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东旭B:2017年半年度报告(英文版)2017-08-11  

						              Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




Dongxu Optoelectronic Technology Co., Ltd.



        The Semi-annual Report 2017




                August 2017




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                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




                           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.
     Mr.Li Zhaoting, The Company leader, Mr. Huang Jinliang,Chief financial officer and the Mr.Gao Feipeng,
the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the
authenticity and completeness of the financial report enclosed in this semi-annual report.
     All the directors attended the board meeting for reviewing the semi-annual Report.
All the directors attended the board meeting for reviewing the Annual Report.
The development strategy, operation plan and other forward-looking statements involved in this report will not
constitute any substantive commitment to the investors by the Company. Investors please be aware of the
investment risks.
The company has already described the risk items existed in details in the report with reference to (IV) possible
risks of X Operation Conditions Discussion and Analysis.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.




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                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017



                                         Table of Contents




2017 Semi-Annual Report

I.Important Notice and Definitions

II. Corporate Profile and Key Financial Indicators

III. Business Profile

IV. Performance Discussion and Analysis

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. Corporate Bonds

X. Financial Report

XI. Documents available for inspection




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                                                     Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




                                                      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

Tunghsu Group                                 Refers to Tunghsu 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

                                                          Guangzhou Securities Co., Ltd.
Guangzhou Securities , Sponsor institutions   Refers to


Dongxu(Yingkou)Optoelectronic               Refers to Dongxu(Yingkou)Optoelectronic Display Co., Ltd.

Xuhong Optoelectronic                         Refers to Sichuan Xuhong Optoelectronic Technology Co., Ltd.

                                                          Wuhu Dongxu Optoelectronic Technology Co., Ltd., was the
                                                          implementation unit of the non-public item to raise money for and
Wuhu Optoelectronic                           Refers to
                                                          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
                                                          implementation unit of the non-public item to raise money for and
Dongxu (Kunshan )                             Refers to
                                                          invest in “Project of Production Line for the 5th-generation CF for
                                                          TFT-LCD”.

                                                          Dongxu Construction Group Co., Ltd.( Original Sichuan Ruiyi
Dongxu Construction                           Refers to
                                                          Construction Engineering Co., Ltd.)

                                                          Fuzhou Xufu Optoelectronic Technology Co., Ltd., In 2016, was the
Fuzhou Xufu                                   Refers to non-public item to raise money for and invest in “Project of
                                                          Production Line for the 8.5th-generation CF for TFT-LCD”

                                                          Fuzhou Dongxu Optoelectronic Technology Co., Ltd., In 2016, was
Fuzhou Optoelectronic                         Refers to the non-public item to raise money for and invest in “Project of
                                                          Production Line for the 8.5th-generation CF for TFT-LCD”

Dongxu finance                                            Tunghsu Group Finance Co., Ltd.




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                                Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Shanghai Tanyuan Huigu   Refers to Shanghai Tanyuan Huigu New Material Technology Co., Ltd.

Mingshuo Technology      Refers to Mingshuo (Beijing) Electronic Technology Co., Ltd

                                     Shanghai          Sunlong            Bus      Co.,         Ltd.        ,
SUNLONG                  Refers to 2017 issue of shares and payment of cash to buy the assets of the enter
                                     prise

BOE                      Refers to BOE Technology Group Co., Ltd.

IVO                      Refers to Infovision Optoelectronics Co., Ltd.

CSOT                     Refers to China Star optoelectronics Technology Co., Ltd.

JONHON                   Refers to China Aviation Optical-Electrical Technology Co Ltd

Innolux                  Refers to Innolux Display Corporation

Tianma                   Refers to Tianma Microelectronics Co Ltd

TFT-LCD                  Refers to Thin Film Transistor Liquid Crystal Display

LTPS                     Refers to Low Temperature Poly-silicon

AMOLED                   Refers to Active-matrix organic light emitting diode

                                     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

                                     Critical original materials of LCD panel for realizing colorization
CF                       Refers to
                                     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)

                                     Refers to two-dimensional carbon materials related to grapheme, with
Grapheme materials       Refers to
                                     a layer less than 10 carbon atoms

                                     In addition to mobile phones, tablet PCs and other displays, for the
Cover glass              Refers to touch screen touch module, display and non-touch screen display to
                                     protect the transparent glass lens




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                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




                                 II. Corporate Profile and Key Financial Indicators



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                         wangqingfei@dong-xu.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 more details in annual report 2016.
(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 2017


please find the Annual Report 2016.
(3). Change of business registration
Whether the registration has changed during the report period
Applicable
√ Applicable □Not applicable

On May 12, 2017, The Company received a notice from the sponsor-Guangzhou Securities: Mr. Wang Hongwei,
the original sponsor representative, cannot continue to perform his duties due to changes in his work, thus
Guangzhou securities hereby appoints Ms. Shi Jianhua to take the place of Mr. Wang Hongwei to perform the
relevant duties of continuous supervision, with the continuous supervision period lasts to December 31, 2017. For
the detailed information, please refer to the Company's announcement disclosed on Cninfo.com.cn website:
No2017-.051, Announcement about Alteration of the Continuous Supervision Sponsor Representative of
Non-public Share Issuance.

4. Summary of Accounting Data and Financial Indicators

Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √No

                                                 Reporting period             Same period of last year      YoY+/-(%)

Operating income(RMB)                               4,641,285,527.91                 2,882,059,154.41               61.04%

Net profit attributable to the shareholders
                                                        635,855,750.37                   545,963,710.72               16.46%
of the listed company(RMB)

Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of           559,990,548.41                   459,894,653.13               21.76%
listed company(RMB)

Cash flow generated by business operation,
                                                     -1,414,361,686.97                 1,281,108,942.94             -210.40%
net(RMB)

Basic earning per share(RMB/Share)                                     0.13                          0.14             -7.14%

Diluted gains per
                                                                       0.13                          0.14             -7.14%
share(RMB/Share)(RMB/Share)

Weighted average income/asset ratio(%)                          2.84%                            3.79%              -0.95%

                                                As at the end of the
                                                                              As at the end of last year    YoY+/-(%)
                                                 reporting period

Gross assets(RMB)                                  47,746,487,539.58                46,826,319,570.41                   1.97%

Shareholders’ equity attributable to
                                                     22,506,905,931.67                22,216,300,365.86                   1.31%
shareholders of the listed company(RMB)




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                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


5. Differences between accounting data under domestic and overseas accounting standards

(1).Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.

√Applicable □Not applicable
Nil


(2). Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.

□ Applicable √Not applicable
Nil

6.Items and amount of non-current gains and losses

√Applicable □Not applicable
                                                                                                                       In RMB

                                Items                                        Amount                         Notes

Non-current asset disposal gain/loss(including the write-off part
                                                                                    -30,537.14
for which assets impairment provision is made)

Govemment subsidies recognized in current gain and
loss(excluding those closely related to the Company’s business                 65,632,104.25
and granted under the state’s policies)

Gain/loss on loans obtained by entrusting others                                 4,137,082.94
Operating income and expenses other than the aforesaid items                          18,148.98
Other non-business income and expenditures other than the above                  22,183,417.04

Less: Amount of influence of income tax                                          15,552,946.64

Amount of influence of minority interests(after tax)                               522,067.47
Total non current gains and losses attributable to
                                                                                 75,865,201.96                --
shareholders of the parent company

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 recorgnized as recurring gain /loss/items 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 2017




                                              III. Business Profile



1.Main Business the Company is Engaged in During the Report Period

Whether the company needs to comply with the disclosure requirements of the particular industry
No
     During the reporting period, the company's main business covered glass substrate, sapphire, color filters,
polarizers and other optoelectronic display materials, whole-set equipment and its technical services, building and
installation engineering construction, etc; meanwhile, the company has been making great efforts to promote the
industrialization of graphene technology represented by grapheme-based lithium batteries and graphene heat
dissipation film.
     (1). Optoelectronic display material business
     The company's products in the field of optoelectronic display materials cover LCD glass substrate, sapphire,
color filters, polarizers, etc., and the domestically-made materials for the mentioned products showed the core
competitiveness of China in the display industry. The company's liquid crystal glass substrate business steadily
ranked first in China and ranked fourth in the world. The company had successively implemented the layout of 20
production lines (including under-construction lines and planned lines) of glass substrate in places such as
Shijiazhuang, Zhengzhou, Wuhu and Fuzhou, including G5, G6 and G8.5 glass substrate production lines. At the
time when the company continued to consolidate its position in the glass substrate industry, in order to utilize
industrial cluster effect, the company had successively expanded the business of sapphire, color filter, polarizer,
etc. During the reporting period, the company's Fuzhou first G8.5 production line and Fuzhou Xuyou polarizer
production line were put into operation, thus further consolidated the company's position in the industry. The
company has a steady and good cooperation relationship with the downstream panel manufacturers, and the LCD
glass substrate, polarizer and other products have been mainly sold to BOE, Huaxing Optoelectronic, Dragon
Optoelectronics, AVIC Optoelectronics, Qunchuang Optoelectronic, Shen Tianma and other mainstream panel
manufacturers, thus gained good economic results.
     (2). High-end equipment and technical services business
     The whole-set equipment of the LCD glass substrate and touch screen glass production equipment belongs to
the head-end equipment of electronic equipment having the highest technology. The company, upon its own
independent research and development, made breakthroughs to the foreign blockade of the above-mentioned
equipment, realized the comprehensive independent research and development, design, production, manufacture
and installation and so on. After years of development, the company has accumulated rich experience in the
intelligent manufacturing field, and its relevant equipment has a strong spillover effect. In recent years, the
company, based on the previous research and development of glass substrate whole-set equipment, actively
expanded and applied more high-end equipment and technical services, continuously developed Group clients of
all kinds of intelligent application fields and ensured the growth ability of the company's high-end equipment and
technical services business. Currently, the company's high-end equipment and technical services mainly adopts the
customized production and service, with the settlement in accordance with the progress node of the production
line, mainly including the products of Stocker automation control system, automatic polishing line host synthesis
equipment, automatic grinding and cleaning equipment.
     (3). Construction and installation business
     The company's wholly-owned subsidiary-Dongxu Construction is the implementation main-body for the

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                                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


company's construction and installation business, which effectively reduced the company's construction costs in
the assistance of the company's production base construction, maintenance and so on aspects. In recent years, with
the continuous development of domestic industrialization and urbanization, the company's construction and
installation business has realized a stable growth. Currently, influenced by the national policy, the PPP mode that's
characterized in local government's introducing of social capital to participate in public utilities investment will
lead the main market of the domestic infrastructure construction. In order to fit the market development trend, the
company, during the reporting period, had increased RMB 2 billion-by self-owned funds-to the capital of Dongxu
Construction, so as to enhance its competiveness in the PPP business to the underground integrated pipe gallery,
municipal infrastructure, sponge city and smart city.

2.Major Changes in Main Assets

     (1).Major Changes in Main Assets


                Main assets                                                   Major changes


Equity assets                           The main reason for this period is to invest in dongxu financial company

                                        The main reason for this period is the increase of the fixed assets under construction of
Fixed assets
                                        the 8.5 generation glass base plate production line in fuzhou

Construction in process                 This period increases mainly the project construction of polarizing film


(2)Main Conditions of Overseas Assets

□ Applicable     √ Not applicable

3.Analysis On core Competitiveness

Whether the company needs to comply with the disclosure requirements of the particular industry
No
In the annual report of 2016, the Company has disclosed five core competencies, namely, "strong ability of
independent R & D and innovation ", "domestic substrate leading position and scale advantage", "control-oriented
industry chain integration advantage"," policy support and costs advantage" and " efficient management and
decision-making mechanism advantage".




                                      IV. Performance Discussion and Analysis



1.General

    The year of 2017 is the year of strategic transformation for Dongxu Optoelectronic. When the previous glass
substrate and display materials investment enter into the harvest period, the company committed to put great effort

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                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


into the industry synergy of big manufacturing industry, and based on the breakthroughs in the field of graphene
and grapheme-based lithium-ion batteries, the company launched the acquisition matter of Sunlong Bus, striving
to shape a closed-loop industrial chain of "high-end materials – grapheme-based lithium battery-new energy
vehicles". In the first half of 2017, every business of the company has been steadily moved forward and has a
good operation status, thus further consolidated the company's industrial position and gained certain extent of
good economic results.
During the reporting period, the Company achieves an operating income of RMB4641.2855 million , an increase
of 61.04% over the same period in 2016; the net profit attributable to the parent Company of RMB 635.8558
million, an increase of 16.46 % over the same period in 2016.

    The company's each business development status in the first half of 2017 and the industry planning of the
second half of 2017:
       (1).Conforming to the trend and speeding up the construction of high-generation glass substrate production
line
     In recent years, the large-size and high-generation panel and glass substrate have become the industry trend.
According to the research report by research company Witsvie, the average size of television panel worldwide
reached 44.7 inches in the first half of 2007, an increase of 1.7 inches from the previous year. The Fuzhou 8.5
generation TFT-LCD liquid crystal glass substrate project, as the company's project invested by the raised money
of RMB 6.95 billion by private placement, is an important project in the company's layout for coping with the
industrial changes. During the reporting period, the first line of the company's Fuzhou 8.5 generation glass
substrate production line has been put into operation and the second line has been under the steady construction.
The successful launch of the company's 8.5 generation product into the market had an important impact to
consolidate the company's industrial position and balance the rising of the new-generation AMOLED display
technology. In the future, the company will, according to the downstream market demand, constantly optimize the
LTPS technology and other new glass substrate production technology, thus to better fit the new development
trend of the market.
     (2). Advance shoulder to shoulder, many achievements of optoelectronic display materials
     The company has been engaged in the optoelectronic display industry for more than a decade, starting with
the glass substrate industry, closely following-up the world trend of display technology and the innovation trend,
thus grasped the historical opportunity of home-manufacturing materials replacing the core display materials,
continuously rolled out new products and horizontally expanded, and constructed the core competiveness based
on the opportunity of the high-tech optoelectronic display materials. On the basis of the company's constant
consolidation and enhancement of the main business of LCD glass substrate, combined with the main business,
the company continuously expanded the new business area, and currently the company has successfully been
engaged in the three high-end display materials namely sapphire, color filter and polarizer, thus realized
achievements in many aspects.
     During the reporting period, the company has made a new progress in the lateral extension of core display
material. The company's color film project has been speeding up the progress, and it's expected there will be new
product line completed in the second half of the year. Fuzhou Xuyou polarizer project has been put into operation
in a relatively fast speed, marking that the company officially entered the field of polarizer manufacturing. The
polarizer industry will be one of the core pillar industries of the company's optoelectronic display business after
the production of glass substrate, and that will shape an industrial synergy effect of the company's existing
optoelectronic business that has the industry of glass substrate, color filters and sapphire, thus further enhancing
the company's comprehensive strength.


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                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


    (3). Preliminary achievement, the optimized layout of graphene business accelerated
     During the reporting period, the monolayer grapheme and the grapheme-based lithium ion battery fabricated
by Shanghai Tanyuan Graphene has gained the market attention and recognition, and the subsequent single
product and the technological upgrading have been actively promoted. The company's Taizhou grapheme-based
lithium ion battery project, which has successfully completed the land bidding and auction, project filing, EIA
publicity and other procedures, is currently under the communication with the design and construction unit about
the design and construction plan under the company's full efforts, and it's carrying out the multi-round
demonstration and striving to realize the commencement of project construction as soon as possible.
    Meanwhile, the company together with Taizhou graphene industry fund, through the means of acquisition and
capital increase, obtained the 51% stake of Ming Shuo Technology Company, which has the reversible liquid
crystal phase-change graphene composite heat dissipation material as the core technology and it is specializing in
providing high-power LED lighting equipment and integrated lighting solutions, with its related graphene lighting
products have been actually applied in Beijing and other places and that has gained some extent of economic
benefits. In addition, the company's industrial application of heat-dissipation graphene film technology has
achieved stage achievement, and the company has signed a "strategic cooperation agreement" with Shanxi Energy
Investment and Shanxi Jian Bang Group in connection to the project cooperation of the Graphene electric heating
replacing loose coal combustion heating project of Shanxi Provincial rural area.
   (4). Regular development but with novelty thoughts and innovation, acquired SUNLONG Bus to enter the
new energy automotive industry
     With the company's smooth progress and putting-into operation of each project of optoelectronic display
materials, the company’s main business will tend to become mature and steady. In order to give full play to the
industrial synergies of big manufacturing industries and find new profit growth points, the company has decided
to enter the field of new energy passenger cars and logistics vehicles. During the reporting period, the Company
launched the restructuring project that planned to acquire 100% equity of Sunlong Bus through the way to buy
assets by issuing shares and paying cash. The company has been engaged in the high-end equipment
manufacturing industry for nearly 20 years, possessing a strong ability in technology, management, funds and
talents. Sulong Bus has the mature technology, rich-experience industrial management team and excellent product
design ability. Meanwhile, upon more than ten years accumulated experience in new energy passenger car, Sulong
Bus possessed the good market channels and the excellent overseas market development capabilities. The
company acquired Sulong Bus to formally enter the field of new energy passenger car, so as to enrich the
company’s existed industrial structure. By utilizing the advantage of each other, the company can snatch the good
industrial opportunity in the field of new energy passenger bus and logistics vehicles, thus to better provide more
opportunities for the company’s rapid growth in the next few years.
    Furthermore, during the reporting period, the Company invested RMB 100 million to subscribe the new
shares of Yi Huatong issued by directional added share-issuance. Yi Huatong is a high-tech company that
specialized in hydrogen fuel cell engine research and development and the industrialization. For one hand, the
company's subscription is based on the optimistic future development and the profitability of Yi Huatong, and for
the other hand, the company can utilize this to build strategic partnership with Yi Huatong, thus speeding up
bringing the advanced hydrogen fuel cell engine technology of Yi Huatong into the company's layout of new
energy automotive projects, further accelerating the market-launch speed of the company's hydrogen fuel cell
vehicle, so as to consolidate the company's industrial position in the new energy automotive market and to bring
the new profit growth point for the company.
    (5). Fulfilling the commitment, injecting the cover-glass business to enrich the company's profit growth point

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                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


     Cover glass belongs to the windows protective screen industry of panel display, and the industry is high
technological and has large market scale, large industrial radiation and the obvious stimulation effect. Xuhong
Optoelectronic mainly engaged in high aluminum cover glass production and sales, and the high aluminum cover
glass possesses the characteristics of high transmittance, high impact resistance, high scratch resistance, high
bending toughness, ultra thin and other technical characteristics. In order to solve the horizontal competition, in
2011, Tunghsu Group entrusted the company to carry out the management of Xuhong Optoelectronic and
promised to inject its equity into the company. Currently, Xuhong Optoelectronic has a large-scale ultra-thin touch
screen glass production line, with the annual production scale of 7 million pieces, and the company had won the
first prize award of science and technology progress of Sichuan province and the National Invention Exhibition
Gold Award. Xuhong Optoelectronic is one of the domestic companies that take the lead in the research and mass
production of high aluminum cover glass, and the Panda Glass, which was rolled out in 2014 by Xuhong,
successfully broke the situation of the foreign enterprises' long-term absolute monopoly in the domestic market.
Currently, its business covered the area and regions of East China, North China, Southwest China and Southern
China.
     With the approaching of mobile phone wireless charging and 5G and other new transmission mode, the wide
use of flexible OLED brings a vast market space for 3D curve glass. During the reporting period, the company has
officially launched the acquisition of Xuhong Optoelectronic equity and will use the raised match funds to
construct "Curve Surface display Cover-glass production project". After the completion of the acquisition, the
company will have the new income from cover glass, and the flat display glass business layout will be more
perfect, which will be conducive to consolidate the company's domestic leading position in the panel glass display.

2.Main business analysis

Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
                                                                                                                         In RMB

                                This report period     Same period last year    YOY change(%)                Cause change

                                                                                                      The expansion of major
Operating income                    4,641,285,527.91         2,882,059,154.41                61.04% departments caused sales
                                                                                                      increase

                                                                                                      The main line of business
Operating cost                      3,338,875,149.90         1,938,309,643.65                72.26% expansion leads to
                                                                                                      increased costs

Sale expenses                          29,084,235.15            31,577,716.56                -7.90%

Administrative expenses               193,715,154.96          236,706,264.85                -18.16%

                                                                                                      The main financing cost
Financial expenses                    317,954,221.40            94,439,392.61               236.68%
                                                                                                      increases

                                                                                                      The increase in the total
Income tax expenses                   179,430,671.23            90,283,601.51                98.74%
                                                                                                      profit

    R & D Investment                   60,448,452.51            45,720,772.21                32.21%

Cash flow generated by             -1,414,361,686.97         1,281,108,942.94              -210.40%



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                                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


business operation, net
Net cash flow generated
                                      -1,221,706,350.75          -607,815,301.45                   -101.00%
by investment
Net cash flow generated
                                       -484,304,608.85          3,091,864,784.09                   -115.66%
by financing
Net increasing of cash
                                      -3,111,660,192.21         3,774,917,627.41                   -182.43%
and cash equivalents

Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
Breakdown of main business
                                                                                                                                In RMB

                                                                               Increase/decrease Increase/decrease Increase/decrease
                                                                               of revenue in the   of business cost    of gross profit
                          Operation
                                           Operation cost      Gross profit     same period of     the same period      in the same
                          revenue
                                                                                 the previous      of the previous      period of the
                                                                                   year(%)            year(%)         previous year(%)

Industry

Equipment and
Technology          2,447,761,486.65 1,493,187,482.28                 39.00%            45.72%              52.21%              -2.60%
services

Optoelectronic
                    1,010,179,019.72        705,344,018.20            30.18%            33.41%              29.12%               2.32%
display materials

Graphene                    553,117.12          212,805.97            61.53%         8,882.50%             290.54%            846.44%

New-type
urbanization           518,052,658.25       496,996,645.73             4.06%            18.96%              21.72%              -2.17%
construction

Electronic
communication          656,139,547.42       642,040,363.66             2.15%
products

Products

Equipment and
Technology          2,447,761,486.65 1,493,187,482.28                 39.00%            45.72%              52.21%              -2.60%
services

Optoelectronic
                    1,010,179,019.72        705,344,018.20            30.18%            33.41%              29.12%               2.32%
display materials

Graphene                    553,117.12          212,805.97            61.53%         8,882.50%             290.54%            846.44%

New-type
urbanization           518,052,658.25       496,996,645.73             4.06%            18.96%              21.72%              -2.17%
construction

Electronic             656,139,547.42       642,040,363.66             2.15%


                                                                                                                                         14
                                                                Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


communication
products

Area

China mainland      4,254,203,301.68 2,975,051,195.40                      30.07%               59.93%              70.16%              -4.20%

Hongkong,
Macao and             378,386,334.24        362,687,161.44                    4.15%             78.15%              93.72%              -7.70%
Taiwan

Overseas                   96,193.24                42,959.00              55.34%




3.Non-core business analysis

□ Applicable √Not applicable

                                                        Proportion in total
                                 Amount                                                                             Sustainable(yes or not)
                                                            profit(%)           Related factors description

Non-operation
                                   66,069,887.52                      7.55%           Government grants       Yes
revenue




4.Analysis of assets and liabilities

(1).Significant changes in asset composition

                                                                                                                                       In RMB

                      End of Reporting period             End of same period of last year

                                            As a                                                Change in
                                        percentage of                       As a percentage percentage(% Reason for significant change
                       Amount                               Amount
                                            total                          of total assets(%)     )
                                         assets(%)

                    22,873,558,64                       26,056,117,216
Monetary fund                                47.91%                                    55.64%       -7.73%
                                 1.80                                .86

Accounts            2,341,912,029.                       1,652,714,640.
                                               4.90%                                    3.53%        1.37%
receivable                        32                                  77

                    3,670,952,734.                       2,688,967,436.
Inventories                                    7.69%                                    5.74%        1.95%
                                  10                                  27

Real estate
                    58,974,678.04              0.12%                                    0.00%        0.12%
Investment

Long-term equity 477,648,310.8
                                               1.00% 72,354,803.70                      0.15%        0.85%
investment                         7


                                                                                                                                              15
                                                                   Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                         9,068,489,094.                     8,952,341,070.
     Fixed assets                               18.99%                                    19.12%         -0.13%
                                       66                                  47

     Construction in     2,457,153,171.                     1,772,629,310.
                                                    5.15%                                    3.79%        1.36%
      process                          64                                  84

                         4,474,513,562.                     4,940,816,200.
     Short-term loans                               9.37%                                 10.55%         -1.18%
                                       31                                  13

                         5,830,941,823.                     6,596,159,000.
     Long-term loans                            12.21%                                    14.09%         -1.88%
                                       23                                  00


     (2).Asset and Liabilities Measured by Fair Value

     □ Applicable √ Not applicable

     (3). Restricted asset rights as of end of the reporting period


                           Items                                   Ending book value                               Limited reason

     Monetary fund                                    947,883,742.41                                   Certificates of deposit and pledge

     Investment property                              58,974,678.04                                    Get the loan with pawn

     Fixed assets                                     7,559,438,628.83                                 Get the loan with pawn

     Construction in process                          751,214,924.79                                   Get the loan with pawn

     Intangible assets                                248,103,470.07                                   Get the loan with pawn

                           Total                                         9,565,615,444.14




     5.Investment situation

     (1).External investment

     √ Applicable □Not applicable

                                                      Investments made in same period of last
      Investments made in the reporting period                                                                           +/- %
                                                                            year

                                  6,175,411,729.77                                 1,102,954,500.00                                         459.90%


     (2).Condition of Acquiring Significant Share Right Investment during the Report Period

     √Applicable □ Not applicable
Name of the Main         Invest    Invest   Share                         Invest             Progre         Gain or Whether Date of Disclos
                                                     Capital                       Product
Company         Busines ment       ment Proport                Partner     ment              ss   up Antici Less or to           Disclosu     ure
                                                     Source                        Type
Invested            s    Way      Amoun ion %                             Horizo             to       pated the       Involve    re(Note     Index


                                                                                                                                                     16
                                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                    t                                   n            Balanc Incom Current in             5)
                                                                                     e         e    Investm Lawsuit
                                                                                     Sheet          ent
                                                                                     Date

              Technol
              ogy
              develop
              ment,                                        Qian
              technol                                      Xinmin
              ogy                                          g, Jin
              transfer                                     Xiuzhe
              ; asset                                      n, Chen
              manage                                       Wei,
              ment,                                        Wang
              investm                                      Yingch
              ent                                          ao,
                                                                                                                              Announ
Mingzhuo(Be manage                                         Beijing
                                                                                                                              cement
ijing)        ment;                                        Heyiyo
                         Purcha 80,142,             Self              Long-t Graphe Compl            -375,92          May     number:
Electronic    sales of                     51.00%          u                                                     No
                         se       857.00            fund              erm    ne      eted                 7.67        11,2017 2017-04
Technology    buildin                                      Invest
                                                                                                                              6
Co., Ltd      g                                            ment
                                                                                                                              CNINF
              material                                     Partner
              s, metal                                     ship
              material                                     (LP
              s,                                           ),Jiang
              electron                                     Wei, Li
              ic                                           Hongle
              product                                      i and
              s,                                           Zhu
              househ                                       Lei.
              old
              applian
              ces, etc

              Sales of
Chuanglian
              electron
 (Huatai)              Purcha            100.00 Self                Long-t Supply Compl           5,185,96
              ic                    0.00                   No                                                    No
 Hongkong                se                    % fund                 erm    chain   eted                 2.98
              product
 Co., Ltd.
              s

Tianlong      Sales of
 huatai       electron
                         Purcha            100.00 Self                Long-t Supply Compl
 industrial   ic                    0.00                   No                                             0.00 No
                         se                    % fund                 erm    chain   eted
 (Hong        product
 Kong) co.    s



                                                                                                                                       17
                                                                               Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


 LTD



                 Electro                                                                  Electro
Dongxu(Xuh
                 nic                                                    Harald            nic
 ua)
                 commu acquisit 100,20                       Self       Rammi Long-t commu Compl                        -320,04
 International                                      55.00%                                                                         No
                 nication on                 8.63            fund       nger      erm     nication eted                     5.40
 Equipment
                 product                                                Doctor            product
 Co., Ltd.
                 s                                                                        s



                                       80,243,                                                                          4,489,98
Total                  --      --                     --        --         --        --          --       --        0                            --         --
                                           065.63                                                                           9.91


        (3).Situation of the Significant Non-equity Investment Undergoing in the Report Period

        □ Applicable √ Not applicable

        (4).Investment of Financial Asset

        (1)Securities investment
        □ Applicable √ Not applicable
        (2)Investment in Derivatives
        □ Applicable √ Not applicable
        The Company had no investment in derivatives in the reporting period.

