder
meeting, board meeting of board of directors and meeting of board of supervisors had been convened with in
accordance with relevant t rules and regulations, and all directors and supervisors have seriously performed their
duties with due diligence.
There was no difference between the actual situation of company’s management and the requirements of
"Company Law" and the relevant provisions of China Securities Regulatory Commission.
II. Lawsuits affairs
Major lawsuits and Arbitration affairs
□ Applicable √ Not applicable
The Company has no major lawsuit or arbitration in the report period.
Other Lawsuits affairs
□ Applicable √ Not applicable
III. Query form media
□ Applicable √ Not applicable
In the reporting year, the Company had no query from media
IV. Bankruptcy or Reorganization Events
□ Applicable √ Not applicable
There Company was not involved in any bankruptcy or reorganization events in the reporting period.
24
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
V. Assets transaction
1. Purchase of assets
√Applicable □ Not applicable
Ratio of
Relation
the Net
with
Influence Income
Counter-pa Counter-pa
Acquired Transactio Impact on on the Caused by
rty or Connected rty Date of
or n Price (10 Progress Company's Profit and the Asset Disclosure
Ultimate Transactio （applicab Disclosure
Purchased thousand (Note 2) Business Loss of the Contributi Index
Controllin n le to (Note 5)
Assets yuan) (Note 3) Company ng to the
g Party associated
(Note 4) Listed
business
Company
situation)
in Total
he net
profits
contribute
Guo d to the
Shanghai The
Shouwu, listed
Tanyuan change of
Ma company Temporary
Huigu business
Shengjie, Adding from the Annoonce
New registratio March
Wu 7,345.45 new purchase 0.00% No ment.
Material n had been 9,2016
Haixia, product date to the No.2016-0
Technolo completed
Shen end of the 31
gy Co., on March
Wenzhuo, reporting
Ltd. 31
Shen Li period
were RMB
-1.1063
million
2. Sale of assets
□ Applicable √ Not applicable
There is no sale of assets in the Company during the reporting period
3. Business combination
√Applicable □ Not applicable
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
In RMB’0000
Time-poi Obtained Ratio of Method Purchasin Determination Income of Net Profit of
Name
nt of Cost of Obtained of g Date Basis on the Acquire from Acquire from the
25
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Obtained Equity Equity Obtaine Purchasing Date the Purchasing Purchasing Date
Equity (100%) d Date to the to the End of the
Equity End of the Period
Period
Shanghai Tanyuan March 7,345.45 50.50 Purchas March Obtain a business 0.62 -110.63
Huigu New 2016 e and 31,2016 license
Material add
Technology Co., share
Ltd.
(2) Consolidation Cost and Goodwill
Items Shanghai Tanyuan Huigu New Material
Technology Co., Ltd.
Consolidation cost
—Cash 73,454,500.00
Total Consolidation cost 73,454,500.00
Less：Reduction: Obtained Definable Net Assets Fair Proportion 39,763,137.22
Goodwill/ The Consolidation Cost is Less Than the Obtained Definable Net Assets 33,691,362.78
Fair Proportion
(3) The identifiable assets and liabilities of acquiree at purchase date
Items Shanghai Tanyuan Huigu New Material Technology Co., Ltd.
Fair value on purchase date Book value on purchase date
Assets：
Monetary fund 65,834,772.59 65,834,772.59
Account receivable 1,600.00 1,600.00
Prepayments 2,006,750.00 2,006,750.00
Other account receivable 457,262.00 457,262.00
Inventories 1,243,387.97 802,979.59
Other current assets 198,033.10 198,033.10
Fixed assets 1,847,248.70 1,939,350.28
Intangible assets 7,317,795.33 4,444,692.24
Amortisation of long-term prepaid 303,253.20 303,253.20
expenses
Liabilities：
Account payable 362,292.10 362,292.10
26
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Employees’ wage payable 37,656.00 37,656.00
Other account payable 71,269.20 71,269.20
Net assets 78,738,885.59 75,517,475.70
Less：Minority equity
Net assets acquired 78,738,885.59 75,517,475.70
2. Due to new subsidiaries set up in the current period
On March 8, 2016, Wuhu Dongxu Optoelectronic Technology Co.,Ltd set up Fuzhou Dongxu Investment
Development Co., Ltd and holds 100% stake of Fuzhou Dongxu Investment Development Co., Ltd, of which
the registered capital was RMB 10 million and the paid-in capital was RMB 0.00.
On March 17, 2016, Beijing Dongxu Huaqing Investment Co., Ltd as a general partner, Dongxu
Optoelectronic Technology Co.,Ltd as a limited partner and Taizhou Golden Sun Energy Co., Ltd as a limited
partner together set up Taizhou Dongxu Graphene Industry Investment Fund Management Center(Limited
partnership). Such limited partnership company was incorporated in May 4, 2016, and the total amount of
capital contribution agreed in the agreement was RMB 101 million, but as of June 30, 2016, the actual
received amount of capital contribution was RMB 0.00. For the capital contribution, Taizhou Golden Sun
Energy Co., Ltd subscribed the amount of capital contribution of RMB 75 million, Dongxu Optoelectronic
Technology Co.,Ltd subscribed the amount of capital contribution of RMB 25 million, Beijing Dongxu
Huaqing Investment Co., Ltd subscribed the amount of capital contribution of RMB 1 million which was
agreed in the agreement by using the labor service as capital contribution, and meanwhile, upon the
agreement, the three parties all agreed that they shall complete the capital contribution before December 30,
2016.
On March 31, 2016, Dongxu Optoelectronic Technology Co.,Ltd set up Shenzhen XuHui Investment
Holdings Co.,Ltd, of which the registered capital was RMB 100 million and the paid-in capital was RMB
0.00.
On June 24, 2016, Fuzhou Dongxu Optoelectronic Technology Co.,Ltd and Dongxu Optoelectronic
Technology Co.,Ltd together set up a new company of Fuzhou Xufu Optoelectronic Technology Co.,Ltd, of
which the registered capital is RMB 65.40 million, among which, Fuzhou Dongxu Optoelectronic Technology
Co.,Ltd shall contribute RMB 54.50 million, Dongxu Optoelectronic Technology Co.,Ltd shall contribute
RMB 10.90 million, and the paid-in capital was RMB 0.00.
VI. Implementation and Influence of Equity Incentive Plan of the Company
√Applicable □ Not applicable
On October 29, 2015, the Proposal on Buying-back and Writing-off Part of the Restricted Shares was approved in
the 43rd board meeting of the 7th session board of directors. The total restricted 100,000 shares which were
granted to the incentive object of Chenyin but still being locked were bought-back, thus the total shares of this
buy-back was 100,000 shares.
On January 26, 2016, the above-mentioned restricted shares have been completed the procedure of writing-off in
China Securities Depository and Clearing Co., Ltd. Shenzhen Branch.
27
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
VII. Material related transactions
1. Related transactions in connection with daily operation
√Applicable □ Not applicable
Whether
Trading
Principl over the
limit Market Index
Subjects e of approve
Amount price of of
of the pricing Ratio in approve Date of
Related Relation Type of Price of of trade Way of similar inform
related the similar d disclosu
parties ship trade trade RMB0’ payment trade ation
transacti related trades d re
000 availabl disclos
ons transacti limited e ure
ons （RMB
or not
’0000）
(Y/N)
Shijiazh
uang Controll Commo
Dongxu ed by dity
Referen
Mechani the same purchas Machini 18.5682 18.5682
ce price 1,856.82 4,000 No Currency
cal actual ed/labor ng parts million million
setting
Equipm controll service
ent Co., er received
Ltd.
Cheng
du
Zhong General Sales
Optoel manager Goods/L glass Referen
3.1062 3.1062
ectroni for Li abor substrat ce price 310.62 311 No Currency
million million
c Zhaotin service e setting
Techno g received
logy
Co.,
Ltd.
Dongxu
Controll
( Yingko Related
ed by
u) manage Manage Referen
the same 0.5 0.5
Optoele d ment ce price 50 100 No Currency
actual million million
ctronic /Contrac right setting
controll
Display t
er
Co., Ltd
Controll Related
Manage Referen
Dongxu ed by manage 0.5 0.5
ment ce price 50 100 No Currency
Group the same d million million
right setting
parent /Contrac
28
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
compan t
yActual
Controll
er
Sichuan
Controll
Xuhong Related
ed by
Optoele manage Manage Referen
the same 0.5 0.5
ctronic d ment ce price 50 100 No Currency
actual million million
Technol /Contrac right setting
controll
ogy Co., t
er
Ltd.
Total -- -- 2,317.44 -- 4,611 -- -- -- -- --
Details of any sales return of a large
None
amount
Give the actual situation in the report
period where a forecast had been
made for the total amounts of routine None
related-party transactions by type to
occur in the current period(if any)
Reason for any significant difference
between the transaction price and the None
market refernce price (if applicable)
2. Related-party transactions arising from asset acquisition or sale
□Applicable √ Not applicable
There is no any related-party transactions arising from asset acquisition or sale during the reporting period.
3. Related-party transitions with joint investments
□ Applicable √ Not applicable
The Company was not involved in any related-party transaction with joint investments during the reporting
period.
4. Credits and debt with related parties
□ Applicable √ Not applicable
There is no any credit and debt with related parties of the Company of the reporting period.
Whether there is non operating related credits and deb
□ Yes √No
There is no any non perating related credit and debt with related parties of the Company.
5. Other significant related-party transactions
□ Applicable √ Not applicable
The Company was not Other significant related-party transactions during the reporting period.
29
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
VIII. Particulars about the non-operating occupation of funds by the controlling shareholder
and other related parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period..
IX. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
√ Applicable □Not applicable
Description of custodies
During the reporting period, the Company continued entrusted with the management of Dongxu( Yingkou)
Optoelectronic Display Co., Ltd.and Sichuan Xuhong Optoelectronic Technology Co., Ltd.
In December 2011, Dongxu Group, Dongxu Optoelectronic Investment Co., Ltd. and Shijiazhuang Baoshi
Electronic Group Co., Ltd signed the Equity Trusteeship Agreement with the Company , of which 60% share
rights of Dongxu (Yingkou) Optoelectronic Display Co., Ltd., 51% share rights of Sichuan Xuhong
Optoelectronic Technology Co., Ltd.,were entrusted by the Company, where the agreement went into effect as of
March 2012. The clients paid the Company 500 thousand RMB of management fee per year for each subject.
See details in the table below:
Name of Clients/Contractee Name of Type of Entrusting Starting Date Expiration Confirmed
Trustee/Cont Asset/Contracting Asset of Entrusting Date of Entrusting
ractee /Contracting Entrusting /Contracting Fee
/Contracti at the Current
ng Period
Dongxu Group, Yingkou Coastal Dongxu Management Right of January 2012 Notes 1 750,000.00
Development Construction Co., Optoelectron Dongxu(Yingkou)
Ltd.Minmetals (Yingkou) Industrial Park ic Optoelectroric Display
Development Co., Ltd. Technology Co., Ltd.
Dongxu Group, Mianyang Investment City Co., Ltd. Management Right of March 2012 Notes 2 750,000.00
Development (Group ) Co., Ltd., Sichuan Sichuan Xuhong
Changhong Electric Co., Ltd. Optoelectronic
Technology Co., Ltd.
Total 1,500,000.00
Note 1: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee.
The operation trustee fee is basic management fee and incentive management fee, of which the basic management
fee is 1 million RMB/year, the incentive management fee is counted by 5% of the after-tax net profit yearly
achieved by the trustee company(the base of the incentive management fee deducts the loss of the previous year.)
Note 2: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee.
The operation trustee fee is basic management fee and incentive management fee, of which the basic management
fee is 1 million RMB/year, the incentive management fee is counted by 5% of the after-tax net profit yearly
achieved by the trustee company
Items which resulted in profit or loss achieving over 10% of the total profit for the Company
30
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
□ Applicable √ Not applicable
(2) Contract
□ Applicable √ Not applicable
There was no any contract of the Company in the reporting period.
(3) Lease
√Applicable□Not applicable
There was no any lease of the Company in the reporting period.
2.Guarantees
√Applicable □ Not applicable
In RMB’0000
External Guarantee (Exclude controlled subsidiaries)
Guarante
Relevant e
Date of
disclosure Complete for
happening Actual
Name of the date/No. of Amount of Guarantee Guarantee implemen associate
(Date of mount of
Company the Guarantee type term tation d
signing guarantee
guaranteed or not parties
agreement)
amount (Yes or
no)
Total of external guarantee Total of actual external
0 0
approved in Period(A1) guarantee in Period(A2)
Total balance of actual
Total of external guarantee
0 external guarantee at 0
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling Company
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
Zhengzhou Xufei May The joint
10,000 May 30,2016 10,000 1 year No No
Optoelectronic 27,2016 liability
31
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Technology Co., guaranty
Ltd.
Wuhu Dongxu
The joint
Optoelectronic June November
220,000 192,000 liability 8 years No No
Technology Co., 20,2013 12,2013
guaranty
Ltd.
Wuhu Dongxu
The joint
Optoelectronic April
20,000 June 22,2016 15,000 liability 1 year No No
Technology Co., 21,2016
guaranty
Ltd.
Wuhu Dongxu
The joint
Optoelectronic September September
24,000 20,000 liability 1 year No No
Technology Co., 28,2015 29,2015
guaranty
Ltd.
Wuhu Dongxu
The joint
Optoelectronic October November
10,000 5,000 liability 1 year No No
Technology Co., 19,2015 30,2015
guaranty
Ltd
Wuhu Dongxu
The joint
Optoelectronic September December
4,000 4,000 liability 1 year No No
Technology Co., 28,2015 22,2015
guaranty
Ltd.
Wuhu Dongxu
The joint
Optoelectronic October
20,000 April 25,2016 20,000 liability 1 year No No
Technology Co., 19,2015
guaranty
Ltd.
Wuhu Dongxu
The joint
Optoelectronic March
7,500 June 23,2016 7,500 liability 1 year No No
Technology Co., 31,2016
guaranty
Ltd.
Wuhu Dongxu
Optoelectronic The joint
April
Equipment 75,000 October 30,2014 30,000 liability 8 years No No
12,2014
Technology Co., guaranty
Ltd.
Wuhu Dongxu
Optoelectronic The joint
April November
Equipment 75,000 20,000 liability 8 years No No
12,2014 27,2014
Technology Co., guaranty
Ltd.
Jiangsu Jixing New August 12,500 August 26,2015 3,000 The joint 1 year No No
32
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Material Co., Ltd. 14,2015 liability
guaranty
The joint
Jiangsu Jixing New March
5,500 March 17,2016 5,500 liability 1 year No No
Material Co., Ltd 3,2016
guaranty
Beijing Xufeng The joint
October November
Realestate Co., 60,000 60,000 liability 5 years No No
19,2015 26,2015
Ltd. guaranty
Beijing Xufeng The joint
October December
Realestate Co., 60,000 60,000 liability 5 years No No
19,2015 22,2015
Ltd. guaranty
Total of guarantee for Total of actual guarantee
subsidiaries 43,000 for subsidiaries in the 58,000
approved in the Period (B1) Period (B2)
Total of guarantee for Total of actual guarantee
subsidiaries 603,500 for subsidiaries at 452,000
approved at Period-end (B3) Period-end (B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
Total amount of guarantee to
Total guarantee quota to the
the subsidiaries actually
subsidiaries approved in the 0 0
incurred in the reporting
reporting period (C1)
period (C2)
Total balance of actual
Total guarantee quota to the
guarantee to the subsidiaries at
subsidiaries approved at the end 0 0
the end of the reporting period
of the reporting period (C3)
(C4)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
43,000 58,000
（A1+B1+C1） the Period（A2+B2+C2）
Total of guarantee at Period-end Total of actual guarantee at
603,500 452,000
（A3+B3+C3） Period-end
33
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
（A4+B4+C4）
The proportion of the total amount of actually guarantee in
31.03%
thenet assets of the company(A4+B4+C4)
Including ：
Amount of guarantee for shareholders, actual controller and its
0
associated parties（D）
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 170,000
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the
0
company exceed 50%（F）
Total guarantee Amount of the abovementioned guarantees
170,000
（D+E+F）
Description of the guarantee with complex method
（1）Illegal providing of external guarantees
□ Applicable √Not applicable
No illegal providing of external guarantees in the report period.
3. Other significant transactions
□ Applicable √ Not applicable
No Other significant transactions in the report period.4. Other significant transactions
□ Applicable √ Not applicable
There was no other significant transaction of the Company in the reporting period.
X. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period or such commitments carried down into the reporting period
√Applicable □ Not applicable
Commitment Time of making Period of
Commitment Contents Fulfillment
maker commitment commitment
If listed companies plans to sell
tradable stocks through the bid
Shijiazhuang
Commitment on share trading system of Shenzhen Stock Long-term Under
Baoshi Electronics March 29, 2007
reform Exchange and sell greater than effective Fulfillment
Group Co., Ltd
5% of shares within six months
after the first sales, will disclose
34
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
the contents specified by the
Form Guide to Prompt
Announcement of Removing
Restriction on Sales of
Non-tradable Stocks of Listed
Companies through the prompt
announcement of disclosing sales
of listed companies.
Commitment in the
acquisition report or the
report on equity
changes
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.
Commitments made Baoshi Group, 2.The company assurances Long-term Under
April 1， 2012
upon issuance Dongxu Group against the use of precious stones effective Fulfillment
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,
holding form business
competition decisions. 3. The
company will not directly invest,
purchase and Dongxu
Optoelectronic identical or
similar business enterprises and
35
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
projects.
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
company has horizontal
competition with Dongxu
Optoelectronic and lead to lose to
it, the company will bear all the
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 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
36
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Optoelectronics. Within the
period when the company is still
the controlling shareholder of
Dongxu Optoelectronics, the
commitments are in effect.
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
Under
Dong Xu Group Technology Co., Ltd. (hereinafter February 8,2015 Valid for 5 years
Fulfillment
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: 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
37
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Co.,Ltd, Wuhu Equipment
Company and Shijiazhuang
Equipment Company) with the
same articles of the former patent
licensing contract. After the
company successfully completed
the issuance of corporate bonds,
whether 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.
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
Dongxu and material purchase of glass
Optoelectronic substrate and the equipment. February 10, Under
Valid for 5 years
Technology Co., Thus, the demands of business 2015 Fulfillment
Ltd. operation and expansion in the
company will be satisfied. The
company promises: 1. The funds
raised through the public offering
of corporate bonds will not be
directly or indirectly invested in
real estate development business,
or used to increase the capital
fund or as loans in subsidiaries
engaged in real estate business; 2.
the funds raised through the
38
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
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.
In view of:
(1) 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 stock; (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
June 17, Long-term Under
Dong Xu Group Optoelectronic), Wuhu Dongxu
2015 effective Fulfillment
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
39
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
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
indirectly controlled by the
controller or holding company
have no horizontal competitions
with Dongxu Optoelectronic
Technology Co., Ltd. 2. Any
other companies controlled by the Decembert 16, Long-term Under
Dong Xu Group
actual controller or holding 2015 effective Fulfillment
company shall avoid businesses
identical or similar to the
company may lead to a
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 Dongxu
Optoelectronic Technology Co.,
40
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
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 investment/Baoshi group
promised the net profit level of
the next three years and profit
compensation scheme in
respective to Xufei
Optoelectronic Technology Co.,
Ltd and Xuxin Optoelectronic
Technology Co., Ltd as follows:
The Net profits after deducting
non-recurring gain or loss that are
attributable to Xufei
Optoelectronic Technology Co.,
Ltd in year 2015, year 2016, year
Valid period to
2017, year 2018 shall accordingly March 2, Under
Baoshi Group December
be not less than RMB 36.6698 2015 Fulfillment
31,2018
million, RMB 84.5628 million,
RMB 156.5311 million, RMB
225.4052 million；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 accordingly be not less
than RMB23.3488million,
RMB55.4205million, RMB
86.6277million, RMB 158.345
million. If any year’s actual net
41
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
profits are less than the estimated
profits as aforesaid within the
compensation period, Dongxu
investment/Baoshi group shall
make up the difference in
accordance with the aforesaid
principles in cash to Dongxu
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.
Not act in excess of authority to
interfere the company’s
Long-term Under
Dongxu Group management and operating February 6,2016
effective fulfillment
activities, not encroach on the
interests of the company.
Other commitments
made to minority
shareholders
Executed timely or not? Yes
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
√ Yes □No
Name Zhongxingcai Guanghua Certified Public Accountants （LLP）
The Remuneration of auditing the semi annual financial
65
report by the domestic accounting firm(RMB’0000)
Whether to change the accounting firm?
□ Yes √No
42
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
XII. Punishment and Rectification
□ Applicable √ Not applicable
There was no any punishment and rectification of the Company in the reporting period.
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable √ Not applicable
There was no any delisting risk of illegal or violation of the Company in the reporting period.
XIV. Explanation about other significant matters
√Applicable□ Not applicable
The company completed the 2016 non-public share-issuing work:
1. The Proposal of the company’s 2016 non-public share-issuance and the relevant items were examined and
approved in the 48th board meeting of the company’s 7th board of directors and the 2016 first extraordinary
general shareholder meeting, convened respectively on February 5, 2016 and February 22, 2016. It was
determined that the company would non-publicly issue no more than 1,092,767,295 shares and raise no more than
RMB 6,950,000,000 which after deducting the issuing expenses will be all used for the construction of the
8.5-generation TFT-LCD glass substrate production line project.
2. On April 28, 2016, the company implemented the 215 annual profit distribution plan, so the quantity and price
of the non-public share issuance were adjusted accordingly. The quantity of the non-public share issuance was
adjusted to being no more than 1,104,928,457 shares, and the raised funds were expected to be no more than RMB
6950 million.
3. On May 18, 2016, the company’s 2016 non-public share-issuance plan was unconditionally approved by the
audit committee of CSRC.
4. On July 28, 2016, the company received the Approval on the Non-public Share-issuance of Dongxu
Optoelectronic Technology Co.,Ltd-No.1322-2016 Commission License from CSRC, approved the company’s
non-public share-issuance of issuing no more than 1,104,928,457 new shares.
5. On August 12, 2016, Zhongxin Cai Guan Hua Certified Public Accountants LLP issued the Capital Verification
Report-No.105007-2016 Zhongxin Cai Guan Hua Audited. By the end date of August 11, 2016 of the verification,
the company has non-publicly issued 1,104,928,457 RMB 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, after
deducting the issuing expenses of RMB 41,926,397.00, the net raised funds were RMB 6,908,073,597.53.
6. 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.
7. On August 26, 2016, the newly increased 1,104,928,457 shares from the company’s 2016-non-public share
issuance have been listed on Shenzhen Stock Exchange.
XV. Issuance of corporate bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
43
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Yes
1. Basic information of the corporate bonds
Method of
Bond repayment of
Abbreviated
Bond Name Code Issue Date Date Due Balance(RMB’ Interest Rate the principal
Bond Name
0000) and interest
payment
Interest paid
2015- every year, the
corporate bond principal will
of Dongxu 15 Dongxu be repaid with
112243 May 19,2015 May 19,2020 100,000 6.00%
Optoelectronic bonds the last unpaid
Technology interest in one
Co., Ltd time as the
bond due
Listed place or Transaction
Shenzhen Stock Exchange
place for the corporate bonds
Arrangement of investor’s
Investor’s puttable right
eligibility
Information about interest paid On May 19, 2016, the company has implemented the 2016 annual interest payment for
and bonds honored during the “15-Dongxu bond”, i.e. the company has paid the interest of RMB 6.0 per bond for “15-Dongxu
reporting period bond” for the period from May 19, 2015 to May 18, 2016.
Implementation of relevant
special clauses(if applicable)
such as option clause for the None happened in the reporting period
bond issuer or investors and
exchangeable clause
2.Information about the bond trustee and credit rating agency
Bond trustee:
19-20/F, Main
Tower ,
Guangzhou
International
Guangzhou
Business Finance Center, Shi Jianhua,
Name Securities Co., Contacts Telephone 020-88836999
Address No.5 Zhujiang Yan Xiangjun
Ltd.
West Road,
Tianhe District
Guangzhou
City
The credit rating agency who follow up and rate the corporate bonds in the reporting period:
Name United Rating Co.,Ltd Business Room 508 Ailiyuan Apartment, No.38 Water
44
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Address Park North Road, Nankai District, Tianjin City
3.Information about the use of the funds raised by issuing corporate bonds
The information of the use of the funds Using the funds raised by issuing corporate bonds strictly conforming to the purpose
raised by issuing corporate bonds and stipulated by Rules of Management and Use of the Raised Funds and the Prospectus,
related implementation procedure and implemented the corresponding approval procedures
Ending balance of the year(RMB’0000) 33.76
Operation status of the special account for
Normal
the raised funds
Whether the use of the raised funds
conforming to the purpose, use plan and
The use of the raised funds conformed to the purpose promised in the Prospectus
other provisions specified in the
Prospectus
4. Information about the rating of the corporate bonds
On April 1, 2016, United Rating Co.,Ltd has issued the tracking and rating report according to the company’s
2015 annual report. United Rating Co.,Ltd raised the main-body rating of the company to “AA+”, with an outlook
of “stable”, meanwhile, the debt credit rating of “15-Dongxu bond” was raised to “AA+”.
5. The corporate bond’s credit mechanism, repayment plan and other safeguard measures for repayment
Repayment Plan
I. Payment of the interest
1. The interest of the bonds shall be paid each year and the last payment of interest shall be paid with the principal.
Every payment of interest shall not be charged on interest after the interest paying day and the principal shall not
be charged on interest after the bond’s date due. The interest payment day of this corporate bond is May 19 of
each year from 2016 to 2020(If it is not a working day, the payment day will be postponed to the first working day
after the day).If the investors exercise the puttable right at the end of the third year in the duration of the bond, the
interest payment day of the bonds sold back is May 19 of each year from 2016 to 2018.
2. The payment of the interest of the bonds shall be handled through the bond registration institution and other
related institutions. The concrete information of the interest payment will be specified in the Interest Payment
Announcement issued on the media designated by CSRC, with in accordance with the relevant state regulations.
3. According to relevant national tax laws and regulations, the investor of the corporate bond shall fully bear the
relevant tax should be paid.
II. The repayment of the principal
1. The principal will be fully repaid in a time, and its repaying day is May 19, 2020. If the investors exercise the
puttable right at the end of the third year in the duration of the bond, the repaying day of the principal of the bonds
being sold back is May 19, 2018. (If the repaying day aforesaid is not a working day, the repaying day shall be
postponed to the first working day after the original day, and there is no need to pay interest in the deferred
period)
2. The repayment of the principal of the bonds will be handled through the bond registration institution and other
related institutions. The concrete information of repayment of the principal of the bonds will be specified in the
Principal Repayment Announcement issued on the media designated by CSRC, with in accordance with the
relevant state regulations.
45
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Safeguard measures for the repayment
I. A designated special department in charge of the repayment working
The company designated its finance department to take the lead in the coordination work for repayment of the
bonds and the finance department shall coordinate other relevant departments to schedule the demanded funds for
the repayment of the bonds in every year’s financial budget, for ensuring the repayment of the interest and
principal of the bonds is timely, guaranteeing the bond-holder’s interest. The company will set up a working team
for repayment 15days before the day that is the interest paying day or principal repaying day of the bonds, with
the personnel of the finance department being included, to specially in charge of the work of paying the interest of
the bonds and the repayment of the principal.
II. Establishing Meeting Rules for Bond-holders
According to the provisions specified in the Pilot Approach, the company with bond trustee has established the
Meeting Rules for Bond-holders for the corporate bonds. The Meeting Rules for Bond-holders specified the scope,
procedures and other important items for the bond-holders to exercise rights through the Meeting of the
Bond-holders, which provided a reasonable institutional arrangement for the timely and full payment to the
interest and the principal of the corporate bonds.
III. Making the full use of the bond trustee
According to the requirements specified in the Pilot Approach, the company has adopted the institution of bond
trustee, engaged Guangzhou Securities Co.,Ltd as the trustee of the bonds this time and signed the Agreement of
Bond Entrusted Management with Guangzhou Securities. The Bond Trustee shall represent all the bond-holders to
supervise the relevant information about the company and take all necessary measures to protect the legitimate
interest of the bond-holders when the interest or principal of the bonds cannot be repaid in time. The company
shall strictly conform to the provisions specified in the Agreement of Bond Entrusted Management, being
cooperative when the bond trustee performance its duties, and regularly submit the report of commitment
fulfillment status to the bond trustee. When there is a possible bond default, the company shall notice the bond
trustee in time, thus the bond trustee can take other necessary measures in time according to the Bond Entrusted
Management.
Ⅳ. Strictly fulfilling the obligation of information disclosure
The company shall adhere to the information disclosure principles of authentic, accurate and completed, making
the information of the company’s repaying ability and use of the raised funds to be supervised by the bond trustee
and shareholders, for preventing the risk of repayment. According to the Agreement of Bond Entrusted
Management and relevant regulations, the company shall release the information of major issues, which include
but not limited to the following contents: (1) According to the Prospectus and agreement with the registered
trustee institution, the company shall transfer the maturity interest payment or principal to the account designated
by the registered trustee institution; (2) By estimate or in fact, the company cannot fully repay the interest or
principal of the bonds in time according to the provisions stipulated in the Prospectus; (3) Singing the guarantee
contract for external or other major contracts may have significant adverse effects of repaying the interest and
principal of the bonds; (4) A severe loss occurred or expected to occur, and the loss exceeds 10% of the net asset
audited in the last accounting year; (5) Occurrence of capital reduction, merger, division, dissolution, file for
bankruptcy, entering into bankruptcy procedure or other main changes of the company; (6) Occurrence of the
amount of subject in the major arbitration or lawsuit exceeding 10% of the net asset audited in the last accounting
year; (7) Planning to dispose the asset or debt with subject amount exceeding 10% of the net asset audited in the
last accounting year; (8) Planning to change the bond trustee; (9) Failing to perform or Planning to change the
stipulations specified in the Prospectus; (10) Alteration of the designated person for specially in charge of the
relevant matters of the corporate bonds; (11) Occurrence of suspending the bond transaction; (12) Others may
46
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
significantly impact the repaying of the interest and principal or circumstances specified by laws, administrative
regulations and stipulations by the CSRC or exchange.
Ⅴ. Setting up the capital management plan and strictly implementing the plan
After the issuance of the bonds, the company shall further reinforce the company’s assets and liabilities
management, liquidity management, use management of the raised funds, funds management and so forth
according to the company’s debt structure. Also, the company will set up monthly and yearly funds use plan based
on the maturity of repaying the interest and principal, ensuring on-schedule, timely and full-amount preparing of
the funds for repaying every year’s interest or principal of the bonds to adequately protect the investor’s interest.
VI. Commitments
According to the resolutions of the issuance of the bonds approved on the board meeting on Oct 21, 2014 and the
general meeting of shareholders on Nov 6, 2014, when the company cannot repay the interest or principal of the
bonds in time or fully repay the interest or principal of the bonds, the company shall take the following resolutions
and make corresponding measures: (1) None profit distribution to shareholders; (2) Postponing capital
expenditure items, such as major investment, merger and acquisition; (3) Reducing or stopping the salaries and
bonuses of the directors and senior management personnel; (4) No transferring of principal responsible personnel
and so on.
6. Information about the bond-holder meeting during the reporting period
There was no bond-holder meeting convened in the reporting period.
7. Information about the obligations fulfilled by the bond trustee in the reporting period
The bond trustee has been continuously following up the company’s credit status, and paid a visit to the company
in June 2016, checking the bank statement of the designated account for the raised funds. Also, the trustee has
been continuously supervising the use of the raised funds.
8. The key accounting data and financial indicators of the latest two years to the end of the reporting period
In RMB’0000
Items June 30, 2016 June 30,2015 At the same time rate of change
Current ratio 252.41% 259.46% -7.05%
Debt ratio 55.34% 49.44% 5.90%
Quick ratio 211.60% 208.76% 2.84%
This report term Same period last year Increase/decrease (%)
EBITDA interest coverage ratio 2.9984 2.6384 13.64%
Loans repayment rate 100.00% 100.00% 0.00%
Interest payment rate 100.00% 100.00% 0.00%
The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over the last
year
□ Applicable √ Not applicable
9. Information about restrictions on asset right by the end of the reporting period
Items Borrowing amount/Limited amount Reason
Monetary funds 543,648,071.60 Pledge of deposit and loan
Inventory 987,961,264.39 Obtain loans as collateral
47
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Fixed assets 7,155,678,632.78 Obtain loans as collateral
Intangible assets 239,609,353.58 Obtain loans as collateral
Construction in process 2,870,717,465.40 Obtain loans as collateral
Total 11,797,614,787.75
10. Overdue debt
□ Applicable √ Not applicable
There was no overdue debt in the reporting period.
