The Third Quarterly Report 2016 Stock code :000413,200413 Abbreviation:Dongxu Optoelectronic, Dongxu B Announcement:2016-113 Dongxu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2016 1 The Third Quarterly Report 2016 I. Important Notice The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. All of the directors presented the board meeting at which this Quarterly Report was examined. Mr. Li Zhaoting, The Company leader, Mr. Zhou Bo, Chief financial officer and the Mr.Gao Feipeng, the person in charge of the accounting department (the person in charge of the accounting )declare: the financial report carried in this report is authentic and completed 2 The Third Quarterly Report 2016 II. Main financial data and changes of shareholders I.Main financial data and financial index Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not. □ Yes √ No As at the end of the reporting Changed (%)over end of As at the end of last year period prev. year Gross assets(RMB) 39,342,234,739.38 28,798,623,253.33 36.61% Net assets attributable to the shareholders of the listed company 21,766,571,634.57 14,319,481,941.28 52.01% (RMB) Increase/decrease over Between beginning of Changed (%)over Reporting period the same period of last the year to the end of end of prev. year year(%) the report period Operating income(RMB) 1,379,624,393.30 38.15% 4,261,683,547.71 68.92% Net profit attributable to the shareholders of the listed company 255,873,197.91 -24.70% 801,836,908.63 8.37% (RMB) Net profit after deducting of non-recurring gain/loss attributable 158,346,261.62 49.41% 618,240,914.75 95.18% to the shareholders of listed company(RMB) Cash flow generated by business -- -- 1,629,350,095.12 22.47% operation, net(RMB) Basic earning per 0.06 -53.85% 0.20 -28.57% share(RMB/Share) Diluted gains per 0.06 -53.85% 0.20 -28.57% share(RMB/Share)(RMB/Share) Weighted average income/asset 1.51% -2.03% 5.23% -2.54% ratio(%) In RMB Amount from beginning of Items the year to the end of the Notes report period Non-current asset disposal gain/loss(including the write-off part -4,535.74 for which assets impairment provision is made) 3 The Third Quarterly Report 2016 Government subsidies recognized in current gain and loss(excluding those closely related to the Company’s business 195,277,780.91 and granted under the state’s policies) Gain/loss on loans obtained by entrusting others 2,165,094.33 Other non-operating income and expenditure beside for the above 711,781.87 items Less: Influenced amount of income tax 4,418,812.65 Amount of influence of minority interests(After tax) 10,135,314.84 Total 183,595,993.88 -- For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □ Applicable√ Not applicable None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 4 The Third Quarterly Report 2016 II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders In shares Total preference shareholders with Total number of common 314,070(including 296,583 shareholders holding A the voting power recovered at the 0 shareholders at the period-end shares and 17,487 shareholders holding B shares) end of the reporting period(if any) Shares held by the top 10 shareholders Amount of Pledging or freezing Share Properties of tradable shares Shareholder name proportion Quantity Status of the shareholder with Conditional Quantity % shares held Domestic Non Dongxu Group -State-owned legal 11.37% 561,483,467 Pledge 522,238,042 person Domestic Non Shijiazhuang Baoshi Electronic Group -State-owned legal 6.73% 332,382,171 Pledge 148,856,500 Co., Ltd. person China Fund Management Co., Ltd.- Huaxia Bank-TTCO Trust Co., Ltd. Other 4.51% 222,575,516 -TTCO Trust Co., Ltd.-Shunjing No.5 Single capital trust Minsheng Royal Fund Management Co., Ltd.