        6. Sales of major assets and equity

        (1). Sales of major assets

        □ Applicable √ Not applicable
        The Company had no sales of major assets in the reporting period.

        (2).Sales of major equity

        □ Applicable √ Not applicable

        7.Analysis of the Main Share Holding Companies and Share Participating Companies

        √ Applicable □ Not applicable
        Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
                                                                                                                                                         In RMB

                            Company             Sectors         Registered                                                         Operating
        Company Name                                                              Total assets        Net assets   Turnover                           Net Profit
                                    type       engaged in            capital                                                            profit



                                                                                                                                                                   18
                                                              Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Wuhu Dongxu                        Equipment
Optoelectronic                     and             98,000,000.0 8,944,733,89 2,826,899,34 2,830,168,46 803,918,979. 755,485,990.8
                      Subsidiary
Equipment                          Technology      0                     5.68           4.11         6.00            70               0
Technology Co., Ltd                serves

Wuhan Dongxu                       Photoelectric
                                                   2,000,000,00 12,006,625,0 5,466,612,48 404,414,266.
Optoelectronic        Subsidiary disply glass                                                               -119,404.26 12,622,231.34
                                                   0.00                 58.06           5.58          30
Technology Co., Ltd                substrate

Dongxu
                                   Engineering 100,000,000. 4,602,669,21 3,143,968,40 518,052,658. 19,559,654.6
Construction Group Subsidiary                                                                                              14,644,719.84
                                   construction 00                       2.25           9.52          30              5
Co., Ltd.

                                   Real estate
Beijing Xufeng Real                                870,000,000. 2,903,023,95 468,486,727.
                      Subsidiary Development                                                         0.00 6,604,655.21 6,624,244.60
estate Co., Ltd.                                   00                    8.16            21
                                   and sales

                                   Sales of
                                   optoelectroni
Dongxu (Kunshan)
                                   c devices and 500,000,000. 526,028,832. 498,217,899.
Display Material      Subsidiary                                                                     0.00 -364,830.51        -360,330.51
                                   other           00                      69            62
Co., Ltd.
                                   electronic
                                   devices

Jiangsu Jixing New                 Sapphire        392,000,000. 619,817,363. 477,257,330. 223,319,885. 22,824,563.5
                      Subsidiary                                                                                           20,274,253.55
Material Co., Ltd.                 material        00                      43            78           36              1

                                   Technologica
Beijing Xutan New
                                    l              15,000,000.0 11,218,649.2                                -2,837,414.7
Material Technology Subsidiary                                                  5,636,967.58   264,245.28                  -2,837,414.77
                                    developmen 0                            6                                         7
Co., Ltd.
                                    t

Beijing Dongxu
                                   Project                        104,363,042. 102,357,112.
Huaqing Investment Subsidiary                      5,000,000.00                                             -977,503.65      -977,503.65
                                   investment                              44            91
Co., Ltd.

Zhengzhou Xufei
                                   Optoelectron
Optoelectronic                                     1,650,000,00 5,537,882,26 1,947,564,31 671,849,865. 56,428,410.5
                      Subsidiary ic display                                                                                53,750,338.21
Technology Co.,                                    0.00                  5.31           6.60          60              2
                                   materials
Ltd.

ShijiazhuangXuxin
                                   Optoelectron
 Optoelectronic                                    1,906,000,00 3,441,192,63 2,068,503,55 230,378,513. 26,641,852.2
                      Subsidiary ic display                                                                                29,045,244.66
 Technology Co.,                                   0.00                  0.26           7.21          20              4
                                   materials
 Ltd.

Fuzhou Dongxu
                                   Optoelectron
 Optoelectronic                                    10,000,000.0 3,638,855,65 2,877,969,80 46,983,656.1
                      Subsidiary ic display                                                                 5,446,776.41 4,434,987.61
 Technology Co.,                                   0                     0.73           5.34           8
                                   materials
 Ltd.

Xuyou Electronic      Subsidiary The               JPY18150       744,019,016. 739,920,421.                 5,752,136.43 5,895,922.83


                                                                                                                                      19
                                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Material Technolog                development million                     61           08
(Wuxi) Co., Ltd.                  ,production
                                  and process
                                  of Graphene

                                  Investment
Shenzhen Xuhui                                   100,000,000. 115,859,060. 110,079,953.                       -1,188,861.7
                       Subsidiary Managemen                                                     94,042.74                     -1,088,467.27
Investment Co., Ltd.                             00                       24           85                                 3
                                      t

Shanghai Tanyuan
                                  Technologica
Huigu New Material                               60,000,000.0 106,800,734. 104,463,802.                       -6,900,666.2
                       Subsidiary l                                                            194,829.10                     20,745,934.23
Technology Co.,                                  0                        97           03                                 3
                                  development
Ltd.



 Subsidiaries obtained or disposed in the reporting period
 √    Applicable □Not applicable
                       Name                                       Mode                                        Influence

 Huzhou Mingshuo Optoeletronic
                                                Acquisiton                                  Profit increase
 Technology Co., Ltd.

 Mingshuo (Beijing) Electronic Technology
                                                Acquisiton                                  Profit increase
 Co., Ltd.

 Chuanglianhuatai (Hongkong) Co., Ltd.          Acquisiton                                  Profit increase

 Tianlonghuatai Industry (Hongkong)
                                                Acquisiton                                  Profit increase
 Co.,Ltd.

 Dongxu (Xuhua) International Equipment
                                                Acquisiton                                  Profit increase
 Co., Ltd.

 Hunan Dongxu Weisheng Smart
                                                New establishment                           Profit increase
 Technology Co.,Ltd.

 Hunan Dongxu Delai Electronic
                                                New establishment                           Profit increase
 Technology Co., Ltd.

 Wuhu Dongxu Weiyu Medical Apparatus
                                                New establishment                           Profit increase
 Technology Co.,Ltd.

 Hunan Dongxu Weigao Medical Apparatus
                                                New establishment                           Profit increase
 Technology Co.,Ltd.

 Shandong Qihui Medical Technology
                                                New establishment                           Profit increase
 Co.,Ltd.

 Guangdong Dongxuweiyu Medical
                                                New establishment                           Profit increase
 Apparatus Technology Co.,Ltd.


 8.Structured vehicle controlled by the Company

 □ Applicable √ Not applicable

                                                                                                                                         20
                                                   Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


9. Prediction of business performance for January -September 2017

Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable √ Not applicable

10.Risks facing the Company and countermeasures

(1). Risk of market competition

     The TFT-LCD glass substrate production industry the company belongs to has been monopolized by foreign
manufacturers for a long time, and the USA Corning, Japan Asahi Glass, Nippon Electric Glass and other
international giants have a high market share. The glass substrate products produced by the company have the
advantages of low costs in production and transportation and timely delivery in the domestic market. At present,
the company has a number of 5G and 6G glass substrate production lines in the mass production, having a
relatively high market share in the domestic market. The company's 8.5 generation glass substrate production line
is under construction, but in the process of project construction, it is facing with the uncertainties of industrial
policy, market change and technological upgrading, which may lead to the difference occurred between the
forecast and the implementation schedule and implementation effect of the project. Furthermore, compared with
the USA Corning, the production line already planned by the company is relatively small, especially in the reserve
of production technology of 10G and above 10G glass substrate, the company still has a large gap to catch. In the
future, there still will be some uncertainties for the company in connection to whether the company can fit the
market trend to develop and roll out the larger size LCD glass substrate products and continuously expand the
market share, so that may have a certain impact on the company's operating results.
    Solutions: The Company will summarize the construction and operation experience of the 5G and 6G glass
substrate production lines and speed up the construction progress of the 8.5G glass substrate line. Meanwhile, in
order to snatch the good market opportunity, the company, together with Japan NEG, has already set up a joint
venture company to build the postprocessing line of 8.5G line, which will further accelerate the Market launch of
the company's 8.5 generation glass substrate, thus reducing the implementation risk of the production line.
Furthermore, relying on the company's customer resources and market advantages in the liquid crystal glass
substrate, the company actively made the layout of optoelectronic display materials like color filters and polarizers,
thus to enhance the added value of products and deepen the cooperation with the downstream customers, so as to
shape a good industrial synergy and cluster effect.

(2). Technical upgrading and replacement risk

     The TFT-LCD glass substrate's downstream LCD panel has a high maturity of technology, which is suitable
for large-scale production. Although the liquid crystal glass substrate, especially the large size liquid crystal glass
substrate, can cover many lines and have a long life cycle, the panel display technology belongs to the filed
featuring fast-upgrading and replacement of technology. At present, the TFT-LCD technology occupies a
dominant position-which has a relatively stable demand of glass substrate, but if there are significant
technological changes occurred in the downstream flat panel display industry-like the TFT-LCD technology is
replaced by other new technologies such as OLED and the company failed to achieve timely upgrading of the


                                                                                                                      21
                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


technology, then the company will face a certain degree of risk in technological upgrading and replacement.
     Solutions: the company has a strong technical strength, and the company is the only domestic company that
mastered the two production technological processes of glass substrate namely the overflow melting method and
the floating method. The whole-set equipment production line of TFT-LCD glass substrate was recognized as the
"National strategic product innovation" and the processing method of molten glass in platinum channel had won
the "China Patent Gold Award". In order to cope with the risks of alternative technology, the Company will, based
on the gained successful experience of industrialization, continue to increase the R & D funding and strengthen
the R & D cooperation with universities and research institutes and enhance the research and development on
new-technological display glass products such as ultra-thin glass products, large-size glass products, LTPS glass
products and OLED.

(3). Risks in asset acquisitions and business integration

     In March 2017, the Company disclosed "Issuing shares and paying cash to buy assets and raise matching
funds namely the related transaction scheme", and the scheme has been examined and approved by the Board of
Directors, the Supervisory Committee and the Extraordinary Shareholders' General Meeting and then it has been
submitted to the CSRC for examination and approval. At present, the scheme has passed the centralized
examination of operators by the Ministry of Commerce, and received the "Acceptance notice of administrative
license application" issued by CSRC on June 29. Now it is in the stage of giving-reply process to the first
feedback. This acquisition of Sunlong Bus will enable the company to enter the field of new energy bus, and the
injection of the new assets will face a certain extent risk of business integration.
    Solutions: After the completion of the acquisition, the company plans to reorganize the organizational
structure of Sunlong Bus and improve its corporate governance; through sending financial staff into the company
to strengthen the financial supervision and management of Sunlong Bus; through staff training and cultural
exchanges to enhance the cultural identity of staff in Sunlong Bus; maintaining the stabilization of the existing
management team and the core technical team of Sunlong Bus and providing the necessary support to the
production and operation of Sunlong Bus.




                                                                                                                    22
                                                     Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




                                                 V. Important Events



1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period

(1).Annual General Meeting


                                               Investor                                                Index to disclosed
       Meeting                   Type                           Convened date       Disclosure date
                                          participation ratio                                             information

The First provisional
                        Provisional                                                                   Announcement No.
shareholders’
                        shareholders’                31.02% February 10,2017    February 11,2017     2017-010,
General meeting in
                        General meeting                                                               www.cninfo.com.cn
2017

The Second
provisional             Provisional                                                                   Announcement No.
shareholders’          shareholders’                18.22% March 31,2017       April 1,2017         2017-032,
General meeting in      General meeting                                                               www.cninfo.com.cn
2017

                        Annual                                                                        Announcement No.
2016 Shareholders’
                        Shareholders’                20.43% April 17,2017       April 18,2017        2017-038,
general meeting
                        General Meeting                                                               www.cninfo.com.cn

The Third
provisional             Provisional                                                                   Announcement No.
shareholders’          shareholders’                23.62% June 2,2017         June 3,2017          2017-059,
General meeting in      General meeting                                                               www.cninfo.com.cn
2017

The Fourth
provisional             Provisional                                                                   Announcement No.
shareholders’          shareholders’                28.76% June 26,2017        June 27,2017         2017-068,
General meeting in      General meeting                                                               www.cninfo.com.cn
2017

2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable


2. Proposal for profit distribution and converting capital Reserve into share actual for the
reporting period

□ Applicable √Not applicable

For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.



                                                                                                                            23
                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


3. The fulfilled commitments in the reporting period and under-fulfillment commitments by
the end of the reporting period made by the company, shareholder, actual controller, acquirer,
director, supervisor, senior management personnel and other related parities.

√ Applicable □ Not applicable
                                                                                                                        Period
                                                                                                            Time of
                  Commitment                                                                                                 of   Fulfil
 Commitment                          Type                              Contents                             making
                     maker                                                                                              commi lment
                                                                                                          commitment
                                                                                                                        tment

                                               If listed companies plans to sell tradable stocks
                                               through the bid trading system of Shenzhen Stock
                                               Exchange and sell greater than 5% of shares within
                  Shijiazhuang                                                                                          Long-t Unde
Commitment                           Share     six months after the first sales, will disclose the
                     Baoshi                                                                              March          erm       r
on share                           reduction   contents specified by the Form Guide to Prompt
                   Electronics                                                                           29,2007        effecti Fulfil
reform                            commitment Announcement of Removing Restriction on Sales of
                 Group Co., Ltd                                                                                         ve        lment
                                               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

                                               Not overstepping its authority to interfere with the
                                               company's management activities. (2) Not encroach
                                               the interests of the company. (3) If the CSRC or
                                               Shenzhen Stock Exchange has different requirements
                                               on the commitment made by the Company / I to
                                               ensure the sound implementation of the returns fill-up
                                               measures for the diluted returns at the period caused
Commitment                                     by this transaction, the Company / I shall voluntarily                   Long-t Unde
                 Tunghsu
made upon the                                  and unconditionally make the commitment in                               erm       r
                  Group,Li                                                                               June 10,2017
assets                                         accordance with the requirements of the CSRC or the                      effecti Fulfil
                  Zhaoting
replacement                                    Shenzhen Stock Exchange. (4) As one of the relevant                      ve        lment
                                               liability subjects to the returns fill-up measures, the
                                               Company / I undertake that strictly abide by the
                                               above commitment made by the Company / I and
                                               ensure that the returns fill-up measures of the
                                               Company / I can be soundly implemented. If the
                                               Company / I violate the above commitments or refuse
                                               to fulfill the above commitments, the Company / I



                                                                                                                                       24
                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                  hereby agree to impose relevant penalties or relevant
                  management measures on the Company / I in
                  accordance with the relevant regulations and rules
                  formulated and issued by the securities regulatory
                  authorities such as the CSRC and the Shenzhen Stock
                  Exchange.

                  Undertake that faithfully and diligently perform
                  duties and protect the lawful rights and interests of
                  the company and all its shareholders; (2) undertake
                  that not transfer benefits to other units or individuals
                  in gratuitous or unfair conditions and not take any
                  other ways to damage the interests of the company;
                  (3) undertake that curb the position-related
                  consumption behavior; (4) undertake not to use the
                  company's assets to engage in investment or
                  consumption activities that have nothing to do with
                  the performance of the duties; (5) undertake that the
                  remuneration system established by the board of
                  directors or the remuneration and assessment
Gong Xin, Han     committee is linked to the company's implementation
Zhiguo, Huang     of the returns fill-up measures, and make affirmative
Jinliang, Li      vote for the relevant motions of the board of directors
Zhaoting, Liu     and the general meeting of shareholders when
Wentai, Lu        participating in the decision; (6) if the company                         Long-t Unde
Guihua, Wang      launches the equity incentive policy subsequently,                        erm     r
                                                                             June 10,2017
Jianqiang, Wang   then undertake that the terms of exercise of the                          effecti Fulfil
Junming, Wang     company's equity incentive to be announced are                            ve      lment
Lipeng, Wang      linked to the performance of the company's measures
Zhonghui and      of returns fill-up and make affirmative vote for the
Zhang             relevant motions of the board of directors and the
Shuangcai.        general meeting of shareholders when participating in
                  the decision; (7)If the CSRC or Shenzhen Stock
                  Exchange has different requirements on the
                  commitment made by I to ensure the sound
                  implementation of the returns fill-up measures for the
                  diluted returns at the period caused by this
                  transaction, I shall voluntarily and unconditionally
                  make the commitment in accordance with the
                  requirements of the CSRC or the Shenzhen Stock
                  Exchange. (8) As one of the relevant liability subjects
                  to the returns fill-up measures, I undertake that
                  strictly abide by the above commitment made by I
                  and ensure that the returns-fill-up measures of the
                  Company shall be soundly implemented. I hereby


                                                                                                         25
                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                               agree to impose relevant penalties or relevant
                                               management measures on the Company / I in
                                               accordance with the relevant regulations and rules
                                               formulated and issued by the securities regulatory
                                               authorities such as the CSRC and the Shenzhen Stock
                                               Exchange.



                                Commitmen 1.From the date of commitment letter issued, except
                                   ts on            the managed hosting company for Dongxue
                                 horizontal     Optoelectronic , this company and majority-owned                         Long-t Unde
                                competition, subsidiaries do not in any way, directly or indirectly December 22, erm             r
               Li Zhaoting
                                  related      engaged in business and Dongxu Optoelectronic and 2011                    effecti Fulfil
                                transaction        its subsidiaries are the same, or similar, future                     ve      lment
                                and capital Dongxu Optoelectronic shares and its subsidiaries are
                                occupation         not engaged in the same or similar businesses.

                                                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
Commitments
                 Dongxu                            stones share any act prejudicial to the control
made upon
              Optoelectronic Commitmen relationship of Dongxu Optoelectronic interests and
issuance
              Investment Co.,      ts on         its wholly-owned subsidiaries, holding, or causing
                   Ltd.,         horizontal Dongxue Optoelectronic shares and its wholly-owned                           Long-t Unde
               Shijiazhuang     competition,      subsidiaries, holding form business competition                        erm     r
                                                                                                         April1, 2012
                  Baoshi          related       decisions. 3. The company will not directly invest,                      effecti Fulfil
                Electronics     transaction      purchase and Dongxu Optoelectronic identical or                         ve      lment
                Group Co.,      and capital          similar business enterprises and projects.
               Ltd.Tunghsu      occupation 4.If the assets owned by the Dongxu Optoelectronic .
                  Group,                          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



                                                                                                                                      26
                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                            Optoelectronics; Before December 31, 2016, by way
                           of designated placement, the company will transfer all
                             the shares that Tunghsu 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 ,
                              Tunghsu 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.

                                                  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) Tunghsu Group is the controlling
                           shareholder of Dongxu Optoelectronic; and during the
                             period of holding, Tunghsu 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),           Valid
                           Wuhu Dongxu Optoelectronic Equipment Technology                   for     Unde
                   Other    Co., Ltd. (hereinafter referred to as Wuhu Equipment) February   Decem r
Tunghsu Group
                commitment and Shijiazhuang Dongxu Optoelectronic Equipment 8,2015           ber     Fulfil
                               Technology Co., Ltd. (hereinafter referred to as              31,202 lment
                            Shijiazhuang Equipment). For this purpose, Tunghsu               0
                              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 Tunghsu Group in the
                             future, Tunghsu 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


                                                                                                          27
                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                 licensing contract. After the company successfully
                                 completed the issuance of corporate bonds, whether
                                   Tunghsu Group control the company during the
                                duration of the bonds, Tunghsu 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 and
                                     material purchase of glass substrate and the                         Valid
   Dongxu           To raise    equipment. Thus, the demands of business operation                        for     Unde
Optoelectronic funds to use and expansion in the company will be satisfied. The February 10,              Decem r
Technology Co.,       the        company promises: 1. The funds raised through the 2015                   ber     Fulfil
     Ltd.         commitment public offering of corporate bonds will not be directly                      31,202 lment
                                   or indirectly invested in real estate development                      0
                                  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.


                                 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                    Valid
                  Performance        that are attributable to Xufei Optoelectronic                        for     Unde
                  compensatio    Technology Co., Ltd in year 2015, year 2016, year                        Decem r
 Baosi Group                                                                               Marc 2, 2015
                       n          2017, year 2018 shall accordingly be not less than                      ber     Fulfil
                  commitment         RMB 36,669,800, RMB 84,562,800, RMB                                  31,201 lment
                                156,531,100, RMB 225,405,200;The Net profits after                       8
                                     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 RMB23,348,800,
                                      RMB55,420,500, RMB 86,627,700, RMB


                                                                                                                       28
                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                              158,345,000. If any year’s actual net 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.
                             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) Tunghsu Group is the controlling
                             shareholder of Dongxu Optoelectronic; and during the
                              period of holding, Tunghsu 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)
                                                                                                         Long-t Unde
                             and Shijiazhuang Dongxu Optoelectronic Equipment
                   Other                                                                 June 17,        erm     r
Tunghsu Group                   Technology Co., Ltd. (hereinafter referred to as
                commitment                                                               2015            effecti Fulfil
                             Shijiazhuang Equipment). For this purpose, Tunghsu
                                                                                                         ve      lment
                             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 Tunghsu Group or not, Tunghsu
                                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.



  Tunghsu       Commitmen To avoid the horizontal competition with the issuer,                           Long-t Unde
                                                                                         Decembert 16,
   Group,Li        ts on     the company’s actual controller-Zhaoting, Li and the                       erm     r
                                                                                         2015
   Zhaoting      horizontal holding company-Tunghsu Group promised: 1. As of                             effecti Fulfil


                                                                                                                      29
                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                competition, this declaration and from the date of commitment                     ve      lment
                  related    letter issued, except the managed hosting companies,
                transaction the other companies directly or indirectly controlled
                and capital by the controller or holding company have no
                occupation horizontal competitions with Dongxu Optoelectronic
                             Technology Co., Ltd. 2. Any other companies
                             controlled by the actual controller or holding
                             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., 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. If I (the company) violated the above
                             commitment, I (the company) will bear all the losses
                             of Dongxu Optoelectronic and its controlled
                             enterprises arising from this.

                             In order to safeguard the the company's main business
                             of TFT-LCD glass substrate production, the
                             controlling shareholder-Tunghsu Group Co. Ltd made
                             a commitment valid in the period of the company’s
                             application for non-public share issuance: given (1)
                                                                                                  Valid
                             The main business of Dongxu Optoelectronic
                                                                                                  for     Unde
                             Technology Co., Ltd is TFT-LCD glass substrate
                Other                                                                  December   Decem r
Tunghsu Group                production, and currently it is applying for non-public
                commitment                                                             16,2015    ber     Fulfil
                             share issuance; (2) Tunghsu Group, which is the
                                                                                                  31,201 lment
                             controlling shareholder of Dongxu Optoelectronic,
                                                                                                  8
                             respectively signed Patent Licensing Contract with
                             Dongxu Optoelectronic, Dongxu Optoelectronic’s
                             subsidiaries of Wuhu Dongxu Optoelectronic
                             Technology Co., Ltd (hereinafter referred to as
                             "Wuhu Optoelectronics"), Wuhu Dongxu


                                                                                                               30
                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                               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") during the control period.
                               Therefore, Tunghsu Group made a commitment as
                               follows: In the term of validity of the patents involved
                               in the patent licensing contract, whether Tunghsu
                               Group controls Dongxu Optoelectronic or not, after
                               the commitment of the above-said Patent Licensing
                               Contract expired, Tunghsu Group will, according to
                               the requirements by Dongxu Optoelectronic,
                               unconditionally renew Patent Licensing Contract with
                               Dongxu Optoelectronic and Dongxu Optoelectronic’s
                               subsidiaries (Wuhu Optoelectronics, Wuhu
                               Equipment and Shijiazhuang Equipment) according
                               to the original contract terms.

Tunghsu
                               The company, one of the subscription objects,
Group;Changjia
                               promised that after Dongxu Optoelectronic
ng Securities
                               Technology Co., Ltd completed the non public
(Shanghai )Asse
                               issuance of shares to the company and specific
t Management
                               objects for raising funds, the shares (New shares)                     Valid
Co.,
                               issued by Dongxu Optoelectronic Technology Co.,                        for      Unde
Ltd.;Kunshan      Share
                               Ltd and subscribed by the company shall not be             December16,2 Decem r
Development       limited
                               transferred to any others in 36 months commenced            015        ber      Fulfil
Zone State        commitment
                               from the publicly listed date of the new shares. As a                  16,201 lment
Investment Co.,
                               result of the issuance of new shares by the Company                    8
Ltd.;Beijing
                               to the Company, the shareholding of Dongxu
Yingfei Hailin
                               Optoelectronic Co., Ltd. by Dongxu Optoelectronic
Investment
                               Co., Ltd. will also be subject to the above
Center (Limited
                               commitments.
partnership).