11. Information about the repayment of interest and principal for other bonds or debt financing
instruments
None
12 Information about the bank credit obtaining and use, as well as repayment of the bank loans during the
reporting period
The balance of the total amount of the short-term and long-term loans is RMB 12,708,412,000, increased RMB1,826,727,500
compared with the end of year 2015, which mainly because of the need of the production and operation and the
construction of projects. The company strictly conformed to requests of bank loans to use the funds and fully
repaid the interest and principal to the bank in time.
13. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the
issuance of the bonds during the reporting period
During the reporting period, the company had been strictly conforming to the stipulations specified in the
Prospectus of the issuance of the bonds to use the raised funds, and the company had fulfilled the commitments of
not using any raised funds to indirectly or directly invest real estate business or raise capital for the subsidiaries
engaged in real estate business.
14. Major events occurred during the reporting period
During the reporting period, excluding that company’s newly increased borrowings and the newly increased
guarantee provided for the company’s subsidiaries and share-controlling subsidiaries were exceed the 20% of the
audited net assets at the end of 2015, there was no other major item which conformed to the 45th article of
Measures for the Issuance and Management of Corporate Bonds occurred.
15. Whether the corporate bonds have a guarantor
□ Yes √No
48
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
VI. Change of share capital and shareholding of Principal
Shareholders
(I)Changes in share capital
In Shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
1.Shares with conditional 1,565,845, -390,223,0 -390,223,0 1,175,622
40.83% 30.66%
subscription 404 00 00 ,404
1,565,845, -390,223,0 -390,223,0 1,175,622
3.Other domestic shares 40.83% 30.66%
404 00 00 ,404
Incl：Domestic legal 1,563,314, -390,093,0 -390,093,0 1,173,221
40.76% 30.59%
person shares 525 00 00 ,525
Domestic Natural Person
2,530,879 0.07% -130,000 -130,000 2,400,879 0.06%
shares
II.Shares with 2,269,255, 390,123,0 390,123,0 2,659,378
59.17% 69.34%
unconditional subscription 122 00 00 ,122
2,019,255, 390,123,0 390,123,0 2,409,378
1.Common shares in RMB 52.65% 62.83%
121 00 00 ,121
2.Foreign shares in 250,000,0 250,000,0
6.52% 6.52%
domestic market 01 01
3,835,100, 3,835,000
III. Total of capital shares 100.00% -100,000 -100,000 100.00%
526 ,526
Reasons for share changed:
√ Applicable □ Not applicable
1. On October 29, 2015, the Proposal on Buying-back and Writing-off Part of the Restricted Shares was approved
in the 43rd board meeting of the 7th session board of directors. The total restricted 100,000 shares which were
granted to the incentive object of Chenyin but still being locked were bought-back, thus the total shares of this
buy-back were 100,000 shares.
49
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
2.As of January 26, 2016, the above-mentioned restricted shares have been completed the procedure of writing-off
in China Securities Depository and Clearing Co., Ltd Shenzhen Branch.
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
√Applicable □ Not applicable
Financial indicators and the recent one year, the latest issue of basic earnings per share and net assets per share
affected by changes in shares， please refer to the accounting data and financial indicators summary III.
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability
of the Company
√Applicable□ Not applicable
During the reporting period, the company had completed the buy-back and writing-off of 100,000 restricted shares
which had been granted by the share-incentive plan, resulted in the reduction of the company’s total share capital
and led to the reduction of the company’s total assets and the shareholders' equity.
II. Number of shares and shares held
In shares
Total number of preferred
218,235（Including 199,516
Total number of common shareholders that had restored
shareholders holding A shares
shareholders at the end of the the 0
and 18,719 shareholders holding
reporting period voting right at the end of the
B shares）
reporting period (if any) (note 8
Particulars about shares held above 5% by shareholders or top ten shareholders
Changes Number os share
Proportion Number of Amount of Amount of
Nuture of in pledged/frozen
Shareholders of shares shares held at restricted un-restricted
shareholder reportin State of
held（%） period -end shares held shares held Amount
g period share
Domestic Non
Dongxu Group -State-owned legal 21.64% 829,975,697 459,882,697 Pledge 780,730,272
person
Shijiazhuang
Domestic Non
Baoshi
-State-owned legal 8.67% 332,382,171 332,382,171 Pledge 329,776,648
Electronic
person
Group Co., Ltd.
50
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Minsheng
Royal Fund
Management
Co., Ltd.-Ping
An Bank-Ping
0ther 4.78% 183,284,457 183,284,457
An Trust-Ping
An Wealth*
Huitai No.163
Single Fund
Trust
Bosera
Capital-Ping An
Bank- Ping An
Trust-Ping An Other 4.36% 167,155,426 167,155,426
Wealth* Huitai
No.164 Single
Fund Trust
Guangzhou
Securities-Chin
a Guangfa
Bank-Guangzho
u Securities
No.2 Collective Other 3.44% 131,964,809 131,964,809
Asset
Management
Plan of
Kunpeng
Dingcheng
HuaAn Future
Asset-ICBC-No
.1 Asset
Management
Other 2.52% 96,774,193 96,774,193
Plan of Dongxu
Optoelectronic’
s Private
Placement
Dongxu
Optoelectronic
Technology
Co., Ltd-Phase Other 1.89% 72,639,296 72,639,296
1 for Employee
Stock
Ownership Plan
51
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
China Securities
State-owned legal
Finance Co., 1.80% 69,151,271 69,151,271
person
Ltd.
Kunshan
Development
Zone State-owned legal
1.15% 43,988,269 43,988,269
State-invested person
Holding Co.,
Ltd.
Bank of China
－Huaxia New
Economic
Mixed Other 0.95% 36,608,098 36,608,098
Securities
Investment
Funds
Strategy investors or general legal Before the country's top ten shareholders of Kunshan Development Zone Investment Holdings
person becomes top 10 shareholders Limited was involved in the company in 2015 non-public offering to subscribe, became the
due to rights issued (if applicable) top 10 shareholders. The sub-holding restricted period of 36 months, ie December 17, 2015 to
（See Notes 3） December 16, 2018.
Among the top ten shareholders , Dongxu Group and Baoshi Group, Dongxu Optoelectronic –
Notes to the related relationship I Employee stock ownership plan have relationship and constitute persons taking concerted
between the top ten shareholders or action. The company does not know whether there is relationship between other 7
their concerted action shareholders or whether they are persons taking concerted action defined in Administrative
Measures Relating to Acquisitions of Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end Share type
Name of the shareholder
of the reporting period (Note 4) Share type Quantity
Dongxu Group 390,093,000 RMB Common shares 390,093,000
Shijiazhuang Baoshi Electronic
332,382,171 RMB Common shares 332,382,171
Group Co., Ltd.
China Securities Finance Co., Ltd. 69,151,271 RMB Common shares 69,151,271
Bank of China－Huaxia New
Economic Mixed Securities 36,608,098 RMB Common shares 36,608,098
Investment Funds
Central Huijin Investment Ltd. 24,205,500 RMB Common shares 24,205,500
Wang Wenxue 15,300,592 RMB Common shares 15,300,592
CMS－Fuguo CSI Mobile
Internetindex classification 8,983,555 RMB Common shares 8,983,555
Securities investment fund
52
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
National social security fund 412 8,870,976 RMB Common shares 8,870,976
Zhang Qingjie 7,227,822 RMB Common shares 7,227,822
CCB－Huabao Industry selected
7,100,200 RMB Common shares 7,100,200
hybrid secutities investment fund
Among the top ten shareholders , Dongxu Group and Baoshi Group, Dongxu Optoelectronic –
Action-in-concert among top 10 I Employee stock ownership plan have relationship and constitute persons taking concerted
non-restricted current share holders,
action. The company does not know whether there is relationship between other 7
top 10 non-restricted current share
holders and top 10 shareholders shareholders or whether they are persons taking concerted action defined in Administrative
Measures Relating to Acquisitions of Listed Companies.
The top 10 tradable common shareholders Wang Wenxue, Zhangqing Jie by CSC Securities
Shareholders among the top 10
Co., Ltd. customer credit-backed securities trading account Securities Co., Ltd. customer
participating in securities margin
credit-backed securities trading account were holding 15,300,592 shares, 7,227,822 shares,
trading (if any) (see Note 4)
accounting for 0.4% and 0.19% of the total shares respectively.
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.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
IV. Share holding increasing plan proposed or implemented in reporting period from shareholder of the
Company and its concerted action person
√ Applicable □Not applicable
Name of Initial disclosure Disclosure date of
shareholder or its Number of shares As a percentage Number of shares As a percentage date of the the completion of
act-in-concert to be increased in the total shares actually increased in the total shares shareholding the shareholding
party increase plan increase
Dongxu
Technology 4,392,057 0.12% July 11,2015 March 1,2016
Group Co., Ltd.
Other notes
Dongxu group and its share-controlling subsidiary of Dongxu Technology Group Co., Ltd had increased the
53
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
share-holding of the company through Shenzhen Stock Exchange by the directional asset management plan.
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
54
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Amount of Amount of
Shares Number of Number of
shares shares Number of
Shares held at restricted restricted
increased decreased restricted stock
Office held at the the stock granted stock granted
Name Position at the at the granted at the
status year-begin year-endi at the at the
reporting reporting year-ending(shar
(share) ng year-begin . reporting
period(sha period(sha e)
（share） share) period(share)
re) re)
Board
Li Zhaoting In office
chairman
Wang Lipeng Director,GM In office
Director,
Gong Xin Board In office 100,000 100,000 100,000 100,000
secretary
Director,
Zhou Bo In office
CFO
Independent
Lu Guihua In office
director
Independent
Han Zhiguo In office
director
Zhang Independent
In office
Shuangcai director
Chairman of
the
Guo Chunlin In office
supervisory
committee
Chen Dewei Supervisor In office
Xu Lingzhi Supervisor In office
Xie Juwen Supervisor In office
Wang
Supervisor In office
Huanhuan
Wang
Depurty GM In office
Jianqiang
55
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Wang
Depurty GM In office
Zhonghui
Wang
Depurty GM In office
Junming
Liu Wentai Depurty GM In office 150,000 25,000 125,000 150,000 125,000
Dimissio
Niu Jianlin Director 150,000 18,000 132,000 150,000 132,000
n
Dimissio
Zhou Bo Director 129,172 129,172 100,000 100,000
n
Independent Dimissio
Mu Tiehu
director n
Chairman of
the Dimissio
Guo Zhisheng
supervisory n
committee
Xie
Supervisor Dimissio
Mengxiong
Dimissio
Shi Zhiqiang GM 200,000 200,000 200,000 200,000
n
Xiao Dimissio
Deputy GM
Zhaoxiong n
Total -- -- 729,172 0 43,000 686,172 700,000 0 657,000
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Li Zhaoting Board chairman Elected July 28,2016 Eighth Board election
Wang Lipeng Director,GM Elected July 28,2016 Eighth Board election
Director,
Gong Xin Elected July 28,2016 Eighth Board election
Board secretary
Zhou Bo Director, CFO Elected July 28,2016 Eighth Board election
Independent
Lu Guihua Elected July 28,2016 Eighth Board election
director
Independent
Han Zhiguo Elected July 28,2016 Eighth Board election
director
Independent
Zhang Shuangcai Elected July 28,2016 Eighth Board election
director
56
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Chairman of the
Guo Chunling supervisory Elected July 28,2016 Eighth Board of Supervisors election
committee
Chen Dewei Supervisor Elected July 28,2016 Eighth Board of Supervisors election
Xu Lingzhi Supervisor Elected July 28,2016 Eighth Board of Supervisors election
Xie Juwen Supervisor Elected July 28,2016 Eighth Board of Supervisors election
Wan Huanhuan Supervisor Elected July 28,2016 Eighth Board of Supervisors election
Eighth session of the Board of Directors hired a new
Wang Jianqiang Depurty GM Elected July 28,2016
senior management
Eighth session of the Board of Directors hired a new
Wang Zhonghui Depurty GM Elected July 28,2016
senior management
Eighth session of the Board of Directors hired a new
Wang Junming Depurty GM Elected July 28,2016
senior management
Eighth session of the Board of Directors hired a new
Liu Wentai Depurty GM Elected July 28,2016
senior management
Term expires Expiry of the outgoing Board of the seventh term of
Niu Jianlin Director July 28,2016
outgoing office
Term expires Expiry of the outgoing Board of the seventh term of
Zhou Bo Director July 28,2016
outgoing office
Independent Term expires Expiry of the outgoing Board of the seventh term of
Mu Tiehu July 28,2016
director outgoing office
Chairman of the
Term expires
Guo Zhisheng supervisory July 28,2016 Expiry of outgoing seventh Supervisory Committee
outgoing
committee
Term expires
Xie Mengxiong Supervisor July 28,2016 Expiry of outgoing seventh Supervisory Committee
outgoing
Term expires Expiry of the outgoing Board of Directors appointed the
Shi Zhiqiang Supervisor July 28,2016
outgoing seventh term of office management
Term expires Expiry of the outgoing Board of Directors appointed the
Xiao Zhaoxiong Deputy GM July 28,2016
outgoing seventh term of office management
57
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
IX. Financial Report
1. Audit report
Has this semi-annual report been audited?
√Yes□No
Type of audit opinion Unqualified audit opinion
Date for signing the auditor’s report August 29,2016
Name of audit firm Zhongxingcai Guanghua Ceritified Public Accountants LLP
Number ZXCGHSHZD No.（2016）105063
Certified public accountant’s name Wang Fengqi, Meng Xiaoguang
Whether this semi-annual audit report is a non-standard audot report?
□ Yes √ No
II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1.Consolidated Balance sheet
Prepared by: Dongxu Optoelectronic Technology Co., Ltd.
June 30,2016
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 16,283,335,103.74 12,409,510,170.26
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Bill receivable 84,062,091.14 51,014,152.00
Account receivable 1,145,967,700.43 1,042,538,312.51
Prepayments 459,979,413.73 418,910,587.57
Insurance receivable
58
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable
Other account receivable 91,589,365.05 55,197,871.28
Repurchasing of financial assets
Inventories 2,274,629,243.84 2,177,979,684.06
Assets held for sales
Non-current asset due in 1 year 139,395.72
Other current asset 1,209,257,892.65 1,216,401,769.76
Total of current assets 21,548,820,810.58 17,371,691,943.16
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 72,508,010.72 72,426,252.41
Property investment
Fixed assets 6,751,017,887.80 6,900,189,927.76
Construction in progress 3,923,630,367.42 3,433,016,388.90
Engineering material 248,838.11 38,214.99
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 476,672,181.41 462,291,286.50
R & D petrol
Goodwill 33,691,362.78
Long-germ expenses to be amortized 14,700,608.68 16,560,387.39
Differed income tax asset 305,387,722.59 299,129,677.91
Other non-current asset 356,354,104.50 243,279,174.31
Total of non-current assets 11,934,211,084.01 11,426,931,310.17
Total of assets 33,483,031,894.59 28,798,623,253.33
Current liabilities
59
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Short-term loans 4,475,400,000.00 3,783,300,000.00
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 645,445,687.96 410,594,929.94
Account payable 747,312,359.29 675,736,226.62
Advance payment 470,661,941.44 97,920,689.41
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 39,951,609.02 36,856,257.86
Tax payable 93,036,607.64 105,451,423.67
Interest payable 28,954,527.52 55,405,608.76
Dividend payable 101,365,050.76 20,000,000.00
Other account payable 274,279,621.41 539,796,113.78
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 1,556,995,643.93 876,987,200.00
Other current liability 103,788,202.91 93,402,963.08
Total of current liability 8,538,746,754.88 6,695,451,413.12
Non-current liabilities：
Long-term loan 7,158,749,600.00 6,249,397,300.00
Bond payable 989,562,229.32 988,400,388.00
Including：preferred stock
Sustainable debt
Long-term payable 1,026,266,756.12 57,000,000.00
Long-term payable employees’s
remuneration
Special payable
60
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Expected liabilities
Differed income 316,687,050.48 246,925,387.61
Differed income tax liability
Other non-current liabilities 500,000,000.00
Total non-current liabilities 9,991,265,635.92 7,541,723,075.61
Total of liability 18,528,456,887.80 14,237,174,488.73
Owners’ equity
Share capital 3,835,000,526.00 3,835,000,526.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 9,393,659,601.53 9,391,388,905.89
Less：Shares in stock 9,011,520.00 9,011,520.00
Other comprehensive income
Special reserves
Surplus reserves 132,723,528.42 132,723,528.42
Common risk provision
Undistributed profit 1,216,178,281.65 969,380,500.97
Total of owner’s equity belong to the
14,568,550,417.60 14,319,481,941.28
parent company
Minority shareholders’ equity 386,024,589.19 241,966,823.32
Total of owners’ equity 14,954,575,006.79 14,561,448,764.60
Total of liabilities and owners’ equity 33,483,031,894.59 28,798,623,253.33
Legal representative ：Li Zhaoting
Person-in-charge of the accounting work：Zhou Bo
Person-in -charge of the accounting organ：Gao Feipeng
2. Balance sheet of the Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 9,074,453,927.55 9,835,157,652.41
Financial assets measured at fair value
61
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
with variations accounted into current
income account
Derivative financial assets
Bill receivable 2,737,440.00 611,200.00
Account receivable 67,254,294.95 25,928,808.63
Prepayments 189,313,665.36 5,148,881.09
Interest receivable
Dividend receivable 380,000,000.00 380,000,000.00
Other account receivable 1,722,336,079.09 1,257,350,098.69
Inventories 455,838,449.44 337,875,634.06
Assets held for sales
Non-current asset due in 1 year
Other current asset 19,211.84 19,211.84
Total of current assets 11,891,953,068.23 11,842,091,486.72
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 10,941,092,638.23 9,838,056,379.92
Property investment
Fixed assets 52,051,431.07 54,559,265.28
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 10,033,269.21 10,196,051.07
R & D petrol
Goodwill
Long-germ expenses to be amortized
Differed income tax asset 358,983.31 784,271.45
Other non-current asset
Total of non-current assets 11,003,536,321.82 9,903,595,967.72
Total of assets 22,895,489,390.05 21,745,687,454.44
Current liabilities
62
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Short-term loans 2,925,000,000.00 2,630,000,000.00
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable 364,265,108.00 69,458,800.00
Account payable 143,713,129.33 131,278,936.59
Advance payment 421,587.90 115,587.90
Employees’ wage payable 3,704,924.43 3,725,606.27
Tax payable 22,276,579.57 15,710,028.19
Interest payable 17,692,788.73 42,908,777.78
Dividend payable 81,365,050.76
Other account payable 2,691,481,911.74 3,495,678,670.89
Liabilities held for sales
Non-current liability due in 1 year 200,000,000.00
Other current liability 15,000.00 20,000.00
Total of current liability 6,449,936,080.46 6,388,896,407.62
Non-current liabilities：
Long-term loan 1,987,700,000.00 640,000,000.00
Bond payable 989,562,229.32 988,400,388.00
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Differed income 5,000.00
Differed income tax liability
Other non-current liabilities
Total of Non-current liabilities 2,977,262,229.32 1,628,405,388.00
Total of liability 9,427,198,309.78 8,017,301,795.62
Owners’ equity
Share capital 3,835,000,526.00 3,835,000,526.00
Other equity instrument
Including：preferred stock
63
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Sustainable debt
Capital reserves 9,323,090,967.43 9,321,098,967.43
Less：Shares in stock 9,011,520.00 9,011,520.00
Other comprehensive income
Special reserves
Surplus reserves 113,734,304.09 113,734,304.09
Undistributed profit 205,476,802.75 467,563,381.30
Total of owners’ equity 13,468,291,080.27 13,728,385,658.82
Total of liabilities and owners’ equity 22,895,489,390.05 21,745,687,454.44
3.Consolidated Income statement
In RMB
Item Report period Same period of the previous year
I. Income from the key business 2,882,059,154.41 1,524,242,723.90
Incl：Business income 2,882,059,154.41 1,524,242,723.90
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2,325,029,677.70 1,225,343,496.78
Incl：Business cost 1,938,309,643.65 882,046,270.04
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 20,441,727.88 21,212,922.26
Sales expense 31,577,716.56 15,959,542.69
Administrative expense 236,706,264.85 164,106,222.01
Financial expenses 94,439,392.61 150,308,723.11
Asset impairment loss 3,554,932.15 -8,290,183.33
Add：Gains from change of fir value
（“-”for loss）
64
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Investment gain（“-”for loss） 81,758.31 2,348,908.58
Incl: investment gains from affiliates 81,758.31 -28,077.74
Gains from currency exchange
（“-”for loss）
III. Operational profit（“-”for loss） 557,111,235.02 301,248,135.70
Add ：Non-operational income 103,509,279.68 217,297,637.96
Including：Income from disposal of
non-current assets
Less：Non business expenses 12,489.34 297,985.77
Incl：Loss from disposal of non-current
4,430.74 35,050.57
assets
IV.Total profit(“-”for loss) 660,608,025.36 518,247,787.89
Less：Income tax expenses 90,283,601.51 81,096,961.02
V. Net profit 570,324,423.85 437,150,826.87
Net profit attributable to the owners of
545,963,710.72 400,081,730.63
parent company
Minority shareholders’ equity 24,360,713.13 37,069,096.24
VI. Other comprehensive income
Net of profit of other comprehensive inco
me attributable to owners of the parent co
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will be
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
alue available for sale financial assets
65
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
ncial statements
6.Other
7.Net of profit of other comprehensive in
come attributable to Minority
shareholders’ equity
VII. Total comprehensive income 570,324,423.85 437,150,826.87
Total comprehensive income attributable
545,963,710.72 400,081,730.63
to the owner of the parent company
Total comprehensive income
24,360,713.13 37,069,096.24
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.14 0.15
(II)Diluted earnings per share 0.14 0.15
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 the accounting work：Zhou Bo
Person-in -charge of the accounting organ：Gao Feipeng
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 383,847,821.44 7,294,837.62
Incl：Business cost 236,140,885.06 3,468,388.61
Business tax and surcharge 521,358.24 355,504.32
Sales expense 684,247.25 99.00
Administrative expense 27,351,438.20 35,929,891.65
Financial expenses 75,426,926.67 95,587,876.47
66
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Asset impairment loss 230,615.03 -6,573,921.23
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 81,758.31 -28,077.74
Incl: investment gains from affiliates 81,758.31 -28,077.74
II. Operational profit（“-”for loss） 43,574,109.30 -121,501,078.94
Add ：Non-operational income 51,255.93 13,924.00
Including：Income from disposal
of non-current assets
Less：Non business expenses 33,708.44
Incl：Loss from disposal of
non-current assets
III.Total profit(“-”for loss) 43,625,365.23 -121,520,863.38
Less：Income tax expenses 6,546,013.74 -14,255,586.87
IV. Net profit（“-”for net loss） 37,079,351.49 -107,265,276.51
V.Net of profit of other comprehensive i
ncome
（I）Other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（II）
Other comprehensive income that will b
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
67
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income 37,079,351.49 -107,265,276.51
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
3,428,041,704.57 1,032,598,843.36
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of trade financial asset
disposal
Cash received as interest, processing fee
and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 121,533,678.40 59,257,281.50
Other cash received from business
160,131,838.12 757,718,305.39
operation
68
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Sub-total of cash inflow 3,709,707,221.09 1,849,574,430.25
Cash paid for purchasing of
1,610,664,099.74 1,256,218,858.42
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 292,568,158.80 174,518,232.89
Taxes paid 313,119,724.25 231,796,691.70
Other cash paid for business activities 212,246,295.36 132,262,848.37
Sub-total of cash outflow from business
2,428,598,278.15 1,794,796,631.38
activities
Cash flow generated by business
1,281,108,942.94 54,777,798.87
operation, net
II.Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 2,376,986.32
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 64,574,268.94
Sub-total of cash inflow due to
6,120,000.00 66,951,255.26
investment activities
Cash paid for construction of
fixed assets, intangible assets 306,468,934.04 156,009,854.68
and other long-term assets
Cash paid as investment 299,846,640.00 252,000,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and
7,619,727.41
other operational units
Other cash paid for investment 70,000,000.00
69
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
activities
Sub-total of cash outflow due to
613,935,301.45 478,009,854.68
investment activities
Net cash flow generated by investment -607,815,301.45 -411,058,599.42
III.Cash flow generated by financing
Cash received as investment 81,000,000.00 19,500,000.00
Incl: Cash received as investment from
81,000,000.00 19,500,000.00
minor shareholders
Cash received as loans 4,077,100,000.00 2,208,000,000.00
Cash received from bond placing 987,000,000.00
Other financing –related ash received 1,878,688,941.32 95,471,030.31
Sub-total of cash inflow from financing
6,036,788,941.32 3,309,971,030.31
activities
Cash to repay debts 2,251,801,800.00 808,133,000.00
Cash paid as dividend, profit, or
598,359,752.63 594,350,418.51
interests
Incl: Dividend and profit paid by
30,000,000.00
subsidiaries to minor shareholders
Other cash paid for financing activities 94,762,604.60 217,000,000.00
Sub-total of cash outflow due to
2,944,924,157.23 1,619,483,418.51
financing activities
Net cash flow generated by financing 3,091,864,784.09 1,690,487,611.80
IV. Influence of exchange rate
9,759,201.83 13,037.65
alternation on cash and cash equivalents
V.Net increase of cash and cash
3,774,917,627.41 1,334,219,848.90
equivalents
Add: balance of cash and cash
11,964,769,404.73 3,349,892,384.04
equivalents at the beginning of term
VI ..Balance of cash and cash
15,739,687,032.14 4,684,112,232.94
equivalents at the end of term
6. Cash Flow Statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
404,441,782.23 3,599,404.67
rending of services
70
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Tax returned
Other cash received from business
200,000,000.00 105,518,118.53
operation
Sub-total of cash inflow 604,441,782.23 109,117,523.20
Cash paid for purchasing of
363,482,385.72 492,650.00
merchandise and services
Cash paid to staffs or paid for staffs 5,700,415.82 6,239,025.41
Taxes paid 9,832,273.74 3,301,210.63
Other cash paid for business activities 878,044,549.66 197,654,360.86
Sub-total of cash outflow from business
1,257,059,624.94 207,687,246.90
activities
Cash flow generated by business
-652,617,842.71 -98,569,723.70
operation, net
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
6,120,000.00
investment activities
Cash paid for construction of
fixed assets, intangible assets 7,800.00
and other long-term assets
Cash paid as investment 1,392,801,140.00 314,845,300.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
70,000,000.00
activities
Sub-total of cash outflow due to
1,392,808,940.00 384,845,300.00
investment activities
Net cash flow generated by investment -1,386,688,940.00 -384,845,300.00
III.Cash flow generated by financing
71
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Cash received as investment
Cash received as loans 3,062,700,000.00 1,420,000,000.00
Cash received from bond placing 987,000,000.00
Other financing –related ash received 70,281,601.36 377,205.49
Sub-total of cash inflow from
3,132,981,601.36 2,407,377,205.49
financing activities
Cash to repay debts 1,220,000,000.00 100,000,000.00
Cash paid as dividend, profit, or
389,290,594.79 349,970,759.92
interests
Other cash paid for financing activities 245,087,948.72 14,000,000.00
Sub-total of cash outflow due to
1,854,378,543.51 463,970,759.92
financing activities
Net cash flow generated by financing 1,278,603,057.85 1,943,406,445.57
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
-760,703,724.86 1,459,991,421.87
equivalents
Add: balance of cash and cash
9,835,157,652.41 1,736,774,243.99
equivalents at the beginning of term
VI ..Balance of cash and cash
9,074,453,927.55 3,196,765,665.86
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrusment Other Commo Total of
Items Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners’
Capita prefer Shares zed able lders’
Sustai reserves hensive reserves provisio equity
l red Other in stock reserve profit equity
nable Income n
stock
debt
I.Balance at the 3,835, 9,391,3 9,011,5 132,723 969,380 241,966 14,561,
end of last year 000,52 88,905. 20.00 ,528.42 ,500.97 ,823.32 448,764
72
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
6.00 89 .60
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 3,835, 9,391,3 14,561,
9,011,5 132,723 969,380 241,966
beginning of 000,52 88,905. 448,764
20.00 ,528.42 ,500.97 ,823.32
current year 6.00 89 .60
III.Changed in the 2,270,6 246,797 144,057 393,126
current year 95.64 ,780.68 ,765.87 ,242.19
（1）Total
545,963 24,360, 570,324
comprehensive
,710.72 713.13 ,423.85
income
（II）Investment
2,270,6 81,000, 83,270,
or decreasing of
95.64 000.00 695.64
capital by owners
1．Ordinary Share
81,000, 81,000,
s invested by hare
000.00 000.00
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
2,270,6 2,270,6
4．Other
95.64 95.64
-299,16 -299,16
（III）Profit
5,930.0 5,930.0
allotment
4 4
1.Providing of
surplus reserves
2.Providing of
common risk
73
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
provisions
3．Allotment to the -299,16 -299,16
owners (or 5,930.0 5,930.0
shareholders) 4 4
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V). Special
reserves
1. Provided this
year
2．Used this term
38,697, 38,697,
（VI）Other
052.74 052.74
3,835, 9,393,6 1,216,1 14,954,
IV. Balance at the 9,011,5 132,723 386,024
000,52 59,601. 78,281. 575,006
end of this term 20.00 ,528.42 ,589.19
6.00 53 65 .79
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity Minor
Other Commo Total of
Items Share instrusment Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners’
Capita prefer Shares zed able lders’
reserves hensive reserves provisio equity
l red Sustai Other in stock reserve profit equity
Income n
stock nable
74
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
debt
2,662, 4,972,9 1,633,1 9,310,2
I.Balance at the 82,025, -39,946,
080,00 66,918. 64,105. 89,380.
end of last year 280.68 925.56
1.00 24 99 35
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 2,662, 4,972,9 1,633,1 9,310,2
82,025, -39,946,
beginning of 080,00 66,918. 64,105. 89,380.
280.68 925.56
current year 1.00 24 99 35
1,172, 4,418,4 1,009,3 -1,391, 5,251,1
III.Changed in the 9,011,5 50,698,
920,52 21,987. 27,426. 197,282 59,384.
current year 20.00 247.74
5.00 65 53 .67 25
（1）Total 1,326,2 1,392,5
66,290,
comprehensive 33,674. 23,686.
011.81
income 37 18
（II）Investment 1,172, 6,538,4 7,727,3
9,011,5 25,000,
or decreasing of 920,52 06,824. 15,829.
20.00 000.00
capital by owners 5.00 45 45
1．Ordinary Share 1,173, 6,767,5 7,965,5
25,000,
s invested by hare 020,52 02,719. 23,244.
000.00
holders 5.00 49 49
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
9,011,5 -9,011,5
owners (or
20.00 20.00
shareholders)
-229,09 -229,19
-100,0
4．Other 5,895.0 5,895.0
00.00
4 4
(IV) Internal -316,90 -286,20
50,698, -20,000
transferring of 6,247.8 8,000.1
247.74 ,000.00
owners’ equity 4 0
75
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
1. Capitalizing of
50,698, -50,698,
capital reserves (or
247.74 247.74
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up -266,20 -286,20
-20,000
losses by surplus 8,000.1 8,000.1
,000.00
reserves. 0 0
4. Other
(VI )Special
reserves
1. Provided this
year
2．Used this term
（VII）Other
IV. Balance at the
end of this term
(V) Special
reserves
1. Provided this
year
2．Used this term
-2,119,9 -1,462, -3,582,4
（VI）Other 84,836. 487,294 72,131.