-Ping An Bank-Ping An Other 3.71% 183,284,457 Trust-Ping An Wealth* Huitai No.163 Single Fund Trust Bosera Capital-Ping An Bank- Ping An Trust-Ping An Wealth* Huitai Other 3.38% 167,155,426 No.164 Single Fund Trust Guangzhou Securities-China Guangfa Bank-Guangzhou Securities No.2 Other 2.67% 131,964,809 Collective Asset Management Plan of Kunpeng Dingcheng Sws Mu Fund Management Co.,Ltd. -China Merchants Bank-Huarun Shen State investment trust-Ruihua Other 2.25% 111,287,758 increase funds No. 2 Collective capital trust plan Penghua Fund-Ningbo Bank-Daye Trust-Daye TrustDongxu Other 2.25% 111,287,758 Optoelectronic increase funds II 5 The Third Quarterly Report 2016 Single fund trust STAS Asset Management-Ningbo Bank-Minsheng Trust-China Minsheng TrustZhixin No.208 Other 2.25% 111,287,758 Dongxu Optoelectronic increase collective fund trust plan Domestic Non Shenzhen Taianer Information -State-owned legal 2.24% 110,492,845 Technology Co., Ltd. person Domestic Non Qianhai Equity Investment Fund (LP) -State-owned legal 2.24% 110,492,845 person Nuoan Fund-Industrial Securities-Nanjing Shuangan Assets Other 2.24% 110,492,845 Management Co., Ltd. Shares held by the Top 10 Shareholders of Non-restricted shares Number of the non-restricted Share type Shareholders’ Names shares held Share type Quantity 332,382,1 Shijiazhuang Baoshi Electronic Group Co., Ltd. 332,382,171 RMB Common shares 71 121,600,7 Dongxu Group 121,600,770 RMB Common shares 70 54,333,77 China Securities Finance Co., Ltd. 54,333,771 RMB Common shares 1 Bank of China-Huaxia New Economic Mixed Securities 36,608,09 36,608,098 RMB Common shares Investment Funds 8 24,205,50 Central Huijin Investment Ltd. 24,205,500 RMB Common shares 0 16,188,70 Xie Xiantuan 16,188,700 RMB Common shares 0 Wang Yong 7,430,000 RMB Common shares 7,430,000 Yinhua Funds-Agricultural Bank of China-Yinhua CSI 6,632,927 RMB Common shares 6,632,927 Financial Asset management Plan Foreign shares placed in China Merchants Securities(HK) Co., Ltd. 6,199,611 6,199,611 domestic exchange China Mensheng Bank-Yinhua Shenzhen 100 index 4,995,557 RMB Common shares 4,995,557 securities investment fund Explanation on shareholders participating in the margin Among the top ten shareholders holding non-restricted negotiable trading business shares, Dongxu Group and Baoshi Group have relationship and 6 The Third Quarterly Report 2016 constitute persons taking concerted action. The Company does not know whether there is relationship between the other top 8 shareholders holding non-restricted negotiable shares and between such shareholders and the other top 8 shareholders. The natural persons in the top ten Non-restricted common Participation of top 10 unconditional common share stockholders Xie Xiantuan holds 15,688.700 shares through stock shareholders in securities margin trading (if any) account with credit transaction and guarantee of Huatai Securities Co., Ltd., taking 0.32% of the total shares in the company. Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period. □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period. 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period □ Applicable √Not applicable III Significant Events I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes √ Applicable □ Not applicable Amount at the beginning Items in Amount at the end of Rate of No of period Reason for change statements period/ This period change(%) /Same period of last year Mainly due to sales increase and 1 Monetary capital 22,239,580,714.19 12,409,510,170.26 79.21% will increase the funds in place Other account Mainly due to financial leases 2 55,197,871.28 65.58% receivable 91,394,960.37 lead to margin Construction in Mainly due to construction in 3 1,896,280,268.51 3,433,016,388.90 -44.76% process progress into fixed assets Mainly due to the project Other non-current 4 243,279,174.31 52.46% prepayment is reclassified to this assets 370,900,829.95 subject Advances Mainly due to in advance to pay 5 97,920,689.41 255.35% received 347,957,086.36 back the principal 6 Other account 539,796,113.78 -64.58% Mainly due to Zhengzhou Xufei, 7 The Third Quarterly Report 2016 payable 191,189,379.56 Shijiazhuang Xuxin new shareholders to pay the original equity Non-current Mainly due to financial leases and 7 liability due in 1 1,665,978,540.07 876,987,200.00 89.97% borrowings increased year Long-term Mainly due to increase in 8 57,000,000.00 1561.51% account payable 947,062,155.36 financial leasing Mainly due to leaseback 9 Deferred income 246,925,387.61 41.33% 348,982,112.26 leaseback Mainly due to the current high-end equipment and technical Operational 10 4,261,683,547.71 2,522,921,170.69 