                                                                                                      Valid
                                                                                                      for      Unde
Tunghsu           Other        Not act in excess of authority to interfere the
                                                                                          February    Decem r
Group,Li          Commitmen company’s management and operating activities, not
                                                                                          6,2016      ber      Fulfil
Zhaoting          t            encroach on the interests of the company.
                                                                                                      31,201 lment
                                                                                                      9

Li Zhaoting,                   (a) Promised that not freely or unfairly transfer                      Valid
                                                                                                               Unde
Zhou Bo,Niu       Other        interests to other units or individuals, nor adopt other               for
                                                                                          February             r
Jianlin, Gong     Commitmen ways to jeopardize the company’s interests. (b)                          Decem
                                                                                          6,2016               Fulfil
Xin,   Lu         t            Promised that restrict the post consumer behaviors of                  ber
                                                                                                               lment
Guihua, Mu                     the directors and senior management personnel. (c)                     31,201



                                                                                                                    31
                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Tiehu, Zhang                  Promised that not use the company's assets to engage                    9
Shuangcai, Shi                in the investment &consuming activities which are
Zhiqiang , Liu                irrelevant to perform the duties. (d) Promised that the
Wentai,Xiao                   salary system set up by the board of directors or the
Zhaoxiong and                 Remuneration      Committee     is   relevant     to    the
Zhou Bo                       implementation status of the company’s fill-up return
                              measures. (e) Promised that the vesting conditions of
                              the company’s equity incentive are relevant to the
                              implementation status of the company’s fill-up return
                              measures. (f) Promised the full implementation of the
                              relevant fill-up return measures established by the
                              company and any commitment related to the fill-up
                              return measures, if such commitment is breached and
                              resulted in losses to the company or the investors, the
                              concerning party shall take the responsibility for
                              compensating the company or the investors according
                              to the law. As one of the relevant responsibility
                              bodies of the fill-up return measures, if the oneself
                              breaches the above-said commitments or refuse to
                              fulfill the above-said commitments, the oneself agrees
                              the punishments or relevant supervise measures
                              carried out in accordance with the regulations and
                              rules issued or enacted by CSRC, Shenzhen Stock
                              Exchange      and     other     securities      regulatory
                              organizations.

China Life AMP
Asset                         The subscription of this issue a total of nine, namely

Management                    Qianhai          Equity        Investment              Fund

Co., Ltd.;Nuoan               (LP);AEGON-Industrial         Fund,Shenzhen       Taianer

Fund                          Information Technology Co., Ltd.,Penghua Fund

Management                    Management Co., Ltd.;China Fund Management Co.,

Co.,          Ltd.;           Ltd.,China Life AMP Asset Management Co.,
                                                                                                      Valid
Penghua    Fund               Ltd.,Nuoan Fund Management Co., Ltd.,Zhongou
                                                                                                      for     Unde
Management            Share   STAS Asset Management(Shanghai)Co., Ltd. And
                                                                                            August    Augus r
Co.,          Ltd.; limited   Sws Mu Fund Management Co., Ltd.The aforesaid
                                                                                            26,2016   t       Fulfil
Qianhai Equity commitment issuer has issued the following commitments on the
                                                                                                      25,201 lment
Investment Fund           non-public issue of shares: The allocated shares shall
                                                                                                      7
(LP); Sws Mu                  not be transferred within 12 months from the date of

Fund                          listing of the new shares and apply for new shares in

Management                    the new shares within 12 months Increase the shares

Co.,          Ltd.;           to lock.

Shenzhen
Taianer
Information


                                                                                                                   32
                                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


               Technology Co.,
               Ltd.;
               AEGON-Industr
               ial          Fund.;
               Zhongou STAS
               Asset
               Management(Sh
               anghai)Co., Ltd;
               CITIC         Fund
               Management
               Co., Ltd..


                                                   Before December 31, 2017, the whole stake of
                                                   Dongxu Yingkou and Sichuan Xu Hong-which is held
                                                   by Tunghsu Group and it’s commissioned to the
                                                   company for management-will be injected into
                                     Commitmen Dongxu Optoelectronic by the way of directional
                                     ts on         add-share-issuance. In the above period, if any other                     Valid
                                     horizontal    external factors such as the decline of overall industry                  for     Unde
                                     competition, boom and changes of regulatory requirements led to           December      Decem r
               Tunghsu Group
                                     related       the trusteeship company’s stake not meeting the            9,2016        ber     Fulfil
                                     transaction   conditions of asset injection, then the actual controller                 31,201 lment
                                     and capital   Li Zhaoting, Dongxu Optoelectronic Investment,                            7
                                     occupation    Tunghsu Group and Baoshi Group will actively
                                                   consult with the relevant parties to keep the
                                                   above-mentioned stake to be continuously
                                                   commissioned to Dongxu Optoelectronic for
                                                   management.

Equity
incentive
commitment

                                                    Jixing New Material Investment (HK) Co., Ltd. and
                                                       Lubao, Wang (The legal representative of the
                                                    company (HK)) jointly promised that the net profits
                                     Performance
                                                        after tax attributable to Jixing New Material
Other                Jixing New      commitment
                                                     Investment Co., Ltd in year 2015, year 2016, year                       Long-t Unde
commitments           Material           and
                                                      2017 shall accordingly be not less than RMB30,           January 20,   erm     r
made to              Investment      compensatio
                                                   000,000, RMB60,000,000, RMB 100,000,000. If the 2015                      effecti Fulfil
minority       (HK) Co., Ltd. ;              n
                                                       net profits attributable to Jixing New Material                       ve      lment
shareholders     Wang Lubao          arrangement
                                                   Investment Co., Ltd after audited in any year of year
                                             s
                                                      2015, year 2016 and year 2017 are less than the
                                                        promised net profits, the difference shall be
                                                     compensated by Jixing New Material Investment



                                                                                                                                          33
                                                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                                        (HK) Co., Ltd. and Lubao, Wang in cash.

                                                 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 Tanyuan Huigu New Materials
                                    Performance Technology Co., Ltd for the next three years as
                                                                                                                           Valid
                 Guo Shouwu,        commitment follows: (a) Business performance commitment: the
                                                                                                                           for      Unde
                  Ma Shengjie,      and          net profits of Shanghai Tanyuan Huigu New
                                                                                                                           Decem r
                  Wu Haixia ,       compensatio Materials     Technology     Co.,     Ltd   in   year-2016, March 8,2016
                                                                                                                           ber      Fulfil
                  Shen Wenzhuo n                 year-2017, year-2018 shall accordingly not be less
                                                                                                                           31,201 lment
                  and Shen Li       arrangement than RMB 5 million, RMB 10 million, RMB 20
                                                                                                                           9
                                    s            million. (b) Compensation mode: if the net profits of
                                                 Shanghai Tanyuan Huigu New Materials Technology
                                                 Co.,   Ltd   in   year-2016,       year-2017,   year-2018
                                                 accordingly do not reach the promised net profits, the
                                                 promised party shall fully compensate the difference
                                                 by cash.

                                                 All eight shareholders of Ming Shuo (Beijing)
                                                 Electronic Technology Co., Ltd namely Chen Wei,
                 Beijing Heyiyou
                                                 Zhu Lei, Wang Yingchao, Jin Xiuzhen, Jiang Wei, Li
                 Investment
                                    Performance Honglei, Beijing He Yiyou Investment Partnership
                 Partnership( LP)
                                    commitment (limited partnership) and Qian Xinming voluntarily                          Valid
                 ;Chen Wei,                                                                                                         Unde
                                    and          make the commitment for the profits of the next three                     for
                 Jiang Wei, Jin                                                                                                     r
                                    compensatio years of Ming Shuo (Beijing) Electronic Technology May 11,2017             June
                 Xiuzhen, Li                                                                                                        Fulfil
                                    n            Co., Ltd and such commitment is as follows: The                           30,202
                 Honglei, Qian                                                                                                      lment
                                    arrangement audited net profits after tax in 2017, 2018 and 2019                       0
                 Xinming, Wang
                                    s            (determined by the lower principle after the deduction
                 Yingchao and
                                                 of non recurring gains and losses) are no less than
                 Zhu Lei.
                                                 RMB 10.5 million, RMB 20 million and RMB 40
                                                 million respectively.

Executed
                 Yes
timely or not?


4. 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 report by
the domestic accounting firm(RMB’0000)



Whether to change the accounting firm?

                                                                                                                                         34
                                                Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


□ Yes √No


5.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period

□ Applicable √ Not applicable

6. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year

□ Applicable √ Not applicable

7. Bankruptcy and restructuring

□ Applicable √ Not applicable
No such cases in the reporting period.

8. Legal matters

Signifieant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other legal matters
□ Applicable √ Not applicable

9. Punishments and rectifications

□ Applicable √ Not applicable
No such cases in the reporting period.

10. Credit conditions of the Company as well as its Controlling shareholder and actual Controller

□ Applicable √ Not applicable

11.Equity incentive plans, employee stock ownership plans or other incentive measures for employees

√ Applicable □Not applicable
1.Equity Incentive Plan
During the reporting period, the third installment of 1.192 million restricted shares of the company's restricted
stock incentive plan implemented in 2014 that have yet to be unlocked remained locked state. (For the details,
please refer to the "Restricted stock incentive plan (Draft) of Dongxu Optoelectronics Technology Co., Ltd"
disclosed on http//Cninfo.com.cn )
2.The Company's Employee Stock Ownership Plan
    1. On July 30, 2017, the Second Phase Employee Stock Ownership Plan (Draft) and its Summary of Dongxu
Optoelectronics Technology Co., Ltd was examined and approved in the 19th meeting of the 8th term Board of

                                                                                                                   35
                                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Directors. The company planned to implement the Second Phase Employee Stock Ownership Plan to attract and
retain outstanding management talent and business backbone personnel. This employee stock ownership planned
to use the means of subscribing collective fund trust plan (The collection fund trust plan has an upper limit of 570
million shares and per share is RMB1.0) to purchase in the secondary market (including bulk transactions and
auction transactions) and by other ways permitted by laws and regulations to obtain and hold the A shares of
Dongxu Optoelectronics, and that shall not be used to buy other listed companies' shares. The related draft plan
shall be implemented after getting approval from the company's shareholders' general meeting (For the details,
please refer to the "The second-phase employee stock ownership plan (Draft) of Dongxu Optoelectronics
Technology Co., Ltd" disclosed on http//Cninfo.com.cn)
     2. In the report period, the first phase employee stock ownership plan of Dongxu Optoelectronics Technology
Co., Ltd that was implemented in 2015 by the company remained in the lock-up period. (For the details, please
refer to "The first-phase employee stock ownership plan (Draft) of Dongxu Optoelectronics Technology Co., Ltd"
and the No. 2015-007, Announcement disclosed on http//Cninfo.com.cn)

12.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)
Yingchu
   an
Fengxia
   ng      Controll
                       Sales
 Street ed       by              Constru
                      Goods/L                 Referen
Compre the same                  ction &                                                                Currenc               April    2017-0
                       abor                   ce price 9,778.90 9,778.9             30,000      No                9,778.90
hensive actual                   installati                                                               y                  29,2017     41
                      service                 setting
Constru controll                    on
                      received
  ction    er
Manage
  ment
Co., Ltd

 Yixian Controll       Sales     Constru
                                              Referen
 Xuhua      ed by     Goods/L ction &                                                                   Currenc               April    2017-0
                                              ce price   778.38    778.38           280,000     No                778.38
  Park     the same    abor      installati                                                               y                  29,2017     41
                                              setting
Constru     actual    service       on


                                                                                                                                              36
                                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


 ction     controll received
Develop       er
 ment
  Co.,
  Ltd.

Guangd
  ong
           Controll
Huakai
            ed by                Constru
 Real                  Labor                  Referen
           the same              ction &                                                              Currenc               June
 estate               service                 ce price   756.60    756.6             9,528     No                756.6
            actual               installati                                                              y                 01,2017
Develop               received                setting
           controll                 on
 ment
              er
  Co.,
  Ltd.

Shijiazh
 uang      Controll
                       Sales
 Bofa       ed by
                      Goods/L                 Referen
Mechani the same                                                                                      Currenc               April    2017-0
                        abor     A frame ce price        253.38    253.38            1,000     No               253.38
  cal       actual                                                                                       y                 29,2017    41
                      service                 setting
Equipm controll
                      received
ent Co.,      er
  Ltd

Dongxu
           Controll
( Yingko               Sales
            ed by
   u)                 Goods/L                 Referen
           the same                                                                                   Currenc               April    2017-0
Optoele                 abor     A frame ce price        307.69    307.69            1,000     No               307.69
            actual                                                                                       y                 29,2017    41
ctronic               service                 setting
           controll
Display               received
              er
Co., Ltd

Sichuan
           Controll
Xuhong                 Sales
            ed by
Optoele               Goods/L                 Referen
           the same              Custodi                                                              Currenc               April    2017-0
ctronic                 abor                  ce price   319.37    319.37            1,000     No               319.37
            actual                an fee                                                                 y                 29,2017    41
Technol               service                 setting
           controll
ogy Co.,              received
              er
  Ltd.

           Controll
Tunghsu               Sales
            ed by
 Group                Goods/L                 Referen
           the same              Interest                                                             Currenc               April    2017-0
Finance               abor                    ce price 1,427.88 1,427.88            10,000     No               1,427.88
            actual               income                                                                  y                 29,2017    41
  Co.,                service                 setting
           controll
  Ltd.                received
              er



                                                                                                                                           37
                                                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Dongxu
           Controll
( Yingko              Sales      Semi-fin
           ed by
u)                    Goods/L     ished     Referen
           the same                                                                             Currenc               April    2017-0
Optoele               abor       products ce price 1,204.98 1,204.98           3,200     No               1,204.98
           actual                                                                                  y                 29,2017    41
ctronic               service      , PP     setting
           controll
Display               received    cases
           er
Co., Ltd

                                                            14,827.1
Total                                             --   --               --    335,728     --       --        --        --        --
                                                                   8

Details of any sales return of a large
                                            Nil
amount

Give the actual situation in the report
period where a forecast had been
made for the total amounts of routine Nil
related-party transactions by type to
occur in the current period(if any)

Reason for any significant difference
between the transaction price and the Nil
market reference price (if applicable)




(2). Related-party transactions arising from asset acquisition or sold

□Applicable √ Not applicable
No such cases in the reporting period.


(3). Related-party transitions with joint investments

□Applicable √ Not applicable
No such cases in the reporting period.


(4). Credits and liabilities with related parties

√ Applicable □Not applicable
Whether has non-operational contact of related liability and debts or not
□ Yes √ No
No such cases in the reporting period.


(5). Other significant related-party transactions

□Applicable √ Not applicable
No such cases in the reporting period.


                                                                                                                                      38
                                                    Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


13. 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.

14. Significant contracts and execution

(1).Entrustments, contracting and leasing

(1)Entrustment

√ 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, Tunghsu Group 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      of Entrusting    Date of       Entrusting
                                                ractee           Asset            /Contracting Entrusting /Contracting Fee at
                                                                                                  /Contractin the Current Period
                                                                                                      g
Tunghsu Group, Yingkou Coastal Development Dongxu        Management Right of January 2012          Notes 1      707,547.18
Construction Co., Ltd.Minmetals (Yingkou) Optoelectron     Dongxu(Yingkou)
Industrial Park Development Co., Ltd.     ic             Optoelectroric Display
                                          Technology           Co., Ltd.
Tunghsu Group, Mianyang Investment City Co., Ltd.        Management Right of      March 2012       Notes 2     3,429,535.76
Development (Group ) Co., Ltd., Sichuan                     Sichuan Xuhong
Changhong Electric Co., Ltd.                                Optoelectronic
                                                         Technology Co., Ltd.
                      Total                                                                                    4,137,082.94
     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


                                                                                                                              39
                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


achieved by the trustee company
Note3:On April 20, 2016, Dongxu (Yingkou) Optoelectronic Display Co.,Ltd, upon the approval by general
shareholders’ meeting, amended the Article of Association, thus the stake of Dongxu (Yingkou) Optoelectronic
Display Co.,Ltd held by Dong Xu Group was changed to 47.8% from 60%.
Note 4:On April 1, 2016, Sichuan Xuhong Optoelectronic Technology Co. Ltd, with the consent of the
shareholders' meeting, increased the capital with in accordance with the relevant provisions of Articles of
Association; after capital increase, the stake of Sichuan Xuhong Optoelectronic Technology Co. Ltd held by
Tunghsu Group was changed to 86.64% from 51%.
Items which resulted in profit or loss achieving over 10% of the total profit for the Company
□ Applicable √ Not applicable
No such cases in the reporting period.


(2)Contracting

□Applicable √ Not applicable
No such cases in the reporting period.


(3)Leasing

□Applicable √ Not applicable
No such cases in the reporting period.


(2)Contracting

□Applicable √ Not applicable
No such cases in the reporting period.


(3)Leasing

□Applicable √ Not applicable
No such cases in the reporting period.


(2).Significant guarantees

√ Applicable □Not applicable


(1)Guarantees

                                                                                                                          In RMB’0000

                                         External Guarantee (Exclude controlled subsidiaries)

                      Relevant                      Date of           Actual                                    Complete     Guarantee
    Name of the                    Amount of
                      disclosure                  happening          mount of     Guarantee type Guarantee term implementa      for
     Company                       Guarantee
                     date/No. of                   (Date of          guarantee                                     tion      associated



                                                                                                                                      40
                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                         the                      signing                                                      or not     parties

                    guaranteed                  agreement)                                                              (Yes or no)

                      amount



  Total of external guarantee                                     Total of actual external
approved in Period(A1)                                         guarantee in Period(A2)

                                                                   Total balance of actual
  Total of external guarantee
                                                                    external guarantee at
approved at Period-end(A3)
                                                               Period-end(A4)

                                    Guarantee of the Company 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)

Wuhu Dongxu
                                                                                 The joint
Optoelectronic      June                      November
                                    132,000                             94,000 liability        8 years      No         No
Technology Co.,     20,2013                   12,2013
                                                                                 guaranty
Ltd.

Wuhu Dongxu
                                                                                 The joint
Optoelectronic      September                 December
                                     10,000                             10,000 liability        8 years      No         No
Technology Co.,     27,2013                   13,2013
                                                                                 guaranty
Ltd.

Wuhu Dongxu
                                                                                 The joint
Optoelectronic      September                 December
                                     10,000                             10,000 liability        8 years      No         No
Technology Co.,     27,2013                   19,2013
                                                                                 guaranty
Ltd.

Wuhu Dongxu
                                                                                 The joint
Optoelectronic      September                 February
                                     20,000                             10,000 liability        8 years      No         No
Technology Co.,     27,2013                   19,2014
                                                                                 guaranty
Ltd.

Wuhu Dongxu
                                                                                 The joint
Optoelectronic      September                 February
                                     10,000                             10,000 liability        8 years      No         No
Technology Co.,     27,2013                   25,2014
                                                                                 guaranty
Ltd.

Wuhu Dongxu         September                                                    The joint
                                     20,000 April 8,2014                20,000                  8 years      No         No
Optoelectronic      27,2013                                                      liability


                                                                                                                                    41
                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Technology Co.,                                                         guaranty
Ltd.

Wuhu Dongxu
                                                                        The joint
Optoelectronic    September
                              20,000 May 6,2014                  20,000 liability    8 years       No        No
Technology Co.,   27,2013
                                                                        guaranty
Ltd.

Wuhu Dongxu
                                                                        The joint
Optoelectronic    June
                               7,500 May 31,2017                  7,500 liability    1 year        No        No
Technology Co.,   23,2016
                                                                        guaranty
Ltd.

Wuhu Dongxu
                                                                        The joint
Optoelectronic    June
                               9,000 June 9,2017                  9,000 liability    1 year        No        No
Technology Co.,   23,2016
                                                                        guaranty
Ltd.

Wuhu Dongxu
                                                                        The joint
Optoelectronic    June
                               3,000 June 9,2017                  3,000 liability    1 year        No        No
Technology Co.,   23,2016
                                                                        guaranty
Ltd.

Wuhu Dongxu
                                                                        The joint
Optoelectronic    June
                              15,000 June 28,2017                15,000 liability    1 year        No        No
Technology Co.,   21,2016
                                                                        guaranty
Ltd.

Wuhu Dongxu
                                                                        The joint
Optoelectronic    June
                              14,316 June 28,2017                14,316 liability    1 year        No        No
Technology Co.,   21,2016
                                                                        guaranty
Ltd.

Wuhu Dongxu
                                                                        The joint
Optoelectronic    October              December
                              10,000                             10,000 liability    1 year        No        No
Technology Co.,   31,2016              6,2016
                                                                        guaranty
Ltd.

Wuhu Dongxu
                                                                        The joint
Optoelectronic    October              December
                              10,000                              4,000 liability    1 year        No        No
Technology Co.,   31,2016              26,2016
                                                                        guaranty
Ltd.

Wuhu Dongxu
                                                                        The joint
Optoelectronic    October              November
                              52,300                             52,300 liability    6 years       No        No
Technology Co.,   31,2016              25,2016
                                                                        guaranty
Ltd.

Wuhu Dongxu                                                             The joint
                  April                February
Optoelectronic                 6,000                              6,000 liability    1 year        No        No
                  19,2016              23,2017
Technology Co.,                                                         guaranty



                                                                                                                     42
                                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Ltd.

Zhengzhou Xufei
                                                                                           The joint
Optoelectronic          May
                                           10,000 May 30,2016                      10,000 liability          1.5 years      No         No
Technology Co.,         27,2016
                                                                                           guaranty
Ltd.

Zhengzhou Xufei
                                                                                           The joint
Optoelectronic          October                      November
                                           10,000                                   5,000 liability          1 year         No         No
Technology Co.,         31,2016                      29,2016
                                                                                           guaranty
Ltd.

Wuhu Dongxu                                                                                                  Two years
Optoelectronic                                                                             The joint         from te date
                        June                         September
Equipment                                 150,000                                  45,000 liability          of advance of No          No
                        20,2013                      25,2014
Technology Co.,                                                                            guaranty          the loan due
Ltd.                                                                                                         date

Wuhu Dongxu                                                                                                  Two years
Optoelectronic                                                                             The joint         from te date
                                                     September
Equipment               July 1,2016          9,500                                  9,500 liability          of advance of No          No
                                                     23,2016
Technology Co.,                                                                            guaranty          the loan due
Ltd.                                                                                                         date



Total      of       guarantee     for                                   Total of actual guarantee
subsidiaries                                                    70,000 for subsidiaries in the                                              54,816
approved in the Period (B1)                                             Period (B2)

Total      of       guarantee     for                                   Total of actual guarantee
subsidiaries                                                   528,616 for subsidiaries at                                              354,616
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
                                                                        incurred     in   the    reporting
reporting period (C1)
                                                                        period (C2)


                                                                                                                                                  43
                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                                                  Total   balance     of   actual
Total guarantee quota to the
                                                                  guarantee to the subsidiaries at
subsidiaries approved at the end
                                                                  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
                                                        54,816                                                         54,816
(A1+B1+C1)                                                      the Period(A2+B2+C2)

                                                                    Total of actual guarantee at
Total of guarantee at Period-end
                                                       528,616              Period-end                                354,616
(A3+B3+C3)
                                                                  (A4+B4+C4)

The proportion of the total amount of actually guarantee in the
                                                                                                                      15.76%
net assets of the company(A4+B4+C4)



Description of the guarantee with complex method

(2)Illegal providing of external guarantees

□ Applicable √Not applicable

No illegal providing of external guarantees in the report period.

(3). Other significant contracts

□Applicable √ Not applicable
No such cases in the reporting period.


15.Social responsibilities

(1).Overview of the annual targeted poverty alleviation

(1)Half-year poverty relieving summary

In December 2016, the company, for promoting the original old liberated area culture of “Jinsui revolutionary
base area” in Shanxi and the sustainable development of the educational business as well as inheriting the spirit of
arduous struggle for the nation and people of the older generation of revolutionaries, entered into the Donation
Agreement with Shanxi Jinsui Culture and Education Development Foundation (hereinafter referred to as “Jinsui
Foundation”), under which, the company would donate 3 million yuan to Shanxi Jinsui Culture and Education
Development Foundation freely from the its own fund.
During the reporting period, the Company actively followed up and supervised the use of donation funds for
poverty alleviation. In July 2017, Shanxi Province Jinsui Cultural and Educational Development Foundation has
set up the special commonweal fund "Special fund for Assistance of School Learn and Realizing Dreams ", which
is the Going-school assistance commonweal fund specifically used for helping the fresh high-school graduates
who have passed the graduation-year college entrance examination and would enter the college &universities
from martyrs families and poor families in the old revolutionary base areas of Shanxi Jinsui.


                                                                                                                            44
                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


The Foundation will carry out the organization and implementation work of the special fund in Xing County
Shanxi Province from July 2017 to September 2017. According to the commonweal purpose and the relevant
provisions of the foundation, this special fund in 2017 will provide no more than RMB 1 million to the 40 new
college students of poor families in Dai County Xinzhou City, the 100 new college students of poor families in
Xing County Luliang City and the 60 new college students of poor families in Shilou County Luliang City, thus to
help them go learning in the college and realize their college & university learning dream.

(2).Major environmental protection

The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
No

16.Other material events

□Applicable √ Not applicable
No such cases in the reporting period.