80 .48 28
3,835, 9,391,3 14,561,
IV. Balance at the 9,011,5 132,723 969,380 241,966
000,52 88,905. 448,764
end of this term 20.00 ,528.42 ,500.97 ,823.32
6.00 89 .60
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Items Share Other Equity instrusment Capital Less: Other Surplus Common Attribut Total of
Capital preferre Other reserves Shares in Compreh reserves risk able owners’
76
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
d stock Sustain stock ensive provision profit equity
able Income
debt
I.Balance at the 3,835,00 9,321,098 113,734,3 467,563 13,737,39
end of last year 0,526.00 ,967.43 04.09 ,381.30 7,178.82
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
3,835,00 9,321,098 113,734,3 467,563 13,737,39
beginning of
0,526.00 ,967.43 04.09 ,381.30 7,178.82
current year
-262,08
III.Changed in the 1,992,000 9,011,520 -269,106,
6,578.5
current year .00 .00 098.55
5
（I）Total
37,079, 37,079,35
comprehensive
351.49 1.49
income
(II) Investment or
1,992,000 9,011,520 -7,019,52
decreasing of
.00 .00 0.00
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and 9,011,520 -9,011,52
accounted as .00 0.00
owners’ equity
1,992,000 1,992,000
4．Other
.00 .00
-299,16
（III）Profit -299,165,
5,930.0
allotment 930.04
4
1.Providing of
surplus reserves
77
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
2．Allotment to the -299,16
-299,165,
owners (or 5,930.0
930.04
shareholders) 4
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the 3,835,00 9,323,090 9,011,520 113,734,3 205,476 13,468,29
end of this term 0,526.00 ,967.43 .00 04.09 ,802.75 1,080.27
Amount in last year
In RMB
Amount in last year
Other Equity instrusment
Other
Less: Common Attribut Total of
Items Share Capital Compreh Surplus
preferre Sustain Shares in risk able owners’
Capital Other reserves ensive reserves
d stock able stock provision profit equity
Income
debt
I.Balance at the 2,662,08 2,782,714 70,907,47 348,329 5,864,031
end of last year 0,001.00 ,603.79 1.36 ,886.80 ,962.95
Add: Change of
accounting
78
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
policy
Correcting of
previous errors
Other
II.Balance at the
2,662,08 2,782,714 70,907,47 348,329 5,864,031
beginning of
0,001.00 ,603.79 1.36 ,886.80 ,962.95
current year
III.Changed in the 1,172,92 6,538,384 9,011,520 42,826,83 119,233 7,864,353
current year 0,525.00 ,363.64 .00 2.73 ,494.50 ,695.87
（I）Total
428,268 428,268,3
comprehensive
,327.33 27.33
income
(II) Investment or
1,172,92 6,538,384 9,011,520 7,702,293
decreasing of
0,525.00 ,363.64 .00 ,368.64
capital by owners
1．Ordinary Share
1,173,02 6,767,502 7,940,523
s invested by hareh
0,525.00 ,719.49 ,244.49
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and 9,011,520 -9,011,52
accounted as .00 0.00
owners’ equity
-100,00 -229,118, -229,218,
4．Other
0.00 355.85 355.85
-309,03
（III）Profit 42,826,83 -266,208,
4,832.8
allotment 2.73 000.10
3
1.Providing of 42,826,83 -42,826,
surplus reserves 2.73 832.73
2．Allotment to the -266,20
-266,208,
owners (or 8,000.1
000.10
shareholders) 0
3．Other
(IV)Internal
transferring of
owners’ equity
79
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the 3,835,00 9,321,098 9,011,520 113,734,3 467,563 13,728,38
end of this term 0,526.00 ,967.43 .00 04.09 ,381.30 5,658.82
III.Brief introduction of the Company：
Approved by Hebei Economic System Reform Commission with the Approval of Establishment of Dongxu
Optoelectronic Technology Co., Ltd.（Hereinafter referred to as “The Company”or “Dongxu Optoelectronic”）(Ji
Ti Gfai Wei Gu Zi(1992) No.5 Document) in 1992, Shijiazhuang Baoshi Electronic Glass Co., Ltd. is a joint stock
limited company company jointly established by Shijiazhuang Kinescope General Factory (transformed into
Shijiazhuang Baoshi Electronics Group Co., Ltd.later), China Electronic Import and export Corporaqtion and
Zonghua Hebei Import and Export Company. At the Time of establishment, the Company had 25.68 million
shares (the par value of each share is RMB 10) and total share capital of RMB 256.80 million.
On July 17, 1993, the Company held a provisional shareholders' general meeting and decided to split the stock
equity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result, the total
number of the Company's shares became 256.80 million and its total share capital became RMB 256.80 million.
Approved by Securities Commission under State Council with the Approval of Issue of 100 Million Domestically
Listed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zheng Wei Fa (1996) No. 15
Document) on June 11, 1996, the Company issued 100 million domestically listed foreign investment shares (B
shares) (the par value of each share is RMB 1). Approved by China Securities Regulatory Commission with the
Approval of the Application of Shijiazhuang Baoshi Electronic Glass Co., Ltd. to Publicly Issue Shares (Zheng
Jian Fa Zi (1996) No. 174 Document) on August 30 of the same year, the Company publicly issued 26.20 million
shares (the par value of each share is RMB 1). As of September 17, 1996, the total share capital of the Company
increased to RMB 383 million.
According to the Approval of Private Issue of Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zhen Jian
Xu Ke (2012) No. 1661 Document) issued by China Securities Regulatory Commission ("CSRC"), the Company
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privately issued 520 million RMB ordinary shares (A shares) to specific investors at the price of RMB 9.69 per share
on April 3, 2013. All investors subscribed for shares in cash. After this private issue, the registered capital of the
Company was changed to RMB 903.00 million.
The controlling shareholder of the company by the Shijiazhuang Baoshi Electronic Group Co., Ltd. changed to Do
ngxu Group , a direct stake of 14.40%, Shijiazhuang Baoshi Electronic Glass Co., Ltd. held the indirectly 12.27%
of the share.
The 6th Provisional shareholder meeting in 2013 approved the name change of Shijiazhuang Baoshi Electronic G
lass Co., Ltd. to Dongxu Optoelectronic Technology Co., Ltd..
According to the resolution of annual shareholder meeting in 2013 and the provisions of amendments to articles of
association approved on April 27, 2014, the company has transferred 20 shares for each 10 shares to all shareholders,
and with total shares of 1806 million transferred ,and the registered capital is RMB2709 million after changed.
As per the provisions of “Restricted Stock Incentive Plan of Dongxu Optoelectronic Technology Co., Ltd. (Draft)” and
its summary proposal approved after the second temporary shareholders’ resolution in 2014, the company has
implemented the stock option incentive to grant 41 people the restricted stocks of RMB3,080,000.00 with the price of
RMB3.88 per share, which are all in cash subscription. Thus, the company shall increase the share capital of RMB3.08
million and the capital reserve of RMB 8,870,400.00, and the share capital is RMB2,712,080,000.00 after changed.
Under the provisions of “Proposal on Repurchase of Part of Domestic Listed Foreign Shares (Share B)” approved after
the second temporary shareholders’ resolution in 2014, the company has repurchased 49,999,999.00 B shares released
outside, and the repurchased shares shall be written off and the registered capital is reduced correspondingly. Thus, the
company shall decrease the share capital of RMB49,999,999.00 and the capital reserve of RMB218,024,376.60, and
the share capital is RMB2,662,080,001.00 after changed.
Referring to the resolutions determined on the 27th Meeting of the 7th Board of Directors of the company, the 31st
Meeting of the 7th Board of Directors, the 1st General Meeting of Extraordinary Shareholders in 2015, the 38th
Meeting of the 7th Board of Directors and the Regulatory Approval No. [2015] 2270 by China Securities
Regulatory Commission: Replies on Approval of Private Issuing of Stocks by Dongxu Photoelectric Technology
Co., Ltd., it is approved that the company issues new shares less than 1,186,943,620 privately. The planned
number of privately issued stocks is less than (including) 1,186,943,620. The actual issuance number of the stock
is 1,173,020,525, and the modified equity capital is 3,835,100,526.00 yuan.
According to Proposals on the Repurchase and Cancellation of Partial Restricted Shares deliberated and approved
on the 43rd Meeting of the 7th Board of Directors of the company convened on October 29, 2015, the company
plans to repurchase and cancel restricted shares. The granted but unlocked restricted shares held by left equity
incentive objects sum to 100,000 at the repurchase price of 3.78 yuan/share.
As of June 30, 2016, Registered capital :RMB 3,835,000,526.00, Legal representative: Li Zhaoting,
Enterprise unified social credit code : 911301001043959836 ，Registered Address: No.9, Huanghe Road,
Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei Province.
Dongxu Optoelectronic Parent Company is the Dongxu Group，Uitimate controller is Li Zhaoting.
In2015, 14 subsidiaries and 4 sub-subsidiaries were included in the consolidation scope by the company, see
details at Note 7 “Rights and Interests in Other Subjects ”. The consolidation scope of the company increased by 6
companies year on year at this reporting period, see details at Note 6“Change of Consolidation Scope”
Business scope: electronic vacuum glass devices and supporting electronic components, automotive parts
production and sales and after-sales services; management of the enterprise's own products export business and
the business of mechanical equipment, spare parts, raw materials imports business (except the goods and
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technology that the country limit or prohibit to import and export), flat panel display glass substrate industry,
investment, construction and operation and related technology development, technology consulting, technology
services, technology transfer; hydrogen (52.23 tons / year) of production (valid until June 30, 2015 (can not
operate the laws, regulations and the State Council decided to ban or restrict, ; can operate after get approval from
other departments).
Financial statements and notes to the financial statements approved at the 3rd meeting of the Eighth Board of of
Directors on August 29, 2016.
In the reporting period, 16 subsidiaries and 7 sub-subsidiaries were included in the consolidation scope by the
company, see details at Note 7 “Rights and Interests in Other Subjects ”. The consolidation scope of the company
increased by 5 companies year on year at this reporting period, see details at Note 6“Change of
Consolidation Scope”
IV.Basis for the preparation of financial statements
1.Basis for the preparation
The financial statements of the company are prepared based on the going-concern assumption and the actual
transactions and items,，the Company prepared financial statements in accordance with the ASBE-Basic Standard
and revised thereafter, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of
Accounting Standards for Business Enterprises and other regulations(hereinafter referred to as “the Accounting
Standards for Business Enterprises”, “China Accounting Standards” or “CAS”)，Rules for Preparation Convention
of Disclosure of Public Offering Companies No.15 – General Regulations for Financial Reporting (revised in
2014) by China Securities Regulatory Commission.
In accordance with relevant provisions of the Accounting Standards for Business Enterprises, the Group
adopted the accrual basis in accounting. Except for some financial instruments, where impairment occurred on an
asset, an impairment reserve was withdrawn accordingly pursuant to relevant requirements.
2. Going-concern
The company has the capacity to continually operate within 12 months at least since the end of report period,
and hasn’t the major issues impacting on the sustainable operation ability.
V.Principal accounting policies and accounting estimates
1.Statement on compliance with accounting standards for business Enterprises
The Company state: the financial statements prepared are in line with the requirements in enterprise accounting st
andards in line with of system, and have truly and completely reflected of the financial status in June
30, 2016 , operational results, cash flow, and other relevant information of January to June 2016.
2.Accounting year:
The Group’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year..from
January 1 to December 31 as one accounting year. 3. Operating Cycle
The normal business cycle refers to the period from the assets used for processing after purchased by the company to
the cash or cash equivalents achieved. 12 months are regarded as one operating cycle in the company, and which is as
the division criterion for the liquidity of assets and liabilities. The parent company and the subsidiay- Shijiazhuang
Colour Bulb Co., Ltd., which is engaged in manufacturing industry, with normal operating cycle that is one
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year;The Subsidiary-Wuhu Dongxu Optoelectronic Equipment Co., Ltd., Which is engaged in Manufacturing
industry, with normal operating cycle that is more than one year; The subsidiarys-Wuhu Dongxu Optoelectronic
Technology Co., Ltd., Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. , Zhenzhou Xufei Optoelectronic
Technology Technology Co., Ltd, Jiangsu Jixing New Material Co., Ltd., Dongxu(Kunshan) Display Material Co.,
Ltd.and Wuhan Dongxu Optoelectronc Technology Co., Ltd., Which are engaged in Manufacturing industry, with
normal operating cycle that is shorter than one year ; The Subsidiary-Sichuan Ruiyi Construction Engineering Co.,
Ltd. And Hebei Xubao Construction installation engineering Co., Ltd., which are engaged in Construction
installation, with normal that is more than one year; The Subsidiary-Beijing Xufeng Real estate, which is engaged
in real estate Development industry, with normal operating cycle that is more than one year; The
Subsidiary-Beijing Xutan New Material Co., Ltd., which is engaged in Technology service industry, with normal
operating cycle that is shorter than one year; The Subsidiary-Beijing Dongxu Huaqing Investment Co., Ltd.,
which is engaged in Investment Management Industry, with normal operating cycle that is shorter than one year;
The Sub-Subsidiary,Jiangsu Dongxu Yitai Intelligent Equipment Co.,Ltd, is engaged in manufacturing industry
but with uncertain operating cycle; The Sub-Subsidiary,Shijiazhuang Dongxu Optoelectronic Euqipment
Technology Co., Ltd, which is engaged in Manufacturing industry, with normal operating cycle that is one year;
The Sub-Subsidiary,Beijing Dongxu Investment Development Co., Ltd., which is engaged in Investment industry,
with normal operating cycle that is one year; The sub-subsidiary, Wuhu Ruiyi Service Co.,Ltd, is engaged in labor
dispatch, with normal operating cycle that is one year.
4.Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting treatment methods of the merger of enterprises under the control of the same company and
different companies
Business combination refers to the transactions or items with one reporting entity formed by the combination of
two or more separate enterprises. The business combination shall be divided into the business combination under
common control and the business combination under non-common control.
(1) Business Combination under Common Control
The business combination under common control refers to the business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the combination, and that
control is not transitory. Of which, the combining party is that acquiring the control right to other combining
enterprises at combining date, and the combining date means the date that the combining party actually acquires
the control right of the combined party.
The assets and liabilities acquired by the combining party are measured in accordance with the book value of the
combined party at the combining date. For the balance between the book value of net assets acquired by the
combining party and the book value of the combining valuable consideration (or the nominal amount of issued
shares), the capital reserves (stock premium) shall be adjusted, or the retained earnings shall be adjusted when the
capital reserves (stock premium) are insufficient.
All the costs directly incurred for the business combination by the combining party shall be recorded into the
current profits and losses when occurred.
（2）Business Combination under Non-common Control
The business combination under non-common control refers to the business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties both before and after the
combination. Of which, the acquirer is that obtaining the control right to other combining enterprises at
acquisition date, and other combining enterprises refers to the acquiree. The acquisition date means the date that
the acquirer actually obtains the control right of the acquiree. For the business combination under non-common
control, the merger costs include the assets paid for obtaining the control right of acquiree by the acquirer, the
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liabilities occurred or borne and the fair value of equity securities issued, the intermediary fees for audit, legal
services, evaluation and consultation when the business combination issued, and other management costs shall be
recorded into the current profits and losses when occurred. The transaction costs of equity securities or debt
securities issued for the merger consideration by the acquirer shall be included into the initially recognized
amount of the equity securities or the debt securities. The contingent consideration involved shall be recorded into
the merger cost as per the fair value at the acquisition date. Within 12 months after the acquisition date, the
combining business reputation should be adjusted correspondingly if the contingent consideration is required to
adjust because of new or further evidence for the existed situation on the acquisition date. The merger cost issued
by the acquirer and the identifiable net assets acquired in the combination are measured as per the fair value on the
acquisition date. The difference of the merger cost minus the fair value shares of identifiable net assets obtained
by the acquiree during the merger on the acquisition date, is recognized as the business reputation. While the
merger cost is less than the fair value shares of identifiable net assets obtained by the acquiree during the merger,
all the measurement on the identifiable assets, the liabilities, the fair value of liabilities and the merger cost
obtained by the acquiree should firstly be rechecked, and the difference shall be recorded into the current profits
and costs if the merger cost is still less than the fair value shares of identifiable net assets obtained by the acquiree
during the merger after rechecking.
If the deductible temporary difference of acquiree obtained by the acquirer is not recognized due to the
recognition condition of the deferred income tax assets unmet on the acquisition date. Within 12 months after the
acquisition date, the relevant deferred income tax assets shall be recognized and the business reputation shall be
reduced if the acquired new or further evidence shows that the relevant situation has already existed and the
economic benefit gained by the acquiree from the deductible temporary difference is expected to achieve, and the
differences are recognized as the current profits and losses if the business reputation is insufficient to offset. With
the exception of the above, the deferred income tax assets related to the business combination are recorded into
the current profits and losses.
For the business combination under non-common control realized step-by-step through multiple transactions, the
multiple transactions shall be judged if belong to “the package deal” according to the “Notice on Issuance of
Interpretation of Accounting Standards for Business Enterprises from Ministry of Finance” (Finance and
Accounting [2012] No.19) and the judgment standards on “the package deal” in Article 51 of “Accounting
Standards for Business Enterprises No.33 – Consolidated Financial Statement” (please see 5 (2) in Notes 3). For
the package deal, please refer to above description of this section and Notes 3, 12 “Long-term Equity Investment”
to conduction the accounting treatment. For the non-package deal, the relevant accounting treatment should be
respectively conducted for the individual financial statement and the consolidated financial statements:
For the individual financial statements, the sum of the book value of equity investment from the purchased party
held before the purchase date and the new investment cost at the purchase date shall be as the initial investment
cost of the investment. For the other comprehensive incomes involved in the equity of the acquiree held before the
acquisition date, the investment and the relevant other comprehensive incomes shall be disposed through the
accounting treatment on the same basis of the direct disposal of the relevant assets or liabilities by the acquiree
(Namely, the rest is transferred into the current investment incomes with the exception of the corresponding shares
of changes caused by the net liabilities or the net assets of the defined benefit plans re-measured by the acquiree as
per the equity method).
In the consolidated financial statements, the equity of the acquiree held before the acquisition date shall be
measured again as per the fair value of the equity on the acquisition date, and the difference between the fair value
and the book value is recorded into the current investment income. For the other comprehensive incomes involved
in the equity of the acquire held before the acquisition date, the relevant other comprehensive incomes shall be
disposed through the accounting treatment on the same basis of the direct disposal of the relevant assets or
liabilities by the acquire (Namely, the rest is transferred into the current investment incomes on the acquisition
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
date, with the exception of the corresponding shares of changes caused by the net liabilities or the net assets of the
defined benefit plans re-measured by the acquire as per the equity method).
6. Compiling method of consolidated accounting statements
(1) Compiling method of consolidated accounting statements
The company starts to include the actual control right to the net assets and the production and management
decisions of the subsidiaries into the combination scope since the date of the actual right acquired, and will stop
covering into the combination scope on the date of the actual right lost. For the disposed subsidiaries, the business
performance and the cash flow before the disposal date have been properly covered in the consolidated profit
statement and the consolidated cash flow statement. For the subsidiaries disposed in the current period, the
opening balance of the consolidated balance sheet shall not be adjusted. Meanwhile, for the subsidiaries increased
through the business combination under non-common control, the business performance and the cash flow after
the acquisition date have been properly included in the consolidated profit statement and the consolidated cash
flow statement, and the opening balance and the comparison balance of the consolidated financial statement shall
not be adjusted. For the subsidiaries increased through the business combination under common control, the
business performance and the cash flow from the beginning of current combination period to the combination date
have been properly included in the consolidated profit statement and the consolidated cash flow statement, and the
comparison balance of the consolidated financial statement shall be adjusted simultaneously.
When the preparation of the consolidated financial statement, the necessary adjustment shall be made according to
the accounting policy of the company and the financial statement of the subsidiaries during the fiscal period if the
accounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For the
subsidiaries acquired through the business combination under non-common control, the financial statement shall
be adjusted on the basis of the fair value of the identifiable net assets on the acquisition date.
All the major balances, transactions and the unrealized profits of the company shall be offset in the preparation of
the consolidated financial statement.
Those not belong to the company in the shareholders’ equity and the current net profit or loss of the subsidiaries
shall be respectively as the minority equity and the minority interest income and individually listed under the
shareholders’ equity and the net profit of the consolidated financial statement. The minority equity portion from
the net profit or loss in current period shall be as “minority interest income” and listed under the net profit in the
consolidated financial statement. Moreover, the minority equity is still offset even if the losses of the subsidiaries
undertaken by the minority shareholders are beyond the portion of the shareholders’ equity shared by the minority
shareholders of the company at the beginning of period.
When the control on the original subsidiaries lost due to the disposal of partial equity investment or other reasons,
the remaining equity should be measured again according to the fair value on the control lost date. The difference
of the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the net assets
portion of the original subsidiaries calculated from the purchase date as per the original stock proportion shall be
recorded into the current investment income after the control lost. Other comprehensive returns relevant to the
original subsidiary shares investment shall be disposed through the accounting treatment on the same basis of the
direct disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely, all the rest are
transferred into the current investment incomes, with the exception of the changes caused by the net liabilities or
the net assets of the defined benefit plans re-measured by the original subsidiaries). Thereafter, the subsequent
measurement shall be made for the rest equity according to the relevant provisions of “Accounting Standards for
Business Enterprises No. 2 – Long-term Equity Investment” or “Accounting Standards for Business Enterprises
No. 22 – Recognition and Measurement of Financial Instruments”. For the details, please see Notes 3, 12
“Long-term Equity Investment” or Notes 3, 9 “Financial Instruments”.
For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till the
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control right lost, the company should respectively dispose all the transactions if belong to the package deal. As
long as the terms, conditions and economic influence on all the transactions of the disposal of the equity
investment in the subsidiary meet one status below, it usually shows that the multiple transactions matters should
be conducted the accounting treatment as the package deal: ① these transactions are made simultaneously or
under the consideration of the influence each other. ② these transactions shall be as the whole to achieve one
complete business results. ③ one transaction occurs depending on the appearance of other one transaction at least.
④ one transaction is economic under the consideration with other transactions even if it is not economic when
individually considerate. For the non-package deal, each transaction shall be respectively conducted the
accounting treatment according to the applicable principles of “Partial Disposal of Long-term Equity Investment
in Subsidiary without Control Lost” (please refer to 12, (2) ④ in Notes 3,) and “The Control on Original
Subsidiary Lost due to Disposal of Part of Equity Investment or Other Reasons” (details please see forepart). For
the package deal from the transactions after the disposal of equity investment in the subsidiary till the control right
lost, the transactions shall be as one transaction of the disposal of subsidiary and the control lost for the
accounting treatment. Therefore, every balance between the net assets proportion of the subsidiary shared relative
to the disposal price and the disposal investment before the control right lost, shall be recognized as other
comprehensive incomes in the consolidated financial treatment and transferred into the current profits and losses
when the control lost.
7. Recognition Standard of Cash & Cash Equivalents
The cash stated in cash flow statement refers to cash in hand and bank deposits usable for payment at any time.
Cash equivalent refers to the investments with holding period of less than three months that are readily convertible
to known amount of cash and subject to insignificant risk of changes in value.
8. Accounting and Translation Method of Foreign Currency Transaction
(1) Translation Method of Foreign Currency Transaction
The shot exchange rate (usually refers to the middle rate at the date of currency exchange published by the
People’s Bank of China, hereinafter inclusive) on the transaction date is adopted to convert to the amount of
functional currency when the foreign currency transaction issued in the company is initially recognized. However,
the foreign currency exchanges or the transactions relative to the foreign currency exchanges occurred in the
company shall be translated into the amount of functional currency as per the actually adopted exchange rate.
(2) Translation Method for Monetary Items of Foreign Currency and Non-monetary Items of Foreign Currency
On the balance sheet date, the monetary items of foreign currency are translated as per the shot exchange rate on
the balance sheet date, and the foreign exchange conversion gap arising from which shall be recorded into the
profits and losses of the current period, except for ① the balance of exchange arising from special foreign
currency borrowings for the purchase and construction of qualified assets subject to the principle of borrowing
costs. ② the exchange balance generated from other book balances in the foreign currency monetary items
available for sale with the exception of the post-amortization costs shall be recorded into other comprehensive
incomes.
The non-monetary items of foreign currency measured at the historical cost shall still be measured by the amount
of functional currency translated at the spot exchange rate on the transaction date. The non-monetary items of
foreign currency measured at the fair value shall be translated at the spot exchange rate on the fair value
recognized date, and the gap of the translated amount of functional currency and the original the amount of
functional currency shall be as the fair value variation (change in exchange rate included) to make treatment and
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
recorded into the current profits and losses or recognized as other comprehensive incomes.
(1) Translation Method of Foreign Currency Financial Statement
For the overseas business operation involved in the preparation of the consolidated financial statement, the
exchange balance arising from the change in exchange rate for the foreign currency monetary items of the net
investment in the overseas business, shall be as “translation reserve of foreign currency statement” and recognized
as other comprehensive incomes. The profits and losses of the current disposal period shall be recorded when
disposal of the overseas business operations.
The foreign currency financial statement of the overseas business operation shall be translated as RMB statement
as per the following methods: the assets and liabilities in the balance sheet shall be translated at a spot exchange
rate on the balance sheet date. For the shareholders’ equity items, other items shall be translated at a spot exchange
rate when occurring, except for the “undistributed profit” items. The earnings and expenses items in the profit
statement shall be translated at a spot exchange rate on the transaction date. Moreover, the undistributed profits at
the beginning of this year are the profits translated at the end of last year which shall be distributed and listed all
the items measurement as per the translated profits. The difference between the translated assets items and the sum
of the liabilities items and the shareholders’ equity items shall be as the translation reserve of foreign currency
statement and recognized as other comprehensive incomes. When disposing the overseas business operation and
losing the control right, the translation reserves of foreign currency statement related to the overseas business
operation which listed in the shareholders’ equity items in the balance sheet, are all recorded into the current
disposal profits and losses or shifted as per the disposal proportion of the overseas business operation.
The cash flows of foreign currency and overseas subsidiary shall be translated at the spot exchange rate on the
cash flow date. The influence amount of the change in exchange rate on the cash shall be individually listed and
reported as the adjustment items in the cash flow statement.
The amount at the beginning of this year and the actual amount of last year shall be listed according to the
translated amount of the financial statement.
If the control on the overseas business operation lost due to the disposal of partial equity investment or other
reasons when disposing all the owners’ equity of the overseas business operation of the company, the translation
reserves of foreign currency statement belong to the owners’ equity of the parent company related to the overseas
business operation which listed in the shareholders’ equity items in the balance sheet, are all recorded into the
current disposal profits and losses.
If the held equity proportion of the overseas business operation reduced due to the disposal of partial equity
investment or other reasons, but the control on the overseas business operation not lost, the translation reserves of
foreign currency statement related to the partial disposal of the overseas business operation shall be belong to the
minority equity and not recorded into the current profits and losses. When disposing partial equity of the joint
ventures or the cooperative enterprises of the overseas business operations, the translation reserves of foreign
currency statement related to the overseas business operations shall be recorded into the current disposal profits
and losses as per the disposal proportion of the overseas business operations.
9.Financial instruments
One financial asset or financial liability shall be recognized when the company becomes the party in the financial
instrument contract. The financial assets and the financial liabilities are measured at the fair value in the initial
recognition. For the financial assets and liabilities that measured at the fair values and the variation included in the
current profits and losses, the relative transaction expenses shall be directly recorded into the profits and losses.
For the financial assets and liabilities of other categories, the expenses related to transactions are recognized as
initial amount.
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(1) Determination Method for the Fair Value of Financial Assets and Liabilities
The fair value refers to the price that receivable for the sale of one asset or paid for the transfer of one liability in
the orderly transactions occurring on the measurement date for the market participants. If there exists the active
market for the financial instrument, the company shall recognize the fair value according to the quotation in the
active market which refers to the price that easy to periodically acquire from Exchanges, Commission Brokers,
Guilds and Pricing Services, and stands for the price of the market transactions actually occurred in the fair
dealing. For there isn’t the active market for the financial instrument, the company shall recognize the fair value
with adopting the valuation technique which includes the price used in the market transactions recently conducted
by the parities with voluntary trade and under the consideration and acquainting of the situation, the current fair
value in reference to other same financial instruments, the discount cash flow method and the option pricing
model.
(2) Classification, Recognition and Measurement of Financial Assets
The accounting recognition and de-recognition shall be conducted at the transaction date in the conventional way
for the financial assets dealing. The financial assets are divided into the financial assets, the held-to-maturity
investment, the loans, the receivables and the sellable financial assets which are measured at their fair values and
of which the variation are recorded into the current profits and losses when recognized initially.
① The financial assets measured at the fair value and of which the variation recorded into the current profits and
losses
Including the tradable financial assets and the financial assets designated at their fair values and of which the
variation is recorded into the current profits and losses.
The tradable financial assets refer to the financial assets meeting any of the following requirements: A. the
purpose to acquire the financial assets is for selling in the short-term. B. forming a part of the identifiable
combination of financial instruments which are managed in a centralized way and for which there are objective
evidences proving that the company may manage the combination by way of short-term profit making in the near
feature. C. being a derivative instrument, excluding the designated derivative instruments which are effective
hedging instruments, or derivative instruments belong to financial guarantee contracts, and the derivative
instruments which are connected with the equity instrument investments for which there is no quotation in the
active market and whose fair value cannot be reliably measured, and which shall be settled by the delivery of the
equity instruments.
The financial assets meeting any of the following requirements can be designated when they are initially
recognized as financial assets measured at their fair values and of which the variation is recorded into the current
profits and losses: A. the designation is able to eliminate or obviously reduce the discrepancies in the recognition
or measurement of relevant gains or losses arisen from the different basis of measurement of the financial assets.
B. the official written documents on risk management or investment strategies of the company have recorded that
the combination of the financial assets, or the combination of the financial assets and liabilities will be managed
and evaluated on the basis of the fair value and reported to the key management personnel.
The financial assets measured at their fair values and of which the variation is recorded into the current profits and
losses shall be made the subsequent measurement as per the fair value, and the gains or losses formed from the
variation of the fair value as well as the dividend and interest incomes related to the financial assets shall be
recorded into the current profits and losses.
②The investments of held-to-maturity
The held-to-maturity investment refers to a non-derivative financial asset with a fixed date of maturity, a fixed or
determinable amount of repo price and the company holds for a definite purpose or is able to hold until its
maturity.
The held-to-maturity investments shall be made the subsequent measurement on the basis of the actual interest
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
rate and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or
amortization shall recorded into the current profits and losses.
The actual interest rate method is the way to calculate the post-amortization costs and the interest incomes or
expenditure at each period as per the actual interest rate of the financial assets or liabilities (a group of financial
assets or liabilities included). The actual interest rate means that the future cash flow of the financial assets or
liabilities within the predicted term of existence or within a shorter applicable term shall be discounted as the rate
used for the current book value of the financial assets or liabilities.
When calculating the actual interest rate, the company should consider all the contract terms of the financial assets
or liabilities to estimate the future cash flow (without regard to the future credit loss), and take account of all the
charges, transaction expenses and discounts or premium belong to the actual interest rate and paid or received
between all the parties of the financial assets or liabilities contracts.
③Loans and Receivables
The loans and the receivables refer to a non-derivative financial asset without the quotation, a fixed or
determinable amount of repo price in the active market. The financial assets divided into loans and receivables of
the company shall include the bill receivable, the accounts receivable, the interest receivable, the dividends
receivable and other receivables
The loans and the receivables shall be made the subsequent measurement on the basis of the actual interest rate
and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or amortization
shall recorded into the current profits and losses.
④ The financial assets available for sale
The sellable financial assets refer to the non-derivative financial assets which are designated as sellable when they
are initially recognized as well as the financial assets other than the financial assets, the loans, the receivables and
the held-to-maturity investments measured at the fair value and of which the variation recorded into the current
profits and losses.
The costs of the sellable liability instrument investments at the end of period shall be recognized as per the
post-amortization cost method, which is the amount that the accumulated amortization amount, formed after the
amortization for the initially recognized amount with the compensated capital deducted plus or minus the
difference between the initially recognized amount and the amount at the maturity date with use of the actual
interest rate method, with deduction of the impairment losses occurred. The costs of the sellable equity instrument
investments at the end of period are the initially acquired costs.
The sellable financial assets shall be conducted the subsequent measurement at the fair value, the balance
The gains or losses arising from the change in the fair value, except that the impairment losses and the exchange
balance related to the monetary financial assets of foreign currency and the post-amortization costs are recorded
into the current profits and losses, shall be recognized as other comprehensive incomes, transferred out and
recorded into the current profits and losses when the de-recognition of the financial assets. However, The equity
instrument investment which has no quotation in the active market and whose fair value cannot be reliably
measured, and the derivative financial assets which are connected with the equity instrument and required to settle
by the delivery of the equity instrument shall be conducted the subsequent measurement by costs.
The interests acquired from the sellable financial assets during the holding period and the cash dividends declared
to deliver by the investee shall be recognized as the investment returns.
The financial assets impairment available for sale
The decline for the fair value of the sellable equity instrument investments can be judged as serious or
non-transient depreciation by the relevant comprehensive factors, which shows that the sellable equity instrument
investments have the impairment. Of which, the “serious depreciation” refers to the decline range of the fair value
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accumulatively over 20%, and the “non-transient depreciation” is the decline period of the fair value continuously
beyond 12 months.
When the sellable financial assets impair, the accumulated losses formed due to the depreciation of the fair value
for other comprehensive incomes originally recorded shall be transferred out and recognized as the current profits
and losses, and the transferred accumulative losses are the balances of the costs of the assets initially acquired
with deduction of the withdrawn capitals, the amortized amount, the current fair value and the impairment losses
initially recorded into profits and losses.
After the impairment losses recognized and if there are objective evidences proving that the financial assets values
have resumed after the period and have objectively involved in the matters occurred after the losses recognized,
the impairment losses originally recognized shall be switched back, the reverse of the impairment losses for the
sellable equity instrument investments shall be recognized as other comprehensive incomes and the reverse of the
impairment losses for the sellable liability instrument shall be recorded into the current profits and losses.