68.92% services, LCD glass substrate, income sapphire material sales revenue increased Mainly due to the increase in 11 Operational cost 2,883,454,282.36 1,526,856,989.57 88.85% sales revenue led to an increase in operating costs Mainly due to increase in the company's income and the corresponding expenditure of the 12 Sales expense 28,022,381.82 72.75% 48,408,463.62 shipping costs, wages and benefits, advertising and other increase Mainly due to provision for bad Asset impairment 13 -4,875,826.03 217.72% debts is increased in the current loss 5,739,824.95 period Non-operational Mainly due to reduction in 14 504,291,218.44 -61.09% income 196,230,891.80 government grants received Net cash flow Mainly due to increase funds in 15 generated by 8,960,824,235.97 2,105,064,497.79 325.68% place financing II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. √ Applicable □ Not applicable On July 28, 2016, the China Securities Regulatory Commission (CSRC) issued the Reply on Approval of Non-public Issuance of Shares by Dongxu Optoelectronic Technology Co.,Ltd by CSRC [2016] No. 1322 and approved the company’s non-public share-issuance of issuing no more than 1,104,928,457 new shares. On August 12, 2016, Zhongxing Caiguanghua Certified Public Accountants (Special General Partnership) issued the Capital Verification Report of ZXCGHSYZ (2016) No. 105007 to verify the non-public to issue 8 The Third Quarterly Report 2016 1,104,928,457 ordinary shares (A shares)(par value per share is RMB 1.00) with the issuing price of 6.29 yuan / share, and the company has totally raised RMB 6,949,999,994.53. On August 18, 2015, the company has completed the registration and trusteeship procedure of the shares issued in the non-public share-issuance in China Securities Depository and Clearing Co., Ltd Shenzhen Branch. August 26, 2016, the new shares have been listed on the Shenzhen Stock Exchange, the limited period of 12 months, is expected to be traded on August 26, 2017 (in case of non-trading days postponed) Description of the website for disclosing provisional Overview of material matters Date of disclosing announcements Non-public offering through China Securities Journal , Securities Times, Shanghai Securities May 19,2016 examination News ,Hong Kong Commercial Daily and www.cninfo.com.cn. The CSRC issued a formal hair China Securities Journal , Securities Times, Shanghai Securities July 28,2016 staling document News ,Hong Kong Commercial Daily and www.cninfo.com.cn. China Securities Journal , Securities Times, Shanghai Securities Listing Report August 25,2016 News ,Hong Kong Commercial Daily and www.cninfo.com.cn. III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period √ Applicable □ Not applicable Time of Period of Commitmen Commitment Fulfillm Type Contents making commitme t maker ent commitment nt If listed companies plans to sell tradable stocks through the bid trading system of Shenzhen Stock Exchange and Shijiazhuang Share sell greater than 5% of shares within six months after the Commitmen Baoshi Under reduction first sales, will disclose the contents specified by the March 29, Long-term t on share Electronics Fulfillm commitme Form Guide to Prompt Announcement of Removing 2007 effective reform Group Co., ent nt Restriction on Sales of Non-tradable Stocks of Listed Ltd Companies through the prompt announcement of disclosing sales of listed companies. Commitmen t in the acquisition report or the report on equity changes Commitmen t made upon the assets 9 The Third Quarterly Report 2016 replacement 1.From the date of commitment letter issued, except the managed hosting company for Dongxue Optoelectronic , this company and majority-owned subsidiaries do not in any way, directly or indirectly engaged in business and Dongxue Optoelectronic and its subsidiaries are the same, or similar, future Dongxue Optoelectronic shares and its subsidiaries are not engaged in the same or similar businesses. 2.The company assurances against the use of precious stones share any act prejudicial to the control relationship of Dongxu Optoelectronic interests and its wholly-owned Commitm subsidiaries, holding, or causing Dongxue Optoelectronic ents on shares and its wholly-owned subsidiaries, holding form horizontal business competition decisions. 