17. Material events of subsidiaries

□ Applicable √ Not applicable




                   VI. Change of share capital and shareholding of Principal Shareholders



1.Changes in share capital

(1). Changes in share capital



                                                                                                                                  In shares

                                Before the change                  Increase/decrease(+,-)                      After the Change

                                Amount         Proporti                  Capitaliz
                                                          Shar
                                                 on                      ation of
                                                           e     Bonus                                                          Proportio
                                                                         common      Other       Subtotal        Quantity
                                                          allot shares                                                             n
                                                                         reserve
                                                          ment
                                                                           fund

1.Shares with conditional
                            1,700,531,769 34.42%                                     -299,922    -299,922       1,700,231,847     34.42%
subscription

1. State-owned legal
                                  43,988,269     0.89%                                       0              0     43,988,269       0.89%
person shares


                                                                                                                                        45
                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


3.Other domestic shares         1,656,543,500 33.53%                            -299,922        -299,922   1,656,243,578   33.53%

Incl:Domestic legal
                                1,654,982,828 33.50%                                      0           0    1,654,982,828   33.50%
person shares

Domestic Natural Person
                                    1,560,672    0.03%                          -299,922        -299,922      1,260,750     0.03%
shares

II.Shares with
                                3,239,397,214 65.58%                             299,922        299,922    3,239,697,136   65.58%
unconditional subscription

1.Common shares in RMB          2,989,397,213 60.52%                             299,922        299,922    2,989,697,135   60.52%

2.Foreign shares in
                                  250,000,001    5.06%                                    0           0     250,000,001     5.06%
domestic market

III. Total of capital shares    4,939,928,983 100.00%                                     0           0    4,939,928,983 100.00%

Reasons for share changed:
√ Applicable □ Not applicable
On July 28, 2016, the general elections of the board of directors and the board of supervisors were completed.
After six months commenced from the date the directors, supervisors and senior executives leave the post, all the
shares held by such executives will become the outstanding shares.
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
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable

(2). Change of shares with limited sales condition

□ Applicable √ Not applicable

2.Issuing and listing

□ Applicable √ Not applicable

3. Shareholders and shareholding

                                                                                                                           In Shares

Total number of common                                                                    Total number of preferred
                               391,573(Including 373,915 shareholders holding A shares
shareholders at the end of                                                                shareholders that had restored         0
                                             and 17,658 shareholders holding B shares)
the                                                                                       the


                                                                                                                                 46
                                                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


reporting period                                                                            voting right at the end of the
                                                                                            reporting period (if any) (note
                                                                                            8)

                           Particulars about shares held above 5% by shareholders or top ten shareholders

                                                                                                                    Number os share
                                               Proporti Number of        Changes
                                  Nature of                                          Amount of       Amount of       pledged/frozen
                                                on of      shares held      in
          Shareholders            shareholde                                         restricted     un-restricted State
                                                shares      at period    reporting
                                        r                                            shares held     shares held   of         Amount
                                               held(%)      -end        period
                                                                                                                   share

                                  Domestic
                                  Non
Tunghsu Group                     -State-own 11.32% 558,968,800 0                    439,882,697 119,086,103 Pledge          558,962,697
                                  ed legal
                                  person

                                  Domestic
                                  Non
Shijiazhuang Baoshi Electronic
                                  -State-own     6.73% 332,382,171 0                               0 332,382,171 Pledge      153,520,000
Group Co., Ltd.
                                  ed legal
                                  person

China Fund Management Co.,
Ltd.-Huaxia Bank-TTCO
Trust Co., Ltd.-TTCO Trust       Other          4.51% 222,575,516 0                 222,575,516               0
Co., Ltd.-Shunjing No.5
Single capital trust

Sws Mu Fund Management
Co.,Ltd.-China Merchants
Bank-Huarun Shen State
                                  Other          2.25% 111,287,758 0                 111,287,758               0
investment trust-Ruihua
increase funds No. 2 Collective
capital trust plan

Penghua Fund-Ningbo Bank
-Daye Trust-Daye
TrustDongxu Optoelectronic        Other          2.25% 111,287,758 0                 111,287,758               0
increase funds II Single fund
trust

STAS Asset Management-
Ningbo Bank-Minsheng Trust
-China Minsheng TrustZhixin
                                  Other          2.25% 111,287,758 0                 111,287,758               0
No.208 Dongxu Optoelectronic
increase collective fund trust
plan



                                                                                                                                       47
                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                  Domestic
                                  Non
Shenzhen Taianer Information
                                  -State-own     2.24% 110,492,845 0                 110,492,845               0 Pledge   110,492,845
Technology Co., Ltd.
                                  ed legal
                                  person

                                  Domestic
                                  Non
Qianhai Equity Investment
                                  -State-own     2.24% 110,492,845 0                 110,492,845               0 Pledge      48,492,845
Fund (LP)
                                  ed legal
                                  person

Nuoan Fund-Industrial
Securities-Nanjing Shuangan       Other          2.24% 110,492,845 0                 110,492,845               0
Assets Management Co., Ltd.

Minsheng Royal Fund
Management Co., Ltd.-Ping An                                           -
Bank-Ping An Trust-Ping An        Other          2.09% 103,146,380 80,138,07                       0 103,146,380
Wealth* Huitai No.163 Single                                          7
Fund Trust

                                               Before the country's top ten shareholders of Shenzhen Taianer Information
Strategy investors or general legal person     Technology Co., Ltd. and Qianhai Equity Investment Fund (LP)
becomes top 10 shareholders due to rights       Where involved in the company in 2016 non-public offering to subscribe, became the
issued (if applicable)(See Notes 3)          top 10 shareholders. The sub-holding restricted period of 12 months, ie August
                                               28,2016 to August 17,2017.

                                               Among the shareholders , Tunghsu Group and Baoshi Group have relationship and
Notes to the related relationship between      constitute persons taking concerted action. The company does not know whether there
the top ten shareholders or their concerted    is relationship between other shareholders or whether they are persons taking
action                                         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                Share type
               Name of the shareholder
                                                        the end of the reporting period (Note 4)       Share type         Quantity

                                                                                                   RMB Common
Shijiazhuang Baoshi Electronic Group Co., Ltd.                                      332,382,171                              332,382,171
                                                                                                   shares

                                                                                                   RMB Common
Tunghsu Group                                                                       119,086,103                              119,086,103
                                                                                                   shares

Minsheng Royal Fund Management Co., Ltd.-Ping
                                                                                                   RMB Common
An Bank-Ping An Trust-Ping An Wealth* Huitai                                        103,146,380                              103,146,380
                                                                                                   shares
No.163 Single Fund Trust

HuaAn Future Asset-ICBC-No.1 Asset Management                                                      RMB Common
                                                                                     49,877,765                               49,877,765
Plan of Dongxu Optoelectronic’s Private Placement                                                 shares



                                                                                                                                     48
                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                                                                                 RMB Common
China Securities Finance Co., Ltd.                                                  34,080,112                            34,080,112
                                                                                                 shares

Bank of China-Huaxia New Economic Mixed                                                         RMB Common
                                                                                    34,078,650                            34,078,650
Securities Investment Funds                                                                      shares

                                                                                                 RMB Common
Huijin Asset Management Co., Ltd.                                                   24,205,500                            24,205,500
                                                                                                 shares

                                                                                                 RMB Common
Xie Xiantuan                                                                        17,044,700                            17,044,700
                                                                                                 shares

                                                                                                 RMB Common
Shen Jufeng                                                                          9,474,500                             9,474,500
                                                                                                 shares

                                                                                                 RMB Common
Wang Yong                                                                            7,780,000                             7,780,000
                                                                                                 shares

Explanation on associated relationship or consistent
                                                        The top 10 tradable shareholders of Shijiazhuang Baoshi Electronic Group C
action among the top 10 shareholders of
                                                        o., Ltd. and the top ten shareholders of Tunghsu
non-restricted negotiable shares and that between the
                                                        Group Co., Ltd. have relationship and constitute persons taking concerted act
top 10 shareholders of non-restricted negotiable
                                                        ion.
shares and top 10 shareholders

                                                        The top 10 tradable common shareholders Xie Xiantuan and Shen Jufeng by
                                                        Huatai Securities Co., Ltd..and Shanghai Securities Co., Ltd. customer
Notes to the shareholders involved in financing
                                                        credit-backed securities trading account were holding 17,044,700 shares,
securities (if any)(See Notes 4)
                                                        9,469,500 shares, accounting for0.35% 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.

4. 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.



                                      VII. Situation of the Preferred Shares


□Applicable √Not applicable

                                                                                                                                   49
                                               Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


The Company had no preferred shares in the reporting period




                                                                                                                  50
                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




              VIII. Information about Directors, Supervisors and Senior Executives


1. Change in shares held by directors, supervisors and senior executives

√ Applicable □Not applicable

                                                              Amount of Amount of                      Number of        Number of Number of
                                                                                            Shares
                                                 Shares        shares         shares                   restricted        restricted       restricted
                                                                                            held at
                                                 held     at increased decreased                         stock             stock            stock
                                       Office                                                the
    Name              Position                   the            at the        at the                   granted at        granted at       granted at
                                        status                                             year-end
                                                 year-beg reporting          reporting                    the           the reporting        the
                                                                                             ing
                                                 in(share) period(sha period(sha                       year-begin period(share year-ending
                                                                                           (share)
                                                                 re)            re)                      . share)             )            (share)

Li Zhaoting     Board chairman       In office            0              0             0           0                0                 0                0

Wang Lipeng Director,GM              In office            0              0             0           0                0                 0                0

                Director,
Gong Xin                             In office   100,000                 0             0 100,000          100,000                     0     100,000
                Board secretary

Zhang
                Independent director In office            0              0             0           0                0                 0                0
Shuangcai

Lu Guihua       Independent director In office            0              0             0           0                0                 0                0

Han Zhiguo      Independent director In office            0              0             0           0                0                 0                0

                  Chairman of the
Guo Chunlin          supervisory     In office            0              0             0           0                0                 0                0

                      committee

Xu Lingzhi      Supervisor           In office            0              0             0           0                0                 0                0

Chen Dewei      Supervisor           In office            0              0             0           0                0                 0                0

Xie Juwen       Supervisor           In office            0              0             0           0                0                 0                0

Wang
                Supervisor           In office            0              0             0           0                0                 0                0
Huanhuan

Wang
                Deputy GM            In office            0              0             0           0                0                 0                0
Jianqiang

Wang
                Deputy GM            In office            0              0             0           0                0                 0                0
Zhonghui

Liu Wentai      Deputy GM            In office   125,000                 0             0 125,000          150,000                     0     150,000

Wang
                Deputy GM            In office            0              0             0           0                0                 0                0
Junming

Huang           CFO                  In office            0              0             0           0                0                 0                0


                                                                                                                                                       51
                                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Jinliang

Zhou Bo          Director, CFO     Dimission          0          0          0        0            0             0         0

Total                    --            --        225,000         0          0 225,000      250,000              0   250,000


2. Change in shares held by directors, supervisors and senior executives

√ Appicable □Not applicable

        Name           Positions        Types                        Date                              Reason

Zhou Bo            Director,CFO    Dimission         April 28,2017                        Job change

Huang Jinliang     CFO             Appointment       April 28,2017                        New Appointment




                                                                                                                          52
                                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




                                                   IX. Corporate Bond

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
Yes


1. Basic information of the corporate bonds


                                                                                  Bond
                         Abbreviated                                                          Interes Method of repayment of the
Bond Name                                 Code        Issue Date Date Due         Balance(R
                         Bond Name                                                            t Rate principal and interest payment
                                                                                  MB’0000)

2015- corporate                                                                                       Interest paid every year, the
bond of Dongxu           15 Dongxu                    May                                             principal will be repaid with the
                                          112243                   May 19,2020        100,000 6.00%
Optoelectronic           bonds                        19,2015                                         last unpaid interest in one time as
Technology Co., Ltd                                                                                   the bond due

Listed place or Transaction place for
                                          Shenzhen Stock Exchange
the corporate bonds

Arrangement of investor’s eligibility    Investor’s puttable right

Information about interest paid and
                                          The first period bond interest 60,000,000.00 was paid in full amount on schedule in the
bonds honored during the reporting
                                          current period.
period

Implementation of relevant special
clauses(if applicable) such as option
                                          None happened in the reporting period
clause for the 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
                  Guangzhou                                                                     Shi Jianhua,
                                     Business    International Finance Center, No.5                            Telepho
Name              Securities Co.,                                                     Contacts Yan                       020-88836999
                                     Address     Zhujiang West Road, Tianhe                                    ne
                  Ltd.                                                                          Xiangjun
                                                 District Guangzhou City

The credit rating agency who follow up and rate the corporate bonds in the reporting period:

                                                                       Business        Room 508 Ailiyuan Apartment, No.38 Water
Name              United Rating Co.,Ltd
                                                                       Address         Park North Road, Nankai District, Tianjin City




                                                                                                                                          53
                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


3.Information about the use of the funds raised by issuing corporate bonds


The information of the use of the funds raised Using the funds raised by issuing corporate bonds strictly conforming to the purpose
by issuing corporate bonds and related            stipulated by Rules of Management and Use of the Raised Funds and the Prospectus,
implementation procedure                          and implemented the corresponding approval procedures

Operation status of the special account for the
                                                  Normal
raised funds

Whether the use of the raised funds
conforming to the purpose, use plan and other The use of the raised funds conformed to the purpose promised in the Prospectus
provisions specified in the Prospectus


4. Information about the rating of the corporate bonds

    On May 24,2017, United Ratings Co., Ltd. issued trace rating report LHPZ [2017] No. 448 based on the
company’s 2016 Annual Report. This rating result is long-term credit rating AA+ and its outlook is "Steady".“"15
Dongxu bond" bond credit rating of 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.
Safeguard measures for the repayment
I. A designated special department in charge of the repayment working

                                                                                                                                  54
                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


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
significantly impact the repaying of the interest and principal or circumstances specified by laws, administrative
regulations and stipulations by the CSRC or exchange.


                                                                                                                    55
                                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


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 2017, 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

                               As at the end of the reporting
                Items                                            As at the end of last year     YoY+/-(%)he same period
                                          period

Current ratio                                        331.70%                         380.90%                        -49.20%

Debt ratio                                              50.52%                        50.73%                         -0.21%

Quick ratio                                          296.36%                         316.23%                        -19.87%



                                     Reporting period             Same period of last year            YoY+/-(%)

EBITDA/Total debts                                      2.8326                         2.9984                        -5.53%

Interest coverage ratio                              100.00%                         100.00%                         0.00%

Cash interest coverage ratio                         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


                                                                                                                            56
                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


year
□ Applicable √ Not applicable

9. The company fails to repay the debt

□ Applicable √ Not applicable
No such cases in the reporting period.

10. Information about the repayment of interest and principal for other bonds or debt financing instruments

1. Bonds issuing, interest payment and cashing within the report period
The company 8th Board of Directors approved the application to National Association of Financial Market
Institutional Investors (NAFMII) for registration and issuance of less than 4.7 billion yuan medium term note on
September 8, 2016. The extraordinary general shareholders’ meeting was convoked on September 26, 2016 and
approved the program concerning the proposed registration and issuance of the medium term note. The medium
term note in 2016 was 4.7 billion yuan in two periods including the first period with two types of (3+2 years) and
5 years totaling up to 3 billion yuan and the second period with two types of (3+2 years) and 5 years totaling up to
1.7 billion yuan, which would both adopt the interest payment per year, principal repayment upon expiration and
the interest payment together with the principal cashing for the last period. The interest payment period has not
expires within the report period and the interest accrued was 23,924,931.51 yuan.
2. Unmatured bonds issuing, interest payment and cashing in previous years
As approved by China Securities Regulatory Commission file of ZJXK[2015] No. 635, the company issued
toward the public 1 billion bones on May 19, 2015 and the first period bond interest 60,000,000.00 was paid in
full amount on schedule in the current period.

11.Information about the bank credit obtaining and use, as well as repayment of the bank loans during the
reporting period

12. 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.

13. Major events occurred during the reporting period

14. Whether the corporate bonds have a guarantor

□ Yes √No




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                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




                                         X. Financial Report

I. Auditor’s report

Whether the semi-annual report is audited
√ Yes □No

Type of audit opinion                                    Standard Unqualified Audit Opinion

Date for signing the auditor’s report                   August 10,2017

Name of audit firm                                       Zhongxingcai Guanghua Certified Public Accountants (LLP)

The audit report number                                  ZXCGHSZZD(2017)No.:105085

Name of the certified accountants                        Qi Zhenghua, Meng Xiaoguang

Whether the semi-annual report is non-standard audit 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 30,2017
                                                                                                               In RMB

                   Items                       Year-end balance                       Year-beginning balance

              Current asset:

              Monetary fund                               22,873,558,641.80                         26,056,117,216.86

          Settlement provision

Outgoing call loan

  Financial assets measured at fair
value with variations accounted into
current income account

     Derivative financial assets

 Bill receivable                                              94,998,273.32                             55,340,287.95

 Account receivable                                        2,341,912,029.32                          1,652,714,640.77

  Prepayments                                              1,800,672,152.60                            862,432,895.10

 Insurance receivable

Reinsurance receivable



                                                                                                                    58
                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Provisions of Reinsurance contracts
receivable

  Interest receivable                                 16,239,166.23

  Dividend receivable

 Other account receivable                          1,028,308,709.54                            186,071,085.24

 Repurchasing of financial assets

 Inventories                                       3,670,952,734.10                          2,688,967,436.27

  Assets held for sales                                3,855,435.58

  Non-current asset due in 1 year

  Other current asset                              2,624,314,218.42                          3,203,453,317.38

Total of current assets                           34,454,811,360.91                         34,705,096,879.57

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                   477,648,310.87                             72,354,803.70

 Property investment                                  58,974,678.04

  Fixed assets                                     9,068,489,094.66                          8,952,341,070.47

  Construction in progress                         2,457,153,171.64                          1,772,629,310.84

Engineering material                                                                               304,468.05

  Fixed asset disposal

  Production physical assets

 Gas & petrol

 Intangible assets                                   570,576,105.15                            578,194,545.68

 R & D petrol                                          1,941,747.58

 Goodwill                                             67,977,513.17                             33,935,384.57

Long-germ expenses to be amortized                    16,507,614.66                             11,756,506.76

Differed income tax asset                            302,145,572.07                            312,555,500.36

 Other non-current asset                             270,262,370.83                            387,151,100.41

Total of non-current assets                       13,295,531,614.25                         12,121,222,690.84

Total of assets                                   47,746,487,539.58                         46,826,319,570.41

Current liabilities

  Short-term loans                                 4,474,513,562.31                          4,940,816,200.13


                                                                                                            59
                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


 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                                         219,260,464.01                            393,136,676.05

  Account payable                                    1,218,159,019.40                          1,165,418,491.73

 Advance payment                                       742,441,952.77                            414,078,061.38

 Selling of repurchased financial assets

Fees and commissions receivable

 Employees’ wage payable                               45,837,714.84                             42,851,392.30

 Tax payable                                           136,565,229.52                            224,310,530.71

 Interest payable                                      178,823,882.97                             81,610,513.91

 Dividend payable                                       62,702,011.96                             30,000,000.00

  Other account payable                                130,162,161.94                            114,993,136.80

 Reinsurance fee payable

 Insurance contract provision

 Entrusted trading of securities

Entrusted selling of securities

  Liabilities held for sales

Non-current liability due in 1 year                  3,083,133,090.74                          1,618,589,512.42

Other current liability                                 95,735,818.64                             85,535,473.05

Total of current liability                          10,387,334,909.10                          9,111,339,988.48

Non-current liabilities:

  Long-term loan                                     5,830,941,823.23                          6,596,159,000.00

 Bond payable                                        5,660,557,536.50                          5,653,912,494.73

  Including:preferred stock

             Sustainable debt

  Long-term payable                                  1,366,525,476.86                          1,514,308,568.67

  Long-term payable employees’s
remuneration

 Special payable

 Expected liabilities


                                                                                                              60
                                              Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


     Differed income                                       375,000,727.41                           380,949,662.27

  Differed income tax liability                                 401,452.67                              413,257.79

Other non-current liabilities                              500,000,000.00                           500,000,000.00

Total non-current liabilities                            13,733,427,016.67                       14,645,742,983.46

Total of liability                                       24,120,761,925.77                       23,757,082,971.94

Owners’ equity

  Share capital                                           4,939,928,983.00                        4,939,928,983.00

     Other equity instruments

  Including:preferred stock

             Sustainable debt

 Capital reserves                                        15,207,757,024.07                       15,207,210,810.89

  Less:Shares in stock                                        4,422,320.00                           4,422,320.00

        Other comprehensive income                                -1,368.93

Special reserves

  Surplus reserves                                         188,044,070.48                           188,044,070.48

 Common risk provision

Undistributed profit                                      2,175,599,543.05                        1,885,538,821.49

Total of owner’s equity belong to the
                                                         22,506,905,931.67                       22,216,300,365.86
parent company

Minority shareholders’ equity                            1,118,819,682.15                          852,936,232.61

Total of owners’ equity                                 23,625,725,613.81                       23,069,236,598.47

Total of liabilities and owners’ equity                 47,746,487,539.58                       46,826,319,570.41


Legal representative :Li Zhaoting

Person-in-charge of the accounting work:Huang Jinliang

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                                            10,805,236,113.83                       16,951,756,537.76

Financial assets measured at fair value


                                                                                                                 61
                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


with variations accounted into current
income account

  Derivative financial assets

 Bill receivable                                         450,000.00                                946,400.00

 Account receivable                                   14,559,673.35                             19,896,753.26

  Prepayments                                          9,921,641.91                              4,280,852.37

  Interest receivable

  Dividend receivable                                                                          570,000,000.00

Other account receivable                           7,811,632,642.58                          4,925,419,456.78

  Inventories                                        479,930,164.82                            500,254,494.97

Assets held for sales

  Non-current asset due in 1 year

Other current asset                                1,501,365,249.58                          2,000,019,211.84

Total of current assets                           20,623,095,486.07                         24,972,573,706.98

Non-current assets:

  Disposable financial asset

Expired investment in possess

 Long-term receivable

 Long term share equity investment                15,476,184,303.46                         11,373,791,986.49

 Property investment

  Fixed assets                                        46,995,082.55                             49,516,721.87

  Construction in progress

Engineering material

  Fixed asset disposal

  Production physical assets

 Gas & petrol

Intangible assets                                      9,784,286.69                              9,951,171.11

 R & D petrol

 Goodwill

Long-germ expenses to be amortized

Differed income tax asset                                337,853.35                              3,712,603.85

 Other non-current asset                               1,381,400.00

Total of non-current assets                       15,534,682,926.05                         11,436,972,483.32

Total of assets                                   36,157,778,412.12                         36,409,546,190.30

Current liabilities


                                                                                                            62
                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


  Short-term loans                                 2,660,000,000.00                          3,242,500,000.00

Financial liabilities measured at fair
value with variations accounted into
current income account

  Derivative financial liabilities

  Bill payable                                                                                 159,820,750.00

  Account payable                                    146,849,648.18                            147,012,816.26

 Advance payment                                         421,587.90                                 10,587.90

 Employees’ wage payable                              3,845,281.50                              3,700,741.68

 Tax payable                                          19,655,819.05                             20,970,299.00

 Interest payable                                    168,253,395.67                             72,569,720.24

 Dividend payable                                     62,702,011.96

  Other account payable                            2,802,343,584.48                          2,889,692,312.04

  Liabilities held for sales

Non-current liability due in 1 year                1,775,233,333.36                            400,005,000.00

Other current liability

Total of current liability                         7,639,304,662.10                          6,936,282,227.12

Non-current liabilities:

  Long-term loan                                   2,535,266,666.62                          2,887,600,000.00

 Bond payable                                      5,660,557,536.50                          5,653,912,494.73

  Including:preferred stock

             Sustainable debt

  Long-term payable

     Employees’ wage payable

     Special payable

 Expected liabilities

Differed income

Differed income tax liability

  Other non-current liabilities

Total of Non-current liabilities                   8,195,824,203.12                          8,541,512,494.73

Total of liability                                15,835,128,865.22                         15,477,794,721.85

Owners’ equity

        Share capital                              4,939,928,983.00                          4,939,928,983.00

  Other equity instrument

  Including:preferred stock


                                                                                                            63
                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


             Sustainable debt

 Capital reserves                                   15,130,988,536.27                         15,130,191,736.27

  Less:Shares in stock                                     4,422,320.00                           4,422,320.00

  Other comprehensive income

Special reserves

Surplus reserves                                       169,054,846.15                            169,054,846.15

Undistributed profit                                       87,099,501.48                         696,998,223.03

Total of owners’ equity                            20,322,649,546.90                         20,931,751,468.45

Total of liabilities and owners’ equity            36,157,778,412.12                         36,409,546,190.30


3.Consolidated income statement

                                                                                                         In RMB

                    Items                  Report period                   Same period of the previous year

I. Income from the key business                      4,641,285,527.91                          2,882,059,154.41

Incl:Business income                                4,641,285,527.91                          2,882,059,154.41

     Interest income

 Insurance fee earned

Fee and commission received

II. Total business cost                              3,925,002,093.95                          2,325,029,677.70

Incl:Business cost                                  3,338,875,149.90                          1,938,309,643.65

      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                            45,165,094.52                          20,441,727.88

     Sales expense                                         29,084,235.15                          31,577,716.56

 Administrative expense                                193,715,154.96                            236,706,264.85

    Financial expenses                                 317,954,221.40                             94,439,392.61

 Asset impairment loss                                        208,238.02                           3,554,932.15

 Add:Gains from change of fir value
(“-”for loss)



                                                                                                              64
                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


  Investment gain(“-”for loss)                         6,676,924.21                                 81,758.31

  Incl: investment gains from affiliates                 -15,506,492.83                                 81,758.31

     Gains from currency exchange
(“-”for loss)

         Other income                                     86,680,000.00

III. Operational profit(“-”for loss)                 809,640,358.17                            557,111,235.02

     Add :Non-operational income                         66,069,887.52                            103,509,279.68

  Including:Income from disposal of
non-current assets

  Less:Non business expenses                                450,171.43                                 12,489.34

Incl:Loss from disposal of non-current
                                                              30,537.14                                  4,430.74
assets

IV.Total profit(“-”for loss)                           875,260,074.26                            660,608,025.36

Less:Income tax expenses                                179,430,671.23                             90,283,601.51

V. Net profit                                            695,829,403.03                            570,324,423.85

Net profit attributable to the owners of
                                                         635,855,750.37                            545,963,710.72
parent company

Minority shareholders’ equity                            59,973,652.66                             24,360,713.13

VI. Other comprehensive income                                 -1,368.93

Net of profit of other comprehensive inco
me attributable to owners of the parent co                     -1,368.93
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                        -1,368.93
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


                                                                                                                65
                                               Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


alue available for sale financial assets

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
                                                                    -1,368.93
ncial statements

6.Other

Net of profit of other comprehensive inco
me attributable to Minority shareholders’
equity

VII. Total comprehensive income                                695,828,034.10                         570,324,423.85

Total comprehensive income attributable
                                                               635,854,381.44                         545,963,710.72
to the owner of the parent company

 Total comprehensive income
                                                                59,973,652.66                          24,360,713.13
attributable minority shareholders

VIII. Earnings per share

(I)Basic earnings per share                                            0.13                                      0.14

 (II)Diluted earnings per share                                          0.13                                      0.14

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:Huang Jinliang

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                                38,597,681.18                          383,847,821.44

Incl:Business cost                                            28,092,263.28                          236,140,885.06

Business tax and surcharge                                      3,585,313.26                              521,358.24

     Sales expense                                                                                        684,247.25

 Administrative expense                                        22,819,056.56                           27,351,438.20

   Financial expenses                                      251,791,850.48                              75,426,926.67


                                                                                                                     66
                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


 Asset impairment loss                                      -279,738.15                                230,615.03

  Add:Gains from change of fir value
(“-”for loss)

  Investment gain(“-”for loss)                         6,675,734.01                                 81,758.31

  Incl: investment gains from affiliates                 -15,507,683.03                                 81,758.31

           Other income

II. Operational profit(“-”for loss)                 -260,735,330.24                             43,574,109.30

     Add :Non-operational income                              6,388.00                                 51,255.93

  Including:Income from disposal
of non-current assets
Less:Non business expenses
Incl:Loss from disposal of
non-current assets
III.Total profit(“-”for loss)                         -260,728,942.24                             43,625,365.23