The equity instrument investment which has no quotation in the active market and whose fair value cannot be
reliably measured, or the impairment losses of the derivative financial assets which are connected with the equity
instrument and required to settle by the delivery of the equity instrument shall not be reversed.
(3) Recognition criteria and measurement methods of transferred financial assert
For financial asset that satisfies the following criteria, it shall stop recognizing the financial asset: 1) the contract
rights to collect the cash flow of the financial assert has been terminated; 2) the financial assert has been
transferred with nearly all of the risks and rewards related to the ownership of the financial assert transferred to
transferee; 3) the financial assert has been transferred with the control to such financial asserts waived, though this
enterprise has not transferred or retained nearly all the risks and rewards related to the ownership of the financial
assert.
If this enterprise has neither transferred nor retained almost all the risks and rewards on the asset ownership, it
shall, within the extent of its continuous involvement in the transferred financial asset and recognize the relevant
liability. The term "continuous involvement in the transferred financial asset" shall refer to the risk level that this
enterprise faces resulting from the change of the value of the financial asset.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between
the amounts of the book value of the transferred financial asset and the sum of consideration received from the
transfer, and the accumulative amount of the changes of the fair value originally recorded in the owner's equities
of other comprehensive income, shall be recorded in the profits and losses of the current period.
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the book value of the
transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose
recognition has not been stopped, be apportioned according to their respective relative fair value, and the
difference between the amounts of the following 2 items shall be included into the profits and losses of the current
period: 1)sum of consideration the portion whose recognition has been stopped and the accumulative amount
changes in fair value originally recorded owner’s equities which is corresponding to stopped, the book value of
the portion whose recognition has been stopped; 2) the book value of the portion whose recognition has been
stopped.
For the financial asset sold with recourse attached, it is to transfer the financial asset held by endorsement, prior to
confirmation that nearly all of the risks and rewards related to the ownership of the financial asset has been
transferred to transferee. Where this enterprise has transferred nearly all of the risks and rewards related to the
ownership of the financial asset to the transferee, it shall stop recognizing the financial asset. If it retained nearly
all of the risks and rewards related to the ownership of the financial asset, it shall not stop recognizing the
financial asset. Where this enterprise does not transfer or retain nearly all of the risks and rewards related to the
ownership of a financial asset, it shall deal with it according to principles stipulated above.
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(4)Classification and Measurement of Financial Liability
Financial liabilities shall be classified into the two categories when they are initially recognized: the financial
liabilities which are measured at their fair values and of which the variation is included in the current profits and
losses; other financial liabilities. For the financial liabilities which are measured at their fair values and of which
the variation is included in the current profits and losses, the related transaction cost shall be included directly in
the current profits and losses; for other financial liabilities, the related transaction cost included in the initially
recognized amount.
① The condition for classifying the financial liabilities which are measured at their fair values and of which the
variation is included in the current profits and losses
as transactional financial liabilities and the financial liabilities which are measured at their fair values at initial
recognition and of which the variation is included in the current profits and losses is the same as these for
classifying it as the transaction financial asset and the financial asset which are measured at their fair values and
of which the variation is included in the current profits and losses.
This enterprise shall make subsequent measurement on its financial liabilities according to their fair values. The
profits and losses, arising from the change in the fair value of the financial asset, and the dividends and interests
expenses associated with the financial asset, shall be recorded into the profits and losses of the current period.
② Other Financial Liability
And are not quoted in an active market,for which there is no quoted price in the active market and whose fair
value cannot be reliably measured, this enterprise shall make subsequent measurement according to its cost. For
other financial liabilities, this enterprise shall make subsequent measurement on the basis of the post-amortization
costs by adopting the actual interest rate method, with profits or losses resulting from stopping recognition or
amortization recorded into the profits and losses of the current period.
(5) Termination from Recognition of Financial Liability
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the
financial liability be terminated in all or partly. Where this enterprise (debtor) enters into an agreement with a
creditor so as to substitute the existing financial liabilities by way of any new financial liability, and if the
contractual stipulations regarding the new financial liability is substantially different from that regarding the
existing financial liability, it shall terminate the recognition of the existing financial liability, and shall at the same
time recognize the new financial liability.
Where the recognition of a financial liability is totally or partially terminated, this enterprise shall include into the
profits and losses of the current period the gap between the carrying amount which has been terminated from
recognition and the considerations it has paid (including the non-cash assets it has transferred out and the new
financial liabilities it has assumed).
(6) Offset of Financial Asset and Financial Liability
Where this enterprise has the legal right to offset its recognized financial asset and financial liability, and it is able
to perform this legal right, and if it plans to settle with the net amount of and cash the financial asset and liquidate
the financial liability, it shall itemize and show in the balance sheet the amounts after the financial asset and the
financial liability offset each other. For any other circumstances, the financial asset and financial liability shall not
offset each other, and shall be itemized and shown separately in the balance sheet
(7) Equity Instruments
The "equity instruments" refers to the contracts which can prove that this enterprise holds the surplus equities of
the assets after the deduction of all the debts. This enterprise deal the equity instruments issued (including
refinancing), repurchased, sold or cancelled as changes of equity. It shall not recognize the changes of fair value of
equity instruments. The transaction expenses associated with equity transactions shall be deducted from the
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equity.
This enterprise shall deduct the shareholders' equity for various kinds of distributions (not including stock
dividends) to the holders of equity instruments. It shall not recognize the amount of changes in the fair value of
equity instruments.
10.Account receivable
（1）Provision for bad debts of account receivable that are individually significant
The judgment basis for significant single-item amount or The accounts receivable with single-item amount of RMB 5
standard for significant amount million and above
Impairment test shall be separately conducted. If the test proves
the occurrence of impairment, impairment loss shall be
determined and provision for bad debts shall be made according
to the difference between the present value of its future cash flow
and its book value. For the accounts receivable whose
The method of separate provision for bad debts for the accounts impairment is not proved by separate test, such accounts
receivable with significant single-item amount receivable, together with those with insignificant single-item
amount, are divided into some groups based on similar
characteristics of credit risks. For these groups of accounts
receivable, provision for bad debts shall be made according to
the regulation mentioned in "(2) provision for bad debts shall be
made for accounts receivable on group basis".
(2)The accounts receivable of bad debt provisions made by credit risk Group
Name Withdrawing Method
Aging Group Aging Analysis Method
Other Group Other method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Aging Rate for receivables(%) Rate for other receivables(%)
During the credit period 0.00% 0.00%
The credit period within 1 year 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 50.00% 50.00%
4－5 years 70.00% 70.00%
Over 5 years 100.00% 100.00%
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In Group, adopting balance percentage method for bad debt provision：
□ Applicable √ Not applicable
In Group ,adopting other method for bad debt provision：
□ Applicable √ Not applicable
(3) Accounts receivable that are individually insignificant but with bad debt provision provided on an
individual basis
The accounts receivable with single-item amount of less than
Reason for separate provision for bad debts RMB 5 million whose risk characteristics can’t be reflected by
provision for bad debts on basis of group.
Provision for bad debts is made according to the difference
Method of provision for bad debts between the present value of its future cash flow and its book
value.
11. Inventories
(1)Classification of Inventories
This enterprise's inventories is classified as raw materials, works in process, finished products, circulation
materials, low-value consumption goods, packing materials, supplies purchasing, engineering construction,
development cost,etc.
(2) Obtaining and Measurement of Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be measured by
their actual cost when they are obtained. Raw materials, works in process, finished products, etc. shall be
measured with the weighted average method when they are being sent out. Low-value consumption goods shall be
written off by one-off write-off method when they are withdrawn for use. Circulation packaging materials shall be
recorded into cost according to the predicted usage times.
(3) Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period, this enterprise shall make
the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss on
decline in value of inventories on the ground of each item of inventories. If the factors causing any write-down of
the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision
for the loss on decline in value of inventories that has been made.
(4) Method for confirming the net realizable value of inventories
The net realizable value of inventories refers to the amount of the estimated selling price, less the estimated costs
of completion, the estimated selling costs and related tax payments.
(5) Cost of Development
Cost of development includes completed development product, development product under construction, leasing
development product and simulated development land.
Completed development product means the estate which has been built and up for sale; Development product
under construction means the estate which hasn’t been built and in the purpose of sale; Leasing development
product means the estate which is temporarily leased under business mode for which the company’s intents to sell,
which the leasing development product amortizes by stages within the estimated available years; Simulated
development land means the land which has been purchased and determined to be developed as Sales or Leasing
Estate.
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12. Long-term Equity Investment
The long-term equity investment in this section refers to the long-term equity investment of this enterprise that is
able to control to or does joint control with or significant influences over the invested enterprise. For the
long-term equity investment of this enterprise that is not able to control to or does not do joint control with or
have significant influences over the invested enterprise, this enterprise shall record it as available-for-sale
financial asset or the financial asset measured by its fair value with its changes in fair value recorded into the
profits or losses of current period as the changes. For details of its accounting policy, please refer to Note III.9
"Financing Instruments"
The term "joint control" refers to the joint control over an arrangement of this enterprise in accordance with the
contracts and agreements, and decisions over relevant activity of such arrangement shall not be unless the assent
on sharing the control power. The term "significant influences" refers to this enterprise's power to participate in
making decisions on the financial and operating policies of the invested enterprise, but not to control or do joint
control together with other parties over the formulation of these policies.
(1)Ascertaining of Investment Cost
For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of the book
value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment. The
difference between the initial cost of the long-term equity investment and the payment in cash, no-cash assets
transferred as well as the book value of the debts borne by the merging party shall offset against the capital reverse.
If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. If the consideration of the
merging enterprise is that it issues equity securities, it shall, on the date of merger, regard the share of book value
of the owner’s equity of the merged enterprise as the initial cost of the long-term equity investment. The total face
value of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of the
long-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the
capital reserve is insufficient to dilute, the retained earnings shall be adjusted. For the merger of enterprises under
the same control through gaining the shares of the combined enterprise by multiple steps of deals, it shall deal
with it in the following two ways depending on that if it belongs to "a package deal": if it belongs to "a package
deal", it shall deal with all the deals as one obtaining the control power; if it does not belong to "a package deal",
it shall, on the date of merger, regard the share of book value of the owner’s equity of the merged enterprise as the
initial cost of the long-term equity investment. The total face value of the stocks issued shall be regarded as the
capital stock, while the difference between the initial cost of the long-term equity investment and total face value
of the shares issued shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the
retained earnings shall be adjusted. The equity investment held by this enterprise before the date of merger shall
be accounted for by equity method, or shall be recorded as the other comprehensive income recognized as
available-for-sale financial asset and not accounted for.
For the merger of enterprises not under the same control, it shall, on the date of merger, regard the share of the
book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment.
The merger costs include the assets paid, liabilities occurred or borne and sum of the fair value of the equity
securities issued by the purchaser. For the merger of enterprises not under the same control through gaining the
shares of the combined enterprise by multiple steps of deals, it shall deal with it in the following two ways
depending on that if it belongs to "a package deal": if it belongs to "a package deal", it shall deal with all the deals
as one obtaining the control power; if it does not belong to "a package deal", it shall, on the date of merger, regard
the sum of book value of the owner’s original equity of the merged enterprise and the newly increased investment
cost as the initial cost of the long-term equity investment. For the shares originally held by this enterprise
accounted for by weighted equity method, the relevant other comprehensive income shall not be accounted for
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temporarily. For the equity investment accounted for as available-for-sale financial asset, the difference of its fair
value and its face value and the accumulated changes in its fair value originally recorded as other comprehensive
income shall be switched to the profits or losses of the current period.
The audit cost, law service cost, evaluation and consultation fees and agent commissions as well as other related
administration costs occurred and borne by the merging or purchasing enterprise for the purpose of merger, shall
be recorded into the profits or losses of current period at the time when the costs occurred.
Other equity investments except the long-term equity investment formed by merger of enterprises shall be initially
ascertained by their costs which, depending on the different ways in acquiring the long-term equity investments,
shall be recognized separately as cash purchasing prices actually paid by this enterprise, fair value of the equity
securities issued by this enterprise, agreed value of the investment contracts or agreements, fair value or original
book value of the assets obtained by exchange of no-monetary assets, the fair value of the long-term equity
investment itself, etc. The relevant expenses, tax payments as well as other necessary expenses directly associated
with obtaining the long-term equity investment shall be recorded into the investment costs as well. If this
enterprise is able to do joint control or significant influence, which does not constitute control, over the invested
entity as a result of additional investment, the long-term equity investment cost shall be the sum of the fair value
of the equity investment ascertained in accordance with the Accounting Standards for Enterprises No. 22 -
Recognition and Measurement of Financial Instrument and the cost of the increased investment.
(2) Subsequent Measurement and Recognition Method
A long-term equity investment of this enterprise that does joint control (not including joint venture) or significant
influences over the invested entity shall be measured by employing the equity method. Besides, the cost method is
employed in this enterprise's financial reports to measure the long-term equity investment that could form control
over the invested entity.
①Long-term equity investment measured by employing the cost method
The price of a long-term equity investment measured by employing the cost method shall be included at its
initial investment cost. If there are additional investments, the cost of the long-term equity investment shall be
adjusted. Except the prices actually paid when obtaining the investment or cash dividends or profits being
approved in the consideration but not yet issued, the investment income of the current period shall be recognized
in accordance with the cash dividends or profits being approved by the invested entity.
②Long-term equity investment measured by employing the equity method
If the initial cost of a long-term equity investment is more than the investing enterprise's attributable share of the
fair value of the invested entity's identifiable net assets for the investment, the initial cost of the long-term equity
investment may not be adjusted. If the initial cost of a long-term equity investment is less than the investing
enterprise's attributable share of the fair value of the invested entity's identifiable net assets for the investment, the
difference shall be included in the current profits and losses and the cost of long-term equity investment shall be
adjusted simultaneously.
When employing the equity method, this enterprise shall, in accordance with the attributable share of the net
profits or losses of the invested entity, recognize the investment profits or losses and adjust the book value of the
long-term equity investment. This enterprise shall, in the light of the profits or cash dividends declared to
distribute by the invested entity, calculate the proportion it shall obtain, and shall reduce the book value of the
long-term equity investment correspondingly. Where any change is made to the owner's equity other than the net
profits and losses of the invested entity, the book value of the long-term equity investment shall be adjusted and
included in the capital reserves. This enterprise shall, on the ground of the fair value of all identifiable assets of
the invested entity when it obtains the investment, recognize the attributable share of the net profits and losses of
the invested entity after it adjusts the net profits of the invested entity. If the accounting policies and accounting
periods adopted by the invested entity are different from those adopted by this enterprise, an adjustment shall be
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
made to the financial statements of the invested entity in accordance with the accounting policies and accounting
periods of this enterprise and recognize the investment profits or losses and other comprehensive incomes. For the
transactions between this enterprise and its joint ventures and associated entities, where the assets invested or sold
do not constitute a business, the unrealized internal transaction profits or losses shall be calculated in accordance
with proportion shared, with the proportion shared by this enterprise offset and recognize the investment profits or
losses based thereof. However, if losses occurred in the internal transaction between the invested entities is the
impairment loss of transferred assets, they shall not be offset. When the assets invested by this enterprise to its
joint ventures or associated entities constitute a business, and the investing party obtains long-term equity but
without control power, the fair value of the invested business shall be recognized as the initial investment cost of
the additional long-term equity investment. The total difference between the original investment cost and the book
face of the invested business shall be recorded into the profits or losses of the current period. If the assets
purchased from the joint ventures or associated entities constitute a business, this enterprise shall account for the
business in accordance with this enterprise Accounting Standard No. 20 - Business Combinations, with the total
profits or losses associated with the transaction recognized.
The Company bears the net losses of its invested business to the limit of the book value of its long-term equity
investment and other long-term equity that in real terms constitutes investment on the business. For additional loss
of its invested business, if the Company is obligated to undertake, it shall be recognized as estimated liabilities
accordingly and recorded in current investment losses. If the invested business earns profits afterwards, the
Company shall reinstate and recognize its share of gains after compensating its unrecognized share of losses.
③Purchase of minority interest
While compiling consolidated financial statements, the Company adjusts its capital reserve in terms of the
difference between the increase of long-term equity investments due to purchase of minority interest and its share
of the subsidiaries’ net assets since the purchase (or combination) date or dates. If its capital reserve is not
sufficient to write down the difference, then the Company adjusts its retained income.
④Disposal of long-term equity investments
In consolidated financial statements, the Company records in shareholders’ equity the difference between partial
disposals of its long-term equity investments in its subsidiaries and its share of the subsidiaries’ net assets if it
does not lose control of the subsidiaries; and if such partial disposals result in loss of its control of the subsidiaries,
the difference shall be treated in accordance with the accounting policies related and specified in “Compiling
Principles for Consolidated Financial Statements”, Note III.6.(2).
For disposals of long-term equity investments under other circumstances, the difference between the book value
and the actual received consideration is recorded in current profit and loss.
For the long-term equity investments calculated by equity method, the same method applies to the remaining
equity after disposal. Meanwhile, the other comprehensive gains originally recorded in shareholders’ equity is
treated pro rata by the same method how the invested businesses handle the accounts while directly disposing the
related assets or liabilities. The investor recognizes the ownership interest due to equity changes except net profit
and loss, other comprehensive gains and profit distribution, and carries it over pro rata to current profit and loss.
For long-term equity investments calculated by costs method, the same method applies to the remaining equity
after disposal. Other comprehensive gains calculated and recognized by equity method or recognition and
measurement principles for financial instruments before the Company obtains control of the invested businesses
are treated on the same basis that the invested businesses directly dispose the related assets or liabilities, and it
will be carried over pro rata to current profit and loss; and among the invested businesses’ net assets that are
calculated and recognized by equity method are all other equity changes than net profit and loss, other
comprehensive gains and profit distribution carried over pro rata to current profit and loss.
For disposals of long-term investment equity resulting in loss of control over the invested businesses, when
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compiling individual financial statements, the Company changes to adopt equity method to calculate the
remaining equity that is still sufficient to exert joint control or significant influence, and to make adjustments as
since it was acquired; and if the remaining equity is not sufficient, it will be handled in accordance with the
relevant recognition and measurement principles for financial instruments and the difference between its fair value
and book value will be recorded in current profit and loss since the Company loses control of the invested
businesses. For other comprehensive gains recognized by equity method or recognition and measurement
principles for financial instruments before the Company obtains control over the invested businesses, the
Company adopts the same basis to handle the accounts as the invested businesses directly dispose the related
assets or liabilities, and among the invested businesses’ net assets that are calculated and recognized by equity
method are all other equity changes than net profit and loss, other comprehensive gains and profit distribution
carried over pro rata to current profit and loss. For the remaining equity calculated by equity method, other
comprehensive gains and other ownership interests will be carried over pro rata while for those treated in
accordance with the recognition and measurement principles for financial instruments, other comprehensive gains
and other ownership interests will be carrier over entirely.
Under the circumstances that the Company loses joint control over or has no significant influence on the invested
businesses due to partial equity disposal, the remaining equity changes to be calculated in accordance with the
recognition and measurement principles for financial instruments, and the difference between its fare value on the
date that the Company loses the joint control and significant influence and the book value is recorded in current
profit and loss. For other comprehensive gains recognized due to calculation of the original equity investments by
equity method, the Company adopts the equity method no longer but the same basis to handle the accounts as the
invested businesses directly dispose the related assets or liabilities while carrying over to current profit and loss all
the ownership interest recognized due to other equity changes than net profit and loss, other comprehensive gains
and profit distribution.
If the Company gradually loses control of a subsidiary through multiple transactions, which is a package deal as a
whole, then all these transactions will be treated as control losing equity disposal, and before loss of control, the
difference between each transaction consideration and the book value of the corresponding long-term equity
investment is recognized as other comprehensive gains and in the end, carried over to current profit and loss upon
loss of control.
13. Investment real estate
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
The Company makes initial measurement at the costs that the properties is acquired and records as part of the
property costs the subsequent expenses that could bring economic benefit inflows and be measured reliably while
other subsequent expenses as part of current profit and loss. Such properties are depreciated or amortized in
accordance with the relevant regulations for fixed assets or intangible assets.
14. Fixed assets
(1) Recognition criteria of fixed assets1
Fixed assets refer to tangible assets that are held for production, services, leases or operations and the useful life
of which are over one accounting year. Fixed assets are recognized if it produces economic benefit inflows and its
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costs can be measured reliably. The Company makes initial measurements on fixed assets at the costs that they are
acquired.
（2）Depreciation method
Estimated useful Estimated residual value
Type Detail Depreciation rate(%)
rate
Life
Over the period of title
(the period specified on
the real estate title
House and Building Straight-line method certificate or land use 5 3.17
right certificate) or 30
years in case of no period
of title
Machinery equipment-
Straight-line method 5 5 19
Kiln
Machinery equipment-
Straight-line method 3 95.50 1.5
Platinum passage
Machinery equipment-
Glass flat-panel and other Straight-line method 15 5 6.33
equipment
Machinery equipment-
Other Production Straight-line method 10 5 9.5
equipment
Transportation
Straight-line method 5 5 19
equipment
Other equipment Straight-line method 5 5 19
（3）Cognizance evidence and pricing method of financial leasing fixed assets
Fixed assets from finance lease are depreciated during the useful life if it is reasonable to determine that the
ownership could be obtained upon lease expiration; otherwise, the Company chooses the shorter of the lease
period and the remaining useful life to depreciate the assets.
15.Projects under construction
The costs of construction in progress include all necessary project expenditures, the borrowing expenses that
should be capitalized before the works reaches the expected usable status and other relevant expenses.
Construction in progress changes to fixed assets when it reaches the expected usable status.
16. Borrowing expenses
Borrowing expenses include interest, amortization of discount or premium, auxiliary expenses, translation
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differences arising from borrowings in foreign currency etc. The Company starts to capitalize the borrowing
expenses in direct connection to purchase, construction or production of the assets that meet capitalization
conditions when there are assets expenditures and borrowing expenses incurred and/or the Company starts all the
necessary events to purchase, construct or produce such assets till the assets can be used and sold. Other
borrowing expenses are recognized as costs when incurred.
The Company capitalizes the actual interest expense incurred by use of special borrowings, minus the interest
income from the remaining borrowing funds in bank or any investment income earned from the interim
investment of those borrowings; and for general borrowings, the amount to capitalize is the weighted average of
the accumulated assets expenditures in exceed of the special borrowings times the capitalization rate of the used
general borrowings, which is determined by the weighted average interest rate of the general borrowings.
During capitalization, all translation differences of special borrowings in foreign currency should be capitalized
while those of general borrowings in foreign currency are recorded in current profit and loss.
The assets to capitalize are fixed assets, investment properties, inventories etc., which can be used or sold after a
certain period of time to purchase, construct or produce.
The Company stops capitalization of borrowing costs if an abnormal interruption more than 3 consecutive months
occurs during purchase, construction or production of the assets that are eligible to capitalization till all those
restart.
If general borrowings are used to purchase, construct or produce the capitalization eligible assets, the borrowing
cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of the special
borrowings times the capitalization rate of the used general borrowings, which is determined by the weighted
average interest rate of the general borrowings.
17.Intangible assets
(1) Valuation method, service life and impairment test of Intangible Assets
The Company makes initial measurements on intangible assets in terms of the costs and determines the useful life
when obtaining the assets. For intangible assets of a limited useful life, from the time the assets are available for
use, the Company adopts the amortization method that reflects realization of the expected economic benefits, or
the straight-line amortization method if unable reliably to determine how to realize the expected economic
benefits; and no amortization are made for intangible assets of an unlimited useful life.
At the end of each year, the Company reviews the useful life and amortization methods of intangible assets of a
limited useful life and makes adjustments and accounting treatment if different from the previous estimates.
For the intangible assets that are estimated to produce no more economic benefits in the future, the Company
records the book value of such assets all in current profit and loss.
（2）. Accounting Policy of Internal Research and Development Expenditure
The expenditures for internal research and development projects of an enterprise shall be classified into research
expenditures and development expenditures.
The research expenditures shall be recorded into the profit or loss for the current period.
Development expenses can only be capitalized when the following conditions are satisfied: the technology is
feasible for use or sales; there is the intention to use or sell the intangible assets; it can be proven that the product
generated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is used
internally, it can be proven that it is useful; with necessary technical and financial resources and other resources to
complete the development of the intangible assets and the intangible assets can be used or sold; the development
expense can be reliably measured. If not, the development expense is accounted into the current gain/loss account.
If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study,
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
the project will enter the development stage.
18. Impairment of the long-term assets
On balance sheet dates, the Company determines whether there are impairments occurring to fixed assets,
construction in progress, intangible assets of a limited life, investment properties measured in the cost model as
well as non-current and non-financial assets like the long-term equity investments on subsidiaries, joint ventures
and associated companies. If impaired, the Company estimates the retrievable amount and conducts an
impairment test. Impairment tests need to be done on goodwill, intangible assets of an unlimited life and the
intangible assets that are not yet to reach the usable status, no matter they are impaired or not.
If the impairment test result shows the retrievable amount lower than the book value, impairment provisions will
be set aside and recorded in impairment loss. The retrievable amount is the fair value of the assets minus the
disposal expenses or the present value of the estimated future cash flows of the assets, whichever is higher. The
fair value of the assets is determined in terms of the price specified in the selling agreement that is fair trade; if no
selling agreement but there is an active assets market existing, it is determined in terms of the buyer’s offer; and if
no selling agreement and active assets market, the fair value can be estimated based on the best available
information. Disposal expenses include all related legal charges, taxes, delivery fees or the direct expenses
incurred to have the assets reach the usable or sellable status. To determine the present value of the estimated
future cash flows from the assets, the Company chooses an appropriate discount rate in the light of the continual
usage of the assets and the estimated future cash flows occurring upon final disposal. Impairment provisions of the
assets are calculated and recognized on the basis of individual assets. If unable to estimate the retrievable amount
of individual assets, the Company determines the amount by reference to the asset group that includes the
individual assets. Asset groups are the minimum assets combination that independently produces cash inflows.
For the goodwill separately listed in financial statements, while an impairment test being conducted, the book
value is apportioned to the asset groups or combination of asset groups expected to benefit from the synergy
effects arising from business combinations. The Company recognizes impairment losses when the test result
shows that the retrievable amount of the asset groups or combination of asset groups is lower than their book
values. The impairment loss will be first used to write down the book values of the asset groups or combination of
asset groups and then those of other assets pro rata.
Once the aforesaid impairment losses are recognized, they cannot be reinstated in the future.
19.Long-term amortizable expenses
Long-term unamortized expenses are valued at the actual costs and amortized at average in an estimated beneficial
period of time. If those cannot benefit the Company in future accounting periods, the remaining will be recorded
all in current profit and loss.
20. Remuneration
(1) Accounting methods for short-term compensation
Employee remuneration refers to all kinds of rewards or compensations given in return for employees’ services or
employment termination. It includes short-term compensation, post-employment benefits, demission benefits and
other long-term employee benefits as well as the benefits the Company provides to employees’ spouses, children,
dependents, deceased employees’ family and other beneficiaries.
The Company classifies into short-term compensation the employee remuneration that needs to be paid off
entirely in the twelve months following the reporting year the employees have provided their services, which
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
excludes those given for employment termination. Short-term compensation includes payroll, bonus, allowances
and subsidies, employee welfare, social security expenses including medical insurance, injury insurance and birth
insurance, housing fund, labor union and employee training expenditures, short-term paid leaves, short-term profit
share plans, non-monetary benefits and other short-term rewards. It recognizes as liabilities the actual short-term
compensation incurred during the accounting period that the employees provide their services and records in
current profit and loss or the relevant asset costs. Non-monetary benefits are measured at the fair value.
(2) Accounting methods for post-employment benefits
Post-employment benefits are mainly defined contribution plans, which include basic pension, unemployment
insurance etc. The corresponding contributions are recorded in the relevant asset costs or current profit and loss
when incurred.
(3) Accounting methods for demission benefits
Demission benefits are the compensations paid to terminate employment before expiration or encourage
employees to accept lay-off.
(4) Accounting methods for other long-term employee benefits
Other long-term employee benefits are all other employee compensations than short-term compensation,
post-employment benefits and demission benefits. They are long-term paid leaves, long-term benefits for the
disabled, long-term profit sharing plans etc.
21. Estimated Liabilities
The Company recognizes as estimated liabilities the obligations that meet the following conditions:
A. Current obligations being undertaken by the Company;
B. Fulfillment of the obligations that lead to cash flow out of the Company;
C. The amount of the obligations that can be measured reliably.
If it is expected that a third party can compensate for all or partial expenditures to pay off the recognized
estimated liabilities, the compensation can be recognized separately as assets only when the Company is sure to
receive it. The amount to recognize cannot exceed the book value of the recognized liabilities.
22. Share-based Payment
(1) Types of Share-based Payment
It is divided into equity-settled share-based payment and cash-settled share-based payment.
(2) Recognition of Equity Instruments’ Fair Value
For the granted equity instruments that there is an active market for, e.g. options, the Company determines the fair
value by reference to the quotation prevailing in the active market. For those that there is no active market for, the
options pricing model is adopted to determine the fair value.
(3) Recognition Basis for Best Estimates on Exercisable Equity Instruments
On each balance sheet date during the vesting period, the Company makes best estimates based on the latest
number changes of its employees and adjusts the quantity of estimated exercisable equity. The final quantity of
estimated exercisable equity instruments should be consistent with that of the actual ones on vesting dates.
23.Revenues
Income, is an enterprise formed in daily activities, will lead to an increase in shareholders' equity, the total inflow
of capital has nothing to do with the economic interests of the owner of investment. The company involved in inco
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
me, including revenue from selling goods, income of labor ,transferring assets use right and real estate
development income..
（1）Recognition time for sales of goods
After transferring the significant risks and compensation of the merchandise ownership to the buyer, the Company
no longer holds the rights to manage and have control over the merchandise, and recognizes the revenue if the
economic benefits arising from the related transactions can flow into the Company and all the costs and revenues
related to such product sales can be measured reliably.
(2) Services
Service transaction can be estimated reliably, meaning the following conditions are satisfied: amount of revenue c
an be measured reliably; the relevant economic benefits are likely to flow into the enterprise; completion of the tra
nsaction can be measured reliably; transactions that have occurred and will occur costs can be reliably measured
For the services that start and end during the same accounting year, the revenue shall be recognized upon
completion; if the services end in a different accounting year and the service transaction results can be measured
reliably, the Company adopts the completion percentage method to recognize the revenue on balance sheet dates;
if not measurable reliably, the Company recognizes the revenue at the amount of the service costs that are incurred
and can be compensated expectedly; otherwise, the service costs incurred are recognized as current expenses.
The Company adopts the following methods to determine the completion progress of service transactions:
①measurement of the completed jobs; ②the proportion of the completed services to all; ③the proportion of the
costs incurred to the total.
The company provides services at the balance sheet date, the transaction can not be reliably estimated, it shall be t
reated as follows: the costs incurred are expected to be compensated, according to the amount of labor costs that h
ave occurred service revenue is recognized, and the same amount knot turn labor costs; the costs incurred are not e
xpected to be compensated, labor costs should be recognized in profit or loss has occurred, no service revenue is r
ecognized.
Contract or agreement entered into with other companies, including the sale of goods when providing services, the
sale of goods and rendering of services can be measured in part to distinguish and separate, should be part of the s
ale of goods as sale of goods, the provision of services and as part of the provision of services deal with. Sales of
goods and rendering of services can not be distinguished, or can be distinguished but can not be measured separat
ely, should be part of the sale of goods and provision of services as part of the total sales of goods.
(3) Use Rights of Assets on Alienation
Transfer of right to Use Rights of Assets on Alienation consists of interest income, fee income etc.
If the related economic benefits can flow into the Company and the revenue can be measured reliably, the amount
of usage revenue will be calculated and determined according to the payment time and terms of the related
contract or agreement.
(4) Construction Contracts
A construction contract is a contract for the construction of one or more of the assets in terms of design, technolog
y and features, end-use and other closely related and approved.
Construction contracts are divided into fixed price contracts and cost-plus contracts.
A fixed price contract is to determine the price of a construction contract works in accordance with a fixed price o
r fixed unit price contract.
Cost-plus contracts, refers to the contract or otherwise agreed cost basis, plus the cost of a fixed fee or a percentag
e of the project to determine the price of a construction contract.
At the balance sheet date, shall be multiplied by the total contract revenue before completion less the cumulative a
mount of revenue recognized after the accounting period, recognized as the current contract revenue; at the same t
ime, according to the contract multiplied by the estimated total cost of completion less accumulated previous acco
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
unting period after the amount recognized as an expense is recognized as current contract costs.