3. The company will not Under competitio December Long-term Li Zhaoting directly invest, purchase and Dongxu Optoelectronic Fulfillm n, related 22, 2011 effective identical or similar business enterprises and projects. ent transaction 4.If the assets owned by the Dongxu Optoelectronic . and capital compete with , the company will adopt effective measures occupation and give up the same business.5. If the reason of the oneself is the cause of horizontal competition with Commitmen Baoshi Stock and resulted in losses to Baoshi Stock, ts made the oneself will bear the relevant full upon responsibilities.6. Under the circumstance with in issuance accordance with securities regulatory conditions, the oneself promised that all the stake that entrusted to the escrow company managed by Baoshi Stock will be injected into Baoshi Stock. As long as the oneself is the actual controller of Baoshi Stock, the commitment is valid. 1.From the date of commitment letter issued, except the managed hosting company for Dongxue Optoelectronic , Dongxu this company and majority-owned subsidiaries do not in Group, Commitm any way, directly or indirectly engaged in business and Dongxu ents on Dongxue Optoelectronic and its subsidiaries are the same, Optoelectronic horizontal or similar, future Dongxue Optoelectronic shares and its Investment Under competitio subsidiaries are not engaged in the same or similar Long-term Co., Ltd., April 1,2012 Fulfillm n, related businesses. effective Shijiazhuang ent transaction 2.The company assurances against the use of precious Baoshi and capital stones share any act prejudicial to the control relationship Electronics occupation of Dongxu Optoelectronic interests and its wholly-owned Group Co., subsidiaries, holding, or causing Dongxue Optoelectronic Ltd shares and its wholly-owned subsidiaries, holding form business competition decisions. 3. The company will not 10 The Third Quarterly Report 2016 directly invest, purchase and Dongxu Optoelectronic identical or similar business enterprises and 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 Optoelectronics. Within the period when the company is still the controlling shareholder of Dongxu Optoelectronics, the commitments are in effect. Share Dongxu Group Co., Ltd. subscribed for 25.01% of the Dongxu limited shares privately issued by the Company and promised April April Complet Group commitme that the period of sale restriction of such shares was 36 18,2013 18,2016 ed nt months from the first day of listing. In view of:The main business of Dongxu Optoelectronic is the production of TFT-LCD glass substrate, and the company now is applying for non-public offering of ,bonds (2) Dongxu Group is the controlling Other shareholder of Dongxu Optoelectronic; and during the Valid for 5 Under Dongxu February Commitm period of holding, Dongxu Group has signed patent years Fulfillm Group 8,2015 ent license contracts separately with Dongxu Optoelectronic ent and its subsidiaries including Wuhu Dongxu Optoelectronic Science and Technology Co., Ltd. (hereinafter referred to as Wuhu Optoelectronic), Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. 11 The Third Quarterly Report 2016 (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: Any patents related to panel display glass substrate not included in the aforesaid Contract on the Licensing of Patent Exploitation obtained by Dongxu Group in the future, Dongxu group shall sign a free contract of licensing the new pertinent patents with the company and the company’s subsidiaries (Wuhu Optoelectronic Technology Co.,Ltd, Wuhu Equipment Company and Shijiazhuang Equipment Company) with the same articles of the former patent licensing contract. After the company successfully completed the issuance of corporate bonds, whether Dongxu group control the company during the duration of the bonds, Dongxu group shall renew the patent licensing contract unreserved with the company and the company’s subsidiaries (Wuhu Optoelectronic Technology Co.,Ltd, Wuhu Equipment Company and Shijiazhuang Equipment Company) under the company’s requirement until the bonds expired. Dongxu