 Less:Income tax expenses                                 3,374,750.50                              6,546,013.74

IV. Net profit(“-”for net loss)                     -264,103,692.74                             37,079,351.49

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


                                                                                                                67
                                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


4.The effective portion of cash flow hed
ges and losses


5.Translation differences in currency fin
ancial statements

              6.Other

VI. Total comprehensive income                          -264,103,692.74                             37,079,351.49

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
                                                       4,944,527,769.84                          3,428,041,704.57
            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                                           71,010,781.41                         121,533,678.40

Other cash received from business
                                                            205,407,031.15                         160,131,838.12
operation



                                                                                                                68
                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


   Sub-total of cash inflow                            5,220,945,582.40                          3,709,707,221.09

Cash paid for purchasing of
                                                       5,057,263,911.26                          1,610,664,099.74
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                   237,953,186.59                            292,568,158.80

 Taxes paid                                              531,991,037.56                            313,119,724.25

Other cash paid for business activities                  808,099,133.96                            212,246,295.36

Sub-total of cash outflow from business
                                                       6,635,307,269.37                          2,428,598,278.15
  activities

Cash flow generated by business
                                                      -1,414,361,686.97                          1,281,108,942.94
operation, net

II.Cash flow generated by investing

Cash received from investment
                                                       5,399,999,000.00
retrieving

Cash received as investment gains                         22,183,417.04

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                       190,962.49                              6,120,000.00

Sub-total of cash inflow due to
                                                       5,422,373,379.53                              6,120,000.00
investment activities

Cash paid for construction of
fixed assets, intangible assets                        1,215,593,735.72                            306,468,934.04
and other long-term assets

Cash paid as investment                                5,375,599,000.00                            299,846,640.00

Net increase of loan against pledge

Net cash received from subsidiaries and
                                                           2,886,994.56                              7,619,727.41
other operational units

Other cash paid for investment                            50,000,000.00


                                                                                                                69
                                               Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


activities

Sub-total of cash outflow due to
                                                          6,644,079,730.28                           613,935,301.45
investment activities

Net cash flow generated by investment                    -1,221,706,350.75                          -607,815,301.45

III.Cash flow generated by financing

Cash received as investment                                 185,130,000.00                            81,000,000.00

Incl: Cash received as investment from
                                                            185,130,000.00                            81,000,000.00
minor shareholders

Cash received as loans                                    3,252,676,666.66                         4,077,100,000.00

Cash received from bond placing

Other financing –related ash received                      235,701,557.06                         1,878,688,941.32

Sub-total of cash inflow from financing
                                                          3,673,508,223.72                         6,036,788,941.32
activities

Cash to repay debts                                       2,975,447,331.44                         2,251,801,800.00

Cash paid as dividend, profit, or
                                                            732,650,977.80                           598,359,752.63
interests

Incl: Dividend and profit paid by
                                                             30,000,000.00
subsidiaries to minor shareholders

Other cash paid for financing activities                    449,714,523.33                            94,762,604.60

Sub-total of cash outflow due to
                                                          4,157,812,832.57                         2,944,924,157.23
financing activities

Net cash flow generated by financing                       -484,304,608.85                         3,091,864,784.09

IV. Influence of exchange rate
                                                              8,712,454.36                             9,759,201.83
alternation on cash and cash equivalents

V.Net increase of cash and cash
                                                         -3,111,660,192.21                         3,774,917,627.41
equivalents

Add: balance of cash and cash
                                                         25,037,335,091.60                        11,964,769,404.73
equivalents at the beginning of term

VI ..Balance of cash and cash
                                                         21,925,674,899.39                        15,739,687,032.14
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
                                                             51,105,726.47                           404,441,782.23
rending of services


                                                                                                                  70
                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


 Tax returned

Other cash received from business
                                                       4,513,958,096.78                            200,000,000.00
operation

Sub-total of cash inflow                               4,565,063,823.25                            604,441,782.23

Cash paid for purchasing of
                                                         172,870,594.52                            363,482,385.72
merchandise and services

Cash paid to staffs or paid for staffs                     5,039,091.78                              5,700,415.82

Taxes paid                                                 8,445,826.76                              9,832,273.74

Other cash paid for business activities                7,197,399,250.81                            878,044,549.66

Sub-total of cash outflow from business
                                                       7,383,754,763.87                          1,257,059,624.94
  activities

Cash flow generated by business
                                                      -2,818,690,940.62                           -652,617,842.71
operation, net

II.Cash flow generated by investing

Cash received from investment
                                                       5,399,999,000.00
retrieving

Cash received as investment gains                        592,183,417.04

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
                                                       5,992,182,417.04                              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                           9,117,899,000.00                          1,392,801,140.00

Net cash received from subsidiaries and
other operational units

Other cash paid for investment
                                                         170,000,000.00
activities

Sub-total of cash outflow due to
                                                       9,287,899,000.00                          1,392,808,940.00
investment activities

Net cash flow generated by investment                 -3,295,716,582.96                         -1,386,688,940.00

III.Cash flow generated by financing



                                                                                                                71
                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


  Cash received as investment

     Cash received as loans                                              2,016,666,666.66                               3,062,700,000.00

 Cash received from bond placing

Other financing –related ash received                                    108,271,893.76                                  70,281,601.36

 Sub-total of cash inflow from
                                                                         2,124,938,560.42                               3,132,981,601.36
financing activities

Cash to repay debts                                                      1,576,266,666.68                               1,220,000,000.00

Cash paid as dividend, profit, or
                                                                          552,539,171.23                                 389,290,594.79
interests

Other cash paid for financing activities                                   28,679,113.18                                 245,087,948.72

 Sub-total of cash outflow due to
                                                                         2,157,484,951.09                               1,854,378,543.51
financing activities

Net cash flow generated by financing                                       -32,546,390.67                               1,278,603,057.85

IV. Influence of exchange rate
                                                                              433,490.32
alternation on cash and cash equivalents

V.Net increase of cash and cash
                                                                        -6,146,520,423.93                               -760,703,724.86
equivalents

Add: balance of cash and cash
                                                                      16,951,756,537.76                                 9,835,157,652.41
equivalents at the beginning of term

VI ..Balance of cash and cash
                                                                        10,805,236,113.83                               9,074,453,927.55
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

                       4,939,                       15,207,                                                   1,885,5             23,069,
I.Balance at the                                              4,422,3                       188,044                     852,936
                       928,98                      210,810                                                    38,821.             236,598
end of last year                                               20.00                        ,070.48                     ,232.61
                         3.00                           .89                                                       49                  .47



                                                                                                                                       72
                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Add: Change of
     accounting
     policy

Correcting of
previous errors

Merger of entities
under common
control

          Other

II.Balance at the        4,939,   15,207,                                           1,885,5             23,069,
                                            4,422,3                188,044                    852,936
beginning of             928,98   210,810                                           38,821.             236,598
                                             20.00                  ,070.48                   ,232.61
current year               3.00       .89                                                49                 .47

III.Changed in the                546,213             -1,368.9                      290,060 265,883 556,489
current year                          .18                   3                       ,721.56 ,449.54 ,015.35

(1)Total
                                                                                    635,855 59,973, 695,829
comprehensive
                                                                                    ,750.37 652.66 ,403.03
income

(II)Investment
                                                                                              186,888 187,434
or decreasing of
                                                                                              ,381.50 ,594.68
capital by owners

1.Ordinary Share
                                  546,213                                                     186,888 186,888
s invested by share
                                      .18                                                     ,381.50 ,381.50
holders

2 . Holders of oth
er equity instrume
nts invested capital

3.Amount of
shares paid and
accounted as
owners’ equity

                                  546,213                                                               546,213
4.Other
                                      .18                                                                   .18

                                                                                    -345,79             -345,79
(III)Profit
                                                                                    5,028.8             5,028.8
allotment
                                                                                          1                  1

1.Providing of
surplus reserves

 2.Providing        of
common            risk
provisions


                                                                                                             73
                                                              Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


3.Allotment to the                                                                                        -345,79            -345,79
owners (or                                                                                                 5,028.8            5,028.8
shareholders)                                                                                                   1                  1

       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                                                                      5,289,1                                 5,289,1
year                                                                                    90.20                                  90.20

                                                                                      -5,289,1                                5,289,1
2.Used this term
                                                                                        90.20                                  90.20

                                                                           -1,368.9                                  19,021, 19,020,
  (VI)Other
                                                                                 3                                   415.38 046.45

                       4,939,                           15,207,                                            2,175,5 1,118,8 23,625,
IV. Balance at the                                                4,422,3 -1,368.9               188,044
                       928,98                          757,024                                             99,543. 19,682. 725,613
end of this term                                                   20.00         3               ,070.48
                         3.00                               .07                                                05        15       .82

Amount in last year
                                                                                                                              In RMB

                                                                       Amount in last year

                                               Owner’s equity Attributable to the Parent Company

                                   Other Equity                                                                           Total
                                                                                                                     Minor
        Items
                                  instrusment                        Other                    Commo                        of
                       Share                                 Less:          Speciali                   Attribut shareho
                                                   Capital          Compre           Surplus n risk                      owner
                       Capita prefer                        Shares            zed                        able    lders’
                                     Sustai       reserves          hensive          reserves provisio                     s’
                         l     red          Other          in stock         reserve                     profit equity
                                     nable                          Income                       n                       equity
                                stock
                                        debt



                                                                                                                                   74
                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                       3,835,   9,391,3                                                                14,561,
I.Balance at the                          9,011,5                132,723          969,380 241,966
                       000,52   88,905.                                                                448,764
end of last year                            20.00                ,528.42           ,500.97 ,823.32
                         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

                       1,104,   5,815,8                                                                8,507,7
III.Changed in the                        -4,589,2               55,320,          916,158 610,969
                       928,45   21,905.                                                                87,833.
current year                                00.00                 542.06           ,320.52 ,409.29
                         7.00       00                                                                     87

(1)Total                                                                         1,239,9             1,310,5
                                                                                             70,595,
comprehensive                                                                      28,899.             24,656.
                                                                                              756.94
income                                                                                 40                  34

(II)Investment       1,104,   5,815,8                                                                7,446,5
                                          -4,589,2                                           521,242
or decreasing of       928,45   21,905.                                                                82,118.
                                            00.00                                            ,556.53
capital by owners        7.00       00                                                                     53

1.Ordinary Share 1,104,        5,805,5                                                                7,431,6
                                                                                             521,242
s invested by share 928,45      07,668.                                                                78,682.
                                                                                             ,556.53
holders                  7.00       84                                                                     37

2 . Holders of oth
er equity instrume
nts invested capital

3.Allotment to the
                                          -4,589,2                                                     4,589,2
owners (or
                                            00.00                                                        00.00
shareholders)

                                10,314,                                                                10,314,
     4.Other
                                236.16                                                                  236.16

(IV) Internal                                                                     -323,77              -298,45
                                                                 55,320,                     -30,000
transferring of                                                                    0,578.8             0,036.8
                                                                  542.06                     ,000.00
owners’ equity                                                                         8                   2

1. Capitalizing of                                               55,320,          -55,320,
capital reserves (or                                              542.06           542.06


                                                                                                             75
                                                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


to capital shares)

2. Capitalizing of
surplus reserves
(or to capital
shares)

3.Making up                                                                                                        -268,45                  -298,45
                                                                                                                                  -30,000
losses by surplus                                                                                                    0,036.8                 0,036.8
                                                                                                                                  ,000.00
reserves.                                                                                                                    2                       2

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                                                                        5,758,1                                              5,758,1
year                                                                                     64.61                                                 64.61

                                                                                     -5,758,1                                               -5,758,1
2.Used this term
                                                                                         64.61                                                 64.61

                                                                                                                                  49,131, 49,131,
  (VI)Other
                                                                                                                                   095.82 095.82

                     4,939,                         15,207,                                                          1,885,5                 23,069,
IV. Balance at the                                                4,422,3                         188,044                        852,936
                     928,98                        210,810                                                           38,821.                236,598
end of this term                                                    20.00                          ,070.48                        ,232.61
                       3.00                                .89                                                            49                     .47


8.Statement of change in owner’s Equity of the Parent Company

Amount in this period


                                                                                                                                             In RMB

                                                                       Amount in this period

                              Other Equity instrusment                                     Other
                                                                             Less:                               Common Attribut Total of
       Items          Share                                      Capital                 Compreh      Surplus
                              preferre                                      Shares in                              risk          able       owners’
                     Capita              Sustain   Other         reserves                 ensive      reserves
                              d stock                                        stock                               provision       profit     equity
                                          able                                            Income



                                                                                                                                                     76
                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                   debt

I.Balance at the 4,939,92                 15,130,19 4,422,320                      169,054,8 696,998 20,931,75
end of last year        8,983.00           1,736.27       .00                          46.15 ,223.03 1,468.45

Add: Change of
     accounting
     policy

Correcting         of
previous errors

          Other

II.Balance at the
                        4,939,92          15,130,19 4,422,320                      169,054,8 696,998 20,931,75
beginning          of
                        8,983.00           1,736.27       .00                          46.15 ,223.03 1,468.45
current year

                                                                                             -609,89
III.Changed in the                        796,800.0                                                    -609,101,
                                                                                             8,721.5
current year                                      0                                                      921.55
                                                                                                   5

(I)Total                                                                                   -264,10
                                                                                                       -264,103,
comprehensive                                                                                3,692.7
                                                                                                         692.74
income                                                                                             4

(II) Investment or
                                          796,800.0                                                    796,800.0
decreasing of
                                                  0                                                           0
capital by owners

1.Ordinary Share
s invested by share
holders

2 . Holders of oth
er equity instrume
nts invested capital

3.Amount of
shares paid and
accounted as
owners’ equity

                                          796,800.0                                                    796,800.0
4.Other
                                                  0                                                           0

                                                                                             -345,79
(III)Profit                                                                                          -345,795,
                                                                                             5,028.8
allotment                                                                                                028.81
                                                                                                   1

1.Providing of
surplus reserves

2.Allotment to the                                                                          -345,79 -345,795,
owners (or                                                                                   5,028.8     028.81


                                                                                                              77
                                                                Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


shareholders)                                                                                                                       1

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 4,939,92                                     15,130,98 4,422,320                            169,054,8 87,099, 20,322,64
end of this term          8,983.00                               8,536.27           .00                            46.15   501.48 9,546.90

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 3,835,00                                       9,321,098 9,011,520                            113,734,3 467,563 13,728,38
end of last year          0,526.00                                ,967.43           .00                            04.09 ,381.30 5,658.82

Add: Change of
       accounting
       policy

Correcting           of
previous errors


                                                                                                                                                 78
                                     Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


          Other

II.Balance at the
                          3,835,00   9,321,098 9,011,520                      113,734,3 467,563 13,728,38
beginning            of
                          0,526.00     ,967.43         .00                        04.09 ,381.30 5,658.82
current year

III.Changed in the 1,104,92          5,809,092 -4,589,20                      55,320,54 229,434 7,203,365
current year              8,457.00     ,768.84       0.00                          2.06 ,841.73       ,809.63

(I)Total
                                                                                          553,205 553,205,4
comprehensive
                                                                                          ,420.61      20.61
income

(II) Investment or
                          1,104,92   5,809,092 -4,589,20                                            6,918,610
decreasing of
                          8,457.00     ,768.84       0.00                                             ,425.84
capital by owners

1.Ordinary Share
                          1,104,92   5,805,507                                                      6,910,436
s invested by share
                          8,457.00     ,668.84                                                        ,125.84
holders

2 . Holders of oth
er equity instrume
nts invested capital

3.Amount of
shares paid and                                  -4,589,20                                          4,589,200
accounted as                                         0.00                                                 .00
owners’ equity

                                     3,585,100                                                      3,585,100
4.Other
                                           .00                                                            .00

                                                                                          -323,77
(III)Profit                                                                 55,320,54             -268,450,
                                                                                          0,578.8
allotment                                                                          2.06               036.82
                                                                                                8

1.Providing of                                                                55,320,54 -55,320,
surplus reserves                                                                   2.06    542.06

2.Allotment to the                                                                       -268,45
                                                                                                    -268,450,
owners (or                                                                                0,036.8
                                                                                                      036.82
shareholders)                                                                                   2

3.Other

(IV)Internal
transferring of
owners’ equity

 1. Capitalizing of
capital reserves (or
to capital shares)

 2. Capitalizing of


                                                                                                           79
                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


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 4,939,92                       15,130,19 4,422,320                      169,054,8 696,998 20,931,75
end of this term    8,983.00                       1,736.27       .00                          46.15 ,223.03 1,468.45


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.
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


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                                                    Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


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.
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 on the basis of the general capital of 903 million on December 31,
2013. Thus, the registered capital of RMB1806 million applied to add by the company should be transferred into the
share capital by the capital reserve with the reference date on May 27, 2014, 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 ZJXK [2016] NO. 1322 document On the Approval of Non-public Stock to Dongxu Photoelectric S
cience&Technology Co. Ltd permitted by China Securities Regulatory Commission and also was resolved in the 7
th board of the forty-eight meeting and the first extraordinary shareholders' general meeting , it is approved that t
he company issues new shares less than 1,104,928,457.00 privately. The planned number of privately issued stock
s is less than (including) 1,104,928,457.00. The actual issuance number of the stock is 1,104,928,457.00, and the
modified equity capital is 4,939,928,983.00 yuan.

  As of June 30, 2017, Registered capital :RMB 4,939,928,983.00, 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.


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                                                   Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Dongxu Optoelectronic Parent Company is the Tunghsu Group,Uitimate controller is Li Zhaoting.
In the reporting period, 16 subsidiaries and 29 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 11 companies year on year at this reporting period, see details at Note 6“Change of
Consolidation Scope”
Financial statements and notes to the financial statements approved at the 20th meeting of the 8th Board of of
Directors on August 10, 2017.
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
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. (Can not operate the laws, regulations and the State Council decided to ban or
restrict, ; can operate after get approval from other departments).

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 Estimations

Important prompt:
    Nil




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                                                   Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


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
30,2017 , operational results, cash flow, and other relevant information of January –June 2017.

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
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

                                                                                                                      83
                                                    Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


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
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.

                                                                                                                       84
                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


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
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.

                                                                                                                     85
                                                   Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




   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, 13
“Long-term Equity Investment” or Notes 3, 10 “Financial Instruments”.
For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till the
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 13, (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.Joint venture arrangements classification and Co-operation accounting treatment




                                                                                                                      86
                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


     Joint enterprise arrangement is two or more parties jointly control the enterprise. The company enjoys rights
and bears obligations based on joint enterprise arrangement. Joint enterprise arrangement is composed of joint
operation and joint enterprises. Joint operation means the company has the right to arrange related assets and
related liabilities. Joint enterprises means the company only has the right to arrange the net asset.

     The company adopts equity method to calculate investment to joint enterprises by referring to accounting
policies stated in "Long-term Stock Ownership for Equity Method Calculation" in Annex V 14 (2).

     As one party of joint operation, the company confirms assets and liabilities only held by itself and confirms
joint assets and liabilities as proportion of the company’s shares; confirm incomes from sales and production in
the way of joint operation as proportion of the company’s shares; confirm the company’s own expenses and all
expenses in the way of joint operation as proportion.

      As a party of joint operation, the company funds or sells assets (not used for operation, the same below) of
joint operation or purchases assets from joint operation. Before the assets are sold to a third party, the company
only confirms the loss and benefit in the trade which belong to other parties in the joint operation. In case the
assets is in conformity to the asset impairment loss regulated in Asset Impairment --No.8 of Accounting Criteria
for Enterprises, the company confirms all losses in full amount for the company funding or selling assets of joint
operation. The company confirms the loss as proportion of shares for the company purchasing assets from joint
operation.

8. 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.

9. 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

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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
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.

10.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.


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For the financial assets and liabilities of other categories, the expenses related to transactions are recognized as
initial amount.
(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.
 (2)The 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

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maturity.
The held-to-maturity investments 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.
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.
(3)Loans 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.
② 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

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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
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

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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.
      (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


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     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
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.

11.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%


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   4-5 years                                                               70.00%                                      70.00%

   Over 5 years                                                            100.00%                                    100.00%

   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
                      Name                       Account receivable proportion           Other account receivable proportion

   Related party group                                                           0.00%                                   0.00%

   (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.


   12. Inventories

   Whether the company needs to comply with the disclosure requirements of the particular industry
   No
   (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.

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(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.

13. 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.

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     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
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.
      (1)Long-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.
      (2)Long-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.

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      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
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


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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
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.

14. Investment real estate

The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment real estate refers to the properties held for the purpose of generating rent and/or capital appreciation.

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The company’s investment real estate includes the land use right rented and the constructions leased.
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.



15. 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
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                            95.5%                      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.

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16.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.

17. Borrowing expenses

Borrowing expenses include interest, amortization of discount or premium, auxiliary expenses, translation
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.

18.Intangible assets

1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) Valuation method, service life and impairment test
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


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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,
the project will enter the development stage.

19. 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.

20.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


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21. 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
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.

22. 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.

23 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.

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 (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.

24.Revenues

Whether the company needs to comply with the disclosure requirements of the particular industry
No
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
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

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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
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

25.Governmental subsidy

(1)Basis and accounting methods for assets related government subsidies
Government grants means that the Company obtains monetary or non monetary assets free of charge from the
government, excluding the capital invested by the government as an investor who also enjoys the corresponding
owner's equity. Government grants consist of the government grants pertinent to assets and the government grants
pertinent to income. If the government grant is a monetary asset, it shall be measured according to the amount
received or receivable. If the government grant is a non-monetary asset, it shall be measured at fair value; if the fair
value cannot be obtained reliably, it shall be measured according to the nominal amount. Government grants
measured in nominal terms are directly included in the current profits and losses.
The government grants pertinent to assets are recognized as deferred income and are credited to profit or loss by
stages in accordance with a reasonable and systematic method within the useful life of the pertinent assets. If the
pertinent assets are sold, transferred, scrapped or destroyed before the end of their useful life, the non-allocated
pertinent deferred income balance shall be transferred to the profit or loss of the period of assets disposal, and the
recognized government grant needs to be refunded, then it shall write down the carrying amount of the relevant


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deferred income and the excess part shall be included in the current profit and loss.
(2)Accounting Method
The government grants pertinent to income that are used to compensate the relevant costs or losses of the
subsequent period of the enterprise are recognized as deferred income and are credited to the current profit or loss
for the period when the relevant costs, expenses or losses are recognized; those government grants used for
compensating the related expenses or losses incurred to the enterprise shall be directly included in the current profits
and losses.

26.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
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.




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27.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.

28. Other significant accounting policies and estimates

    1. Share Repurchase
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
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).
     2.Safety production expenses

     The company counts and draws safety production expenses specified in Notification on Printing and
Distributing and Administrative Measures on Drawing and Using Enterprise’s Safety Production Expenses issued
by Ministry of Finance and State Administration of Work Safety. Safety production expenses is specialized in
improving safe production.

       Safety production expense is counted into related product’s cost or current profit and loss. At the same time,
it is also counted into specialized reserve. In case the safety production expense to be delivered is used in expense,
we directly consume specialized reserve. In case safety production expense to be delivered belongs to fixed asset
and is spent in construction in-process, confirm it as fixed asset when the project is completed safely and is ready
to put into use. Meantime, consume specialized reserve as the cost forming into fixed asset and confirm it as
equivalent accumulated depreciation.


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29.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

30.Other

1.    Income tax

     Income tax is composed of current income tax and deferred income tax. All taxes and expenses are written in
current profit and loss except those for reputation adjustment in enterprise combination or trades directly counted
into shareholder’s equity or some deferred income tax which is counted in shareholder’s equity.

      Current income tax is payable tax amount currently calculated as current taxable income. Payable tax amount
is calculated by adjusting pre-tax accounting profit specified in related tax laws.

    The company confirms deferred income tax by adopting liability method in Balance Sheet based on the
temporary difference between book value of asset and liability in Balance Sheet and tax base.

    Temporary difference of items of payable taxes are confirmed to be related deferred income tax liabilities,
except the temporary difference of payable taxes are made in the following conditions:

     A. Initial confirmation of reputation or that of assets or liabilities made in trades with these features: the trade
is not enterprise combination and it neither influences accounting profit nor amount of payable tax when it
happens.

     B. As for temporary difference of items of payable taxes related to investment to subsidiaries, joint
enterprises and associated enterprises. The temporary difference return time may be controlled and may not return
in foreseeable future.

      On the date of balance sheet , the company will calculate deferred income tax assets and deferred income tax
liabilities according to applicable tax between expected recovered assets and paid liabilities, and also the company
will reflect the income tax influence in ways of expected recovered assets and paid liabilities on the date of
balance sheet.

     On the date of balance sheet, the company will check the book value of the deferred income tax assets. If it
was unlikely to obtain sufficient taxable income taxes to offset benefit of deferred income tax assets, while it was
likely to obtain sufficient taxable income, carrying amount of deferred income tax assets shall be written down.

VI. Taxation

1.Main categories and rates of taxes


                   Taxes                             Tax references                        Applicable tax rates

                                        Sales revenue and
VAT                                                                             3%、6%、11%、17%
                                        Technical services revenue


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                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




          Urban construction tax                Turnover tax to be paid allowances   7%

Enterprises income tax                      Taxable income                           15%、16.5%、25%

Educational surtax                          Turnover tax to be paid allowances       3%

Local education surcharge                   Turnover tax to be paid allowances       2%

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.                       15%

Wuhu Dongxu Optoelectronic Technology Co., Ltd                   15%

Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd         15%

Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd         15%

Zhengzhou Xufei Optoelectronic Technology Co., Ltd.              15%

Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd            15%

Hebei Xubao Construction Installation Engineering Co., Ltd.      25%

Shijiazhuang Baoshi Color Bulb Co., Ltd.                         25%

Wuhan Dongxu Optoelectronic Technology Co., Ltd.                 25%

Dongxu Construction Group Co., Ltd.                              25%

Beijing Xufeng Real Estate Co., Ltd.                             25%

Dongxu (Kunshan)Display Material Co., Ltd.                      25%

Beijing Dongxu Investment Developement Co., Ltd.                 25%

Wuhu Ruiyi Labor Co., Ltd.                                       25%

Jiangsu Jixing New Material Co., Ltd.                            15%

Beijing Xutan New Material Co., Ltd.                             25%

Beijing Dongxu Huuaqing Investment Co., Ltd.                     25%

Jiangsu Dongxu Yitai Intelligent Equipment Co., Ltd.             25%

Fuzhou Dongxu Optoelectronic Technology Co., Ltd.                25%

Shenzhen Xuhui Investment Holdings Co., Ltd                      25%

hanghai Tanyuan Huigu New Material Technology Co., Ltd.          15%

Fuzhou Dongxu Investment Development Co., Ltd.                   25%

Fuzhou Xufu Optoelectronic Technology Co., Ltd.                  25%

Taizhou Xiwang New Energy Technology Co., Ltd.                   25%

Xiamen Xuqi Investment Management Co., Ltd.                      25%

Shenzhen Xinyingtong Technology Co., Ltd.                        25%

Xuyou Electronic Material Technology (Wuxi)Co., Ltd.           25%

Fuzhou Xuyou Electronic Material Technology Co., Ltd.            25%


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                                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Sichuan Dongxu Ruiyi Enterprise Management Co., Ltd.           25%

Sichuan Dongxu Ruiyi Environment Engineering Co., Ltd.         25%

Sichuan Dongxu Ruiyi Survey & Design Co., Ltd.                 25%

Sichuan Dongxu Ruiyi Trade Co., Ltd.                           25%

Sichuan Dongxu Prosperity Construction Development Co., Ltd. 25%

Shenzhen Xingxinda Technology Co., Ltd.                        25%

Mingshuo(Beijing)Electronic Technology Co., Ltd.               15%

Huzhou Mingshuo Optoelectronic Technology Co., Ltd.            25%

Dongxu Xuhua(International) Equipment Co., Ltd.                Not applicable

Hunan Dongxu Delai Electronic Technology Co., Ltd.             25%

Wuhu Dongxu Weiyu Medical Apparaturs Technology Co., Ltd. 25%

Hunan Dongxu Weishi Electronic Technology Co., Ltd.            25%

Hunan Dongxu Weigao Medical Apparaturs Technology Co.,
                                                               25%
Ltd.