Current period complete a construction contract, the contract shall be in accordance with the actual total income b
efore deducting the cumulative amount of revenue recognized after the accounting period, recognized as the curre
nt contract revenue; at the same time, according to the contract costs incurred for the deductible costs previously a
ccumulated recognized after the accounting period recognized as current contract costs.
If the results cannot be measured reliably but the costs can be retrieved, the revenue will be recognized at the
retrievable amount of the actual construction contract costs and the costs treated as expenses when incurred; if not
retrievable, the costs will also be treated as expenses and no revenue will be recognized.
（5）Income of Real Estate Development
The company’s real estate development products can confirm the income when meeting the follow conditions:
The sales contract has been signed; the down-payment has been charged and the bank mortgage procedure has
been completed or has obtained the rights to charge the purchase payment; the main-body of the house has been
completed and has passed the acceptance and inspection; the costs of the sales of the item can be measured
reliably.
24.Governmental subsidy
(1)Basis and accounting methods for assets related government subsidies
The government grants of monetary assets shall be measured in accordance with the received or receivable
amount. Of which, the grants can be measured at the receivable amount if there exists exact evidence to prove
they are allocated according to the fixed quota standard, otherwise they shall be measured at the amount actually
received. The government grants of non-monetary assets shall be measured at the fair value. If the fair value
cannot be reliably obtained, it shall be measured according to the nominal amount of RMB 1. The government
grants related to assets are recognized as the deferred incomes, which are equally distributed within the service
life of related assets and account into the current profit or loss.
(2) Basis and accounting methods for incomes shall related government subsidies The government grants
related to incomes shall be accounted into the current profit or loss if they are used to compensate for the
correlative expenses or losses occurred, and shall be recognized as the deferred income and accounted into the
current profit or loss during the expense confirmation period if they are used to compensate for the correlative
expenses or losses occurred in the subsequent period. The government grants measured at the nominal amount
shall be directly accounted into the current profit or loss.
25. Deferred income tax assets/Deferred income tax liability
The balance between the book value and the tax basis of some items of assets and liabilities, as well as the
temporary differences issued as the balance between the book value and the tax basis of the tax basis items that
unrecognized as assets and liabilities but can be determined as per the provisions of tax law, which shall be
determined as the deferred income tax assets and the deferred income tax liabilities in accordance with the balance
sheet debt law.
Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of an
asset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profit
and taxable income (or deductible loss) when it happens, the relevant deferred income tax liabilities shall not be
recognized. In addition, as for taxable temporary differences associated with investments in subsidiaries,
associates and joint ventures, if the Company could control the reverse time of such differences and such
differences cannot be reversed in the foreseeable future, the relevant deferred income tax liabilities also shall not
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
be recognized. Apart from the above-mentioned exceptional cases, the Company recognizes all other deferred
income tax liabilities caused by taxable temporary differences.
Deductible temporary differences related to the initial recognition of an asset or liability in a transaction that
neither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductible
loss) when it happens, the relevant deferred income tax assets shall not be recognized. In addition, as for
deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, if such
differences cannot be reversed in the foreseeable future or are not likely to obtain the taxable income to deduct the
deductible temporary differences of the taxable income, the relevant deferred income tax liabilities shall not be
recognized. Apart from the above-mentioned exceptional cases, the Company recognizes other deferred income
tax liabilities caused by deductible temporary differences within the limit of likely obtained taxable income that
can be used to deduct the deductible temporary differences of the taxable income.
The corresponding deferred tax assets of deductible loss and tax reduction that can be carried forward during
subsequent years shall be recognized within the limit of likely obtained future taxable income that can be used to
deduct the deductible loss and tax reduction.
As per the provisions of tax law, the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates used during the period of expectation recovery of relevant assets or pay-off
relevant liabilities at the balance sheet date.
The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of
the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in the
future to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it is
likely to obtain sufficient taxable income.
26.Operational leasing
（1）Accounting of operational leasing
The Company will transfer substantially all the risks and rewards of ownership of an asset lease is recognized as a
finance lease.Other forms of lease besides financial leasing are considered as operating leasing.
Lease payments under an operating lease shall be accounted into the relevant asset cost or current profit or loss
over the lease term on a straight-line basis.
(2) Accounting Method for Financing Leases
At the commencement of the lease term, an amount equal to the lower of the fair value of the leased asset and the
present value of the minimum lease payments shall be regarded as the recorded value of the leased assets and an
amount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leased
assets of payables. The balance between the recorded amount of the leased asset and the recorded amount of the
payable shall be accounted for as unrecognized finance charge.
27. Other significant accounting policies and estimates
Share repurchase refers to the behavior of repurchasing a certain sum of Company's outstanding stocks from the
stock market by cash and other methods; and the behavior that the incentive objects of restricted stocks fail to
submit a written application to the Board in the prescribed period shall be deemed as voluntarily give up the
unlocking, the corresponding restricted stocks shall no longer be unlocked and shall be logged out after the
repurchase at the awarded price by the Company. If any period fails to meet the unlocking conditions within the
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
unlocking period, the restricted stock with the unlocking application qualification in the current period cannot be
unlocked and shall be logged out after the repurchase by the Company.
Upon the legal procedures and reporting approval and through repurchasing the Company’s stocks, the
Company’s reduction of capital is conducted according to the total nominal value of written-off stocks. The part
of price paid to stock repurchase (including transaction expenses) that excesses the total nominal amount shall
offset the capital reserve (share premium), earned surplus and undistributed profits in sequence; The part of price
paid to stock repurchase (including transaction expenses) that less than the total nominal amount shall increase the
capital reserve (share premium).
28.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable √Not applicable
(2) Change of main accounting estimations
□ Applicable √ Not applicable
VI.Taxation
1.Main categories and rates of taxes
Taxes Tax references Applicable tax rates
Sales revenue and
VAT 11%、17%/6%
Technical services revenue
Business tax Income from labor service and lease 3%、5%
Urban construction tax Turnover tax to be paid allowances 7%
Enterprises income tax Taxable income 15%、25%
Educational surtax Turnover tax to be paid allowances 5%
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
Name of Taxpayer Rate of Income Tax
Dongxu Optoelectronic Technology Co., Ltd.（The Company） 15%
Wuhu Dongxu Optoelectronic Technology Co., Ltd.（Subsidiary）15%
Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd
15%
（Subsidiary）
Shijiazhuang Dongxu Optoelectronic Equipment Technology
15%
Co., Ltd（Sub-subsidiary）
Zhengzhou Xufei Optoelectronic Technology Co., Ltd
15%
（Subsidiary）
Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd
15%
（Subsidiary）
Hebei Xubao Construction Installation Engineering Co., Ltd 25%
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
（Subsidiary）
Shijiazhuang Baoshi Color Bulb Co., Ltd（Subsidiary） 25%
Wuhan Dongxu Optoelectronic Technology Co., Ltd
25%
（Subsidiary）
Sichuan Ruiyi Construction Engineering Co., Ltd.（Subsidiary） 25%
Beijing Xufeng Real Estate Co., Ltd.（Subsidiary） 25%
Dongxu (Kunshan）Display Material Co., Ltd.（Subsidiary） 25%
Beijing Dongxu Investment Developement Co., Ltd.
25%
（Sub-subsidiary）
Wuhu Ruiyi Labor Co., Ltd（Sub-subsidiary） 25%
Jiangsu Jixing New Material Co., Ltd. （Subsidiary） 15%
Beijing Xutan New Material Co., Ltd. （Subsidiary） 25%
Beijing Dongxu Huuaqing Investment Co., Ltd. （Subsidiary） 25%
Jiangsu Dongxu Yitai Intelligent Equipment Co., Ltd.
25%
（Sub-subsidiary）
Fuzhou Dongxu Optoelectronic Technology Co.,
25%
Ltd.(Subsidiary)
Shenzhen Xuhui Investment Holdings Co., Ltd.(Subsidiary) 25%
Shanghai Tanyuan Huigu New Material Technology Co.,
25%
Ltd.(Subsidiary)
Fuzhou Dongxu Investment Development Co.,
25%
Ltd.(Sub-subsidiary)
Fuzhou Xufu Optoelectronic Technology Co.,
25%
Ltd.(Sub-subsidiary)
2.Tax Preference
① On September 29, 2015,The Company was rated as the national high-tech enterprise with validity of 3 years.
As per the provisions of enterprise income tax law, the Company adopts 15% enterprise tax rate applicable for
high-tech enterprises for three years since 2015.
② On October 21, 2014,Wuhu Dongxu Optoelectronic Technology Co., Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15%
enterprise tax rate applicable for high-tech enterprises for three years since 2014.
③ On October 14, 2013, Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2013.
④ On November 4, 2013, Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd. was rated as the
national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the
Company adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2013.
⑤ On August 3, 2015,Zhengzhou Xufei Optoelectronic Technology Co., Ltd. was rated as the national high-tech
106
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15%
enterprise tax rate applicable for high-tech enterprises for three years since 2015.
⑥ In 2013, Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. was rated as the national high-tech
enterprise. December 2014 for the record, As per the provisions of enterprise income tax law, the Company adopts
15% enterprise tax rate applicable for high-tech enterprises for three years since 2014.
⑦ On December 3, 2013,Jiangsu Jixing New Material Co., Ltd. was rated as the national high-tech enterprise
with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15% enterprise
tax rate applicable for high-tech enterprises for three years since 2013.
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash 246,291.07 245,781.01
Bank deposit 15,837,794,470.16 12,181,847,699.04
Other 445,294,342.51 227,416,690.21
Total 16,283,335,103.74 12,409,510,170.26
Other notes
Notes 1：The material reasons for the increase of monetary funds at the end of the period compared with the
beginning include the completion of the directional add-issuance for raising 8 billion RMB, collection of sales
payment and increased financing.
Notes 2：The amount of restricted monetary capital of the total monetary capital in the end of the period is RMB
543,648,071.60. Mainly for the draft earnest money and the fixed deposit receipt.
2.Bills receivable
（1）Classification bill receivable
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 79,562,091.14 51,014,152.00
Trade acceptance 4,500,000.00
Total 84,062,091.14 51,014,152.00
（2）Bills receivable pledged at period-end
In RMB
Items Year-end balance Year-beginning balance
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Bank acceptance 468,321,671.17
Total 468,321,671.17
3. Account receivable
(1)Classification account receivables
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Proportio Proportio Proportio Proportion( Book value
Amount Amount value Amount Amount
n(%) n(%) n(%) %)
Receivables subject
1,055,3
to provision for bad 1,162,33 16,369,1 1,145,967 12,853,98 1,042,538,3
100.00% 1.41% 92,294. 100.00% 1.22%
debts on credit risk 6,850.48 50.05 ,700.43 2.43 12.51
94
characteristics basis
1,055,3
1,162,33 16,369,1 1,145,967 12,853,98 1,042,538,3
Total 100.00% 1.41% 92,294. 100.00% 1.22%
6,850.48 50.05 ,700.43 2.43 12.51
94
Receivable accounts with large amount individually and bad debt provisions were provided
□ Applicable √ Not applicable
Account receivable on which bad debt provisions are provided on age basis in the group
√ Applicable □ Not applicable
In RMB
Balance in year-end
Aging
Receivable accounts Bad debt provision Proportion
Subitem within 1 year
Within credit period 874,411,047.76
Within 1 year after credit period 252,781,149.58 12,639,057.48 5.00%
1-2 years 14,520,154.14 1,452,015.41 10.00%
2-3 years 2,348,332.48 704,499.75 30.00%
3-4 years 2,617,965.40 1,308,982.70 50.00%
Over 5 years 264,594.71 264,594.71 100.00%
Total 1,146,943,244.07 16,369,150.05 1.43%
Notes：
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Group Name Closing balance Bad debt provision
Other group 15,393,606.41
Continued
Group Name Opening balance Bad debt provision
Other group 23,454,108.12
（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 7,054,229.44;The
amount of the reversed or collected part during the reporting period was of RMB3,539,061.82.
Where the current bad debts back or recover significant amounts:
In RMB
Name Back or withdraw money Method
None
（3）The ending balance of account receivables owed by the imputation of the top five parties
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is
RMB480,467,933.20, which accounts for 41.34% of the total receivables. The total amount of closing balance for
corresponding accrued bad-debt provision is RMB 3,151,584.57.
4. Payment in advance
（1）Payment in advance:
In RMB
Amount in year-end Amount in year- begin
Aging
Amount Proportion(%) Amount Proportion(%)
Within 1 year 388,588,032.31 80.50% 144,188,241.68 34.42%
1-2 years 35,912,154.54 9.81% 261,349,437.53 62.39%
2-3 years 26,925,134.67 7.35% 6,788,329.79 1.62%
Over 3 years 8,554,092.21 2.34% 6,584,578.57 1.57%
Total 459,979,413.73 -- 418,910,587.57 --
Notes：
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
As of June 30,2016,The total prepayment amount of top five closing balances collected by the objects of
prepayment in the current reporting period is RMB 180,457,628.00, which accounts for 39.23% of the total
closing prepayment balance.
Other notes：
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
5. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion( Book value
Amount Amount value Amount Amount
n(%) n(%) n(%) %)
Other receivables
subject to provision
93,501,5 1,912,14 91,589,36 57,070, 1,872,375 55,197,871.
for bad debts on 100.00% 2.05% 100.00% 3.28%
05.57 0.52 5.05 247.27 .99 28
credit risk
characteristics basis
93,501,5 1,912,14 91,589,36 57,070, 1,872,375 55,197,871.
Total 100.00% 2.05% 100.00% 3.28%
05.57 0.52 5.05 247.27 .99 28
Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable √Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ not applicable
In RMB
Amount in year-end
Aging
Account receivable Bad debt provision Rate of alloance(%)
Within item 1 year
Within credit period 4,705.44
Within 1 year after credit period 96,922.88 4,846.14 5.00%
1-2 years 485,541.91 48,554.19 10.00%
2-3 years 718,105.55 215,431.67 30.00%
Over 5 yearsw 1,643,308.52 1,643,308.52 100.00%
Total 2,948,584.30 1,912,140.52 64.85%
Notes of the basis of recognizing the group:
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√Applicable□Not applicable
Group Name Closing balance Bad debt provision
Internal current account 349,905.00
Deposit 17,067,982.42
110
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Individual retirement insurance 2,299,985.14
Personal official loans 11,577,929.05
Cash deposit 57,302,783.28
Insurance 880,000.00
Export tax refunds 1,074,336.38
Total 90,552,921.27
Continued
Group Name Opening balance Bad debt provision
Internal current account 299,905.00
Deposit 7,709,572.64
Individual retirement insurance 2,812,157.82
Personal official loans 9,287,709.26
Deposit 33,980,966.75
Total 54,090,311.47
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB39,764.53；the amount of
the reversed or collected part during the reporting period was of RMB 0.00.
Significant amount of reversed or recovered bad debt provision：
In RMB
Name Amount Method
（3）Other account receivable classified by account nature
In RMB
Nature Closing book value Opening book value
Internal current account 349,905.00 299,905.00
Current account 1,205,904.65
Deposit 57,302,783.28 33,980,966.75
Personal official borrowing 11,577,929.05 9,287,709.26
Deposit 17,067,982.42 7,709,572.64
Persona Returnable Insurance 2,299,985.14 2,812,157.82
Insurance 880,000.00
111
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Export tax refunds 1,074,336.38
Other 2,948,584.30 1,774,031.15
Total 93,501,505.57 57,070,247.27
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
The closing balance
Amount in
Name Nature Aging Proportion of bad debts
year-end
Beijing Cultural
Technology
Deposit 15,000,000.00 Within 1 year 16.04%
Financial Leasing
Co., Ltd.
Beijing State Owned
Financial Leasing Deposit 12,500,000.00 Within 1 year 13.37%
Co., Ltd.
Wuhu Economic and
Technological Deve
Deposit 9,978,000.00 2-3 years 10.67%
lopment Zone Finan
ce Bureau
Hebei Finance
Deposit 5,100,000.00 1-2 years 5.45%
Leasing Co., Ltd.
Ligen Finance
Leasing（Shanghai）Deposit 5,000,000.00 Within 1 year 5.35%
Co., Ltd.
Total -- 47,578,000.00 -- 50.88%
6．Inventory
（1）Inventory types
In RMB
Year-end balance Year-beginning balance
Items
Provision for bad Provision for bad
Book Balance Book value Book Balance Book value
debts debts
Raw materials 846,134,985.86 846,134,985.86 997,984,608.47 997,984,608.47
112
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Processing
73,145,478.69 73,145,478.69 55,124,671.25 55,124,671.25
products
Stock goods 207,022,198.19 207,022,198.19 182,763,166.25 182,763,166.25
Construction cont
ract has been com
171,986,917.63 171,986,917.63 27,390,555.01 27,390,555.01
pleted unsettled a
ssets
Development cost 976,339,663.47 976,339,663.47 914,716,683.08 914,716,683.08
Total 2,274,629,243.84 2,274,629,243.84 2,177,979,684.06 2,177,979,684.06
(2) Completed unsettled assets formed from the construction contact at the period-end
In RMB
Items Amount
Accumulated Incurred Cost 117,018,749.29
Accumulated Confirmed Gross Profit 75,749,061.84
Settlement Amount 20,780,893.50
Unliquidated Completed Assets Formed in the Construction
171,986,917.63
Contract
Other notes：
Notes：Detaile of product development
In Project Name Start Estimated time of Estimated total Beginning balance Ending balance
RMBN Date(Planned) completion of first investment
o. session
01 Dongxu 2015-12-29 2017-2-27 2.2 billion 914,716,683.08 976,339,663.47
International
Center
7. Non-current assets due within 1 year
In RMB
Items Closing balance Opening balance
Hydropower installation dormitory
139,395.72
renovation project
Total 139,395.72
Other notes：
113
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
8. Other current assets
In RMB
Items Closing balance Opening balance
USD exchange 58,000,000.00 58,000,000.00
Prepaid or pending certified taxes 1,151,257,892.65 1,158,401,769.76
Total 1,209,257,892.65 1,216,401,769.76
Other notes：
In 1993,the Group signed the agreement on exchange of US dollars which agreed returning 10,000,000 US dollars
to the Exchange Unit and repossess the RMB 58,000,000 exchanged in November 1998, As of June 30, 2016, the
Group still consults with the Exchange Unit on the returning of the exchange.
9. Long-term equity investment
In RMB
Increase/decrease
Closing
Adjustme
Withdraw balance
Decrease Gain/loss nt of Declarati
Opening Add Other n Closing of
Investees d of other on of cash
balance investmen equity impairme Other balance impairme
investmen Investme comprehe dividends
t changes nt nt
t nt nsive or profit
provision provision
income
I. Joint ventures
II. Associated enterprises
Zhongda
Chengxin
Internatio
nal 72,426,25 72,508,01
81,758.31
Commerc 2.41 0.72
ial
Factoring
Co., Ltd.
72,426,25 72,508,01
Subtotal 81,758.31
2.41 0.72
72,426,25 72,508,01
Total 81,758.31
2.41 0.72
Other notes
10. Fixed assets
(1) List of fixed assets
114
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
In RMB
Machinery
Items House, building Transportations Other equipment Total
eqiupment
I. Original price
1. Balance at
1,099,869,204.05 6,565,156,510.66 39,358,222.50 49,655,303.76 7,754,039,240.97
period-beginning
2.Increase in the
1,259,541.79 1,664,985,811.42 1,451,034.45 3,667,184.99 1,671,363,572.65
current period
(1) Purchase 923,550.12 12,810,564.71 1,451,034.45 3,533,559.61 18,718,708.89
（2）Inventory\Fixed
assets\ Transferred
335,991.67 644,213.92 980,205.59
from construction in
progress
(3)Increased of
2,045,723.89 133,625.38 2,179,349.27
Enterprise
Combination
（4）leaseback 1,649,485,308.90 1,649,485,308.90
3.Decreased amount
1,824,502,514.55 3,461.54 1,824,505,976.09
of the period
（1）Disposal 5,600.00 3,461.54 9,061.54
（2）leaseback 1,824,496,914.55 1,824,496,914.55
4. Balance at
1,101,128,745.84 6,405,639,807.53 40,809,256.95 53,319,027.21 7,600,896,837.53
period-end
II. Accumulated
depreciation
1.Opening balance 205,168,394.85 612,002,791.63 19,548,829.87 17,092,852.02 853,812,868.37
2.Increased amount
14,640,679.43 211,218,941.85 3,159,829.24 2,732,796.75 231,752,247.27
of the period
(1) Withdrawal 14,640,679.43 208,071,367.40 3,159,829.24 2,701,365.35 228,573,241.42
(2)leaseback 2,970,185.65 2,970,185.65
(2)Increased of
Enterprise 177,388.80 31,431.40 208,820.20
Combination
3.Decrease in the
235,721,021.68 1,589.07 235,722,610.75
reporting period
（1）Disposal 2,936.73 1,589.07 4,525.80
（2）leaseback 235,718,084.95 235,718,084.95
115
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
4.Closing balance 219,809,074.28 587,500,711.80 22,708,659.11 19,824,059.70 849,842,504.89
III. Impairment
provision
1.Opening balance 36,444.84 36,444.84
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance 36,444.84 36,444.84
IV. Book value
1.Book value of the
881,319,671.56 5,818,102,650.89 18,100,597.84 33,494,967.51 6,751,017,887.80
period-end
2.Book value of the
894,700,809.20 5,953,117,274.19 19,809,392.63 32,562,451.74 6,900,189,927.76
period-begin
(2) Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
102#Workshop 39,982,468.02 Processing
Cullet warehouse 2,524,901.64 Processing
Main entrance Guard room 158,484.32 Processing
Bathroom 81,349.56 Processing
East entrance Guard room 86,747.41 Processing
Compressed air station, circulating water
814,185.12 Processing
pump house, refrigeration station
Dangerous goods warehouse 353,993.01 Processing
Wastewater treatment plant 838,445.18 Processing
Substation 346,950.06 Processing
Boiler room 4,499,351.46 Processing
Total 49,686,875.78 Processing
Other notes
11. Project under construction
116
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
(1)Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
LCD glass
substrate
2,258,005,973.28 2,258,005,973.28 1,874,688,280.97 1,874,688,280.97
production line
project
Xufei LCD glass
substrate
1,058,813,729.04 1,058,813,729.04 1,013,527,351.59 1,013,527,351.59
production line II
and supporting
Xuxin LCD glass
substrate 516,885,190.52 516,885,190.52 485,548,460.69 485,548,460.69
production line
Kunshan Color
30,509,904.95 30,509,904.95 16,309,892.75 16,309,892.75
film project
Sapphire crystal
sultivation and
processing of 48,882,489.80 48,882,489.80 42,942,402.90 42,942,402.90
production line
equipment
Project of
Production Line
for the
10,533,079.83 10,533,079.83
8.5th-generation
Glass glass
substrate
Total 3,923,630,367.42 3,923,630,367.42 3,433,016,388.90 3,433,016,388.90
(2) Changes of significant construction in progress
In RMB
Includin
Transferr g: Capitaliz
Capitaliz Source
Name of Opening ed to Other End Proporti Project capitaliz ation of
Budget Increase ation of of
project balance fixed decrease balance on % process ation of interest
interest funding
assets interest rate (%)
this
117
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
period
LCD
glass
substrate 7,576,52 1,874,68 383,317, 2,258,00 525,120, 74,738,7 Raise
84.26% 84.26%
producti 0,000.00 8,280.97 692.31 5,973.28 866.03 64.46 funds
on line
project
Xufei
LCD
glass
Loans of
substrate
2,500,00 1,013,52 45,286,3 1,058,81 198,137, 25,430,8 financial
producti 100.00% 100%
0,000.00 7,351.59 77.45 3,729.04 862.86 24.44 institutio
on line II
ns
and
supporti
ng
Xuxin
LCD Loans of
glass 2,700,00 485,548, 31,336,7 516,885, 132,051, 16,651,0 financial
92.07% 92.07%
substrate 0,000.00 460.69 29.83 190.52 312.19 45.32 institutio
producti ns
on line
Kunshan
Color 3,115,50 16,309,8 14,200,0 30,509,9 Raise
3.90% 3.90%
film 0,000.00 92.75 12.20 04.95 funds
project
Sapphire
crystal
sultivatio
n and
processi 59,064,0 42,942,4 6,624,80 684,713. 48,882,4
83.92% 83.92% Other
ng of 00.00 02.90 0.82 92 89.80
producti
on line
equipme
nt
Project
of
Producti 6,950,00 10,533,0 10,533,0 Raise
0.15% 0.15%
on Line 0,000.00 79.83 79.83 funds
for the
5th-gene
118
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
ration
CF for
TFT-LC
D
295,491. 295,491.
Other
67 67
22,901,0
3,433,01 491,594, 980,205. 3,923,63 855,310, 116,820,
Total 84,000.0 -- -- --
6,388.90 184.11 59 0,367.42 041.08 634.22
0
12. Engineering Material
In RMB
Items Closing balance Opening balance
Special Equipment 238,096.56 31,267.87
Special material 10,741.55 6,947.12
Total 248,838.11 38,214.99
Other notes：
13. Intangible assets
（1）Information
In RMB
Non patent
Items Land use right Patent right Patent technology Total
technology
I. Original price
1. Balance at
452,895,904.31 1,558,843.24 46,984,667.98 4,500,000.00 505,939,415.53
period-beginning
2.Increase in the
4,418,760.50 28,581.20 38,469.24 17,581,840.99 22,067,651.93
current period
(1) Purchase 4,418,760.50 28,581.20 38,469.24 12,581,840.99 17,067,651.93
(2)Internal
Development
(3)Increased of
Enterprise 5,000,000.00 5,000,000.00
Combination
3.Decreased amount
of the period
119
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
（1）Disposal
4. Balance at
457,314,664.81 1,587,424.44 47,023,137.22 22,081,840.99 528,007,067.46
period-end
II.Accumulated
amortization
1. Balance at
34,002,566.91 476,690.66 9,000,121.46 168,750.00 43,648,129.03
period-beginning
2. Increase in the
4,539,375.74 80,545.71 2,268,293.22 798,542.35 7,686,757.02
current period
(1) Withdrawal 4,539,375.74 80,545.71 2,268,293.22 374,813.54 7,263,028.21
（2）(Increased of
Enterprise 423,728.81 423,728.81
Combination
3.Decreased amount
of the period
（1）Disposal
4. Balance at
38,541,942.65 557,236.37 11,268,414.68 967,292.35 51,334,886.05
period-end
III. Impairment
provision
1. Balance at
period-beginning
2. Increase in the
current period
(1) Withdrawal
3.Decreased amount
of the period
（1）Disposal
4. Balance at
period-end
4. Book value
1.Book value at
418,772,722.16 1,030,188.07 35,754,722.54 21,114,548.64 476,672,181.41
period -end
120
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
2.Book value at
418,893,337.40 1,082,152.58 37,984,546.52 4,331,250.00 462,291,286.50
period-beginning
The intangible assets formed by the company’s internal research and development accounts for 0.00% of the
company’s total intangible assets.
14. Goodwill
(1) Original book value of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
Shanghai
Tanyuan Huigu
33,691,362.78 33,691,362.78
New Meterial
Co., Ltd.
Total 33,691,362.78 33,691,362.78
（2）Impairment tprovision of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
Shanghai
Tanyuan Huigu
0.00 0.00
New Meterial
Co., Ltd.
合计 0.00 0.00
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill
impairment losses:
Notes：At the end of the final test, no impairment of goodwill.
Other notes:
15.Long-term amortization expenses
In RMB
Items Balance in Increase at this Amortization at Decrease Balance in year-end
121
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
year-begin period this period
Building renovation 16,560,387.39 1,414,842.73 3,274,621.44 14,700,608.68
Total 16,560,387.39 1,414,842.73 3,274,621.44 14,700,608.68
Other notes
16. Deferred income tax assets and deferred income tax liability
(1) Details of the un-recognized deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items Temporarily Deductable Deferred Income Tax Temporarily Deductable Deferred Income Tax
or Taxable Difference Assets or Taxable Difference Assets
Assets devaluation
17,773,306.14 3,292,613.62 14,651,027.92 2,394,366.85
provision
Not realized the internal
1,982,167,248.67 297,325,087.30 1,942,130,426.59 291,319,564.00
profit
Deductible loss 3,065,869.27 459,880.39
Deferred income
31,800,144.52 4,770,021.67 33,039,111.11 4,955,866.67
difference
Total 2,031,740,699.33 305,387,722.59 1,992,886,434.89 299,129,677.91
（2）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
Deferred Income Tax Temporarily Deductable
Deferred Income Tax Temporarily Deductable
Assets or Liabilities at or Taxable Difference at
Items Assets or Liabilities at or Taxable Difference at
the Beginning of Report the Beginning of Report
the End of Report Period the End of Report Period
Period Period
Deferred income tax
305,387,722.59 299,129,677.91
assets
(3) List of unrecognized deferred income tax assets
In RMB
Items Closing amount Opening amount
Deductible losses 20,678,519.93 5,928,841.93
Bad debt provision 507,984.43 75,330.50
Impairment of fixed assets 36,444.84 36,444.84
Total 21,222,949.20 6,040,617.27
122
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
(4) Deductible losses of unrecognized deferred income tax assets will due the following years
In RMB
Year Closing amount Opening amount Notes
2017 918,382.44 918,382.44
2018 15,649.80 15,649.80
2019 544,310.34 544,310.34
2020 4,450,499.35 4,450,499.35
2021 14,749,678.00
Total 20,678,519.93 5,928,841.93 --
Other notes：
17. Other non-current assets
In RMB
Items Closing balance Opening balance
Prepaid engineering equipment 356,354,104.50 243,279,174.31
Total 356,354,104.50 243,279,174.31
Other notes：
18. Short-term loan
（1）Categories of short-term loans
In RMB
Items Closing balance Opening balance
Pledge loan 389,400,000.00 265,000,000.00
Mortgage loan 99,000,000.00 53,300,000.00
Guarantee loan 3,987,000,000.00 3,465,000,000.00
Total 4,475,400,000.00 3,783,300,000.00
Notes ：
1. There is no mature but unredeemed short-term borrowing in the company during the accounting period.
2. The increase of short-term borrowings at the end compared to the beginning is mainly due to the production,
business operation ,which jointly cause borrowing increase.
3. The mortgage loan at the end is 99 million yuan,，Subsidiary of Jiangsu Jixing loans, in which 85 million yuan
is used as mortgage and guarantee, the guarantor is Zhenjiang Huantai Silicon Technology Co., Ltd. and Dongxu
Optoelectronic Technology Co., Ltd., The pledge for the 30 million yuan is the land usage right of
Yangguoyong (2011) No. 10482 Land owned by the subsidiary Iiangsu Jixing New Material Co., Ltd.,The pledge
for the 55 million yuan is 110 set Machinery Equipment by the subsidiary Iiangsu Jixing New Material Co., Ltd.;
123
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
The pledge for the 14 million yuan is the land usage right of Yangguoyong (2011) No. 10485 Land owned by
the subsidiary Iiangsu Jixing New Material Co., Ltd., the self-owned house property and the land usage right
owned by Gaozhao Solar Energy Science and Technology Co., Ltd. and Jiangsu Secco Silicon Energy Co., Ltd.,
The certificate numbers are: No. 81801320 of Gaozhao Property Ownership Certificate, Yangfangzi No.
81801321, No. (2014) 1508 of Yangguoyong Industrial Land and No. (2013) 3231 of Yangguoyong Meike Land
Use Right.
4. The guaranteed loan amount at the end of the period is RMB 3987 million, of which: Dongxu Group Co., Ltd.
provides joint guarantee of RMB150 million to the subsidiary Zhengzhou Xufei Optoelectronic Technology Co.,
Ltd.,Dongxu Optoelectronic Investment Co., Ltd., Shijiazhuang Baoshi Group and Li Zhaoting provides joint
guarantee of RMB 80 million to the subsidiary Zhengzhou Xufei Optoelectronic Technology Co., Ltd.,The
company provides joint guarantee of 100 million to the subsidiary Zhengzhou Xufei Optoelectronic Technology
Co., Ltd.,Dongxu Grouop Provides joint guarantee of RMB 990 million to the Company, Li Zhaoting Provides
joint guarantee of RMB 700 million to the Company, Dongxu Group and Li Zhaoting provides joint guarantee of
RMB 1135 million to the Company, Dongxu Group , Li Zhaoting and Li Qing Provides joint guarantee of RMB
100 million to the Company,The company Provides guarantee of RMB 275 million for the subsidiary Wuhu
Dongxu Optoelectronic Technology Co., Ltd, The Company and Dongxu Group provides joint guarantee of RMB
200 million for the subsidiary Wuhu Dongxu Optoelectronic Technology Co., Ltd,The Company and Li Zhaoting
Provides joint guarantee of RMB 40 million for the subsidiary Wuhu Dongxu Optoelectronic Technology Co.,
Ltd,, lI Zhaoting provides joint guarantee of RMB 60 million for the subsidiary Wuhu Dongxu Optoelectronic
Technology Co., Ltd. and The company provides guarantee of RMB 157 million for the subsidiary Wuhu Dongxu
Optoelectronic Technology Co., Ltd
5.The pledged loans 389.4 million of collateral for the RMB 407 milllion of bank deposits.