investment/Baoshi group promised the net profit level of the next three years and profit compensation scheme in respective to Xuxin Optoelectronic Technology Co., Ltd as follows: The Net profits after deducting non-recurring gain or loss that are attributable to Xuxin Dongxu Optoelectronic Technology Co., Ltd in year 2015, year Performan Optoelectronic 2016, year 2017, year 2018 shall accordingly be not less ce Investment than RMB23.3488million, RMB55.4205million, RMB commitme Co., Ltd., 86.6277million, RMB 158.345 million. If any year’s Under nt and March December Shijiazhuang actual net profits are less than the estimated profits as Fulfillm compensat 2,2015 31,2018 Baoshi aforesaid within the compensation period, Baoshi group ent ion Electronics shall make up the difference in accordance with the arrangeme Group Co., aforesaid principles in cash to Dongxu Optoelectronic nts Ltd 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. Dongxu Other In view of: June 17, Long-term Under Group Commitm The main business of Dongxu Optoelectronic is the 2015 effective Fulfillm 12 The Third Quarterly Report 2016 ent production of TFT-LCD glass substrate, and the company ent 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 Optoelectronic), Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. (hereinafter referred to as Wuhu Equipment) and Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd. (hereinafter referred to as Shijiazhuang Equipment). For this purpose, Dongxu Group has made following promises: within the term of validity involving patent right stated in patent license contracts, whether Dongxu Optoelectronic is in the control of Dongxu Group or not, Dongxu Group promises that when the above mentioned patent license contracts expire, the group will unconditionally renew the contracts with Dongxu Optoelectronic and its subsidiaries (Wuhu Optoelectronic, Wuhu Equipment, Shijiazhuang Equipment and etc) according to the terms of original contracts based on the requirements of Dongxu Optoelectronic. To avoid the horizontal competition with the issuer, the company’s actual controller-Zhaoting, Li and the holding company-Dongxu group promised: 1. As of this declaration and from the date of commitment letter issued, except the managed hosting companies, the other companies directly or indirectly controlled by the Commitm controller or holding company have no horizontal ents on competitions with Dongxu Optoelectronic Technology horizontal Co., Ltd. 2. Any other companies controlled by the actual Li Zhaoting; December Under competitio controller or holding company shall avoid businesses Long-term Dongxu 16, Fulfillm n, related identical or similar to the company may lead to a effective Group 2015 ent transaction competitive relation and cannot do any harm activities to and capital Dongxu Optoelectronic Technology Co., Ltd and occupation 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., Ltd and its controlled companies shall not take by the companies controlled by the actual controller or the holding 13 The Third Quarterly Report 2016 company, and the business opportunities shall be given to Dongxu Optoelectronic Technology Co., Ltd and its controlled companies.3. As long as the actual controller and the holding company are the same, the actual controller and the holding company shall continue to strictly performance the relevant declarations and commitments of avoiding horizontal competition. Dongxu Group;Changj iang Securities (Shanghai )As The company, one of the subscription objects, promised set that after Dongxu Optoelectronic Technology Co., Ltd Management completed the non public issuance of shares to the Co., company and specific objects for raising funds, the shares Ltd.;Kunshan Share (New shares) issued by Dongxu Optoelectronic Under Development limited Technology Co., Ltd and subscribed by the company shall December16 December Fulfillm Zone State commitme not be transferred to any others in 36 months commenced ,2015 16,2018 ent Investment nt from the publicly listed date of the new shares. As a result Co., of the issuance of new shares by the Company to the Ltd.;Beijing Company, the shareholding of Dongxu Optoelectronic Yingfei Hailin