Guangdong Dongxu Weiyu Medical Apparaturs Technology Co.,
                                                               25%
Ltd.

Shandong Qihui Medical Technology Co., Ltd                     25%

Chuanglian Huatai(Hongkong) Co., Ltd.                          16.5%

Tianlong Huatai Industry(Hongkong) Co., Ltd.                   16.5%

Taizhou Dongxu Graphene Industry Investment Fund
                                                               Not applicable
Management Center(LP)


   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 21, 2016,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 2016.
④ On November 21, 2016,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 2016.
⑤ On August 3, 2015,Zhengzhou Xufei 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 2015.
⑥ On November 21,2016,Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. was rated as the national

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                                                   Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


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 2016.
⑦ On November 30, 2016,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 2016.
⑧On November 24,2016,Shanghai Tanyuan Huigu 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 2016.
⑨On December 1, 2016, Mingshuo(Beijing)Electronic 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 2016.

VII. Notes to the major items of consolidated financial statement

1.Monetary Capital

                                                                                                                     In RMB
                   Items                           Year-end balance                         Year-beginning balance

Cash                                                                  425,749.93                                 187,232.52

Bank deposit                                                  22,254,637,844.45                           25,349,745,448.62

Other                                                            618,495,047.42                              706,184,535.72

Total                                                         22,873,558,641.80                           26,056,117,216.86

Other notes

Notes 1:The amount of restricted monetary capital of the total monetary capital in the end of the period is RMB
943,221,108.77. Mainly for the draft earnest money and the fixed deposit receipt.

2.Bills receivable

(1)Classification bill receivable


                   Items                           Year-end balance                         Year-beginning balance

Bank acceptance                                                   91,708,273.32                               50,040,287.95

Trade acceptance                                                   3,290,000.00                                5,300,000.00

Total                                                             94,998,273.32                               55,340,287.95


(2)Bills transferred to accounts receivable because drawer of the Bills fails to execute the contract or agreement,
and undue Bills endorsed to other parties at the end of the period.

                                                                                                                      In RMB

                   Items               End of the period amounts derecognizing     End of the period amount unterminated

Bank acceptance                                                   99,462,400.00


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                                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Trade acceptance                                                                59,710,478.59

Total                                                                        159,172,878.59


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
                                                                                   1,674,2
to provision for bad     2,363,80               21,892,9               2,341,912                         21,491,16               1,652,714,6
                                     99.97%                   0.93%                05,803. 100.00%                       1.28%
debts on credit risk     5,007.31                  77.99                 ,029.32                              2.65                    40.77
                                                                                        42
characteristics basis

Receivables that are
individually
insignificant but with 746,626.                 746,626.
                                       0.03%
provision for bad           84                        84
debts made on an
individual basis
                                                                                   1,674,2
                         2,364,55               22,639,6               2,341,912                         21,491,16               1,652,714,6
                                    100.00%                   0.96%                05,803. 100.00%                       1.28%
                         1,634.15                  04.83                 ,029.32                              2.65                    40.77
Total                                                                                   42

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                               1,897,527,356.92

Within 1 year after credit period                    304,454,799.49                          15,222,739.94                            5.00%

Subtotal within 1 year                             2,201,982,156.41                          15,222,739.94                            0.69%

1-2 years                                             20,054,690.29                           2,006,069.03                          10.00%

2-3 years                                             11,519,231.55                           3,455,169.46                          30.00%

Over 3 years                                           2,153,404.39                           1,208,999.56

3-4 years                                              1,888,809.68                            944,404.85                           50.00%


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                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Over 5 years                                          264,594.71                    264,594.71                        100.00%

Total                                            2,235,709,482.64                 21,892,977.99                          0.98%

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
                              Group Name                                   Closing balance          Bad debt provision
                           Related party group                              128,095,524.67


(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 4,964,564.17;The
amount of the reversed or collected part during the reporting period was of RMB4,223,221.57.
Where the current bad debts back or recover significant amounts:
                                                                                                                         In RMB

                    Name                              Back or withdraw money                            Method




(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
RMB507,068,428.48, which accounts for 21.44% of the total receivables. The total amount of closing balance for
corresponding accrued bad-debt provision is RMB792,218.65.

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                      1,530,035,703.49                  84.97%           776,749,368.51                     90.06%

1-2 years                            211,566,799.70                  11.75%             57,435,800.50                    6.66%

2-3 years                             34,077,114.54                   1.89%             28,247,726.09                    3.28%

Over 3 years                          24,992,534.87                   1.39%

Total                              1,800,672,152.60             --                    862,432,895.10             --

Notes:

(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
As of June 30,2017,The total prepayment amount of top five closing balances collected by the objects of
prepayment in the current reporting period is RMB1,135,009,252.91, which accounts for 63.03% of the total

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                                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


closing prepayment balance.
Other notes:

Compared with prepaid account at the beginning, increase in prepaid account at the end of this year was caused by
advanced-material prepayment’s increase.

5.Interest receivable

(1)Classification Interest receivable
                                                                                                                                   In RMB

                     Items                                  Amount in year-end                             Amount in year-begin

Fixed deposit                                                                   16,239,166.23

Total                                                                           16,239,166.23


6. Other accounts receivable

(1) Other accounts receivable disclosed by Classification
                                                                                                                                   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(%)                      %)

Other receivables
subject to provision
                         1,030,08               1,775,56               1,028,308 188,125                2,053,982               186,071,08
for bad debts on                    100.00%                   0.17%                         100.00%                     1.09%
                         4,273.89                   4.35                 ,709.54 ,067.48                      .24                      5.24
credit risk
characteristics basis

                         1,030,08               1,775,56               1,028,308 188,125                2,053,982               186,071,08
Total                               100.00%                   0.17%                         100.00%                     1.09%
                         4,273.89                   4.35                 ,709.54 ,067.48                      .24                      5.24

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

                                                                             Amount in year-end
              Aging
                                          Account receivable                    Bad debt provision               Rate of alloance(%)

Subitem within 1 year

Within credit period                                   1,342,173.52                                                                 0.00%

Within 1 year after credit period                      2,146,378.10                          107,318.90                             5.00%

Subtotal within 1 year                                 3,488,551.62                          107,318.90                             3.00%


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1-2 years                                       1,155,138.40                   115,513.84                              10.00%

2-3 years                                        130,129.79                       39,038.94                            30.00%

3-4 years                                           8,497.64                       4,248.82                            50.00%

Over 5 years                                    1,509,443.85                  1,509,443.85                             100.00%

Total                                           6,291,761.30                  1,775,564.35                             28.22%

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

(2)Other account receivable classified by account nature

                                                                                                                        In RMB

                  Nature                           Closing book value                         Opening book value

Related party exchange

Current account                                                  55,797,728.61                                  7,072,359.41

Deposit                                                          13,671,610.51                                72,905,814.34

Personal official borrowing                                      20,914,377.23                                  9,218,737.75

Persona Returnable Insuranc                                       6,327,909.07                                18,908,561.60

e Deposit                                                       898,830,410.30                                  1,577,343.37

Export tax refunds                                               28,250,476.87                                75,152,190.18

Total                                                          1,023,792,512.59                              188,125,067.48

(3)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 culture
Silicon Valley Asset Deposit               370,000,000.00 Within 1 year                        35.92%
Operation Co., Ltd.

Beijing Hua Xi
travel culture        Deposit              230,000,000.00 Within 1 year                        22.33%
industry Co.

Chengdu rural
property rights       Deposit                  80,000,000.00 Within 1 year                      7.77%
exchange Co., Ltd.

Shanghai Huimao       Deposit                  50,000,000.00 Within 1 year                      4.85%


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Management Co.,
Ltd.

Xian Runyin
Finance leasing Co., Deposit                          23,000,000.00 Within 1 year                            2.23%
Ltd.

Total                           --                   753,000,000.00            --                           73.10%


7.Inventory

Whether the company needs to comply with the disclosure requirements of the particular industry
No

(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        1,859,267,689.87       2,130,151.05 1,857,137,538.82           898,356,338.67        1,993,847.52      896,362,491.15

Processing
                      109,104,315.18                          109,104,315.18         75,349,308.19                           75,349,308.19
products

Stock goods           350,584,459.75           69,316.24      350,515,143.51        267,103,365.46                          267,103,365.46

Construction cont
ract has been com
                      214,516,430.63                          214,516,430.63        368,022,163.44                          368,022,163.44
pleted unsettled a
ssets

Development cost 1,139,225,487.35                           1,139,225,487.35 1,082,130,108.03                            1,082,130,108.03

Goods in transit          453,818.61                              453,818.61

Total                3,673,152,201.39       2,199,467.29 3,670,952,734.10 2,690,961,283.79                1,993,847.52 2,688,967,436.27

Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements

No

(2) Inventory depreciation reserve

                                                                                                                                   In RMB



        Items        Year-beginning                    Increase                               Decrease                   Year-end balance



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                                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                            balance              Accrual               Other            Switch back            Other

Raw materials               1,993,847.52           136,303.53                                                                       2,130,151.05

Stock goods                                          69,316.24                                                                        69,316.24

Total                       1,993,847.52           205,619.77                                                                       2,199,467.29

     Notes1:basis of provision for inventory revaluation reserve was cost and net realizable value, and reason of
inventory revaluation reserve provision was that final realizable net value was lower than cost.

(3) Explanation on inventories with capitalization of borrowing costs included at ending balance

        A.The development cost details

  No           Name          (Planned)Start Expected first batch        Estimated total      Year-beginning          Year-end balance
                                      time           completion time           investment           balance

  01          Dongxu            2015-12-29             2017-12-31              2.2 billion    1,082,130,108.03         1,139,225,487.35
            International
               Center

        B. Capitalization of project interest
                 Name                        Interest amount of interest in Interest              capitalization Interest capitalization rate
                                             current period                    accumulated amount               (%)

    Dongxu International Center                                                         94,597,013.19                       7.00


(4) Assets unsettled formed by construction contract which has completed at period-end

                                                                                                                                         In RMB

                                 Items                                                                  Amount

Accumulated Incurred Cost                                                                                                     2,091,078,268.52

Accumulated Confirmed Gross Profit                                                                                              393,675,037.02

Settlement Amount                                                                                                             2,270,236,874.91

Unliquidated Completed Assets Formed in the Construction
                                                                                                                                214,516,430.63
Contract


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                                             1,066,314,218.42                               1,124,023,317.38

Short-term Financing                                                           1,500,000,000.00                               2,021,430,000.00

Total                                                                          2,624,314,218.42                               3,203,453,317.38



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                                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


  Other notes:

  Notes:The decrease in other current assets at the end of the period was mainly due to the decrease in short-term
  financial management.

  9. Available-for-sale financial assets

  (1) Available-for-sale financial assets

                                                                                                                                            In RMB

                                                     Closing balance                                          Opening balance
               Items                                  Provision for                                           Provision for
                                      Book balance                          Book value    Book balance                             Book value
                                                       impairment                                              impairment


  (2) Available-for-sale financial assets measured by cost at the period-end

  No

  10. Long-term equity investment

                                                                                                                                            In RMB

                                                                  Increase/decrease
                                                                                                                                          Closing
                                                                 Adjustme
                                                                                                      Withdraw                            balance
                                                                    nt of                Declarati
                 Opening        Add                                             Other                    n                    Closing        of
 Investees                                                        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
Chengxin
International 72,354,80                              171,370.9                                                                72,526,17
Commercial             3.70                                  6                                                                     4.66
Factoring
Co., Ltd.

Tunghsu
Group                         400,000,0              -15,702,5                                                                384,297,4
Finance Co.,                     00.00                   80.22                                                                   19.78
Ltd.

Dongxu                        20,800,00                                                                                       20,824,71
                                                     24,716.43
(Deyang)                              0.00                                                                                         6.43



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                                                               Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Graphene
Industry
Developmen
t Fund
Partnership
(LP)

                72,354,80 420,800,0                -15,506,4                                                      477,648,3
Subtotal
                      3.70       00.00                92.83                                                          10.87

                72,354,80 420,800,0                -15,506,4                                                      477,648,3
Total
                      3.70       00.00                92.83                                                          10.87

  Other notes:

  Note: The deadline for the investee has not been audited.

  11. Fixed assets

  (1) List of fixed assets
                                                                                                                                In RMB

                                                       Machinery
  Items                      House, building                              Transportations     Other equipment           Total
                                                       eqiupment

  I. Original price

  1. Balance at
                                1,226,566,989.39     8,768,047,126.90        43,197,759.54        58,817,344.45     10,096,629,220.28
  period-beginning

  2.Increase in the
                                  167,291,490.29       268,536,975.56          3,079,970.82        3,469,290.13       442,377,726.80
  current period

       (1) Purchase                                     62,688,587.96          3,079,970.82        3,333,626.06        69,102,184.84

  (2)Inventory\Fixed
  assets\     Transferred
                                  167,291,490.29       205,848,387.60                                                 373,139,877.89
  from construction in
  progress


  (3)Increased of
                                                                                                     135,664.07           135,664.07
  Enterprise
  Combination



  3.Decreased amount
                                                                                787,832.00            91,549.87           879,381.87
  of the period

  (1)Disposal                                                                 787,832.00            91,549.87           879,381.87



  4. Balance at                 1,393,858,479.68     9,036,584,102.46        45,489,898.36        62,195,084.71     10,538,127,565.21



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                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


period-end

II. Accumulated
depreciation

1.Opening balance             236,064,086.50     856,391,505.22         25,311,875.86      26,484,237.39         1,144,251,704.97

2.Increased amount
                               16,809,605.02     301,663,230.38          3,020,809.02       4,629,983.26          326,123,627.68
 of the period

     (1) Withdrawal            16,809,605.02     301,663,230.38          3,020,809.02       4,550,880.76          326,044,525.18

(2)Increased of
Enterprise                                                                                        79,102.50            79,102.50
Combination

  3.Decrease in the
                                                                          712,609.21              60,697.73           773,306.94
reporting period

(1)Disposal                                                             712,609.21              60,697.73           773,306.94



4.Closing balance             252,873,691.52    1,158,054,735.60        27,620,075.67      31,053,522.92         1,469,602,025.71

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
                             1,140,984,788.16   7,878,492,922.02        17,869,822.69      31,141,561.79         9,068,489,094.66
 period-end

2.Book value of the
                              990,502,902.89    7,911,619,176.84        17,885,883.68      32,333,107.06         8,952,341,070.47
 period-begin

(2) Details of fixed assets failed to accomplish certification of property
                                                                                                                          In RMB

                     Items                                 Book value                                   Reason

108# Gas station                                                          185,203.53 Processing

109#Oxygen gasification station                                           363,180.76 Processing


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Main entrance Guard room                                                       155,598.44 Processing

Bathroom                                                                        79,845.61 Processing

East entrance Guard room                                                        85,167.80 Processing

Compressed air station, circulating water
                                                                               799,359.47 Processing
pump house, refrigeration station

Dangerous goods warehouse                                                      347,448.54 Processing

Wastewater treatment plant                                                     822,944.36 Processing

Broken glass warehouse                                                      2,593,172.40 Processing

Substation                                                                     340,535.78 Processing

Boiler room                                                                 4,424,742.33 Processing

Rear engineering workshop(101)                                             45,425,185.54 Processing

Auxiliary building (102)                                                    4,145,856.57 Processing

Comprehensive power station(I)(103)                                       4,584,314.54 Processing

Water Station (104)                                                         5,995,777.21 Processing

Guard Room (105)                                                               422,219.31 Processing

Other notes

Notes 1: The main reason for the increase in fixed assets at the end of the period is the reversal of the glass substrate
production line.

12. Project under construction

(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

Wuhu LCD glass
substrate
                      1,854,902,937.28                      1,854,902,937.28 1,676,291,711.39                        1,676,291,711.39
production line
project

Wuhan LCD
glass substrate
                        14,645,209.52       14,645,209.52                        14,645,209.52       14,645,209.52
production line
project

Kunshan Color
                       159,319,216.99                         159,319,216.99     60,284,978.33                          60,284,978.33
film project

Sapphire crystal           276,923.08                             276,923.08        205,128.21                             205,128.21



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sultivation and
processing of
production line
equipment

Project of
Production Line
for the
                          19,227,737.81                              19,227,737.81        35,847,492.91                                35,847,492.91
8.5th-generation
Glass glass
substrate

Polarized                423,426,356.48                             423,426,356.48

Total                   2,471,798,381.16       14,645,209.52 2,457,153,171.64 1,787,274,520.36               14,645,209.52 1,772,629,310.84

(2) Changes of significant construction in progress
                                                                                                                                               In RMB


                                                                                                                   Includin
                                                                                                                   g:
                                               Transferr                                                                          Capitaliz
                                                                                                      Capitaliz capitaliz                     Source
Name of                  Opening                 ed to      Other      End        Proporti Project                                ation of
              Budget                Increase                                                          ation of     ation of                   of
 project                 balance                fixed      decrease balance        on %     process                               interest
                                                                                                       interest interest                      funding
                                                assets                                                                            rate (%)
                                                                                                                   this
                                                                                                                    period

Xinyingt
ong                                 58,541,1 58,541,1
             1,175.16                                                             100.00% 100.00%                                             Other
Jingji                                 38.40      38.40
Office

Wuhan
LCD
glass
             757,652. 1,676,29 178,611,                               1,854,90                        643,201, 55,936,0                       Raise
substrate                                                                          91.28% 91.28%                                   31.32%
                   00 1,711.39       225.89                           2,937.28                            595.57          59.10               funds
producti
on line
project

Kunshan
Color        311,550. 60,284,9 99,034,2                               159,319,                                                                Raise
                                                                                    9.61% 9.61%
film               00       78.33      38.66                           216.99                                                                 funds
project

Sapphire
crystal                  205,128. 2,061,40 1,989,61                   276,923.
             5,906.40                                                              95.12% 95.12%                                              Other
sultivatio                    21        8.62       3.75                      08
n and



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processi
ng of
producti
on line
equipme
nt

Project
of
Producti
on Line
for the     612,694. 35,847,4 116,381, 133,001,         19,227,7                                                Raise
                                                                    3.49% 3.49%
8.5th-ge         00    92.91    472.61     227.71          37.81                                                funds
neration
Glass
glass
substrate

Fuzhou
Xu Fu
8.5
            82,306.0           176,368, 176,368,                                                                Raise
generatio
                  0             200.05     200.05                                                               funds
ns of
industria
l lines

Phase 1
project     220,000.           423,426,                 423,426,                                                Raise
                                                                   28.60% 28.6%
of Asahi         00             356.48                    356.48                                                funds
polarizer

                               3,239,69 3,239,69
Other                                                                                                           Other
                                   7.98      7.98

            1,991,28 1,772,62 1,057,66 373,139,         2,457,15                    643,201, 55,936,0
Total                                                               --        --                                   --
                3.56 9,310.84 3,738.69     877.89       3,171.64                      595.57    59.10


(3)Provision for impairment of construction projects

                                                                                                                 In RMB



                   Items                                Amount                                   Reason

Wuhu LCD glass substrate production line
project

Other notes

Note 1: Subsidiary Wuhan Dongxu Optoelectronic Technology Co. Ltd stopped its on-construction projects at the
end of 2014. The produced fee was upfront cost rather than physical assets which has no disposal value.

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According to book value and recoverable value, cash flow will not be produced in the future, Therefore, the
subsidiary of Wuhan Dongxu Optoelectronic Technology Co., Ltd. 2016 shareholders' meeting resolution of the
full amount of impairment provision.

13. Engineering Material

                                                                                                                           In RMB

                    Items                               Closing balance                          Opening balance

Special Equipment                                                                                                    263,312.81

Special material                                                                                                      41,155.24

Total                                                                                                                304,468.05




14. Intangible assets


(1)Information
                                                                    Non patent
        Items               Land use right     Patent right                           Patent technology            Total
                                                                    technology

I. Original price

1. Balance at
                              567,156,948.81      1,677,806.92        47,023,137.22        22,120,666.71     637,978,559.66
period-beginning

2.Increase in the
                                                     99,976.23                              1,040,000.00           1,139,976.23
current period

(1) Purchase                                         99,976.23                              1,040,000.00           1,139,976.23


(2)Internal

Development

(3)Increased of
Enterprise
Combination



3.Decreased amount
of the period

(1)Disposal



4. Balance at
                              567,156,948.81      1,777,783.15        47,023,137.22        23,160,666.71     639,118,535.89
period-end

II.Accumulated



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                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


amortization

1. Balance at
                         43,923,262.93         632,128.66       13,540,982.34         1,687,640.05       59,784,013.98
period-beginning

2. Increase in the
                          5,677,279.46          96,989.24        2,265,509.52           718,638.54        8,758,416.76
current period

     (1) Withdrawal       5,677,279.46          96,989.24        2,265,509.52           718,638.54        8,758,416.76



3.Decreased amount
of the period

(1)Disposal



  4. Balance at
                         49,600,542.39         729,117.90       15,806,491.86         2,406,278.59       68,542,430.74
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
                        517,556,406.42        1,048,665.25      31,216,645.36        20,754,388.12      570,576,105.15
period -end

2.Book value at
                        523,233,685.88        1,045,678.26      33,482,154.88        20,433,026.66      578,194,545.68
period-beginning

The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of
the balance of intangible assets.

⑵Details of Land use right failed to accomplish certification of property

                                                                                                               In RMB




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                                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                       Items                                   Book value                                   Reason

  Land use right                                                            55,668,374.98 Processing


  15. Development expenditure

                                                                                                                             In RMB

                    Beginning                                                                                              Ending
     Items                                 Increase In the period                      Decrease in period
                       balance                                                                                            balance

A kind of
graphene-based
water-based
anti-corrosion
coating and its
ancillary                        1,941,747.58                                                                           1,941,747.58
products which
can be used in
the field of
heavy
preserving


  16. 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
                           33,935,384.57                                                                               33,935,384.57
  New Meterial
  Co., Ltd.

  Mingshuo
  (Beijng)
  Electronic                                33,319,677.71                                                              33,319,677.71
  Technology Co.,
  Ltd.

  Chuanglian
  Huatai(Hongkong                               722,450.89                                                                722,450.89
  ) Co., Ltd.

            Total          33,935,384.57    34,042,128.60                                                              67,977,513.17



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                                                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


17.Long-term amortization expenses

                                                                                                                                     In RMB

                            Balance in          Increase at this         Amortization at
          Items                                                                                      Decrease       Balance in year-end
                            year-begin               period                   this period

Building renovation          11,756,506.76              2,641,353.65            3,852,355.75                                 10,545,504.66

NEG Technology
                                                        6,167,700.00              205,590.00                                  5,962,110.00
Use fee

Total                        11,756,506.76              8,809,053.65            4,057,945.75                                 16,507,614.66


18. 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
                                      28,658,373.79                    5,713,064.67              24,724,135.41                5,154,470.27
provision

Not realized the internal
                                   1,901,559,690.60                286,978,331.46              1,949,789,000.92          294,212,728.05
profit

Deductible loss                                                                                  22,417,562.27                3,362,634.34

Deferred income
                                      62,948,666.55                    9,442,299.98              65,420,100.08                9,813,015.00
difference

Impairment of assets
under the control of
                                           79,173.07                     11,875.96                   84,351.33                  12,652.70
enterprises under the
same control

Total                              1,993,245,904.01                302,145,572.07              2,062,435,150.01          312,555,500.36


(2)Deferred income tax assets and liabilities are presented as net amount after neutralization

                                                                                                                                     In RMB

                                            Balance in year-end                                      Balance in year-begin
             Items           Deductible temporary         Deferred income tax           Deductible temporary      Deferred income tax
                                  difference                    liabilities                  difference                liabilities

Value added evaluation
of enterprise merger                     2,676,351.13                   401,452.67                 2,755,051.93                413,257.79
under the same control



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                                                               Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Total                                     2,676,351.13                    401,452.67                 2,755,051.93                 413,257.79


(3)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
                                                                     302,145,572.07                                          312,555,500.36
assets
Deferred       income   tax
                                                                          401,452.67                                              413,257.79
liabilities

 (4)Details of income tax assets not recognized

                                                                                            In RMB

    Items                                                         End of term                                 Beginning of term

Deductible losses                                                               328,343,011.44                                  57,681,700.17

Bad debt provision                                                                   86,413.68                                    814,857.00

Impairment of fixed assets                                                           36,444.84                                     36,444.84

Provision for impairment of construction
                                                                                 14,645,209.52                                  14,645,209.52
projects

Inventory falling price reserves                                                     69,316.24

Total                                                                           343,180,395.72                                  73,178,211.53

(5) The un-recognized deductible losses of deferred income tax assets will due in the following

years:

                                                                                                                                      In RMB

                 Year                          End of term                       Beginning of term           Remark

2017                                                        856,290.76                        856,290.76

2018                                                         15,649.80                           15,649.80

2019                                                       4,010,267.09                       944,397.82

2020                                                       3,995,431.56                     4,898,217.97

2021                                                      50,803,937.37                    50,967,143.82

2022                                                  268,661,434.86

Total                                                 328,343,011.44                       57,681,700.17                   --



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                                                Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


19.Other non-current assets

                                                                                                             In RMB

                 Items                           Closing balance                         Opening balance

Prepaid engineering equipment                                 238,462,370.83                          387,151,100.41

Prepaid Investment                                             31,800,000.00

Total                                                         270,262,370.83                          387,151,100.41

Other notes

      The main reason for the decrease of other non-current assets at the end of the period is the equipment
received in the current period.