19. Bills payable
In RMB
Type At end of term At beginning of term
Commercial acceptance 364,265,108.00 69,458,800.00
Bank acceptance 281,180,579.96 341,136,129.94
Total 645,445,687.96 410,594,929.94
Amount due in next fiscal period is RMB 0.00.
20.Account payable
（1）Account payable
In RMB
Items Closing balance Opening balance
Engineering fund 316,027,787.87 253,090,961.95
Material fund 412,775,350.59 388,295,104.60
Transportation expenses 576,897.58 4,086,308.99
Other 17,932,323.25 30,263,851.08
124
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Total 747,312,359.29 675,736,226.62
（2）Significant accounts payable that aged over one year
In RMB
Items Balance in year-end The reason for not repaid or carried forward
Sichuan Yilong Construction Co., Ltd. Kezhou
44,986,200.00 Not reached the agreed payment terms and deadlines
Branch
Sichuan Tianzun Construction Services Co.,
37,186,200.00 Not reached the agreed payment terms and deadlines
Ltd.
Ningxia Tianshun Electric Power Engineering
14,623,170.34 Not reached the agreed payment terms and deadlines
Co., Ltd.
Ningxia Tianshun Electric Power Engineering
10,780,000.00 Not reached the agreed payment terms and deadlines
Co., Ltd.
Total 107,575,570.34 --
Other notes：The increase of the accounts payable of the period are mainly due to the increase of material payment
payable and freight payable.
21.Advance account
（1）Advance account
In RMB
Items Closing balance Opening balance
Goods 447,285,694.23 70,046,067.70
Engineering fund 23,376,247.21 27,874,621.71
Total 470,661,941.44 97,920,689.41
（2）Information of unliquidated completed assets formed in the construction contract at the end of the
period
In RMB
Items Amount
Accumulated Incurred Cost 117,018,749.29
Accumulated Confirmed Gross Profit 75,749,061.84
Settlement Amount 20,780,893.50
Unliquidated Completed Assets Formed in the Construction Contract 171,986,917.63
Other notes：
125
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
22. Payroll payable
(1) List of Payroll payable
In RMB
Balance in
Items Increase at this period Decrease at this period Balance in year-end
year-begin
I. Short-term remuneration 36,631,509.99 275,228,673.79 273,307,13.70 38,553,080.08
II.
Post-employment benefits - 224,747.87 21,447,178.29 20,273,397.22 1,398,528.94
defined contribution plans
Total 36,856,257.86 296,675,852.08 293,580,500.92 39,951,609.02
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end
1.Wages, bonuses,
23,161,895.76 224,744,624.98 228,348,974.03 19,557,546.71
allowances and subsidies
2.Employee welfare 23,837,856.76 23,837,856.76
3. Social insurance
9,523.21 11,563,694.02 10,910,312.24 662,904.99
premiums
Including：Medical
344.40 10,360,066.37 9,765,683.39 594,727.38
insurance
Work injury insurance 9,130.81 583,302.68 571,209.74 21,223.75
Maternity insurance 48.00 620,324.97 573,419.11 46,953.86
4. Public reserves for
318,104.05 9,337,533.26 8,635,593.05 1,020,044.26
housing
5.Union funds and staff
13,067,214.57 5,513,059.84 1,267,690.29 17,312,584.12
education fee
Other 74,772.40 231,904.93 306,677.33
Total 36,631,509.99 275,228,673.79 275,307,003.70 38,553,080.08
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end
1. Basic old-age
224,687.87 20,129,643.89 19,005,859.07 1,348,472.69
insurance premiums
126
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
2.Unemployment
60.00 1,317,534.40 1,267,538.15 50,056.25
insurance
Total 224,747.87 21,447,178.29 20,273,397.22 1,398,528.94
Other notes:
Note ：Employee benefits payable has no arrears of wages.
23. Taxes payable
In RMB
Items Closing balance Opening balance
VAT 22,998,269.69 4,699,249.82
Business Tax 11,062,210.75 11,761,731.75
Enterprise Income tax 33,257,462.99 67,526,265.91
Individual income tax 13,662,970.06 13,798,236.93
City Construction tax 2,579,999.10 1,179,317.86
House property tax 5,525,236.15 4,088,234.58
Land use tax 1,557,189.44 1,273,515.66
Educational surtax 1,772,190.85 767,574.48
Stamp Tax 135,024.92 70,532.82
Other 486,053.69 286,763.86
Total 93,036,607.64 105,451,423.67
Other notes：
24. Interest payable
In RMB
Items Closing balance Opening balance
Interest on long-term borrowings payable 22,287,860.85 18,738,942.09
Enterprise bond interest 6,666,666.67 36,666,666.67
Total 28,954,527.52 55,405,608.76
Particulars of significant overdue unpaid interest:
In RMB
Name Overdue amount Overdue reason
None
Other notes：
127
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
25. Dividends payable
In RMB
Items Closing balance Opening balance
Common stock dividend 101,365,050.76 20,000,000.00
Total 101,365,050.76 20,000,000.00
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
26. Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Current account 52,453,327.48 414,964,454.37
Deposit 90,841,355.21 19,010,735.95
Individual official borrowing 602,773.68 786,231.71
official borrowing 45,000,000.00 15,000,000.00
Deposit 590,625.87 605,520.16
Social security withholding 281,924.93 778,586.04
Engineering fund 1,829,473.81 1,829,473.81
Equipment fund 6,065,857.97 6,065,857.97
Material fund 823,298.53 685,725.31
Petty cash 7,525,948.38 3,272,874.81
Equity section 58,889,712.93 58,889,712.93
Restricted stock repurchase obligations 9,011,520.00 9,011,520.00
Other 363,802.62 8,895,420.72
Total 274,279,621.41 539,796,113.78
27.Non-current liabilities due within 1 year
In RMB
Items Closing balance Opening balance
Long-term loans due 1 year 1,074,262,400.00 848,987,200.00
Long-term payable due 1 year 482,733,243.93 28,000,000.00
Total 1,556,995,643.93 876,987,200.00
Other notes：
128
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
28.Other current liabilities
In RMB
Items Closing balance Opening balance
USD exchange 66,312,000.00 64,936,000.00
Government grants projects 22,743,866.66 20,457,266.66
Not realized after sale rental return 14,732,336.25 8,009,696.42
Total 103,788,202.91 93,402,963.08
Increase or decrease in short-term bonds payable：
In RMB
Premium
Amount This
and Balance
Issuing Issuing in period for
Name Par value Term This issue Interest discount in
date amount year-beg repaymen
amortiatio year-end
in t
n
Other explanation ：
Notes 1: Government subsidies are all related to assets
Notes2 ：In 1993,the Group signed the agreement on exchange of US dollars which agreed returning 10,000,000
US dollars to the Exchange Unit and repossess the RMB 58,000,000 exchanged in November 1998, As of June 30,
2016, the Group still consults with the Exchange Unit on the returning of the exchange.
29. Long-term loan
(1) Category of long-term loan
In RMB
Items Closing balance Opening balance
Mortagage loans 6,505,312,000.00 6,638,384,500.00
Guarantee loans 1,327,700,000.00 60,000,000.00
Credit loans 400,000,000.00 400,000,000.00
Less ：Long-term loan due 1 year -1,074,262,400.00 -848,987,200.00
Total 7,158,749,600.00 6,249,397,300.00
Notes：
Note 1: The mortgage of RMB 6,505,312,000.00 is both the mortgage loan and the guarantee loan, reclassified
into the non-current liabilities due within one year RMB 834,262,400.00.
(1) Among the loan of RMB 544,000,000.00, due within one year is RMB 136,000,000.00, the collateral and
guarantor of the loan: a. Wuhu Dongxu Optoelectronic Technology Co. Ltd mortgages 202 acres of state-owned
land use rights and the factory after the completion of the project, and two precious metal platinum channels to
provide the collateral; b. the loan guarantor is Wuhu Construction Investment Co., Ltd.
129
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
(2) Among the loan of RMB 1,920,000,000.00, due within one year is RMB 280,000,000.00, the collateral and
guarantor of the loan: a. Wuhu Dongxu Optoelectronic Technology Co. Ltd mortgages 8 precious metal platinum
channel assets to provide the collateral; b. Dongxu Optoelectronic Technology Co., Ltd. provide full joint liability
guarantee for its subsidiary Wuhu Dongxu Optoelectronic Technology Co., Ltd.
(3) Among the loan of RMB 500,000,000.00, due within one year is RMB 50,000,000.00, the collateral and
guarantor of the loan: a. Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. mortgages the Wukai
(construction) state-owned 2013 No. 020, Wukai (construction) state-owned 2013 No. 021, Wukai (construction)
state-owned 2014 No. 008 land use rights and the fixed assets after the completion of the project; b. Dongxu
optoelectronic Technology Co., Ltd. provide full joint liability guarantee for its subsidiary Wuhu Dongxu
Optoelectronic Equipment Technology Co., Ltd.
(4) The collateral and guarantor for the loan of RMB 500,000,000.00: a. Li Zhaoting holds 10% stake of Dongxu
Technology Group Co., Ltd, and TUNGHSU GROUP holds 90% stake of Dongxu Technology Group Co., Ltd; b.
TUNGHSU GROUP, Li Zhaoting, Li Qing provide a guarantee for Dongxu Optoelectronic Technology Co., Ltd.
(5) Among the loan of RMB 951,312,000.00, due within one year is RMB 173,262,400.00, the collateral and
guarantor: a. the collateral is the land use rights, buildings, machinery and equipment (including four precious
metal platinum channels) of Zhengzhou Xufei Optoelectronic Technology Co., Ltd.; the guarantor is Henan
Energy and Chemical Industry Group Co., Ltd., TUNGHSU GROUP, and Henan Energy and Chemical Industry
Group Co., Ltd. provides the joint liability guarantee for the loan principal equivalent to RMB 200 million under
the project and its interest, penalty interest, compound interest, compensation, liquidated damages, compensation
for damage and the cost of debt to the lender; the guarantor TUNGHSU GROUP provides the joint liability
guarantee for the loan principal equivalent to RMB 450 million under the project and its interest, penalty interest,
compound interest, compensation, liquidated damages, compensation for damage and the cost of debt to the
lender.
(6) Among the loan of RMB 890,000,000.00, due within one year is RMB 195,000,000.00, and the loan is both
the mortgage loan and the guarantee loan: the guarantor Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd.
mortgages the assets owned by itself according to the law and formed by this project, including land use rights,
factories and other buildings, machinery and equipment (including three precious metal platinum channels) to
provide the collateral; b. TUNGHSU GROUP and Li Zhaoting and Li Qing provide the guarantee.
(7) The collateral and guarantor for the loan of RMB 1,200,000,000.00: a. the guarantor is Dongxu Optoelectronic
Technology Co., Ltd; b. the collateral is the state-owned land use rights and construction in progress (Foundation
pit) of the business and financial land of No. Beijing (2015) Fengtai District real estate rights No. 0000016.
Note 2: Among the credit loan of RMB 400,000,000.00, due within one year is RMB 200,000,000.00.
Note 3: Among the guarantee loan of RMB 1,327,700,000.00, due within one year is RMB 40,000,000.00, of
which: TUNGHSU GROUP, Li Zhaoting, Li Qing provide the joint liability guarantee for the Company’s loan of
RMB 987,700,000.00, TUNGHSU GROUP provides the joint liability guarantee for the Company’s loan of RMB
300,000,000.00; the loan of the subsidiary Zhengzhou Xufei Optoelectronic Technology Co., Ltd. is RMB
40,000,000.00, due within one year is RMB 40,000,000.00, the joint liability guarantee for which is provided by
the Henan Energy and Chemical Industry Group Co., Ltd.
Notes 4: The company has no overdue long-term loans.
130
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
30. Bonds payable
(1) Bonds payable
In RMB
Items Closing balance Opening balance
15 Dongxu Bonds 989,562,229.32 988,400,388.00
Total 989,562,229.32 988,400,388.00
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock
andperpetual capital securities of financial liabilities)
In RMB
Overflow
The Withdraw Pay in
Name of Book Issue Opening discount Interest Closing
Issue date Period current interest at current
the bond value amount bslance amortizati payable period
issue par period
on
15
1,000,000 1,000,000 988,400,3 30,000,00 1,161,841 60,000,00 989,562,2
Dongxu 2015.5.19 5 years
,000.00 ,000.00 88.00 0.00 .32 0.00 29.32
Bond
1,000,000 988,400,3 30,000,00 1,161,841 60,000,00 989,562,2
Total
,000.00 88.00 0.00 .32 0.00 29.32
31. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Long-term payable 1,728,747,686.18 93,426,666.67
Less：Unconfirmed financing costs 219,747,686.13 8,426,666.67
Less：Port due Within 1 year 482,733,243.93 28,000,000.00
Total 1,026,266,756.12 57,000,000.00
Other notes：
Notes 1: Long-term payables all finance lease, in which: 212,000,000.00 RMB lessor is Wuxi Holding Financial
Leasing Co., Ltd., guaranteed by Dongxu Group, Dongxu Optoelectronic Technology Co., Ltd. and Li Zhaoting;
248,000,000.00 RMB lessor is Jiangsu Runxing Financial Leasing Co., Ltd., guaranteed by Dongxu Group,Li
Zhaoting and Li Qing; 288,865,691.80 RMB lessor is Beijing State Asset Financial Leasing Co., Ltd., guaranteed
by Dongxu Group and Li Zhaoting; 108,899,568.29 RMB lessor is Ligen Financial Leasing (Shanghai) Co., Ltd.,
guaranteed by Dongxu Group and Li Zhaoting; 33,964,121.76 RMB lessor is Beijing Cultural Technology
Financial Leasing Co., Ltd., guaranteed by Dongxu Group; 460,307,696.00 RMB lessor is Haitong Hengxin
131
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
International Leasing Co., Ltd., 76,710,608.33 RMB LESSOR IS Hebei Finance Leasing Co., Ltd., guaranteed by
Dongxu Group and Li Zhaoting.
Notes 2: Increase in long-term payables is due to a subsidiary of Wuhu Dongxu Optoelectronic Technology Co.,
Ltd. new leaseback in the reporting period.
32.Deferred income
In RMB
Balance in Increase at this Decrease at this
Items Balance in year-end Reason
year-begin period period
Govemment Subsidy 270,528,455.69 36,374,000.00 13,470,066.64 293,432,389.05
Not realized after
-23,603,068.08 46,857,729.51 23,254,661.43
sale rental return
Total 246,925,387.61 83,231,729.51 13,470,066.64 316,687,050.48 --
Details of government subsidies
In RMB
Amount
Beginning of New subsidy in transferred to Asset-related or
Items Other changes End of term
term current period non-operational income-related
income
Grant of
Government 27,683,400.00 1,122,300.00 26,561,100.00 Related to assets
Infrastructure
Grant of Industry
Revitalization
and Technology 2,877,777.83 116,666.64 2,761,111.19 Related to assets
Reconstruction
Project
Grant of
Glass-tube
Secondary 5,000.00 5,000.00 Related to assets
Environmental
Protection
Technology
2,933,333.32 133,333.34 2,799,999.98 Related to assets
Reform
Glass substrate
11,000,000.00 500,000.00 10,500,000.00 Related to assets
project subsidy
132
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
funds
Industry
Development 5,133,333.32 233,333.34 4,899,999.98 Related to assets
Fund
Finance discount
344,666.68 15,666.66 329,000.02 Related to assets
interest
Production line te
chnology researc
78,184,000.01 3,257,666.66 74,926,333.35 Related to assets
h and developme
nt granted funds
Special funds
grant of 2013
provincial 4,583,333.34 166,666.66 4,416,666.68 Related to assets
strategic new
industries
Special funds
for technical 31,311,666.66 411,333.34 30,900,333.32 Related to assets
transformation
Investment and
Subsidies of
“Double Hundred
Plan” Project
1,983,333.33 100,000.00 1,883,333.33 Related to assets
granted by the
People's
Government of
Henan Province
TFTglass
substrate
technology
99,166.67 5,000.00 94,166.67 Related to assets
research and
development
funds
TFT glass
substrate Project 6,611,111.10 333,333.33 6,277,777.77 Related to income
Subsidy
Investment and
Subsidies within
Budget for
Technological 9,255,555.57 466,666.67 8,788,888.90 Related to assets
Transformation
Project by
National
133
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Development and
Reform
Commission and
the Ministry of
Industry and
Information
Technology
TFT glass
substrate Project 13,222,222.23 666,666.67 12,555,555.56 Related to assets
Subsidy
Special Funds for
Major Scientific
and Technical
Projects by 661,111.10 33,333.33 627,777.77 Related to assets
Finance Bureau
of Zhengzhou
City
Financial
Supports for
National Key
Industry and
Technical 9,255,555.57 466,666.67 8,788,888.90 Related to assets
Transformation
Projects Granted
by the Municipal
Finance Bureau
Financial
Supports for
Industrial
Development
Granted by the
Finance Bureau 4,627,777.77 233,333.33 4,394,444.44 Related to assets
of the Economic
and
Technological
Development
Zone
Funds for
Independent
Innovation of
3,966,666.67 200,000.00 3,766,666.67 Related to assets
Provincially
Supported
Enterprises
134
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Supporting Funds
on Finance 1,322,222.23 66,666.67 1,255,555.56 Related to assets
Discounts
Funds for
Education,
Science and
991,666.67 50,000.00 941,666.67 Related to assets
Culture Granted
by the Finance
Bureau
Supporting Funds
for Industrial
Structure
-adjusting 1,928,888.88 93,333.33 1,835,555.55 Related to assets
Projects Granted
by the Regional
Finance Bureau
Industrial and
1,111,111.10 53,333.33 1,057,777.77 Related to assets
financial discount
Finance discount 3,527,777.86 166,666.67 3,361,111.19 Related to assets
Financial
capitalof
industrial
3,813,333.33 160,000.00 3,653,333.33 Related to assets
structure
adjustment
project
Special Funds for
High-end
Information
Industry Chain
Granted by the
Finance Bureau 4,194,444.45 166,666.67 4,027,777.78 Related to assets
of the Economic
and
Technological
Development
Zone
2015 project
equipment
34,374,000.00 954,833.33 2,291,600.00 31,127,566.67 Related to assets
investment
subsidies
Strategic new
27,500,000.00 1,000,000.00 26,500,000.00 Related to assets
industry
135
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
development
project funds
High-tech
Zone
appropriated 6,400,000.00 6,400,000.00 Related to assets
substrate
project
2015 scientific
and technological
6,000,000.00 6,000,000.00 Related to assets
achievements into
special funds
6.30 receive
scientific and
technological 2,000,000.00 2,000,000.00 Related to assets
achievements into
special funds
Total 270,528,455.69 36,374,000.00 954,833.33 12,515,233.31 293,432,389.05 --
0ther notes：
33.Other Non-current liabilities
In RMB
Items Closing balance Opening balance
CDB financing 500,000,000.00
Total 500,000,000.00
Other notes：
Notes：According to the investment contract signed by Dongxu Optoelectronic Technology Co., Ltd, Wuhu
Dongxu Photoelectric Technology Co., Ltd., Fuzhou Dongxu Investment Development Co., Ltd and China
Development Fund Co., Ltd, China Development Fund Co., Ltd increased the capital of RMB 500,000,000.00 to
Fuzhou Dongxu Investment Development Co., Ltd, annually enjoying a fix rate of return. After the project is
completed, Dongxu Optoelectronic Technology Co., Ltd shall make the installment redemption to the stake held
by China Development Fund Co., Ltd.
34.Stock capital
In RMB
Increase/decrease this time (+ , - )
Balance Balance
Issuing of new Transferred
Year-beginning Bonus shares Other Subtotal year-end
share from reserves
136
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Total of capital 3,835,000,526. 3,835,000,526.
shares 00 00
Other notes：
35. Capital reserves
In RMB
Items Year-beginning balance Increase in current Decrease in current Year-end balance
Share premium 9,359,866,530.63 2,270,725.58 29.94 9,362,137,226.27
Other 31,522,375.26 31,522,375.26
Total 9,391,388,905.89 2,270,725.58 29.94 9,393,659,601.53
Other notes, including changes and reason of change:
Notes：Change of capital reserve: Owning to the equity incentive, the amortized expense increased
RMB1,992,000.00 of capital reserve；The company provided capital increase to the subsidiary Dongxu(Kunshan)
Display Materials Co., Ltd. at the current period, which resulted in the increase of RMB 278,725.58 of capital
reserve. The company provided capital increase to the subsidiary Beijing Dongxu Huaqing Investment Co., Ltd. at
the current period, which resulted in the decrease of RMB 29.94of capital reserve.
37.Treasury stock
In RMB
Decrease in the current
Items Year-beginning balance Increase in the current Year-end balance
period
Share repurchases
9,011,520.00 9,011,520.00
obligations
Total 9,011,520.00 9,011,520.00
Other notes, including changes and reason of change:
38. Surplus reserve
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 132,723,528.42 132,723,528.42
Total 132,723,528.42 132,723,528.42
Notes：
137
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
39. Retained profits
In RMB
Items
Amount of current period Amount of previous period
Before adjustments: Retained profits at the period
969,380,500.97 -39,946,925.56
end
After adjustments: Retained profits at the period
969,380,500.97 -39,946,925.56
beginning
Add：Net profit belonging to the owner of the
545,963,710.72 1,326,233,674.37
parent company
Less: Withdrawal Statutory surplus reserve 50,698,247.74
Dividend of common stock payable 299,165,930.04 266,208,000.10
Retained profits at the period end 1,216,178,281.65 969,380,500.97
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
39. Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 2,872,447,933.52 1,935,634,364.40 1,496,448,802.04 873,265,244.50
Other business 9,611,220.89 2,675,279.25 27,793,921.86 8,781,025.54
Total 2,882,059,154.41 1,938,309,643.65 1,524,242,723.90 882,046,270.04
138
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
40. Business tax and subjoin
In RMB
Items Amount of current period Amount of previous period
Business tax 761,365.31 7,650,289.96
Urban construction tax 11,474,361.56 7,909,969.41
Education surcharg 8,203,130.71 5,651,190.88
Other 2,870.30 1,472.01
Total 20,441,727.88 21,212,922.26
Other notes
41.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage and welfare insurance 8,043,637.06 4,116,284.37
Shipment 10,518,390.78 5,786,329.35
Travel 1,564,588.04 1,275,919.27
Business expenses 889,762.89 1,409,725.83
Consumables and repairs 35,298.52 19,329.70
Office fee 693,969.53 1,453,720.65
Depreciation 115,233.72 194,569.47
Advertising 9,039,375.46 476,376.42
Other 677,460.56 1,227,287.63
Total 31,577,716.56 15,959,542.69
Other notes：
Notes：The increase of selling expenses of this period compared with the last period is mainly due to the increase of
freight caused by increased sales, and the increase of advertising and publicity expenses.
42. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage and welfare 68,805,600.28 51,875,880.88
Business expenses 1,479,520.63 4,891,964.76
Labor protect fee 3,529,985.13 2,550,514.97
139
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Office fees 20,578,493.71 20,214,543.79
Travel fees 3,054,740.65 2,807,284.45
Publicize Fees 1,393,515.31 3,909,665.61
Miscellaneous charges 319,840.58 1,348,478.94
Tax 14,572,906.28 12,597,896.80
Depreciation accumulative 23,481,335.52 14,406,896.17
Consumables and repairs 1,090,291.06 114,675.04
Research expenses 45,720,772.21 5,360,985.06
Consultation fees 12,360,432.61 13,423,952.60
Rental fees 19,769,433.60 15,060,065.75
Communication fees 625,548.95 92,074.73
Transportation feed 2,920,583.91 491,747.83
Equity incentive cost 1,992,000.00 3,186,600.00
Other 15,011,264.42 11,772,994.63
Total 236,706,264.85 164,106,222.01
Other notes
The main reason for the management costs increase over the previous period was the wages and welfare expenses
and the expenses of R & D increased over the previous period.
43. Financial expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 193,938,482.48 142,372,368.05
Less：Interest income 83,547,417.93 4,200,227.65
Net interest expenses 110,391,064.55 138,172,140.40
Exchange gains and losses -18,221,357.21 2,830,183.97
Financial institution 649,340.38 989,093.65
Bill discount rate 1,519,815.05 8,309,638.69
Other 100,529.84 7,666.40
Total 94,439,392.61 150,308,723.11
Other notes
44. Asset impairment loss
In RMB
140
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Items Amount of current period Amount of previous period
1. Bad debt loss 3,554,932.15 -8,290,183.33
Total 3,554,932.15 -8,290,183.33
Other notes
45.Investment income
In RMB
Items Amount of current period Amount of previous period
Long-term equity investment income by equity
81,758.31 -28,077.74
method
Other investment incom 2,376,986.32
Total 81,758.31 2,348,908.58
Other notes
46. Non-operating income
In RMB
The amount of non-operating
Items Amount of current period Amount of previous period
gains & losses
Govemment Subsidy 103,218,866.64 195,856,633.31 103,218,866.64
The deductible input tax income 2,439,717.82
Enterprise merger 18,763,137.14
Other 290,413.04 238,149.69 290,413.04
Total 103,509,279.68 217,297,637.96 103,509,279.68
Government subsidy reckoned into current gains/losses
In RMB
Whether the
impact of Amount of Amount of
Whhether Assets-relate
Issuing subsidies on
Items Issuing body Nature special current previous d/income
Reason the current
subsidies -related
profit and period period
loss
Grant of Wuhu Econo Grants
Related to
Government mic and Tech Subsidy obtained due No No 1,122,300.00 1,122,300.00
assets
Infrastructure nological De to
141
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
velopment Zo conforming
ne Finance B to the local
ureau supporting
policies such
as local
government’s
investment
attraction
policy
Grants
obtained due
Grant of
Wuhu Econo to research
Industry
mic and Tech and
Revitalizatio
nological De development, Related to
n and Subsidy No No 116,666.64 116,666.64
velopment Zo technical assets
Technology
ne Finance B renovation
Reconstructio
ureau and
n Project
transformatio
n, etc.
Grants
obtained due
to
conforming
Grant of
Shiijiazhuang to the local
Glass-tube
Municipal supporting Related to
Secondary Subsidy No No 10,000.00 10,000.00
Finance policies such assets
Environment
Bureau as local
al Protection
government’s
investment
attraction
policy
Grants
obtained due
to research
Shijiazhuang
and
Technical Municipal
development, Related to
reconstructi Development Subsidy No No 133,333.34 133,333.33
technical assets
on and deform
renovation
Commission
and
transformatio
n, etc.
Grant of Shijiazhuang Grants Related to
Subsidy No No 500,000.00 500,000.00
Glass High-tech obtained due assets
142
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Substrate Management to
Project Committee conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Grants
obtained due
to
conforming
Shijiazhuang to the local
Industry
High-tech supporting Related to
Development Subsidy No No 233,333.34 233,333.33
Management policies such assets
Fund
Committee as local
government’s
investment
attraction
policy
Grants
obtained due
to research
Shiijiazhuang and
Project
Municipal development, Related to
finance Subsidy No No 15,666.66 15,666.67
Finance technical assets
discount
Bureau renovation
and
transformatio
n, etc.
Grants
obtained due
Production li to research
ne technolog Shiijiazhuang and
y research an Municipal development, Related to
Subsidy No No 3,257,666.66 3,257,666.67
d developme Finance technical assets
nt granted fu Bureau renovation
nds and
transformatio
n, etc.
2013 Shijiazhuang Subsidy Grants No No 166,666.66 Related to
143
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Provincial Municipal obtained due assets
strategic Development to
emerging and deform conforming
industries of Commission to the local
special grant supporting
funds policies such
as local
government’s
investment
attraction
policy
Grants
obtained due
to research
Technology Shiijiazhuang and
reconstructi Municipal development, Related to
No No 411,333.34
on Special Finance technical assets
funds Bureau renovation
and
transformatio
n, etc.
Grants
Investment obtained due
and Subsidies to
of “Double conforming
Hundred Henan to the local
Plan” Project Provincial supporting Related to
Subsidy No No 100,000.00 100,000.00
granted by People’s policies such assets
the People's Government as local
Government government’s
of Henan investment
Province attraction
policy
Grants
obtained due
to research
TFT glass Zhengzhou and
substrate Municipal development, Related to
Subsidy No No 5,000.00 5,000.00
technology Finance technical assets
R& D fund Bureau renovation
and
transformatio
n, etc.
144
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Grants
obtained due
to
conforming
TFT glass Zhengzhou to the local
substrate Municipal supporting Related to
Subsidy No No 333,333.33 333,333.33
project Finance policies such assets
Subsidy Bureau as local
government’s
investment
attraction
policy
Investment
and Subsidies
within
Budget for
Grants
Technologica
obtained due
l Zhengzhou
to research
Transformati Economic
and
on Project by and
development, Related to
National Technology Subsidy No No 466,666.67 466,666.67
technical assets
Development Development
renovation
and Reform Zone Finance
and
Commission Bureau
transformatio
and the
n, etc.
Ministry of
Industry and
Information
Technology
Grants
obtained due
to
conforming
TFT glass Zhengzhou to the local
substrate Municipal supporting Related to
Subsidy No No 666,666.67 666,666.67
project Finance policies such assets
Subsidy Bureau as local
government’s
investment
attraction
policy
Special Zhengzhou Grants Related to
Subsidy No No 33,333.33 33,333.33
Funds for Municipal obtained due assets
145
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Major Finance to
Scientific and Bureau conforming
Technical to the local
Projects by supporting
Finance policies such
Bureau of as local
Zhengzhou government’s
City investment
attraction
policy
Grants
Financial obtained due
Supports for to the country
National Key Zhengzhou encourage
Industry and Economic and support
Technical and specific
Related to
Transformati Technology Subsidy industries No No 466,666.67 466,666.67
assets
on Projects Development (Obtained in
Granted by Zone Finance accordance
the Municipal Bureau with the
Finance national
Bureau policies and
regulations)
Financial
Grants
Supports for
obtained due
Industrial
to
Development
conforming
Granted by
Zhengzhou to the local
the Finance
Municipal supporting Related to
Bureau of the Subsidy No No 233,333.33 233,333.33
Finance policies such assets
Economic
Bureau as local
and
government’s
Technologica
investment
l
attraction
Development
policy
Zone
Zhengzhou Grants
Funds for
Economic obtained due
Independent
and to
Innovation of Related to
Technology Subsidy conforming No No 200,000.00 200,000.00
Provincially assets
Development to the local
Supported
Zone Finance supporting
Enterprises
Bureau policies such
146
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
as local
government’s
investment
attraction
policy
Grants
obtained due
to
conforming
Supporting Zhengzhou to the local
Funds on Municipal supporting Related to
Subsidy No No 66,666.67 66,666.67
Finance Finance policies such assets
Discounts Bureau as local
government’s
investment
attraction
policy
Grants
obtained due
to
Funds for
conforming
Education,
Zhengzhou to the local
Science and
Municipal supporting Related to
Culture Subsidy No No 50,000.00 50,000.00
Finance policies such assets
Granted by
Bureau as local
the Finance
government’s
Bureau
investment
attraction
policy
Grants
Supporting obtained due
Funds for to
Zhengzhou
Industrial conforming
Economic
Structure to the local
and
-adjusting supporting Related to
Technology Subsidy No No 93,333.33 93,333.33
Projects policies such assets
Development
Granted by as local
Zone Finance
the Regional government’s
Bureau
Finance investment
Bureau attraction
policy
Industry Zhengzhou Grants Related to
Subsidy No No 53,333.33 53,333.33
discount and Municipal obtained due assets
147
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
expenses Finance to
Bureau conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Grants
obtained due
to
Zhengzhou
conforming
Economic
to the local
and
Financial supporting Related to
Technology Subsidy No No 166,666.67 166,666.67
discount policies such assets
Development
as local
Zone Finance
government’s
Bureau
investment
attraction
policy
Grants
obtained due
to
conforming
Industrial
Zhengzhou to the local
restructuting
Municipal supporting Related to
project Subsidy No No 160,000.00 160,000.00
Finance policies such assets
financial
Bureau as local
funds
government’s
investment
attraction
policy
Special Grants
Funds for Zhengzhou obtained due
High-end Economic to the country
Information and encourage
Related to
Industry Technology Subsidy and support No No 166,666.67 166,666.67
assets
Chain Development specific
Granted by Zone Finance industries
the Finance Bureau (Obtained in
Bureau of the accordance
148
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Economic with the
and national
Technologica policies and
l regulations)
Development
Zone
Grants
obtained due
to the country
Zhengzhou encourage
Economic and support
2015 project
and specific
equipment Related to
Technology Subsidy industries No No 954,833.33
investment assets
Development (Obtained in
subsidie
Zone Finance accordance
Bureau with the
national
policies and
regulations)
Grants
obtained due
to
conforming
Strategic Shijiazhuang
to the local
emerging city
supporting Related to
industry development Subsidy No No 1,000,000.00
policies such assets
Development and Reform
as local
project funds Commission
government’s
investment
attraction
policy
Financial
Exconomic Grants
Grant of
and trade obtained due
Bureau of
development to research
Finance in
Bureau of and
Wuhu
Wuhu development, 60,000,000.0 Related to
Economic Subsidy No No
Economic technical 0 inoome
and
and renovation
Technologica
technology and
l
Development transformatio
Development
Zone n, etc.