Co., Ltd. by Dongxu Optoelectronic Co., Ltd. will also be Investment subject to the above commitments. Center (Limited partnership). Guangzhou Securities Co., Ltd., Huaan Future Asset Management It was promised that after Dongxu Optoelectronic (Shanghai) Share Technology Co., Ltd completed the non public issuance Under Co., limited of shares to the company and specific objects for raising December16 December Fulfillm Ltd.;Minsheng commitme funds, the new shares subscribed by the company shall ,2015 16,2016 ent Bank Fund nt not be transferred to any others in 12 months commenced Management from the publicly listed date of the new shares Co., Ltd.; Boshi Assets Management Co., Ltd. Dongxu To raise In view of: Dongxu Optoelectronic Technology Co., Ltd. Under Optoelectronic funds to is applying for public offering of corporate bonds, and the February 10, Valid for 5 Fulfillm Technology use the total scale of bonds will not exceed 1 billion yuan. After 2016 years ent Co., Ltd. commitme the deduction of issue expenses, all the funds raised are 14 The Third Quarterly Report 2016 nt planed to be used to supplement the liquidity and support the R&D, production and material purchase of glass substrate and the equipment. Thus, the demands of business operation and expansion in the company will be satisfied. The company promises: 1. The funds raised through the public offering of corporate bonds will not be directly or indirectly invested in real estate development business, or used to increase the capital fund or as loans in subsidiaries engaged in real estate business; 2. the funds raised through the public offering of corporate bonds will not be used for real estate development business in any form. The term of validity of the promises is consistent with the duration of the corporate bonds issued in the company this time. Qianhai Equity Investment Fund (LP);AEGON- Industrial Fund;Shenzhe n Taianer The subscription of this issue a total of nine, namely Information Qianhai Equity Investment Fund (LP);AEGON-Industrial Technology Fund,Shenzhen Taianer Information Technology Co., Co., Ltd.,Penghua Fund Management Co., Ltd.;China Fund Ltd.;Penghua Management Co., Ltd.,China Life AMP Asset Fund Management Co., Ltd.,Nuoan Fund Management Co., Share Management Ltd.,Zhongou STAS Asset Management(Shanghai)Co., Under limited August August Co., Ltd. And Sws Mu Fund Management Co., Ltd.The Fulfillm commitme 26,2016 25,2017 Ltd.;China aforesaid issuer has issued the following commitments on ent nt Fund the non-public issue of shares: The allocated shares shall Management not be transferred within 12 months from the date of Co., listing of the new shares and apply for new shares in the Ltd.;China new shares within 12 months Increase the shares to lock. Life AMP Asset Management Co., Ltd.;Nuoan Fund Management Co., Ltd.;Zhongou 15 The Third Quarterly Report 2016 STAS Asset Management( Shanghai)Co., Ltd.;Sws Mu Fund Management Co., Ltd. Equity incentive commitment Jixing New Material Investment (HK) Co., Ltd. and Lubao, Wang (The legal representative of the company Performan (HK)) jointly promised that the net profits after tax ce attributable to Jixing New Material Investment Co., Ltd Wang Lvbao, commitme in year 2015, year 2016, year 2017 shall accordingly be Jixing New Under nt and not less than RMB30 million, RMB60 million, RMB 100 January Long-term Material Fulfillm compensat million. If the net profits attributable to Jixing New 20,2015 effective Investment ent ion Material Investment Co., Ltd after audited in any year of (HK) Co., Ltd. arrangeme year 2015, year 2016 and year 2017 are less than the nts promised net profits, the difference shall be compensated by Jixing New Material Investment (HK) Co., Ltd. and Lubao, Wang in cash. Dongxu Other Not act in excess of authority to interfere the company’s Under February Long-term Group,Li Commitm management and operating activities, not encroach on the Fulfillm 6,2016 effective Other Zhaoting ent interests of the company. ent commitment (a) Promised that not freely or unfairly transfer interests s made to to other units or individuals, nor adopt other ways to minority jeopardize the company’s interests. (b) Promised