20. Short-term loan

(1)Categories of short-term loans

                                                                                                             In RMB

                 Items                           Closing balance                         Opening balance

Pledge loan                                                   637,338,652.73                          443,307,086.78

Mortgage loan                                                 118,497,469.58                          172,315,413.35

Guarantee loan                                              3,518,677,440.00                        4,325,193,700.00

Total                                                       4,474,513,562.31                        4,940,816,200.13

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 and property investment, which jointly cause borrowing increase.
3.   the final mortgage was RMB118,497,469.58:
     Thereinto, the collateral for the borrow money of RMB 25,000,000.00 is the house property of Jiangsu Jixing
New Materials Co., Ltd with the House property number of YangFangzi No.81800980-81800982 and the land of No.
10483, No.10484 and No. 10486 of YangGuoYong; the collateral for the borrow money of RMB 19,000,000.00 is
the land of No. 10485-2011 of YangGuoYong and the land of No. 10487-2011 of YangGuoYong; the
subsidiary-Shenzhen Xinyingtong Technology Co. Ltd has a mortgage loan of RMB 74,497,469.58; thereinto: the
RMB 15,000,000.00 loan was provided a joint and several liability guarantee by Zeng Jiankai and Zhong Yuhua
and was provided the mortgage-backed guarantee by Liu Jun, Zhong Yuhua and Zhang Lixia with the mortgage of
lands of No. 50000671902, No. 3000415955 and No. 5000615797 of Shen Real-estate Zi; the RMB 38,000,000.00
loan was provided a joint and several liability guarantee by Zeng Jianyi and was provided the
mortgage-backed guarantee by Zhao Baomei using the House property of certificate of property No. 3000492775 of
No.6 buliding of Xiangmi Lake First Ecology as the mortgage; the RMB 21,497,469.58 loan was provided the
mortgage-backed guarantee by using the cash deposit of RMB 21,430,000.00 as the mortgage.


     4. Guarantee loan was RMB 3,518,677,440.00:


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                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


       Whereby,Li Zhaoting offered RMB 58,000,000.00 joint liability guarantee to Zhengzhou Xufei
Optoelectronic Technology Co., Ltd., Tunghsu Group Co., Ltd and Li Zhaoting offered RMB 350,677,440.00
joint liability guarantee to Zhengzhou Xufei Optoelectronic Technology Co., Ltd.,Tunghsu Group , The Company
and Li Zhaoting offered RMB 50,000,000.00 joint liability guarantee to Zhengzhou Xufei Optoelectronic
Technology Co., Ltd.,Tunghsu Group offered RMB500,000,000.00 joint liability guarantee to The Company,Li
Zhaoting offered RMB400,000,000.00 joint liability guarantee to The Company, Tunghsu Group and Li Zhaoting
offered RMB700,000,000.00 joint liability guarantee to The Company, Tunghsu Group, Li Zhaoting and Li Qing
ffered RMB860,000,000.00 joint liability guarantee to The Company. The company offered RMB 105,000,000.00
guarantee to subsidiary -- Wuhu Dongxu Optoelectronic Technology Co., Ltd., Tunghsu Group offered RMB
105,000,000.00 joint liability guarantee to Wuhu Dongxu Optoelectronic Technology Co., Ltd ., Tunghsu Group
offered RMB 50,000,000.00 joint liability guarantee to Wuhu Dongxu Optoelectronic Technology Co., Ltd .,The
Company and Li Zhaoting offered RMB 250,000,000.00 guarantee to subsidiary -- Wuhu Dongxu Optoelectronic
Technology Co., Ltd.,Li Zhaoting offered RMB 100,000,000.00 joint liability guarantee to Wuhu Dongxu
Optoelectronic Technology Co., Ltd .,The Company offered RMB 95,000,000.00 Joint liability guarantee to
subsidiary- Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.
      5. The amount of loan with a pledge of collateral at the end of the period was RMB 637,338,652.73: thereinto,
the RMB 28,683,304.13 was provided a pledge guarantee by Shenzhen Xinyingtong Technology Co., Ltd by using
certificate of time deposit; the RMB 125,326,400.00 loan with a pledge of collateral was provided a pledge
guarantee by Shenzhen Xinyingtong Technology Co. Ltd by using the deposit of USD 18,481,500.00 as a pledge;
the object of pledge for the RMB 483,328,948.60 was the other monetary funds deposited in the special account for
deposit.


        (2) Situation of Overdue Outstanding Short-Term Borrowing

     Final overdue outstanding short-term borrowing was zero, and situation of important overdue outstanding
short-term borrowing was as follows:

                                                                                                                 In RMB

            Unit            Closing balance        Interest rate                    Time         Overdue interest rate

Other notes:


21. Note payable

                                                                                                                In RMB

Type                                              Closing balance                          Opening balance

Commercial acceptance                                                                                   159,820,750.00

Bank acceptance                                                    219,260,464.01                       233,315,926.05

Total                                                              219,260,464.01                       393,136,676.05

Amount due in next fiscal period is RMB 0.00.

22.Account payable

        (1)Account payable


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                                                  Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                                                                                                        In RMB

                   Items                           Closing balance                               Opening balance

Engineering fund                                                216,639,043.03                                  266,567,513.92

Material fund                                                   978,299,169.90                                  849,166,049.63

Transportation expenses                                              2,118,059.68                                  1,263,084.00

Other                                                            21,102,746.79                                   48,421,844.18

Total                                                         1,218,159,019.40                                1,165,418,491.73

        (2)Significant accounts payable that aged over one year

                                                                                                                        In RMB

                                                                                    The reason for not repaid or carried forwar
                   Items                         Balance in year-end
                                                                                    d

                                                                                    Not reached the agreed payment terms and
Beijing Guoshun Investment Co., Ltd.                             41,088,123.25
                                                                                    deadlines

Ningxia Tianshun Electric Power                                                     Not reached the agreed payment terms and
                                                                 31,115,140.33
Engineering Co., Ltd.                                                               deadlines

Dingzhou Jiaping Construction                                                       Not reached the agreed payment terms and
                                                                 24,969,982.50
Engineering Co., Ltd.                                                               deadlines

Qinghai Construction Engineering Co.,                                               Not reached the agreed payment terms and
                                                                 14,643,907.65
Ltd.                                                                                deadlines

Total                                                           111,817,153.73                          --

Other notes:The increase of the accounts payable of the period are mainly due to the increase of material payment
payable and freight payable.

23.Advance account

        (1)Advance account

                                                                                                                        In RMB

                   Items                           Closing balance                               Opening balance

Goods                                                            85,689,449.05                                  173,306,846.80

Engineering fund                                                423,224,878.72                                     9,243,589.58

House selling                                                   231,527,625.00                                  231,527,625.00

Other                                                                2,000,000.00

Total                                                           742,441,952.77                                  414,078,061.38




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                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


24. Employee compensation payable

 (1)Classification of employee compensation payable

                                                                                                                        In RMB

            Items            Balance in year-begin    Increase at this period   Decrease at this period   Balance in year-end

I.
                                      42,104,784.31           228,011,761.01            224,571,685.19            45,544,860.13
Short-term remuneration

II.
Post-employment benefit
                                         746,607.99            18,690,851.71              19,144,604.99              292,854.71
s - defined contribution p
lans

Total                                 42,851,392.30           246,702,612.72            243,716,290.18            45,837,714.84


(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
                                      18,652,928.59           188,383,769.02            186,779,978.50            20,256,719.11
allowances and subsidies

2.Employee welfare                                             13,616,866.62              13,616,866.62

3. Social insurance
                                         408,535.42            10,324,945.78              10,570,430.36              163,050.84
premiums

Including:Medical
                                         366,897.76              9,336,391.63              9,665,771.88               37,517.51
insurance

Work injury ,insurance                    12,214.89                553,461.58                554,313.56               11,362.91

Maternity insurance                       29,422.77                435,092.57                350,344.92              114,170.42

4. Public reserves for
                                         375,641.47              8,674,426.92              8,893,160.35              156,908.04
housing

5.Union funds and staff
                                      22,667,582.74              5,999,838.28              3,864,900.11           24,802,520.91
education fee

7. Short term profit
                                              96.09              1,011,914.39                846,349.25              165,661.23
sharing plan

Total                                 42,104,784.31           228,011,761.01            224,571,685.19            45,544,860.13

(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
                                         715,861.56            17,837,865.92              18,301,663.76              252,063.72
insurance premiums


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                                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


2.Unemployment
                                           30,746.43            852,985.79                842,941.23                 40,790.99
insurance

Total                                  746,607.99            18,690,851.71              19,144,604.99               292,854.71

        Other notes:
        Note :Employee benefits payable has no arrears of wages.

25. Taxes payable

                                                                                                                        In RMB

                     Items                             Closing balance                           Opening balance

VAT                                                                  42,572,313.79                             83,366,319.90

Enterprise Income tax                                                55,477,471.01                             97,859,353.22

Individual income tax                                                20,316,022.94                             22,560,220.31

City Construction tax                                                    3,048,648.21                              3,774,222.43

Business Tax                                                             3,789,219.75                              3,789,219.75

House property tax                                                       6,970,326.94                              6,187,382.79

Land use tax                                                              945,440.24                                746,349.07

Educational surtax                                                       2,100,924.84                              2,619,192.11

Stamp Tax                                                                 159,412.38                                544,438.49

Other                                                                    1,185,449.42                              2,863,832.64

Total                                                               136,565,229.52                            224,310,530.71


26. Interest payable

                                                                                                                        In RMB

                     Items                             Closing balance                           Opening balance

Interest on long-term borrowings payable                             28,839,315.61                                 3,602,056.66

Enterprise bond interest                                            148,052,010.66                             66,833,709.29

Interest on short-term borrowings                                        1,932,556.70                              2,133,954.29

Total                                                               178,823,882.97                             81,610,513.91

Particulars of significant overdue unpaid interest:
                                                                                                                        In RMB

                     Name                              Overdue amount                             Overdue reason


27. Dividends payable

                                                                                                                        In RMB

                     Items                             Closing balance                           Opening balance


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                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Common stock dividend                                           62,702,011.96                           30,000,000.00

Total                                                           62,702,011.96                           30,000,000.00

Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:

28. Other accounts payable

(1) Other accounts payable listed by nature of the account
                                                                                                                 In RMB

                   Items                          Closing balance                         Opening balance

Current account                                                 37,631,454.33                           27,062,361.47

Deposit                                                             7,330,341.69                        17,201,477.44

Individual official borrowing                                        350,363.60                              106,501.37

Government Subsidy                                              15,000,000.00                           15,000,000.00

Deposit                                                             5,937,709.42                            1,533,593.97

Social security withholding                                         2,108,864.35                             352,709.67

Engineering fund                                                                                            1,553,725.90

Equipment fund                                                  12,291,891.45                               6,065,857.97

Material fund

Petty cash                                                          3,148,000.00                             484,092.66

Equity section                                                  22,594,191.20                           22,594,191.20

Restricted stock repurchase obligations                             4,422,320.00                            4,422,320.00

Other                                                           19,347,025.90                           18,616,305.15

Total                                                          130,162,161.94                          114,993,136.80

                                                                                                                 In RMB


29.Non-current liabilities due within 1 year

                                                                                                     In RMB


                   Items                          Closing balance                         Opening balance

Long-term loans due 1 year                                   2,618,261,390.49                        1,049,874,000.00

Long-term payable due 1 year                                   423,174,302.28                          525,979,430.08

Deferred income due within one year                             41,697,397.97                           42,736,082.34

Total                                                        3,083,133,090.74                        1,618,589,512.42

Other notes:

      Note 1: compared with the beginning of the period, non-current liabilities due within one year was increased
at the end of the period because of the increased maturity of loans and financing lease.


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30.Other current liabilities

                                                                                                                       In RMB

                   Items                             Closing balance                              Opening balance

USD exchange                                                       67,744,000.00                                69,370,000.00

For resale tax                                                     27,991,818.64                                16,165,473.05

Total                                                              95,735,818.64                                85,535,473.05

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
                                                                                   amortizati                        year-end
                                                      in                                            t
                                                                                      on

Other notes:

 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,
2017, the Group still consults with the Exchange Unit on the returning of the exchange.



31. Long-term loan

(1) Category of long-term loan
                                                                                                                       In RMB

                   Items                             Closing balance                              Opening balance

Mortgage loans                                                  3,263,703,213.74                             4,758,433,000.00

Guarantee loans                                                 4,985,499,999.98                             2,487,600,000.00

Credit loans                                                      200,000,000.00                               400,000,000.00

Less :Long-term loan due 1 year                               -2,618,261,390.49                             -1,049,874,000.00

Total                                                           5,830,941,823.23                             6,596,159,000.00

Notes:

Notes 1:At the end of the period, the Company has no long-term borrowings that have not yet been repaid.
     Note 2: The mortgage of RMB 3,263,703,213.74 is both the mortgage loan and the guarantee loan,
reclassified into the non-current liabilities due within one year RMB 673,028,057.13.

     (1) Among the loan of RMB 408,000,000.00, 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.

        (2) Among the loan of RMB 1,640,000,000.00, due within one year is RMB 327,500,000.00, the collateral

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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 450,000,000.00, due within one year is RMB 80,000,000.00, 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)Among the loan of RMB 709,195,200.00元, Non-current Liability due within one year is RMB
123,548,800.00, the collateral and guarantor: a. the guarantor is Henan Energy and Chemical Industry Group Co.,
Ltd., Dongxu Gruop, 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. On the ground buildings, machinery and equipment
(including 4 Precious Metals Platinum channel) collateral valuation value of RMB1,055,713,019.27.


     (5)For the RMB 56,508,013.74 loan, of which the non-current liabilities due within one year are RMB
5,979,257.13, and such loan with a pledge of collateral not only is the collateral loan but also is the guarantee loan,
which was provided a joint and several liability guarantee by Zneg Jiankai and his spouse Zhong Yuhua and was a
collateral loan that was provided a collateral of house by Shenzhen Xinyingtong Technology Co. Ltd.
     Note 3: Among the credit loan of RMB 200,000,000.00, due within one year is RMB 200,000,000.00.

     Note 4:Among the guarantee loan of RMB 4,985,499,999.98, due within one year is RMB 1,745,233,333.36,
of which: TUNGHSU GROUP, Li Zhaoting, Li Qing provide the joint liability guarantee for the Company’s loan
of RMB 2,487,500,000.00, TUNGHSU GROUP and Li Zhaoting provides the joint liability guarantee for the
Company’s loan of RMB 600,000,000.00; TUNGHSU GROUP provides the joint liability guarantee for the
Company’s loan of RMB498,000,000.00; TUNGHSU GROUP , Dongxu Optoelectronic Investment Co., Ltd.and
Li Zhaoting provides the joint liability guarantee for the Company’s loan of RMB 400,000,000.00;Li Zhaoting
provides the joint liability guarantee for the Company’s loan of RMB 124,999,999.98.

       Among the loan of RMB 695,000,000.00, due within one year is RMB 170,000,000.00, 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. TUNGHSU
GROUP and Li Zhaoting provides the joint liability guarantee for Fuzhou Dongxu Optoelectronic Technology Co.,
Ltd’s loan of RMB 100,000,000.00; Nippon Electric Co., Ltd. provides the joint liability guarantee for Fuzhou
Dongxu Optoelectronic Technology Co., Ltd’s loan of RMB 80,000,000.00.

Notes 5.Rate of annual long-term borrowing is generally ranged from 4.90% to 9.00%.

Other notes:


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                                                               Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


32. Bonds payable

(1) Bonds payable

                                                                                                                                  In RMB


                        Items                                  Closing balance                                 Opening balance

15 Dongxu Bonds                                                                 992,015,480.73                              990,780,313.28

Mid-term Note I                                                                2,981,029,962.31                            2,976,537,353.65

Mid-term Note II                                                               1,687,512,093.46                            1,686,594,827.80

Total                                                                          5,660,557,536.50                            5,653,912,494.73

(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and
perpetual capital securities of financial liabilities)
                                                                                                                                     In RMB

15
                1,000,000                          1,000,000 990,780,3               30,000,00 1,235,167 60,000,00                 992,015,4
Dongxu                      2015.5.19 5 Years
                  ,000.00                            ,000.00     13.28                     0.00        .45        0.00                 80.73
Bonds

Mid-term 3,000,000 2016.11.1                       3,000,000 2,976,537               91,025,64 4,492,608                           2,981,029
                                        5 years
Note I            ,000.00 7                          ,000.00   ,353.65                     3.83        .66                           ,962.31

Mid-term 1,700,000 2016.12.0                       1,700,000 1,686,594               20,192,65 917,265.6                           1,687,512
                                        5 Years
Note II           ,000.00 2                          ,000.00   ,827.80                     7.54          6                           ,093.46

                                                   5,700,000 5,653,912               141,218,3 6,645,041 60,000,00                 5,660,557
     Total         --            --         --
                                                     ,000.00   ,494.73                   01.37         .77        0.00               ,536.50


(3)Other financial instruments that are classified as financial liabilities

The issuance of preferred stock and other financial instruments such as perpetual debt
     Note: on September 8, 2016, the 8th board of directors meeting of the company examined and approved the
company’s application for registration of the medium-term notes issued no more than RMB 4.7 billion. The
accepting institution was National Association of Financial Market Institutional Investors. On September 26, 2016,
the extraordinary shareholders' general meeting adopted the bill on the registration and issuance of medium-term
notes.

      RMB 4.7 billion medium-term notes was divided into 2 phases in 2016. Among them: total amount of the
first phase of the medium-term notes varieties (3 + 2) and five-year notes was RMB 3 billion. Total amount of the
second phase of the medium-term notes varieties (3 + 2) and five-year notes was RMB 1.7 billion.

Table of changes in financial instruments such as preferred stock and perpetual debt
                                                                                                                                     In RMB

     External        Balance in year-begin           Increase at this period        Decrease at this period         Balance in year-end
     financial
                        Amount        Book value     Amount       Book value        Amount        Book value      Amount         Book value
 instruments


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                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




33. Long-term payable

(1) Long-term payable listed by nature of the account
                                                                                                                            In RMB

                    Items                                 Closing balance                            Opening balance

Long-term payable                                                    2,025,481,796.75                              2,335,133,534.47

Less:Unconfirmed financing costs                                     -235,782,017.61                               -294,845,535.72

Less:Port due Within 1 year                                          -423,174,302.28                               -525,979,430.08

Total                                                                1,366,525,476.86                              1,514,308,568.67

Other notes:
Detail:
             Name of lessor                 Initial amount         Increase in the     Repayment amount        Closing balance
                                                                       period
   Wuxi Finance Leasing Co., Ltd.           206,000,000.00                              206,000,000.00
Beijing Cultural Technology Finance         278,478,157.00                               55,695,631.40         222,782,525.60
            Leasing Co., Ltd.
 Beijing Guozi Finance Leasing Co.,         259,979,122.62                               28,886,569.18         231,092,553.44
                  Ltd.
   Haitong Hengxin International            402,769,234.00                               57,538,462.00         345,230,772.00
            Leasing Co., Ltd.
Ligen Finance Leasing(Shanghai) Co.,        90,749,640.25                                18,149,928.04         72,599,712.21
                  Ltd.
Jiangsu Runxing Finance Leasing Co.,        240,000,000.00                               8,000,000.00          232,000,000.00
                   ltd.
   Hebei Finance Leasing Co., Ltd.          60,755,349.99                                15,542,800.00         45,212,549.99
   Lujin Shenhua Finance Leasing            171,417,988.80                               17,141,798.88         154,276,189.92
         (Shanghai) Co., Ltd.
  Xian Runyin Finance Leasing Co.,          624,984,041.81                               13,624,722.22         611,359,319.59
                  Ltd.
         Dongyin Finance leasing                                   110,928,174.00                              110,928,174.00
           (Tianjing)Co., Ltd.
                  Total                    2,335,133,534.47        110,928,174.00       420,579,911.72     2,025,481,796.75

        Notes Tunghsu Group Co., Ltd, Li Zhaoting and Li Qing offered a guarantee of melts rent at RMB 1,001,584,005.42.


34.Deferred income

                                                                                                                            In RMB

          Items               Balance in       Increase at this     Decrease at this     Balance in year-end          Reason


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                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                             year-begin              period                    period

Govemment Subsidy            373,714,638.12                                      391,273.75       373,323,364.37

Less :Government
subsidies due within          -26,809,305.17        -13,399,652.78         -13,404,652.59         -26,804,305.36
one year

Not realized after
                              49,971,106.49                                    6,596,345.48        43,374,761.01
sale rental return

Less:Unrealized
customer service due
                              -15,926,777.17         -6,929,704.03             -7,963,388.59      -14,893,092.61
within 1 year rent to
profit or loss

Total                        380,949,662.27         -20,329,356.81         -14,380,421.95         375,000,727.41           --

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
Revitalizatio n
and Technology            2,877,777.88                            116,666.64                           2,761,111.24 Related to assets
Reconstructio n
Project

Grant of
Glass-tube
Secondary                     5,000.00                               5,000.00                                       Related to assets
Environment al
Protection

Technical
                          2,933,333.31                            133,333.33                           2,799,999.98 Related to assets
reconstructi on

Grant of Glass
                         11,000,000.00                            500,000.00                          10,500,000.00 Related to assets
Substrate Project

Industry
Development               5,133,333.31                            233,333.33                           4,899,999.98 Related to assets
Fund

Project finance
                            344,666.69                              15,666.67                            329,000.02 Related to assets
discount


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                                    Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Grant of Industry
Revitalizatio n
and Technology      78,184,000.02       3,257,666.67                      74,926,333.35 Related to assets
Reconstructio n
Project

2013 Provincial
strategic
emerging
                     4,583,333.35         166,666.67                       4,416,666.68 Related to assets
industries of
special grant
funds

Technology
reconstructi on     30,978,333.32       1,078,000.00                      29,900,333.32 Related to assets
Special funds

Investment and
Subsidies of
“Double Hundred
Plan” Project
                     1,983,333.33         100,000.02                       1,883,333.31 Related to assets
granted by the
People's
Government of
Henan Province

TFT glass
substrate
                       99,166.67            4,999.98                          94,166.69 Related to assets
technology R& D
fund

TFT glass
substrate project    6,611,111.10         333,333.36                       6,277,777.74 Related to assets
Subsidy

Investment and
Subsidies within
Budget for
Technological
Transformation
Project by
National             9,255,555.57         466,666.68                       8,788,888.89 Related to assets
Development and
Reform
Commission and
the Ministry of
Industry and
Information



                                                                                                        139
                                    Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Technology

TFT glass
substrate project   13,222,222.23         666,666.66                      12,555,555.57 Related to assets
Subsidy

Subsidy Major
Scientific and
Technical
Projects by           661,111.10           33,333.36                         627,777.74 Related to assets
Finance Bureau
of Zhengzhou
City

Financial
Supports for
National Key
Industry and
Technical
                     9,255,555.57         466,666.68                       8,788,888.89 Related to assets
Transformation
on Projects
Granted by the
Municipal
Finance Bureau

Financial
Supports for
Industrial
Development
Granted by the
Finance Bureau       4,627,777.77         233,333.34                       4,394,444.43 Related to assets
of the Economic
and
Technological l
Development
Zone

Funds for
Independent
Innovation of
                     3,966,666.67         199,999.98                       3,766,666.69 Related to assets
Provincially
Supported
Enterprises

Supporting Funds
on Finance           1,322,222.23          66,666.66                       1,255,555.57 Related to assets
Discounts

Funds for             991,666.67           49,999.98                         941,666.69 Related to assets


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                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Education,
Science and
Culture Granted
by the Finance
Bureau

Supporting Funds
for Industrial
Structure
-adjusting              1,928,888.88          93,333.36                       1,835,555.52 Related to assets
Projects Granted
by the Regional
Finance Bureau

Industry discount
                        1,111,111.10          53,333.34                       1,057,777.76 Related to assets
and expenses

Financial
                        3,527,777.86         166,666.68                       3,361,111.18 Related to assets
discount

Industrial
restructuring
                        3,813,333.33         160,000.02                       3,653,333.31 Related to assets
project financial
funds

Special Funds for
High-end
Information
Industry Chain
Granted by the
Finance Bureau          4,194,444.45         166,666.68                       4,027,777.77 Related to assets
of the Economic
and
Technological l
Development
Zone

2015 project
equipment
                       32,273,366.64       1,145,800.03                      31,127,566.61 Related to assets
investment
subsidies

Zhengzhou City F
inance Bureau in
2011 and 2012 ha
s been the accepta      2,585,555.55          86,666.64                       2,498,888.91 Related to assets
nce of the provinc
ial industrial struc
ture adjustment pr


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                                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


oject the second b
atch of funds

Strategic
emerging
industry              27,500,000.00                       1,000,000.00                      26,500,000.00 Related to assets
Development
project funds

High-tech Zone
appropriated           6,293,333.33                         213,333.33                       6,080,000.00 Related to assets
substrate project

The production
line of incentive     20,748,842.77                         753,471.70                      19,995,371.07 Related to assets
funds

Special funds for
2015 scientific
and technological      7,028,417.42                         301,701.96                       6,726,715.46 Related to assets
achievements
transform project

G8.5tft-lcd glass
substrate
manufacturing
precision
                      45,000,000.00                                                         45,000,000.00 Related to assets
intelligent digital
workshop
construction
project

Green key
technology
                                      12,000,000.00                                         12,000,000.00 Related to assets
reform of glass
substrate(1200)

Intelligent
manufacturing
pilot
                                       1,000,000.00                                          1,000,000.00 Related to assets
demonstration
project grant
(100)

Research funding
                       1,590,000.00                                                          1,590,000.00 Related to income
159

Special funds for
scientific research     400,000.00                                                             400,000.00 Related to income
40



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                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Total                 373,714,638.12       13,000,000.00       13,391,273.75                         373,323,364.37            --


35.Other Non-current liabilities

                                                                                                                                    In RMB

                   Items                                    Closing balance                              Opening balance

CDB financing                                                             500,000,000.00                                 500,000,000.00

Total                                                                     500,000,000.00                                 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.