Zone
Grant of fifth Wuhu Subsidy Grants No No 30,000,000.0 Related to
149
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
G6TFT-LCD Economic obtained due 0 income
glass and to
substrate Technology conforming
production Development to the local
line Ignition Zone Finance supporting
operation Bureau policies such
as local
government’s
investment
attraction
policy
Grants
obtained due
to
Anhui
conforming
Jiangbei
to the local
Industrial
supporting 90,342,000.0 45,000,000.0 Related to
Tax Returns Concentratio Subsidy No No
policies such 0 0 income
n Zone
as local
Administrativ
government’s
e Committee
investment
attraction
policy
Grants
obtained due
to
conforming
to the local
Wuhu Social
Stable job supporting Related to
Security Subsidy No No 108,000.00
subsidy policies such inoome
Center
as local
government’s
investment
attraction
policy
Wuhu Human Grants
Resources obtained
Service Wuhu due to
Center Human conforming Related to
Subsidy No No 99,200.00
College Resources to the local income
Graduates service center supporting
trainee policies
subsidies such as
150
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
local
government
’s
investment
attraction
policy
Grants
obtained
due to
Zhengzhou
conforming
Human
to the local
Resources
Zhengzhou supporting
Service
Human policies Related to
Center Subsidy No No 478,800.00 226,800.00
Resources such as inoome
College
service center local
Graduates
government
trainee
’s
subsidies
investment
attraction
policy
Grants
The 1st Batch
obtained due
of Funds for
to
Science and
conforming
Technology
Zhengzhou to the local
Projects in
Municipal supporting Related to
2015 Granted Subsidy No No 1,000,000.00
Finance policies such income
by the
Bureau as local
Finance
government’s
Bureau of
investment
Zhengzhou
attraction
City
policy
Grants
Subsidies for
obtained due
the 1st Batch
to
of Major
conforming
Investment Henan
to the local
Projects in Province Related to
Subsidy supporting No No 750,000.00
2014 Granted Finance inoome
policies such
by the Department
as local
Provincial
government’s
Finance
investment
Department
attraction
151
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
policy
Grants
obtained due
to research
Yangzhong
and
Finance Municipal
development, Related to
innovation Science and Award No No 70,000.00
technical income
award funds Technology
renovation
Bureau
and
transformatio
n, etc.
Grants
obtained due
Economic
to
and Trade
conforming
Development
Foreign trade to the local
Bureau of
promotion supporting Related to
Wuhu Award No No 40,000.00
innovation policies such inoome
economic and
award fund as local
Trade
government’s
Development
investment
Zone
attraction
policy
Grants
Financial
obtained due
Grant of
to
Bureau of Wuhu
conforming
Finance in economic and
to the local
Wuhu Technologica
supporting 50,000,000.0 Related to
Economic l Subsidy No No
policies such 0 income
and Development
as local
Technologica Zone Finance
government’s
l Bureau
investment
Development
attraction
Zone
policy
Grants
obtained due
Shijiazhuang to
High-tech Municipal conforming Related to
Award No No 20,000.00
Zone prizes Finance to the local inoome
Bureau supporting
policies such
as local
152
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
government’s
investment
attraction
policy
Economic Grants
R&D
and Trade obtained due
equipment
Development to research
grant of
Bureau of and
Wuhu
Wuhu development, Related to
economic and Subsidy No No 519,000.00
economic and technical income
Technologica
Technologica renovation
l
l and
Development
Development transformatio
Zone
Zone n, etc.
The 2nd
Batch of Grants
Funds for obtained due
Science and to research
Technology Zhengzhou and
Projects in Municipal development, Related to
Subsidy No No 10,400.00
2015 Granted Finance technical inoome
by the Bureau renovation
Finance and
Bureau of transformatio
Zhengzhou n, etc.
City
Grants
obtained due
to
conforming
Yangzhong to the local
The talent
Municipal supporting Related to
project grants Subsidy No No 240,000.00
Finance policies such income
you Fang
Bureau as local
government’s
investment
attraction
policy
15 science Yangzhong Grants
and Municipal obtained due
Related to
technology Science and Award to research No No 10,000.00
inoome
innovation Technology and
award funds Bureau development,
153
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
technical
renovation
and
transformatio
n, etc.
Grants
obtained due
Yangzhong
to research
Municipal
15 and
Commission
Industrial development, Related to
of Subsidy No No 298,200.00
Development technical income
development
Award Fund renovation
and Reform
and
Commission
transformatio
n, etc.
Grants
obtained due
Science and to research
Technology Yangzhong and
Bureau 15 Municipal development, Related to
Subsidy No No 9,000.00
years of Finance technical inoome
patent special Bureau renovation
funds and
transformatio
n, etc.
Grants
obtained due
2015 Suqian
Suqian to
economic and
economic and conforming
Technologica
Technologica to the local
l
l supporting Related to
Development Subsidy No No 20,000.00
Development policies such income
Zone, the
Zone as local
introduction
Administrativ government’s
of Talent
e Committee investment
Awards
attraction
policy
103,218,866. 195,856,633.
Total -- -- -- -- -- --
64 31
Other notes
154
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
47.Non-Operation expense
In RMB
Amount of current period Amount of previous period The amount of non-operating
Items
gains & lossed
Total of Non-current assets
4,430.74 35,050.57 4,430.74
Disposition
Including：Disposal of fixed
4,430.74 35,050.57 4,430.74
assets
Other 8,058.60 262,935.20 8,058.60
Total 12,489.34 297,985.77 12,489.34
48.Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Income tax at current period 96,541,646.19 137,608,892.95
Deferred income tax -6,258,044.68 -56,511,931.93
Total 90,283,601.51 81,096,961.02
（2）Accounting profit and income tax expense adjustment process
In RMB
Items Amount of current period
Total profit 660,608,025.36
Income tax expense at statutory / applicable tax rates 99,091,203.80
Effect of different tax rates applicable to subsidiaries 1,864,380.16
Income tax adjustments on prior periods -6,731,316.61
Effect of non-taxable income -2,070,486.53
Impact of non-deductible costs, expenses and losses 1,989,891.71
Affect the use of deferred tax assets early unconfirmed
-7,442,829.54
deductible losses
The current period does not affect the deferred tax assets
3,582,758.52
recognized deductible temporary differences or deductible loss
Income tax expense 90,283,601.51
155
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
49. Notes to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of current period Amount of previous period
Interest income 834,422.60 814,590.70
Government subsidy 37,959,400.00 142,206,000.00
Deposits income 87,399,022.47 6,259,879.12
Fine income 149,451.17
Current account 3,450,177.56 608,030,371.58
Other 30,339,364.32 233,837.99
Petty cash 173,626.00
Total 160,131,838.12 757,718,305.39
（2）Other cash paid related to oprating activities
In RMB
Items Amount of current period Amount of previous period
Consultation Services fee 32,247,294.56 13,904,038.83
Business expenses 2,127,609.09 6,227,438.66
Current account 91,000,000.00 33,838,692.99
Labour insurance expenses 1,782,256.94 2,595,558.52
Advertising fees 9,282,425.84 4,364,912.60
Water and electricity expense 18,775,746.81 14,707,781.35
Travel expenses 4,427,379.48 6,677,421.50
Petty cash 549,954.75 3,662,906.00
Office expenses 16,145,841.08 14,573,810.75
Deposit 2,900,000.00 10,271,678.55
Meeting expenses 82,754.80 2,000.00
Communication fees 625,548.95 92,915.73
Traffic fees 10,179,140.76 1,918,656.99
R& D 12,716,824.11 1,648,271.03
Auto Fees 136,936.54 644,916.19
Other 9,266,581.65 17,131,848.68
Total 212,246,295.36 132,262,848.37
156
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
（3）Other Cash received related to investment activities
In RMB
Items Amount of current period Amount of previous period
Investment 6,120,000.00
The post-money balance of the cash and
cash equivalents of Jiangsu Jixing’s
64,574,268.94
acquisition date which deducted the
currency paid for the acquisition.
Total 6,120,000.00 64,574,268.94
（4）Other Cash payable related to investment activities
In RMB
Items Amount of current period Amount of previous period
Investment 70,000,000.00
Total 70,000,000.00
（5）Other Cash received related to Financing activities
In RMB
Items Amount of current period Amount of previous period
Interest income 82,859,831.69 3,494,985.64
Finance lease 1,237,280,000.00
Bill finance 58,549,109.63 91,976,044.67
CDB financing 500,000,000.00
Total 1,878,688,941.32 95,471,030.31
（6）Other Cash payable related to Financing activities
In RMB
Items Amount of current period Amount of previous period
Bank charges 702,462.93
Bill financing 77,900,000.00 203,000,000.00
Finance lease 16,160,141.67
Financing expenses 14,000,000.00
Total 94,762,604.60 217,000,000.00
157
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
50. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit 570,324,423.85 437,150,826.87
Add: Impairment loss provision of assets 3,554,932.15 -8,290,183.33
Depreciation of fixed assets, oil and gas
228,573,241.42 139,602,340.44
assets and consumable biological assets
Amortization of intangible assets 7,533,311.24 5,835,965.25
Amortization of long-term deferred
3,393,264.63 2,772,005.51
fexpenses
Loss on disposals of fixed assets, intangible
assets and other long-term assets ("-" for 4,430.74 35,050.57
gains)
Financial expenses 104,180,049.74 140,958,575.83
Investment loss -81,758.31 -2,348,908.58
Decrease of deferred income tax assets -6,258,044.68 -56,516,593.38
Decrease of inventories -41,358,720.57 -766,063,723.70
Decease of operating receivables -548,903,925.81 1,759,610,744.94
Increased of operating Payable 960,147,738.54 -1,597,968,301.55
Net cash flows arising from operating
1,281,108,942.94 54,777,798.87
activities
2.Significant investment and financing
-- --
activities that without cash flows:
Fixed assets acquired under finance leases 1,652,037,077.85
3．Changes Balance of cash and cash
-- --
equivalents
Ending balance of cash 15,739,687,032.14 4,684,112,232.94
Less: Beginning balance of cash 11,964,769,404.73 3,349,892,384.04
Net increase of cash and cash equivalents 3,774,917,627.41 1,334,219,848.90
(2) Net Cash paid of obtaining the subsidiary
In RMB
158
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Amount
Cash or Cash Equivalent of Enterprise consolidation that Occurred
8,000,000.00
in the Current Period Paid in the Current Period
Inclluding： --
Shanghai Tanhuiyuan Huigu New Material Technology Co., Ltd. 8,000,000.00
Less：Cash or Cash Equivalent Owned by Subsidiary on the
380,272.59
Purchasing Date
Including： --
Shanghai Tanhuiyuan Huigu New Material Technology Co., Ltd. 380,272.59
Including： --
Received Net Cash Paid by Subsidiary 7,619,727.41
（3）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
15,739,687,032.14 11,964,769,404.73
I. Cash
246,291.07 245,781.01
Of which: Cash in stock
Bank savings could be used at any time 15,530,794,470.16 11,897,196,843.45
Other monetary capital could be used at any
208,646,270.91 67,326,78.27
time
III. Balance of cash and cash equivalents at
15,739,687,032.14 11,964,769,404.73
the period end
51. The assets with the ownership or use right restricted
In RMB
Items Book value in year-end Reason
Monetary funds 543,648,071.60 Pledge of collateral
Inventory 987,961,264.39 Pledge loans
Fixed assets 7,155,678,632.78 Pledge loans
Intangible asset 239,609,353.58 Pledge loans
Construction in progress 2,870,717,465.40 Pledge loans
Total 11,797,614,787.75 --
52. Foreign currency monetary items
(1) Foreign currency monetary items
159
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
In RMB
Closing foreign currency Closing convert to RMB
Items Exclange rate
balance balance
Monetary funds
Including：USD 248,402.74 6.6312 1,647,208.25
Euro 135,575.62 7.375 999,869.28
HKD 4,666.70 0.85467 3,988.49
JPY 93,883,290.00 0.06449 6,054,539.90
GBP 2,277.81 8.9212 20,320.80
Account receivable
Indluding ：USD 11,958,394.30 6.6312 79,298,504.28
JPY 1,808,689,645.00 0.06449 116,642,623.74
Account payble
Including：USD 338,809.40 6.6312 2,246,712.89
Euro 853,325.00 7.375 6,293,271.88
JPY 10,689,877.00 0.06449 689,497.08
Long –term loan
Including：USD 10,000,000.00 6.6312 66,312,000.00
VIII.Changes of consolidation scope
1.Enterprise consolidation ont under the same control
（1）Enterprise consolidation not under the same control in reporting period
In RMB
Income of Net Profit of
Determinatio Acquire Acquire from
Ratio of
Time-point of Obtained Method of n Basis on from the the
Name of Obtained Purchasing
Obtained Cost of Obtained the Purchasing Purchasing
Acquiree Equity Date
Equity Equity Equity Purchasing Date to the Date to the
(100%)
Date End of the End of the
Period Period
Shanghai
Tanyuan
Obtain a
Huigu New March 73,454,500.0 Purchase and March
50.50% business 6,157.72 -1,106,271.37
Material 31,2016 0 add share 31,2016
license
Technology
Co., Ltd.
160
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
(2) Consolidation Cost and Goodwill
In RMB
Combined cost Shanghai Tanyuan Huigu New Meaterial Technology Co., Ltd.
--Cash 73,454,500.00
Total Consolidation cost 73,454,500.00
Less：Reduction: Obtained Definable Net Assets Fair Proportion 39,763,137.22
Goodwill/ The Consolidation Cost is Less Than the Obtained
33,691,362.78
Definable Net Assets Fair Proportion
Notes to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes:
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Shanghai Tanyuan Huigu New Meaterial Technology Co., Ltd
Fair value on purchase date Book value on purchase date
Monetary fund 65,834,772.59 65,834,772.59
Account receivable 1,600.00 1,600.00
Inventories 1,243,387.97 802,979.59
Fixed assets 1,847,248.70 1,939,350.28
Intangible assets 7,317,795.33 4,444,692.24
Prepayments 2,006,750.00 2,006,750.00
Other account receivable 457,262.00 457,262.00
Other current assets 198,033.10 198,033.10
Long-term prepaid expenses 303,253.20 303,253.20
Account payable 362,292.10 362,292.10
Employees’ wage payable 37,656.00 37,656.00
Other payable 71,269.20 71,269.20
Net assets 78,738,885.59 75,517,475.70
Acquire net assets 78,738,885.59 75,517,475.70
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other explanation:
2.Other reasons for the merger scope change
Other causes of the consolidation scope changes (e.g., the new subsidiary, liquidation subsidiary, etc.) and its
related conditions:
On March 8, 2016, Wuhu Dongxu Optoelectronic Technology Co.,Ltd set up Fuzhou Dongxu Investment
Development Co., Ltd and holds 100% stake of Fuzhou Dongxu Investment Development Co., Ltd, of which the
161
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
registered capital was RMB 10 million and the paid-in capital was RMB 0.00.
On March 17, 2016, Beijing Dongxu Huaqing Investment Co., Ltd as a general partner, Dongxu Optoelectronic
Technology Co.,Ltd as a limited partner and Taizhou Golden Sun Energy Co., Ltd as a limited partner together set
up Taizhou Dongxu Graphene Industry Investment Fund Management Center(Limited partnership). Such limited
partnership company was incorporated in May 4, 2016, and the total amount of capital contribution agreed in the
agreement was RMB 101 million, but as of June 30, 2016, the actual received amount of capital contribution was
RMB 0.00. For the capital contribution, Taizhou Golden Sun Energy Co., Ltd subscribed the amount of capital
contribution of RMB 75 million, Dongxu Optoelectronic Technology Co.,Ltd subscribed the amount of capital
contribution of RMB 25 million, Beijing Dongxu Huaqing Investment Co., Ltd subscribed the amount of capital
contribution of RMB 1 million which was agreed in the agreement by using the labor service as capital
contribution, and meanwhile, upon the agreement, the three parties all agreed that they shall complete the capital
contribution before December 30, 2016.
On March 31, 2016, Dongxu Optoelectronic Technology Co.,Ltd set up Shenzhen XuHui Investment Holdings
Co.,Ltd, of which the registered capital was RMB 100 million and the paid-in capital was RMB 0.00.
On June 24, 2016, Fuzhou Dongxu Optoelectronic Technology Co.,Ltd and Dongxu Optoelectronic Technology
Co.,Ltd together set up a new company of Fuzhou Xufu Optoelectronic Technology Co.,Ltd, of which the
registered capital is RMB 65.40 million, among which, Fuzhou Dongxu Optoelectronic Technology Co.,Ltd shall
contribute RMB 54.50 million, Dongxu Optoelectronic Technology Co.,Ltd shall contribute RMB 10.90 million,
and the paid-in capital was RMB 0.00.
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Name of Main Places of Registration Nature of Shareholding Ratio (%) Obtaining
Subsidiary Operation Place Business direct indirect Method
9 Huanghe Road,
Shijiazhuang
Hebei Xubao
High-tech
Construction
Industrial Construction
Installation Shijiazhuang 100.00% Establish
Development Installation
Engineering Co.,
Area,
Ltd.
Shijiazhuang,
Hebei Province
9 Huanghe Road,
Shijiazhuang
High-tech
Shijiazhuang
Industrial
Colour Bulb Co., Shijiazhuang Manufacturing 81.26% Establish
Development
Ltd.
Area,
Shijiazhuang,
Hebei Province
162
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Wuhu Dongxu Room 302, A floo
Optoelectronic r,Management Co
Equipment Wuhu mmittee of Jiangb Manufacturing 95.00% Establish
Technology Co., ei Industry Zone,
Ltd. Anhui Prov
No.36, Daowei 2
Road, Wanchun
Wuhu Dongxu
Street , Wuhu
Optoelectronic
Wuhu Economy Manufacturing 100.00% Establish
Technology Co.,
Technology
Ltd.
Development
Zone
1/F, No.2
Business tower,
Huazhong
Wuhan Dongxu
Shuguang
Optoelectronic
Wuhan Software park, Manufacturing 62.50% Establish
Technology Co.,
No.1Guanshan
Ltd.
Road,Donghu
Development
Zone, Wuhan
Building 15, No.
Sichuan Ruiyi 21, Ring Road 18
Construction 1 West Third Sect Non control
Sichuan Manufacturing 100.00%
Engineering Co., ion,Jinniu District combination
Ltd. , Chengdu
Room C17,
Building 1,
Beijing Xufeng No.10, Xinghuo
Real estate
Real Estate Co., Beijing Road, 100.00% Establish
Development
Ltd. Technology City,
Fengtai District,
Beijing
Room 1517,
Building 1
Dongxu (International
（Kunshan） Building), No.
Kunshan Manufacturing 80.00% Establish
Display Material 167, Qianjin
Co., Ltd. Middle Road,
Suzhou City,
Jiangsu Province
Zhengzhou Xufei 66,No 3
Zhengzhou Manufacturing 100.00% Non control
Optoelectronic Jingnan Road,
163
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Technology Co., Econornic & combination
Ltd. Technology
Development
Zone, Zhengzhou
No.69,Tianshan
Shijiazhuang
Street,
Xuxin
High-tech Non control
Optoelectronic Shijiazhuang Manufacturing 100.00%
Area, combination
Technology
Shijiazhuang,
Co.,Ltd.
Hebei
N0.1198, 689
Beijing Xutan Builing, No.5,
New Material Zhongguan Technology
Beijing 70.00% Establish
Technology Co., Village South Service
Ltd. Street, Haiding
District, Beijing
New Material
Jiangsu Jixing
Industry Zone, Non control
New Material Jiangsu Manufacturing 50.50%
Youfang Town, combination
Co., Ltd.
Yangzhong City
1201-E18(Area)1
2/F,No.1, 6-3
Beijing Dongxu
Building,
Huaqing Investment
Beijng Autornobile 70.00% Establish
Investment Co., Management
Museum East
Ltd.
Road, Fengtai
District, Beijing
(072) Room
109,Supervision
Building,
Fuzhou Dongxu Processing trade
Optoelectronic Free zone,
Fuzhou Manufacturing 100.00% Establish
Technology Co., Fuzhou,
Ltd. Fujian.(No.9,
Xinjiang Road,
Xincuo Town,
Fuqing City)
Shijiazhuang 9 Huanghe Road,
Dongxu Shijiazhuang
Optoelectronic Shijiazhuang High-tech Manufacturing 95.00% Establish
Equipment Industrial
Technology Co., Development
164
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Ltd. Area,
Shijiazhuang,
Hebei Province
Room 267, 2/F,
No. 2 ,Building,
Beijing Dongxu
No.9 Haiying
Investment
Beijing Road, Investment 100.00% Establish
Development Co.,
Technology City,
Ltd.
Fengtai District,
Beijing.
Room 311-D, B
Building,
Jiangbei
Industrial
Wuhu Ruiyi
Anhui Concentration Labor dispatch 100.00% Establish
Service Co., Ltd.
Zone
Administrative
Committee,
Anhui
Room 2369,
No.888, CBD,
Jiangsu Dongxu
Renmin Road,
Yitai Intelligent
Suqian Economic Manufacturing 100.00% Establish
Equipment Co.,
Technology
Ltd.
Development
Zone, Suqian
Room 02,
2/F,No.3
Shanghai Building,
Tanyuan Huigu No.28,,
Non control
New Material Shanghai Jiangcchuan Manufacturing 50.50%
combination
Technology Co., East Road,
Ltd. Minhang
District ,Shang
hai
Room 201, A
unit, No.1
Shenzhen Xuhui Qianwan Road,
Investment Co., Shenzhen Qianhai Investnebt 100.00% Establish
Ltd. Shengang
Cioeration Area,
Shenzhen.
165
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
297, Room
Fuzhou Xufu 109,Supervision
Optoelectronic Building,
Fuzhou Manufacturing 83.33% 16.67% Establish
Technology Co., Processing trade
Ltd. Free zone,
Fuzhou, Fujian
230, Room
Fuzhou Dongxu 109,Supervision
Investment Building,
Fuzhou Investment 100.00% Establish
Development Processing trade
Co., Ltd. Free zone,
Fuzhou, Fujian
Dongxu Taizhou
Graphene Room 205, 2/F, 7
Industry Building ,
Investment No.818 ,
Fund Taizhou Longfeng Road, Investment 24.75% 0.99% Establish
Management New Energy
Center Industry Zone ,
(limited Taizhou
partnership)
Notes: holding proportion in subsidiary different from voting proportion:
According to the signed agreement, Taizhou Dongxu Graphene Industry Investment Fund Management Center
(limited partnership) sets up the investment decision committee as the highest decision-making organ, which is
responsible for making decisions on project investment, disinvestment and other matters. The investment decision
committee is made up of five committee members. Wherein, the general partner Beijing Dongxu Huaqing
Investment Co., Ltd. appoints 2 members, the limited partner Dongxu Photo-electricity Technology Co., Ltd.
appoints 1 member and the other 2 members are appointed through social recruiting. The limited partner Taizhou
Jintaiyang Energy Co., Ltd. doesn’t appoint members. And the chairman of committee shall be assumed by the
representative of general partner. The decisions will be valid with the consent of the majority of committee
members (4 votes and above), and the chairman of investment committee has the one-vote veto. As the executive
partner, the general partner Beijing Dongxu Huaqing Investment Co., ltd. assumes unlimited, joint liabilities for
the limited partnership’s debts. As the posterity limited partner, Dongxu Photo-electricity Technology Co., Ltd.
bears responsibilities for the limited partnership’s debts with its subscribed investment. And Taizhou Jintaiyang
Energy Co., Ltd., as the priority limited partner, assumes responsibilities for the limited partnership’s debts with
its subscribed investment.
The executive partner of Taizhou Dongxu Graphene Industry Investment Fund Management Center (limited
partnership) is actually Beijing Dongxu Huaqiang Investment Co., Ltd. Due to the staff’s negligence, the
executive partner registered on Business License is Wang Zhonghui, the legal representative of Beijing Dongxu
Huaqiang Investment Co., Ltd., and the company is changing its business license.
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee:
166
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
According to the signed agreement, Taizhou Dongxu Graphene Industry Investment Fund Management Center
(limited partnership) sets up the investment decision committee as the highest decision-making organ, which is
responsible for making decisions on project investment, disinvestment and other matters. The investment decision
committee is made up of five committee members. Wherein, the general partner Beijing Dongxu Huaqing
Investment Co., Ltd. appoints 2 members, the limited partner Dongxu Photo-electricity Technology Co., Ltd.
appoints 1 member and the other 2 members are appointed through social recruiting. The limited partner Taizhou
Jintaiyang Energy Co., Ltd. doesn’t appoint members. And the chairman of committee shall be assumed by the
representative of general partner. The decisions will be valid with the consent of the majority of committee
members (4 votes and above), and the chairman of investment committee has the one-vote veto. As the executive
partner, the general partner Beijing Dongxu Huaqing Investment Co., ltd. assumes unlimited, joint liabilities for
the limited partnership’s debts. As the posterity limited partner, Dongxu Photo-electricity Technology Co., Ltd.
bears responsibilities for the limited partnership’s debts with its subscribed investment. And Taizhou Jintaiyang
Energy Co., Ltd., as the priority limited partner, assumes responsibilities for the limited partnership’s debts with
its subscribed investment.
The executive partner of Taizhou Dongxu Graphene Industry Investment Fund Management Center (limited
partnership) is actually Beijing Dongxu Huaqiang Investment Co., Ltd. Due to the staff’s negligence, the
executive partner registered on Business License is Wang Zhonghui, the legal representative of Beijing Dongxu
Huaqiang Investment Co., Ltd., and the company is changing its business license.
Significant structure entities and controlling basis in the scope of combination:
Basis of determine whether the Company is the agent or the principal:
Other notes:
On December 25, 2015, Wuhu Dongxu Optoelectronic Technology Co.,Ltd set up a wholly-owned subsidiary
of Fuzhou Dongxu Optoelectronic Technology Co.,Ltd, of which the registered capital is RMB 10 million and the
paid-in capital is RMB 0.00. On May 26, 2016, Wuhu Dongxu Optoelectronic Technology Co.,Ltd transferred its
100.00% stake of Fuzhou Dongxu Optoelectronic Technology Co.,Ltd to Dongxu Optoelectronic Technology
Co.,Ltd, with the registered capital of Fuzhou Dongxu Optoelectronic Technology Co.,Ltd is RMB 10 million and
the paid-in capital is RMB 10 million.
(2) Significant not wholly owned subsidiary
In RMB
Profit or Loss Owned by Dividends Distributed to
Shareholding Ratio of Equity Balance of the
the Minority the Minority
Name of Subsidiary Minority Shareholders Minority Shareholders in
Shareholders in the Shareholders in the
(%) the End of the Period
Current Period Current Period
Wuhu Dongxu
Optoelectronic
5.00% 23,701,446.62 97,552,665.21
Equipment Technology
Co., Ltd.
Jiangsu Jixing New
49.50% 8,057,709.51 205,477,973.45
Material Co., Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes:
167
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance Year-beginning balance
Non Current Non Non Current Non
Name Current Total Total Current Total Total
current Liabilitie current current Liabilitie current
assets assets liabilities assets assets liabilities
assets s liabilities assets s liabilities
Wuhu
Dongxu
Optoelec
tronic
6,651,93 185,477, 6,837,41 4,428,80 450,000, 4,878,80 5,047,42 191,953, 5,239,37 3,254,74 500,000, 3,754,74
Equipme
4,982.20 310.57 2,292.77 7,720.58 000.00 7,720.58 3,350.95 488.35 6,839.30 8,857.61 000.00 8,857.61
nt
Technolo
gy Co.,
Ltd.
Jiangsu
Jixing
326,380, 357,645, 684,026, 260,919, 8,000,00 268,919, 250,572, 366,026, 616,599, 211,770, 6,000,00 217,770,
New
234.61 997.43 232.04 214.96 0.00 214.96 836.25 457.66 293.91 477.86 0.00 477.86
Material
Co., Ltd.
In RMB
Amount of current period Amount of previous period
Cash flows Cash flows
Total Total
Name Business from Business from
Net profit Comprehensi Net profit Comprehensi
income operating income operating
ve income ve income
activities activities
Wuhu
Dongxu
Optoelectroni 1,423,880,48 479,358,368. 479,358,368. 1,081,984,21 113,978,620. 486,729,800. 486,729,800. -281,784,096.
c Equipment 4.78 65 65 2.37 00 00 00 00
Technology
Co., Ltd.
Jiangsu
Jixing New 223,976,847. 16,278,201.0 16,278,201.0 43,535,555.9 -36,549,817.0
6,352,806.87 154,379.23 154,379.23
Material Co., 42 3 3 3 5
Ltd.
2. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
168
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Proportion Accounting
treatment of the
Main operating investment of
Name Registration place Business nature
place Directly Indirectly joint venture or
associated
enterprise
ZhongdaChengxi
No.601, Luoyang
n International
Road, ,FTA(Dong Equity method
Commercial Tianjing Factoring 24%
jiang free Zone,) accounting
Factoring Co.,
Tianjing
Ltd.
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
(2) Main financial information of significant associated enterpriseo
In RMB
Cloding balance/This period Opening balance/Last period
ZhongdaChengxin International ZhongdaChengxin International
Commercial Factoring Co., Ltd. Commercial Factoring Co., Ltd.
Current assets 308,120,164.53 308,104,397.93
Total assets 308,120,164.53 308,104,397.93
Current liabilities 6,003,453.21 6,328,346.23
Total liabilities 6,003,453.21 6,328,346.23
Attributable to shareholders of the parent
302,116,711.32 301,776,051.70
company
Share of net assets calculated by stake 72,508,010.72 72,426,252.41
Book value of equity investment in
72,508,010.72 72,426,252.41
associates
Business income 6,924,222.63 10,849,777.77
Net profit 340,659.62 1,776,051.70
Total comprehensive income 340,659.62 1,776,051.70
Other notes:
On March 10, 2016, Beijing Dongxu Huaqing Investment Co., Ltd as a general partner, Dongxu Optoelectronic
Technology Co.,Ltd as a limited partner and Deyang Jinghua Carbon Materials Science & Technology
Development Co.,Ltd as a limited partner together co-funded and set up Dongxu(Deyang) Graphene Industry
Development Fund Partnership Company(Limited partnership). Such limited partnership company was
incorporated in April 17, 2016, and the total amount of capital contribution agreed in the agreement was RMB
200,000,000, but as of June 30, 2016, the actual received amount of capital contribution was RMB 0.00. For the
capital contribution, Beijing Dongxu Huaqing Investment Co., Ltd subscribed the amount of capital contribution
of RMB 2 million which accounts for 1.00% of the total amount of capital contribution; Deyang Jinghua Carbon
169
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Materials Science & Technology Development Co.,Ltd subscribed the amount of capital contribution of RMB
158,400,000 which accounts for 79.20% of the total amount of capital contribution; Dongxu Optoelectronic
Technology Co.,Ltd subscribed the amount of capital contribution of RMB 39,600,000 which accounts for 19.80%
of the total amount of capital contribution. Meanwhile, the agreement stipulated that the limited partners shall
respectively complete 50% of their totally subscribed capital contribution within 30 days commenced from the
date of the fund incorporation date, the general partner shall complete 50% of the totally subscribed capital
contribution within 30 days commenced from the date of the fund incorporation date and the rest capital
contribution by all parties shall be completed before December 30, 2017.
otes
At the same time, all the parties agreed to set up an investment decision-making committee as the highest
decision-making body for the limited partnership company. The investment committee is consisted by 5 members,
among which, Beijing Dongxu Huaqing Investment Co., Ltd appoints 1 member, Dongxu Optoelectronic
Technology Co.,Ltd appoints 1 member, Deyang Jinghua Carbon Materials Science & Technology Development
Co.,Ltd appoints 1 member and the remaining 1 member will be jointly determined by Dongxu party and Deyang
party. Any decision shall be passed by winning not less than 3 votes in the decision-making committee.