that shareholders Li Zhaoting, restrict the post consumer behaviors of the directors and Zhou Bo,Niu senior management personnel. (c) Promised that not use Jianlin, Gong the company's assets to engage in the investment Xin, Lu &consuming activities which are irrelevant to perform the Guihua, Mu duties. (d) Promised that the salary system set up by the Other Under Tiehu, Zhang board of directors or the Remuneration Committee is February Long-term Commitm Fulfillm Shuangcai, relevant to the implementation status of the company’s 6,2016 effective ent ent Shi Zhiqiang , fill-up return measures. (e) Promised that the vesting Liu conditions of the company’s equity incentive are relevant Wentai,Xiao to the implementation status of the company’s fill-up Zhaoxiong return measures. (f) Promised the full implementation of and Zhou Bo the relevant fill-up return measures established by the company and any commitment related to the fill-up return measures, if such commitment is breached and resulted in losses to the company or the investors, the concerning 16 The Third Quarterly Report 2016 party shall take the responsibility for compensating the company or the investors according to the law. As one of the relevant responsibility bodies of the fill-up return measures, if the oneself breaches the above-said commitments or refuse to fulfill the above-said commitments, the oneself agrees the punishments or relevant supervise measures carried out in accordance with the regulations and rules issued or enacted by CSRC, Shenzhen Stock Exchange and other securities regulatory organizations. To ensure Dongxu Optoelectronic Technology Co., Ltd realizing expected benefits on the M&A of Shanghai Tanyuan Huigu New Materials Technology Co., Ltd, the promisee voluntarily promised the profits of Shanghai Performan Tanyuan Huigu New Materials Technology Co., Ltd for Guo Shouwu, ce the next three years as follows: (a) Business performance Ma Shengjie, commitme commitment: the net profits of Shanghai Tanyuan Huigu Under Wu Haixia , nt and March December New Materials Technology Co., Ltd in year-2016, Fulfillm Shen compensat 8,2016 31,2019 year-2017, year-2018 shall accordingly not be less than ent Wenzhuo and ion RMB 5 million, RMB 10 million, RMB 20 million. (b) Shen Li arrangeme Compensation mode: if the net profits of Shanghai nts Tanyuan Huigu New Materials Technology Co., Ltd in year-2016, year-2017, year-2018 accordingly do not reach the promised net profits, the promised party shall fully compensate the difference by cash. Executed timely or Yes not? Notes: The above-mentioned commitment party Mu Tiehu, Zhou Bo, Niu Jianlin, Shi Zhiqiang, Xiao Zhaoxiong have been elected as a director of the board of directors is no longer a senior executive positions. IV.Prediction of Business performance for 2016 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason. □ Applicable√ Not applicable V. Investment in securities □ Applicable √Not applicable No Securities investment in period 17 The Third Quarterly Report 2016 VI. Investment in derivatives □ Applicable √Not applicable There is no derivative investment during the report period. VII. Registration form of such Activities as Reception, Research, Communication, Interview in the Reporting Period √Applicable □Not applicable Reception time Way of reception Types of visitors Basic index Shenzhen Stock Exchange site February 18,2016 By Phone Organization interactive company zone Shenzhen Stock Exchange site March 10,2016 Field research Organization interactive company zone Shenzhen Stock Exchange site September 8,2016 Field research Organization interactive company zone January 1,2016 to September 30,2016 By Phone Individual None VIII. Outward Guarantee against the Regulations □ Applicable √ Not applicable The Company had no guarantee outside against the regulation in the reporting period. IX. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related Parties □ Applicable √ Not applicable The Company had no non-operational fund occupation from controlling shareholders and its related party. Dongxu Optoelectronic Technology Co., Ltd. Board Chairman: Li Zhaoting Issue day approved by the Board of Directors:October 31,2016 18