The general partner of Beijing Dongxu Huaqing Investment Co., Ltd as a managing partner shall bear unlimited
joint and several liability for the liabilities of the limited partnership company, Dongxu Optoelectronic
Technology Co.,Ltd as a posterior limited partner shall assume the limited partnership company’s liability no
more than the subscribed capital contribution and Deyang Jinghua Carbon Materials Science & Technology
Development Co.,Ltd as a prior limited partner shall assume the limited partnership company’s liability no more
than the subscribed capital contribution.
X. The risk related financial instruments
The Company faces a variety of financial risks in the course of operation: credit risk, market risk and liquidity risk.
The Business Management Department of the Company management is fully responsible for the determination of
risk management objectives and policies, and assumes the ultimate responsibility for the risk management
objectives and policies. The Business Management Department of the Company reviews the effectiveness of the
performed programs as well as the rationality of risk management objectives and policies through monthly work
statement submitted by the Functional Department.
The objective of the Company’s engagement in risk management is to obtain a proper balance between the risks
and benefits, reduce the risks’ negative impact on the Company's operating performance to the lowest level and
maximize the interests of shareholders and other equity investors. Based on the risk management objectives, the
basic strategy of the Company's risk management is to identify and analyze the risks faced by the Company,
establish appropriate baseline of risk tolerance, conduct risk management as well as timely and reliably supervise
various risks to control the risks within a limited range.
1. Credit Risk
Credit risk refers to the financial loss risk of the other Party if one Party of financial instruments fails to perform
its obligations. The Company mainly faces customer credit risk caused by the credit sale. The Company would
make an evaluation on new customers’ credit risk before signing new contracts, which includes external credit
rating and bank reference letter (when available) under certain circumstances. The Company sets quota on credit
sale for each customer and such quota is the maximum amount without additional approvals.
2. Market Risk
The market risk of financial instruments refers to the risk that the fair value or future cash flow of the financial
instruments would fluctuate due to the market price changes, which includes interest rate risk ,foreign exchange
170
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
risk and other price risks.
(1) Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flow of the financial instruments would
fluctuate due to the market price changes. The interest rate risk faced by the Company mainly comes from
short-term bank loans. The Company meets various short-term financing needs through establishing good
bank-enterprise relationship as well as reasonably designing credit line, credit type and credit term to guarantee
the sufficient bank credit line. In addition, the Company also reasonably reduces the fluctuation risk of interest
rate by shortening the term of single loan and performing specially agreed prepayment term.
(2) Foreign Exchange Risk
Foreign exchange risk refers to the risk that the fair value or future cash flow of the financial instruments would
fluctuate due to the market price changes. The Company would match the foreign currency incomes and expenses
as far as possible to reduce the foreign exchange risk. On account of the small proportion of foreign financial
assets and liabilities in the total assets, there’s no forward foreign exchange contract or currency swap contract
signed by the Company in 2015 and 2016.
The foreign exchange risk faced by the Company mainly comes from the financial assets and financial liabilities
priced by US dollar, Yen and Euro. The exchanged RMB amounts of foreign financial assets and foreign financial
liabilities are presented as below:
Items Ending balance of fo Exchange r End balance of Beginning balanve Beginning
reign currency ate RMB Conversion of foreign currency Exchange rate balance of RMB
Conversion
Monetary fund
Including：USD 248,402.74 6.6312 1,647,208.25 3,021,138.38 6.4936 19,618,040.36
Euro 135,575.62 7.375 999,869.28 1,000,555.35 7.0952 7,099,140.32
HKD 4,666.70 0.85467 3,988.49 4,666.70 0.8377 3,909.67
JPY 93,883,290.00 0.06449 6,054,539.90 243,319,365.00 0.0539 13,108,830.79
GBP 2,277.81 8.9212 20,320.80 2,277.81 9.6159 21,903.19
Account receivable
Including：USD 11,958,394.30 6.6312 79,298,504.28 4,999,315.30 6.4936 32,463,588.59
JPY 1,808,689,645.00 0.06449 116,642,623.74 1,388,800,750.24 0.053875 74,822,443.56
Account payable
Including: JPY 10,689,877.00 0.06449 689,497.08 27,292,000.00 0.053875 1,470,475.56
USD 338,809.40 6.6312 2,246,712.89 240,880.00 6.4936 1,564,178.37
Euro 853,325.00 7.375 6,293,271.88 923,325.00 7.0952 6,551,175.54
Long-term loans
Including：USD 10,000,000.00 6.6312 66,312,000.00 11,000,000.00 6.4936 71,429,600.00
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
XI. Related party and related party transactions
1. Parent company information of the enterprise
The parent company The parent company
Name Registered address Natrue Regisrated capital of the Company's of the Company’s
shareholding ratio vote ratio
No.369, Zhujiang Investment ,
Dongxu Group Road, High-tech production and R & RMB 11.07 billion 30.42% 30.42%
zone, Shijiazhuang D, etc.
Notes
During the reporting period, the following changes in the real-up capital of the parent company:
In RM
Items Beginning of term Increase Decrease End of term
Paid in capital 11,070,000,000.00 11,070,000,000.00
The finial control of the company was Li Zhaoting.
Other notes：
2. Subsidiaries of the Company
See details to Notes VII..
3. Information on the joint ventures and associated enterprises of the Company
The details to notes XVII of significant joint venture and associated enterprise of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name Relationship
Other notes
4.Other Related parties information of the enterprise
Other Related parties name Relation of other Related parties with the company
Dongxu Optoelectronic Investment Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co.,
Controlled by the same actual controller
Ltd.
Shijiazhuang Baoshi Xuming Tube Co., Ltd. Controlled by the same actual controller
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Shijiazhuang Baodong Electronic Co.,Ltd. Controlled by the same actual controller
Hebei Baoshi Lighting Co., Ltd. Controlled by the same actual controller
Dongxu（Yingkou）Optoelectronic Display Co., Ltd. Controlled by the same actual controller
Jinhou Xulong Solar energy Technology Co., Ltd. Controlled by the same actual controller
Sichuan Xuhong Optoelectrnic Technology Co., Ltd Controlled by the same actual controller
Shijiazhuang Dongxu Machine Equipment Co., Ltd. Controlled by the same actual controller
Hebei Decoration Printing Machine Co., Ltd. Controlled by the same actual controller
Chengdu Zhong Optoelectronic Technology Co., Ltd. General Manager: Li Zhaotin
Chengdu Dongxu Energy saving Technology Co., Ltd. Controlled by the same actual controller
Shijiazhuang Xuling Electronic Technology Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Electronic Group Co., Ltd. Controlled by the same actual controller
Chengdu Taiyisi Technology Co., Ltd. Controlled by the same actual controller
Li Qing The spouse of the actual controller
Other notes
5. Related transactions.（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Content of related Amount of current Amount of previous Over the trading limit
Related parties Amount of last period
transaction or not?
period period
Baoshi Group Energy 574,553.06 471,876.50
Baoshi Group Security fees 1,500,000.00
Chengdu Dongxu
Energy Saving
ESL 1,787.18 15,384.62
Technology Co.,
Ltd.
Shijiazhuang
Baoshi Zhonghe
Door 259,246.66
Steel Plastic
Shape Co., Ltd.
Shijiazhuang
Dongxu Mechanical Machining parts 18,568,179.46 834,427.33
Equipment Co., Ltd
Shijiazhuang
Dongxu Mechanical Packing equipment 10,221,794.87
Equipment Co., Ltd
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Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Total 20,903,766.36 11,543,483.32
Related transactions on sale goods and receiving services
In RMB
Related parties Content of related transaction Amount of current period Amount of previous period
Shijiazhuang Dongxu
Packing equipment 1,378,205.13
Mechanical Equipment Co., Ltd.
Shijiazhuang Dongxu
Detection eqiupment 36,412,136.76
Mechanical Equipment Co., Ltd.
Sichuan Xuhong
Line technological
Optoelectronic Technology 142,948,113.21
transformation
Co., Ltd.
Jinzhou Xulong New Material
tester 223,076.93
Technology Co., Ltd.
National Engineering
Dongxu Group 82,115,384.62
laboratory test equipment
Chengdu Zhong Optoelectronic
Semi-manufacture 3,106,153.76 2,685,888.57
Technology Co., Ltd.
Chengdu Zhong Optoelectronic
Traction roll project 188,888.89
Technology Co., Ltd.
Sichuan Xuhong Optoelectronic
Technology Service 11,909,433.96
Technology Co., Ltd.
Dongxu （ Yingkou ）
Technology Service
Optoelectronic Display Co., 9,135,849.06
Ltd.
Total 3,295,042.65 286,808,088.24
Notes
（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertake
In RMB
Gains from the
Name of the Name of the Asset situation of
Start date Terminating date Pricing basis deal in report
employer undertaker the undertaker
period
Dongxu Group, The trustee fee
Yingkou Coastal Dongxu Dongxu includes share
Development Optoelectronic (Yingkou) right trustee
January 1,2012 750,000.00
Construction Co., Technology Co., Optoelectronic fee(500 thousand
ltd., Wukuang Ltd. Display Co., Ltd. RMB/year) and
(Yingkou ) operation trustee
174
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Industrial Park fee. The
Development operation trustee
Co., Ltd. fee is basic
management fee
and incentive
management fee,
of which the
basic
management fee
is 1 million
RMB/year, the
incentive
management fee
is counted by 5%
of the after-tax
net profit yearly
achieved by the
trustee company
The trustee fee
includes share
right trustee
fee(500 thousand
RMB/year) and
operation trustee
fee. The
operation trustee
Dongxu Group, fee is basic
Mianyang The right to management fee
Investment Dongxu operate of and incentive
(Group) Co., Optoelectronic Sichuan management fee,
March 1,2012 750,000.00
Ltd,Sichuan Technology Co., Changhong of which the
Changhong Ltd. Electrical Co., basic
Electrical Co., Ltd. management fee
Ltd. is 1 million
RMB/year, the
incentive
management fee
is counted by 5%
of the after-tax
net profit yearly
achieved by the
trustee company
Total 1,500,000.00
Notes
175
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
During the reporting period, the Company continued entrusted with the management of Dongxu( Yingkou)
Optoelectronic Display Co., Ltd., Sichuan Xuhong Optoelectronic Technology Co., Ltd.
In December 2011, Dongxu Group, Dongxu Optoelectronic Investment Co., Ltd. and Shijiazhuang Baoshi
Electronic Group Co., Ltd signed the Equity Trusteeship Agreement with the Company , of which 60% share
rights of Dongxu (Yingkou) Optoelectronic Display Co., Ltd., 51% share rights of Sichuan Xuhong
Optoelectronic Technology Co., Ltd., were entrusted by the Company, where the agreement went into effect as of
March 2012. The clients paid the Company 500 thousand RMB of management fee per year for each subject.
Lists of entrust/contractee
In RMB
Name of the Name of the Clarge
entruster/contract entrustee/ Type Initial date Due date Pricing basis recognized in the
ee contractor reporting period
Notes
（3）Related guarantee condition
The Company as a guarantor
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The Company was secured party
In RMB
Guarantor Guarantee Amount Starting date Stop date If completed or not
Dongxu Group, Li
200,000,000.00 September 11,2015 Sptember 11,2016 No
Zhaoting
Dongxu Group, Li
100,000,000.00 March 25,2016 February 28,2017 No
Zhaoting
Dongxu Group, Li
350,000,000.00 August 31,2015 August 16,2016 No
Zhaoting
Dongxu Group, Li
200,000,000.00 October 23,2015 October 23,2016 No
Zhaoting
Dongxu Group, Li
200,000,000.00 December 30,2015 December 30,2016 No
Zhaoting
Dongxu Group, Li
85,000,000.00 April 15,2016 April 14,2017 No
Zhaoting
Dongxu Group, Li
20,000,000.00 May 12,2015 April 7,2016 Yes
Zhaoting, Li Qing
Dongxu Group, Li
30,000,000.00 April 23,2015 April 7,2016 Yes
Zhaoting, Li Qing
Dongxu Group, Li
50,000,000.00 May 4,2015 April 7,2016 Yes
Zhaoting, Li Qing
176
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Dongxu Group, Li
60,000,000.00 June 24,2015 April 7,2016 Yes
Zhaoting, Li Qing
Dongxu Group, Li
80,000,000.00 March 25,2015 March 25,2016 Yes
Zhaoting, Li Qing
Dongxu Group, Li
100,000,000.00 April 14,2016 April 13,2017 No
Zhaoting, Li Qing
Dongxu Group 80,000,000.00 January 23,2015 January 23,2016 Yes
Dongxu Group 100,000,000.00 April 23,2015 March 22,2016 Yes
Dongxu Group 200,000,000.00 September 23,2015 September 23,2016 No
Dongxu Group 100,000,000.00 January 22,2015 January 22,2016 Yes
Dongxu Group 200,000,000.00 June 3,2016 June 3,2017 No
Dongxu Group 100,000,000.00 March 25,2016 March 25,2017 No
Dongxu Group 30,000,000.00 March 31,2016 March 30,2017 No
Dongxu Group 60,000,000.00 June 30,2016 June 29,2017 No
Dongxu Group 200,000,000.00 January 15,2016 January 15,2017 No
Dongxu Group 200,000,000.00 July 22, 2015 July 22,2016 No
Li Zhaoting 400,000,000.00 April 15,2016 April 14,2017 No
Dongxu Group, Li
Zhaoting, Li Qing, and
Li Zhaoting holds 10%
of the shares of Dongxu
Technology Group, 150,000,000.00 May 19,2016 May 18,2018 No
Dongxu Group holds
90% of the shares of
Dongxu Technology
Group,
Dongxu Group, Li
Zhaoting, Li Qing, and
Li Zhaoting holds 10%
of the shares of Dongxu
Technology Group, 150,000,000.00 May 26,2016 May 25,2018 No
Dongxu Group holds
90% of the shares of
Dongxu Technology
Group,
Dongxu Group, Li
Zhaoting, Li Qing, and
159,000,049.50 June 8,2016 April 7,2018 No
Li Zhaoting holds 10%
of the shares of Dongxu
177
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Technology Group,
Dongxu Group holds
90% of the shares of
Dongxu Technology
Group,
Dongxu Group, Li
Zhaoting, Li Qing, and
Li Zhaoting holds 10%
of the shares of Dongxu
Technology Group, 40,999,950.50 June 21,2016 April 20,2018 No
Dongxu Group holds
90% of the shares of
Dongxu Technology
Group,
Dongxu Group, Li
387,700,000.00 April 29,2016 April 29,2018 No
Zhaoting, Li Qing.
Dongxu Group, Li
300,000,000.00 June 7,2016 June 7,2018 No
Zhaoting, Li Qing.
Dongxu Group, Li
300,000,000.00 June 7,2016 June 7,2019 No
Zhaoting, Li Qing.
Dongxu Group 100,000,000.00 May 17,2016 May 17,2018 No
Dongxu Group 100,000,000.00 May 20,2016 May 20,2018 No
Dongxu Group 81,500,000.00 May 26,2016 May 26,2018 No
Dongxu Group 18,500,000.00 June 13,2016 June 13,2018 No
Li Zhaoting 40,000,000.00 December 22,2015 December 22,2016 No
Li Zhaoting 60,000,000.00 May 17,2016 May 17,2017 No
Dongxu Group 200,000,000.00 September 29,2015 September 29,2016 No
Dongxu Group 450,000,000.00 January 28,2013 January 27,2021 No
Dongxu Group, Li
76,710,608.33 October 20,2015 October 15,2018 No
Zhaoting
Dongxu Group 45,000,000.00 November 30,2015 November 30,2016 No
Dongxu Group 50,000,000.00 April 23,2015 March 22,2016 Yes
Dongxu Group 45,000,000.00 February 29,2016 February 28,2017 No
Dongxu Group 45,000,000.00 January 29,2016 January 29,2017 No
Dongxu Group 15,000,000.00 April 5,2016 April 5,2017 No
Dongxu Group , Li
20,000,000.00 December 22,2015 June 22,2016 Yes
Zhaoting
Dongxu Optoelectronic 80,000,000.00 July 24,2015 July 24,2016 No
178
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Investment Co., Ltd.,
Shijiazhuang Baoshi
Group, Li Zhaoting
Dongxu Group, Li
Zhaoting, Li Qing,
Shijiazhuang Baoshi 200,000,000.00 January 4,2015 January 4,2016 Yes
Group holds shares of the
company
Dongxu Group , Li
200,000,000.00 January 4,2015 January 4,2016 Yes
Zhaoting, Li Qing
Dongxu Group , Li
100,000,000.00 April 12,2013 May 20,2016 Yes
Zhaoting, Li Qing
Dongxu Group , Li
100,000,000.00 April 12,2013 October 20,2016 No
Zhaoting, Li Qing
Dongxu Group , Li
90,000,000.00 April 12,2013 April 11,2022 No
Zhaoting, Li Qing
Dongxu Group , Li
150,000,000.00 May 2,2013 April 11,2022 No
Zhaoting, Li Qing
Dongxu Group , Li
100,000,000.00 September 26,2013 April 11, 2022 No
Zhaoting, Li Qing
Dongxu Group , Li
300,000,000.00 April 1, 2014 April 11,2022 No
Zhaoting, Li Qing
Dongxu Group , Li
150,000,000.00 April 10,2015 April 12,2022 No
Zhaoting, Li Qing
Li Zhaoting 200,000,000.00 May 19,2015 May 19,2016 Yes
Li Zhaoting 100,000,000.00 February 13,2015 February 13,2016 Yes
Dongxu Group, Li
212,000,000.00 April 25,2016 April 24,2017 No
Zhaoting
Dongxu Group, Li
288,865,691.80 May 31,2016 May 30,2021 No
Zhaoting
Dongxu Group 333,964,121.74 May 25,2016 May 24,2019 No
Dongxu Group, Li
248,000,000.00 May 27,2016 May 26,2019 No
Zhaoting, Li Qing
Dongxu Group, Li
108,899,568.29 June 16,2016 June 19,2919 No
Zhaoting
Li Zhaoting 300,000,000.00 February 13,2015 February 13,2016 Yes
Li Zhaoting 300,000,000.00 February 14,2016 October 10,2016 No
Notes
179
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
(4) Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
2,479,100.00 2,038,300.00
personnel
6.Payables and receivables of the related party
（1）Receivable
In RMB
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Shijiazhuang
Account receivable Dongxu Mechanical 1,242,750.00 3,756,250.00
Equipment Co., Ltd.
Chengdu Zhong
Account receivable Optoelectronic 6,502,630.67 13,872,414.13
Technology Co., Ltd
Dongxu （Yingkou）
Account receivable Optoelectronic 500,000.00
Display Co., Ltd.
Hebei Baoshi
Energy saving
Account receivable 10,000.00 10,000.00
lighting technology
Co., Ltd.
Sichuan Xuhong
Account receivable Optoelectronic 250,000.00 914,000.00
Technology Co., Ltd.
Sichuan Xuhong
Bill receivable Optoelectronic 21,500,000.00
Technology Co., Ltd.
Hebei Baoshi
Energy saving
Prepayments 60,000.00 60,000.00
lighting technology
Co., Ltd.
Hebei Decoration
Prepayments Printing Machinery 825,680.87 775,680.87
Co., Ltd.
180
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Shijiazhuang
Prepayments XumingTube Co., 335,052.00 335,052.00
Ltd.
Shijiazhuang
Prepayments Dongxu Mechanical 8,521,569.97
Equipment Co., Ltd.
Prepayments Baoshi Group 1,536,946.00
Shijiazhuang
Other Account
Baodong Electrinic 299,905.00 299,905.00
receivable
Co., Ltd.
Hebei Baoshi
Other Account Energy saving
50,000.00
receivable lighting technology
Co., Ltd.
Other non-current
Dongxu Group 155,505,869.52 155,505,869.52
assets
（2）Payables
In RMB
Name Related party Book balance at year end Book balanc at year beginning
Chengdu Dongxu Energy
Account payable 1,787.18
Technology Co., Ltd.
Shijiazhuang Baoshi Electronic
Other payable 4,301,471.46 5,755,158.95
vacuum Glass Co., Ltd.
Shijiazhuang Baoshi
Account payable Large-diameter plastic tube Co., 533,942.80 533,942.80
ltd
Shijiazhuang Baoshi
Account payable Zhonghe Steel Plastic Shape 441,578.40 152,978.40
Co., Ltd.
Shijiazhuang Xuling Electronic
Account payable 1,335,136.31 1,335,136.31
Technology Co., Ltd.
Shijiazhuang Dongxu
Account payable Mechanical Equipment Co., 2,190,882.64
Ltd.
Advance revenue Dongxu Group 72,625,716.06 73,125,716.06
Jinzhou Xulong Solar energy
Other payable 1,500,000.00 1,500,000.00
Technology Co., Ltd.
Other payable Baoshi Group 5,301,153.26 165,815,170.48
181
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Shijiazhuang XumingTube Co.,
Other payable 97,031.00
Ltd.
Other payable Dongxu Group 10,408,303.77 88,910,757.77
Dongxu Optoelectronic
Other payable 146,229,180.00
Investment Co., Ltd.
Shijiazhuang Baoshi Electronic
Other payable 264,000.00 264,000.00
vacuum Glass Co., Ltd.
Sichuan Xuhong Optoelectronic
Other payable 100,000.00 100,000.00
Technology Co., Ltd.
XII. Stock payment
1. The Stock payment overall situation
√ Applicable □Not applicable
In RMB
The current total equity instruments granted to the company 0.00
Amount of the equity instruments company right of this line 0.00
Company current total failure of the equity instruments 0.00
Other notes
2. The Stock payment settled by equity
√ Applicable □Not applicable
In RMB
The determined methods of the fair value of the equity instruments The 20 trading days prior to the announcement of the stock
granted to date incentive plan average stock trading company
《Unlock the first phase of the company restricted stock
Determine the number of vested equity instruments
incentive plan period can unlock the object list》
This estimate and it is estimated that there are significant
N/A
differences of the previous period
Equity-settled share-based payment included in the total amount of
9,029,400.00
capital reserves
This period of equity-settled share-based payment confirmation
1,992,000.00
total costs
182
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
XIII. Enents after balance sheet date
1.Notes of ohter significant events
On July 28, 2016, the China Securities Regulatory Commission approved the company’s non-public share
issuance of issuing no more than 1,104,928,457 new shares.
XIV. Notes s of main items in financial reports of parent company
1Account receivable
(1).Classification accojunt receivables
In RMB
Amount in year-end Amount in year-beginning
Book Balance Bad debt provision Book Proportion(%) Bad debt provision
Classification
value
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
n(%) n(%) n(%) %)
Account receivables
provided bad debt 67,821,7 567,495. 67,254,29 26,294, 365,561.5 25,928,808.
100.00% 0.84% 100.00% 1.39%
provision in credit 90.18 23 4.95 370.18 5 63
risk groups
67,821,7 567,495. 67,254,29 26,294, 365,561.5 25,928,808.
Ttotal 100.00% 0.84% 100.00% 1.39%
90.18 23 4.95 370.18 5 63
Accounts receivable of individual significance and subject to individual impairment assessment.
□ Applicable√ Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ Not applicable
In RMB
Year-end balance
Aging
Account receivable Bad debt provision Proportion
Subitem within 1 year
Credit period 54,000,000.00
Credit external within 1 year
Within 1 year 54,000,000.00
2-3 years 1,009,668.39 302,900.52 30.00%
Over 5 years 264,594.71 264,594.71 100.00%
Total 55,274,263.10 567,495.23 1.03%
183
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Notes：
Receivable account in Group on which bad debt provisions were provided on percentage basis：
□ Applicable √ Not applicable
Receivable account in Group on which bad debt provisions were provided on other basis：
In RMB
Name Closing balance Bad debt provision
Related party Group 12,547,527.08
Continue：
Name Opening balance Bad debt provision
Related party Group 25,020,107.08
Notes ：There is no verification of accounts receivable during this reporting period.
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The current amount of provision for bad debts is RMB201,933.68; recovery or payback for bad debts Amount is
RMB0.00.
Significant amount of reversed or recovered bad debt profision：
In RMB
Name Amount Method
(3) Top five of account receivable of closing balance collected by arrears party
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is
RMB 57,252,418.39 , which accounts for 84.42% of the total other receivables. The total amount of balances in
the end of the period for corresponding accrued bad-debt provision is RMB 302,900.52.
2.Other receivable
（1）Category of Other receivable
In RMB
Amount in year-end Amount in year-beginng
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Other account
1,259,1
receivables provided 1,724,16 1,825,72 1,722,336 1,797,045 1,257,350,0
100.00% 0.11% 47,144. 100.00% 0.14%
bad debt provision in 1,805.93 6.84 ,079.09 .49 98.69
18
credit risk groups
1,259,1
1,724,16 1,825,72 1,722,336 1,797,045 1,257,350,0
Ttotal 100.00% 0.11% 47,144. 100.00% 0.14%
1,805.93 6.84 ,079.09 .49 98.69
18
184
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
√ Applicable □Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Credit period 4,705.44
Credit external within 1 year 96,922.88 4,846.14 5.00%
1-2 years 485,541.91 48,554.19 10.00%
2-3 years 718,105.55 215,431.67 30.00%
Over 5 years 1,556,894.84 1,556,894.84 100.00%
Total 2,862,170.62 1,825,726.84 63.79%
Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√Applicable □Not applicable
Name Closing balance Bad debt provision
Related party transaction 1,712,163,930.24
Deposit 9,133,205.07
Personal loans 2,500.00
Total 1,721,299,635.31
Continue：
Name Opening balance Bad debt provision
Related party transaction 1,246,010,916.22
Personal insurance and provident fund 455,012.80
Personal loans 156,609.86
Deposit 9,620,000.00
Total 1,256,242,538.88
（2）Bad debt provision withdrawal, reversed or recovered in the report period.
The amount of bad debt provision was RMB28,681.35, The amount of reversed or recovered bad debt provision in
the report period RMB0.00.
Significant amount of reversed or recovered bad debt provision：
185
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
In RMB
Name Amount Method
（3）Particulars of the actual verification of other accounts receivable during the reporting period.
In RMB
Items Amount
Of which : Significant actual verification of other account receivable：
In RMB
Whether occurred
Name Nature Amount Reason Procedure because of related
party transactions
（4）Other account receivable classified by account nature
In RMB
Nature Closing book value Opening book value
Deposit 9,133,205.07 9,620,000.00
Personal loans 2,500.00 156,609.86
Related party transaction 1,712,163,930.24 1,246,010,916.22
Current fund 2,124,152.16
Personal insurance and provident fund 455,012.80
Other 2,862,170.62 780,453.14
Total 1,724,161,805.93 1,259,147,144.18
(5) The top five other account receivable classified by debtor at period end
In RMB
Closing balance of
Name Nature Closing balance Aging Proportion %
bad debt prof=vision
Zhengzhou Xufei
Optoelectronic Current account 878,336,950.00 Credit period 50.94%
Technology Co., Ltd.
Sichuan Ruiyi
Construction Current account 436,148,606.69 Credit period 25.30%
Engineering Co., Ltd.
Beijing Xufeng Current account,
258,997,925.45 Credit period 15.02%
Property Co., Ltd. loan
Shijiazhuang Xuxin Current account 100,000,000.00 Credit period 5.80%
186
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Optoelectronic
Technology Co., Ltd.
Shijiazhuang Dongxu
Optoelectronic
Current account 19,630,448.10 Credit period 1.14%
Equipment
Technology Co., Ltd.
Total -- 1,693,113,930.24 -- 98.20%
(6) Accounts receivable involved with government subsidies
In RMB
Estimated received time,
Name of units Project of government Closing balance Closing age
amount and basis
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivableOther notes：
3.Long-term equity investment
In RMB
Year-end balance Year-beginning balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Investment to the 11,246,757,277.3 10,868,584,627.5 10,143,802,777.3
378,172,649.84 378,172,649.84 9,765,630,127.51
subsidiary 5 1 5
Investment to
joint ventures and
72,508,010.72 72,508,010.72 72,426,252.41 72,426,252.41
associated
enterprises
11,319,265,288.0 10,941,092,638.2 10,216,229,029.7
Total 378,172,649.84 378,172,649.84 9,838,056,379.92
7 3 6
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
187
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Shijiazhuang
Baoshi Color Bulb 439,341,956.80 439,341,956.80
Co., Ltd.
Hebei Xubao
Construction
Engineering 100,000,000.00 100,000,000.00
Installation Co.,
Ltd.
Wuhu Dongxu
Optoelectronic
Equipment 93,100,000.00 93,100,000.00
Technology Co.,
Ltd.
Wuhu Dongxu
Optoelectronic
4,711,064,000.00 4,711,064,000.00
Technology Co.,
Ltd.
Sichuan Ruiyi
Construction
100,453,728.53 900,000,000.00 1,000,453,728.53
Engineering Co.,
Ltd.
Wuhan Dongxu
Optoelectronic
3,125,000.00 3,125,000.00
Technology Co.,
Ltd.
Beijing Xufeng
Real Estate Co., 470,000,000.00 470,000,000.00
Ltd.
Dongxu
（Kunshan）
280,500,000.00 119,500,000.00 400,000,000.00
Display Material
Co., Ltd.
Jiangsu Jixing
New Material Co., 167,345,300.00 167,345,300.00
Ltd.
Beijing Xutan
New Material
10,500,000.00 10,500,000.00
Technology Co.,
Ltd.
Beijing Dongxu
3,500,000.00 3,500,000.00
Huaqing
188
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Investment Co.,
Ltd.
Shijiazhuang
Xuxin
Optoelectronic 1,966,568,609.92 1,966,568,609.92
Technology Co.,
Ltd.
Zhengzhou Xufei
Optoelectronic
1,798,304,182.10 1,798,304,182.10
Technology Co.,
Ltd.
Fuzhou Dongxu
Optoelectronic
10,000,000.00 10,000,000.00
Technology Co.,
Ltd.
Shanghai Tanyuan
Huigu New
Material 73,454,500.00 73,454,500.00
Technology Co.,
Ltd
Less：
Long-terminvestm
378,172,649.84
ent depreciation
reserves
10,143,802,777.3 11,246,757,277.3
Total 1,102,954,500.00 378,172,649.84
5 5
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Adjustme
Withdraw balance
nt of Declarati
Opening Add Other n Closing of
Name other on of cash
balance investmen equity impairme Other balance impairme
comprehe dividends
t changes nt nt
nsive or profit
provision provision
income
I. Joint ventures
II. Associated enterprises
Zhongda 72,426,2 72,508,01
81,758.31
Chengxi 52.41 0.72
189
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
n
Internati
onal
Commer
cial
Factorin
g Co.,
Ltd.
72,426,2 72,508,01
Subtotal 81,758.31
52.41 0.72
72,426,2 72,508,01
Total 81,758.31
52.41 0.72
（3）Other notes
4.Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Income Cost Income Cost
Main business 369,700,169.65 236,073,823.43 2,792,700.86 3,321,758.79
Other business 14,147,651.79 67,061.63 4,502,136.76 146,629.82
Total 383,847,821.44 236,140,885.06 7,294,837.62 3,468,388.61
Other notes：
5. Investment income
In RMB
Items Amount of current period Amount of previous period
Income from long-term equity investment
81,758.31 -28,077.74
measured by adopting the Equity method
Total 81,758.31 -28,077.74
6.Other
XV. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
190
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Items Amount Notes
Gains/Losses on the disposal of non-current
-4,430.74 Fixed asset disposal gains and losses
assets
Government grants recognized in the current
period, except forthose acquired in the
ordinary course of business or granted at 103,218,866.64 Government grants
certain quotas or amounts according to the
country’s unified standards
Gain/loss on loans obtained by entrusting
1,500,000.00 Entrusted income
others
Other non-operating income and expenditure
282,354.44
beside for the above items
Less: Influenced amount of income tax 14,800,733.73
Amount of influence of minority interests 4,126,999.02
Total 86,069,057.59 --
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
2 Return on net assets and earnings per share
Earnings per share
Profit of the report period Return on net assets . Weighted（%）
Basic earnings per share Diluted gains per share
Net profit attributable to the
Common stock shareholders of 3.79% 0.14 0.14
Company.
Net profit attributable to the
Common stock shareholders of
3.20% 0.12 0.12
Company after deducting of
non-recurring gain/loss.
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √ Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
191
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
Chinese accounting standards
□ Applicable √ Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
4. Other
192
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2016
XI. Documents available for inspection
1.The original semi-annual report bearing the signature of the Chairman of the Board of Directors of the
Company;
2.The text of the financial report bearing the seal and signature of the person in charge of the Company, financial
controller and the person in charge of accounting organ
3. Originals of all documents and manuscripts of public Notices of the Company Disclosed in public in the
newspapers as designated by China Securities Regulatory Commission.
【Notes】This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese
version shall prevail.
Dongxu Optoelectronic Technology Co., Ltd.
Chairman: Li Zhaoting
Issue day approved by the Board of Directors：August 29,2016
193