36.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

Total of capital 4,939,928,983.                                                                                           4,939,928,983.
shares                         00                                                                                                      00


37. Capital reserves

                                                                                                                                    In RMB

          Items            Year-beginning balance          Increase in current        Decrease in current       Year-end balance

Share premium                       15,175,688,435.63                 796,800.00                   250,586.82          15,176,234,648.81

Other                                   31,522,375.26                                                                     31,522,375.26

Total                               15,207,210,810.89                 796,800.00                   250,586.82          15,207,757,024.07

Other notes, including changes and reason of change:

Notes :Equity incentive amortization expenses RMB796,800.00     should be added to the capital reserves. In
current period, capital of subsidiary company Fuzhou Dongxu Optoelectronic Technology Co., Ltd was increased,
thus resulting capital reserves decrease RMB 250,586.82.

38.Treasury stock

                                                                                                                                    In RMB



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                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                                                                      Decrease in the current
          Items             Year-beginning balance       Increase in the current                                        Year-end balance
                                                                                               period

    The obligation to
   repurchase equity                     4,422,320.00                                                                            4,422,320.00
        incentive

          Total                          4,422,320.00                                                                            4,422,320.00




39. Other comprehensive income

                                                                                                                                       In RMB

                                                                               Amount of current period

                                                                      Less           :
                                                                      Previously rec
                                                        Amount for                                      After - tax a After - tax a
                                         Year-beginni                                                                                 Year-end
                  Items                                               ognized in pro
                                                        the period                         Less:       ttributable t ttributable t
                                          ng balance                                                                                  balance
                                                                      fit or loss in ot
                                                        before inco                       Income tax o the parent o minority s
                                                                      her comprehen
                                                        me tax                                          company       hareholders
                                                                      sive income


II.Other comprehensive income to be
 subsequently reclassified into profit                    -1,368.93                                       -1,368.93                   -1,368.93
                  loss

    Balance form the translation of
                                                          -1,368.93                                       -1,368.93                   -1,368.93
foreign currency financial statements

 Total of Other comprehensive
                                                          -1,368.93                                       -1,368.93           0.00 -1,368.93
            income


40. Special reserves

                                                                                                                                      In RMB
                                                                                      Decrease in the current
          Items             Year-beginning balance       Increase in the current                                        Year-end balance
                                                                                               period

Safety production cost                                                5,289,190.20                5,289,190.20




41. Surplus reserve

                                                                                                                                       In RMB


          Items             Year-beginning balance       Increase in the current      Decrease in the current           Year-end balance

                                                                 period                        period


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                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Statutory surplus reserve            188,044,070.48                                                                188,044,070.48

Total                                188,044,070.48                                                                188,044,070.48


42. Retained profits

                                                                                                                          In RMB

                       Items
                                                      Amount of current period                     Amount of previous period
Before adjustments: Retained profits in last period
                                                                          1,885,538,821.49                         969,380,500.97
end

After adjustments: Retained profits at the period
                                                                          1,885,538,821.49                         969,380,500.97
beginning

Add:Net profit belonging to the owner of the
                                                                            635,855,750.37                       1,239,928,899.40
parent company

Less:Statutory surplus reserve                                                                                     55,320,542.06

Dividend of common stock payable                                            345,795,028.81                         268,450,036.82

Retained profits at the period end                                        2,175,599,543.05                       1,885,538,821.49


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 .


43. Business income, Business cost

                                                                                                                          In RMB

                                        Amount of current period                  Amount of previous period
            Items
                                    Income                       Cost                     Income                   Cost

Main business                      4,632,685,829.16            3,337,781,315.84          2,872,447,933.52        1,935,634,364.40

Other business                         8,599,698.75                1,093,834.06              9,611,220.89            2,675,279.25

Total                              4,641,285,527.91            3,338,875,149.90          2,882,059,154.41        1,938,309,643.65




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44. Business tax and subjoin
                                                                                                                     In RMB

                    Items                    Amount of current period              Amount of previous period

Urban construction tax                                         15,013,280.82                                   11,474,361.56

Education surcharge                                            10,904,037.45                                    8,203,130.71

Property tax                                                     4,756,218.45

Land use tax                                                     8,002,134.32

vehicle and vessel usage tax                                            8,618.64

Stamp tax                                                        5,606,307.49

Business tax                                                                                                     761,365.31

Other                                                             874,497.35                                        2,870.30

Total                                                          45,165,094.52                                   20,441,727.88

Other notes:

     Note: According to CK (2016) NO. 22 notice "On printing and Distributing Value-Added tax Accounting
Regulations" issued by the Ministry of Finance, after comprehensive regulations for business tax paid VAT,
business tax and additional course changed name to "tax and additional" course. The course accounts consumption
tax of business activities, urban maintenance and construction tax, resource tax, educational expenses additional
and the property tax, land-using tax, vehicle-using taxes, stamp duty and other relevant taxes. The "business tax
and additional" column in the income statement should be changed to "tax and additional” column. The
company’s property tax, land-using tax, vehicle-using taxes, stamp duty and other relevant taxes should be listed
in the management fees. And also be listed in this course since May 1, 2016.

45.Sales expenses

                                                                                                                     In RMB

                    Items                    Amount of current period              Amount of previous period

Wage and welfare insurance                                       7,294,517.68                                   8,043,637.06

Shipment                                                       15,328,447.68                                   10,518,390.78

Travel                                                            943,021.18                                    1,564,588.04

Business expenses                                                1,092,211.73                                    889,762.89

Consumables and repairs                                             44,401.46                                     35,298.52

Office fee                                                          63,078.18                                    693,969.53

Depreciation                                                      242,381.24                                     115,233.72

Advertising                                                       847,755.97                                    9,039,375.46

Other                                                            3,228,420.03                                    677,460.56

Total                                                          29,084,235.15                                   31,577,716.56




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46. Administrative expenses

                                                                                                            In RMB

                     Items               Amount of current period               Amount of previous period

Wage and additional cost                                   68,826,404.16                           68,805,600.28

Business expenses                                            1,322,409.53                           1,479,520.63

Labor protect fee                                            1,207,592.76                           3,529,985.13

Office fees                                                  4,267,054.65                          20,578,493.71

Travel fees                                                  2,219,022.10                           3,054,740.65

Publicize Fees                                               2,197,489.82                           1,393,515.31

Miscellaneous charges                                        1,218,777.26                             319,840.58

Tax                                                                                                14,572,906.28

Depreciation accumulative                                  26,238,710.55                           23,481,335.52

Low value consumables and repair costs                        917,518.47                            1,090,291.06

Research expenses                                          53,235,234.93                           45,720,772.21

Consultation fees                                          10,915,428.13                           12,360,432.61

Rental fees                                                  8,040,238.09                          19,769,433.60

Communication fees                                            124,253.08                              625,548.95

Transportation feed                                           125,702.79                            2,920,583.91

Equity incentive cost                                         796,800.00                            1,992,000.00

Other                                                      12,062,518.64                           15,011,264.42

Total                                                     193,715,154.96                          236,706,264.85


47. Financial expenses

                                                                                                            In RMB

                     Items               Amount of current period               Amount of previous period

Interest expenses                                         519,566,583.75                          193,938,482.48

Less:Interest income                                     193,951,294.79                           83,547,417.93

Net interest expenses                                     325,615,288.96                          110,391,064.55

Exchange gains and losses                                  -12,688,695.73                         -18,221,357.21

Financial institution                                        1,926,814.75                             649,340.38

Bill discount rate                                                                                  1,519,815.05

Other                                                               7,500.50                          100,529.84

Financing fee                                                3,093,312.92



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Total                                                                    317,954,221.40                                94,439,392.61


48. Asset impairment loss

                                                                                                                               In RMB

                   Items                             Amount of current period                     Amount of previous period

1. Bad debt loss                                                                2,618.25                                3,554,932.15

II.Losses for falling price of inventory                                    205,619.77

Total                                                                       208,238.02                                  3,554,932.15


49.Investment income

                                                                                                                               In RMB

                      Items                              Amount of current period             Amount of previous period

Long-term equity investment income by equity
                                                                            -15,506,492.83                                 81,758.31
method

Financing                                                                    22,183,417.04

Total                                                                         6,676,924.21                                 81,758.31


50.Other income

                                                                                                                               In RMB

                   Source                            Amount of current period              Amount of previous period

Tax returns                                                               86,680,000.00


51. Non-operating income

                                                                                                                               In RMB

                                                                                                        The amount of non-operating
              Items                   Amount of current period     Amount of previous period
                                                                                                              gains & losses

Govemment Subsidy                                  65,632,104.25                    103,218,866.64                     65,632,104.25

Other                                                 437,783.27                       290,413.04                         437,783.27

Total                                              66,069,887.52                    103,509,279.68                     66,069,887.52


Government subsidy reckoned into current gains/losses

                                                                                                                               In RMB

                                  Issuing                  Whether the      Whether                                     Assets-relate
    Items       Issuing body                    Nature
                                  Reason                     impact of       special        Amount of      Amount of      d/income



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                                                          subsidies on    subsidies                                  -related
                                                           the current                 current      previous

                                                           profit and
                                                                                        period       period
                                                                loss

                                         Grants
                                         obtained due
                                         to the country
                                         encourage
                                         and support
                 Yangzhong               specific
Talent project                                                                                                    Related to
                  Finance      Subsidy   industries       Yes            No            600,000.00   240,000.00
funds                                                                                                             income
                  Bureau                 (Obtained in
                                         accordance
                                         with the
                                         national
                                         policies and
                                         regulations)

                                         Grants
                                         obtained due
                                         to research
                                         and
                 Yangzhong
Innovation                               development,                                                             Related to
                  Technology Award                        Yes            No                           10,000.00
fund                                     technical                                                                income
                  Bureau
                                         renovation
                                         and
                                         transformatio
                                         n, etc

                                         Grants
                                         obtained due
                                         to research
                 Yangzhong
                                         and
Equipment         Developme
                                         development,                                                             Related to
investment        nt and       Award                      Yes            No            109,100.00   298,200.00
                                         technical                                                                income
fund              Reform
                                         renovation
                  Commission
                                         and
                                         transformatio
                                         n, etc

                                         Grants
                                         obtained due
                 Yangzhong
Technology                               to research                                                              Related to
                 Technology    Award                      Yes            No             20,000.00      9,000.00
 Patent fund                             and                                                                      income
                 Bureau
                                         development,
                                         technical


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                                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                        renovation
                                        and
                                        transformatio
                                        n, etc

                                        Grants
                                        obtained due
                                        to research
                                        and
Technology       Yangzhong
                                        development,                                                          Related to
 Innovation      Technology   Award                      Yes          No               15,000.00
                                        technical                                                             income
 Award.          Bureau
                                        renovation
                                        and
                                        transformatio
                                        n, etc

                                        Grants
                                        obtained due
                                        to the country
Provincial
                                        encourage
Industry and
                                        and support
information
                 Yangzhong              specific
industry                                                                                                      Related to
                 Finance      Subsidy   industries       Yes          No
transformatio                                                                                                 income
                 Bureau                 (Obtained in
n and
                                        accordance
upgrading of
                                        with the
special funds
                                        national
                                        policies and
                                        regulations)

                                        Grants
                                        obtained due
                                        to research
Provincial
                                        and
Science and      Yangzhong
                                        development,                                                          Related to
technology       Technology   Award                      Yes          No
                                        technical                                                             income
awards in        Bureau
                                        renovation
2015
                                        and
                                        transformatio
                                        n, etc

                                        Grants
Labor and
                 Yangzhong              obtained due
employment
                  Social                to the country                                                        Related to
management                    Award                      Yes          No
                  Security              encourage                                                             income
center steady
                  Bureau                and support
post subsidies
                                        specific


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                                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                       industries
                                       (Obtained in
                                       accordance
                                       with the
                                       national
                                       policies and
                                       regulations)

                                       Grants
                                       obtained due
                                       to research
                                       and
The fourth      Yangzhong
                                       development,                                                          Related to
batch of grant Technology    Subsidy                    Yes          No
                                       technical                                                             income
funds           Bureau
                                       renovation
                                       and
                                       transformatio
                                       n, etc

                                       Grants
                                       obtained due
                                       to research
                                       and
                Yangzhong
                                       development,                                                          Related to
Patent fund     Technology   Subsidy                    Yes          No
                                       technical                                                             income
                Bureau
                                       renovation
                                       and
                                       transformatio
                                       n, etc

                                       Grants
                                       obtained due
                                       to the country
                                       encourage
                                       and support
16 provincial
                Yangzhong              specific
special funds                                                                                                Related to
                Finance      Award     industries       Yes          No
for business                                                                                                 income
                Bureau                 (Obtained in
development
                                       accordance
                                       with the
                                       national
                                       policies and
                                       regulations)

16 national     Yangzhong              Grants
                                                                                                             Related to
special fund    Finance      Award     obtained due Yes              No
                                                                                                             income
for foreign     Bureau                 to the country


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                                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


trade and                              encourage
economic                               and support
development                            specific
                                       industries
                                       (Obtained in
                                       accordance
                                       with the
                                       national
                                       policies and
                                       regulations)

                                       Grants
                                       obtained due
                                       to research
                                       and
                Yangzhong
Patent                                 development,                                                          Related to
                Technology   Subsidy                   Yes           No
funding                                technical                                                             income
                Bureau
                                       renovation
                                       and
                                       transformatio
                                       n, etc

                                       Grants
                                       obtained due
                                       to research
16 years of                            and
                Yangzhong
special funds                          development,                                                          Related to
                Technology   Subsidy                   Yes           No
for research                           technical                                                             income
                Bureau
cooperation                            renovation
                                       and
                                       transformatio
                                       n, etc

                                       Grants
                                       obtained due
The second
                                       to
batch of
                                       conforming
patent
                                       to the local
applications    Zhengzhou
                                       supporting                                                            Related to
for funding     Technolog y Subsidy                    Yes           No
                                       policies such                                                         income
by the          Bureau
                                       as local
opening of
                                       government’s
the CMC in
                                       investment
2015
                                       attraction
                                       policy

Zhengzhou       Zhenzhou     Subsidy   Grants          Yes           No                                      Related to


                                                                                                                          152
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City Finance Finance                     obtained due                                                          income
Bureau            Bureau                 to
students                                 conforming
apply for                                to the local
subsidies                                supporting
                                         policies such
                                         as local
                                         government’s
                                         investment
                                         attraction
                                         policy

                                         Grants
                                         obtained due
Zhengzhou
                                         to
City Social
                                         conforming
Security
                  Zhengzhou              to the local
Bureau in the
                  Social                 supporting                                                            Related to
fifth                         Subsidy                    Yes           No
                  security               policies such                                                         income
installment of
                  Bureau                 as local
unemployme
                                         government’s
nt insurance
                                         investment
in 2015
                                         attraction
                                         policy

                                         Grants
                                         obtained due
Zhengzhou                                to
City                                     conforming
Economic                                 to the local
                  Zhengzhou
Development                              supporting                                                            Related to
                  Technology y Subsidy                   Yes           No
Zone in 2016                             policies such                                                         income
                  Bureau
the second                               as local
batch of                                 government’s
patent funds                             investment
                                         attraction
                                         policy

Zhengzhou                                Grants
City Science                             obtained due
and                                      to
                  Zhengzhou
Technology                               conforming                                                            Related to
                  Technology y Subsidy                   Yes           No
Bureau,                                  to the local                                                          income
                  Bureau
Finance                                  supporting
Bureau 2016                              policies such
the first batch                          as local



                                                                                                                            153
                                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


of large-scale                         government’s
scientific                             investment
equipment                              attraction
and facilities                         policy
to share
subsidies

                                       Grants
                                       obtained due
                                       to
Zhengzhou                              conforming
City Bureau                            to the local
                 Zhengzhou
of Finance                             supporting                                                            Related to
                 Finance     Subsidy                   Yes           No
cited the                              policies such                                                         income
                 Bureau
project                                as local
funding                                government’s
                                       investment
                                       attraction
                                       policy

                                       Grants
                                       obtained due
Zhengzhou
                                       to
City Social
                                       conforming
Security
                 Zhengzhou             to the local
Bureau in
                 Social                supporting                                                            Related to
December                     Subsidy                   Yes           No
                 security              policies such                                                         income
2016 work
                 Bureau                as local
injury
                                       government’s
prevention
                                       investment
fee
                                       attraction
                                       policy

                                       Grants
                                       obtained due
Zhengzhou
                                       to
City Bureau
                                       conforming
of Commerce
                                       to the local
in 2015          Zhengzhou
                                       supporting                                                            Related to
Zhengzhou        Commercial Award                      Yes           No
                                       policies such                                                         income
City, opening al Bureau
                                       as local
up special
                                       government’s
funds
                                       investment
(national p
                                       attraction
                                       policy

Zhengzhou        Zhengzhou   Subsidy   Grants          Yes           No                                      Related to


                                                                                                                          154
                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Economic         Technology y              obtained due                                                          income
and              Bureau                    to
Technologica                               conforming
l                                          to the local
Development                                supporting
Zone Finance                               policies such
Bureau 2016                                as local
annual R & D                               government’s
costs ladder                               investment
subsidy                                    attraction
                                           policy

                                           Grants
Zhengzhou                                  obtained due
City, Human                                to
Resources        Zhengzhou                 conforming
and Social       human                     to the local
Security         resources and             supporting                                                            Related to
                                 Award                     Yes           No
Department       social                    policies such                                                         income
of college       security                  as local
graduates        department                government’s
employment                                 investment
awards                                     attraction
                                           policy

Received the                               Grants
quality of the                             obtained due
opening          Zhengzhou                 to
district         economic and              conforming
quality          Technologica              to the local
promotion        l                         supporting                                                            Related to
                                 Award                     Yes           No              200,000.00
district         Development               policies such                                                         income
leading group Zone quality                 as local
office,          leading group             government’s
director of      office                    investment
quality award                              attraction
2016                                       policy

Received the                               Grants
Zhengzhou                                  obtained due
Finance                                    to
                 Zhengzhou
Bureau,                                    conforming                                                            Related to
                 Finance         Subsidy                   Yes           No              492,000.00
social                                     to the local                                                          income
                 Bureau
security fund,                             supporting
college                                    policies such
graduates                                  as local



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                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


employment                               government’s
trainee                                  investment
subsidies                                attraction
                                         policy

                                         Grants
To receive
                                         obtained due
foreign
                                         to
intellectual   Henan
                                         conforming
resources      Provincial
                                         to the local
from           Department
                                         supporting                                                            Related to
Zhengzhou      of human        Subsidy                    Yes          No               50,000.00
                                         policies such                                                         income
human          resources and
                                         as local
resources and social
                                         government’s
Social         security
                                         investment
Security
                                         attraction
Bureau
                                         policy

                                         Grants
                                         obtained due
                                         to the country
                                         encourage
Human                                    and support
Resources                                specific
               Province                                                                                        Related to
Office                         Subsidy   industries       No           No
               Finance Dept                                                                                    income
funding for                              (Obtained in
funding                                  accordance
                                         with the
                                         national
                                         policies and
                                         regulations)

                                         Grants
                                         obtained due
                                         to the country
                                         encourage
                                         and support
Central
                                         specific
innovation     Wuhu                                                                                            Related to
                               Award     industries       Yes          No              100,000.00
team support Finance                                                                                           income
                                         (Obtained in
fund
                                         accordance
                                         with the
                                         national
                                         policies and
                                         regulations)

Wuhu social Wuhu human Subsidy           Grants           Yes          No                           108,000.00 Related to


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                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


security        resources                obtained due                                                            income
center steady service center             to the country
hillock                                  encourage
subsidy                                  and support
                                         specific
                                         industries
                                         (Obtained in
                                         accordance
                                         with the
                                         national
                                         policies and
                                         regulations)

                                         Grants
                Economic
                                         obtained due
                and Trade
                                         to research
                Development
                                         and
R&D             Bureau of
                                         development,                                                            Related to
equipment       Wuhu           Subsidy                    Yes          No                           519,000.00
                                         technical                                                               income
grants          economic and
                                         renovation
                Technology
                                         and
                Development
                                         transformatio
                Zone
                                         n, etc

                                         Grants
                                         obtained due
                Economic
                                         to
                and Trade
                                         conforming
                Development
Disposable                               to the local
                Bureau of
Industrial                               supporting                                                              Related to
                Wuhu           Award                      Yes          No
Development                              policies such                                                           income
                economic and
Award Fund                               as local
                Technology
                                         government’s
                Development
                                         investment
                Zone
                                         attraction
                                         policy

                                         Grants
                                         obtained due
                                         to the country
Innovative                               encourage
                Wuhu                                                                                             Related to
construction                   Subsidy   and support      Yes          No
                Finance                                                                                          income
special funds                            specific
                                         industries
                                         (Obtained in
                                         accordance



                                                                                                                              157
                                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                       with the
                                       national
                                       policies and
                                       regulations)

                                       Grants
                                       obtained due
                                       to the country
                                       encourage
Wuhu science                           and support
and             Wuhu                   specific
                                                                                                             Related to
Technology      Technology     Award   industries       Yes          No
                                                                                                             income
Award in        Bureau                 (Obtained in
2015                                   accordance
                                       with the
                                       national
                                       policies and
                                       regulations)

                                       Grants
                                       obtained due
                                       to the country
                Economic               encourage
                and Trade              and support
Private
                Development            specific
enterprises                                                                                                  Related to
                Bureau of      Award   industries       Yes          No
hundred                                                                                                      income
                Wuhu                   (Obtained in
special funds
                economic and           accordance
                Technology             with the
                                       national
                                       policies and
                                       regulations)

                                       Grants
                                       obtained due
                                       to the country
                                       encourage
                                       and support
Wuhu science
                Wuhu                   specific
and                                                                                                          Related to
                Technology     Award   industries       Yes          No
Technology                                                                                                   income
                Bureau                 (Obtained in
Award 2016
                                       accordance
                                       with the
                                       national
                                       policies and
                                       regulations)



                                                                                                                          158
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                                          Grants
                                          obtained due
                Economic                  to the country
                and Trade                 encourage
Economic        Development               and support
and Trade       Bureau of                 specific
                                                                                                                Related to
Development Wuhu                Award     industries       Yes          No
                                                                                                                income
Council         economic and              (Obtained in
Award           Technology                accordance
                Development               with the
                Zone                      national
                                          policies and
                                          regulations)

                                          Grants
                                          obtained due
Wuhu
                                          to the country
Municipal
                                          encourage
Administratio
                Wuhu                      and support
n of work
                Municipal                 specific
safety to pay                                                                                                   Related to
                Administr       Award     industries       Yes          No
for the                                                                                                         income
                ation of work             (Obtained in
demonstratio
                safety                    accordance
n of
                                          with the
occupational
                                          national
health
                                          policies and
                                          regulations)

Wuhu
                                          Grants
economic and Economic
                                          obtained due
Technologica and Trade
                                          to research
l               Development
                                          and
Development Bureau of
                                          development,                                                          Related to
Zone            Wuhu            Subsidy                    Yes          No
                                          technical                                                             income
Economic        economic and
                                          renovation
and Trade       Technology
                                          and
Development Development
                                          transformatio
Bureau R & Zone
                                          n, etc
D funding

                                          Grants
Wuhu social                               obtained due
                Wuhu social
insurance                                 to the country                                                        Related to
                insurance       Subsidy                    Yes          No
center post                               encourage                                                             income
                center
subsidies                                 and support
                                          specific



                                                                                                                             159
                                                    Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                     industries
                                     (Obtained in
                                     accordance
                                     with the
                                     national
                                     policies and
                                     regulations)

                                     Grants
                                     obtained due
              Economic               to the country
              and Trade              encourage
              Development            and support
Provincial    Bureau of              specific
                                                                                                           Related to
innovation    Wuhu           Award   industries       Yes          No
                                                                                                           income
pilot Award   economic and           (Obtained in
              Technology             accordance
              Development            with the
              Zone                   national
                                     policies and
                                     regulations)

                                     Grants
                                     obtained due
                                     to the country
                                     encourage
                                     and support
Patent                               specific
              Finance                                                                                      Related to
financial                    Award   industries       Yes          No
              Bureau                                                                                       income
reward                               (Obtained in
                                     accordance
                                     with the
                                     national
                                     policies and
                                     regulations)

                                     Grants
                                     obtained due
                                     to the country
Financial                            encourage
incentives for Finance               and support                                                           Related to
                             Award                    Yes          No
high-tech     Bureau                 specific                                                              income
products                             industries
                                     (Obtained in
                                     accordance
                                     with the



                                                                                                                        160
                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                         national
                                         policies and
                                         regulations)

                                         Grants
                                         obtained due
                                         to the country
15 Wuhu
                                         encourage
provincial
                                         and support
treasury
                                         specific
payment         Finance                                                                                        Related to
                               Subsidy   industries       Yes          No
center          Bureau                                                                                         income
                                         (Obtained in
provincial
                                         accordance
foreign trade
                                         with the
policy
                                         national
                                         policies and
                                         regulations)

                                         Grants
                                         obtained due
                                         to the country
                                         encourage
Wuhu social                              and support
security        Wuhu social              specific
                                                                                                               Related to
center steady insurance        Subsidy   industries       Yes          No
                                                                                                               income
hillock         center                   (Obtained in
subsidy                                  accordance
                                         with the
                                         national
                                         policies and
                                         regulations)

                                         Grants
                                         obtained due
Development Economic
                                         to
Zone            and Trade
                                         conforming
Economic        Development
                                         to the local
and Trade       Bureau of
                                         supporting                                                            Related to
Development Wuhu               Award                      Yes          No
                                         policies such                                                         income
Bureau          economic and
                                         as local
(2012-2015) Technology
                                         government’s
Land use tax Development
                                         investment
incentives      Zone
                                         attraction
                                         policy

Technology      Wuhu                     Grants                                                                Related to
                               Subsidy                    Yes          No
project         Technology               obtained due                                                          income


                                                                                                                            161
                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


funds           Bureau                   to
                                         conforming
                                         to the local
                                         supporting
                                         policies such
                                         as local
                                         government’s
                                         investment
                                         attraction
                                         policy

                                         Grants
                                         obtained due
                                         to research
                Bengbu Inst              and
National key
                of glass                 development,                                                             Related to
R&D                            Subsidy                    Yes          No
                technology               technical                                                                income
program
                design                   renovation
                                         and
                                         transformatio
                                         n, etc

                                         Grants
Suqian
                                         obtained due
Economic
                Suqian                   to
and
                economic and             conforming
Technologica
                Technology               to the local
l
                Development              supporting                                                               Related to
Development                    Award                      Yes          No                             20,000.00
                Zone                     policies such                                                            income
Zone 2015
                Administr                as local
Industrial
                ation                    government’s
Development
                Committee                investment
Guided Fund
                                         attraction
Award
                                         policy

                                         Grants
                State                    obtained due
                Administr                to the country
15 years of     ation of                 encourage
software        Taxation of              and support
                                                                                                                  Related to
products after Shijiazhuang Subsidy      specific         Yes          No
                                                                                                                  income
the first tax   hi tech                  industries
return          Industrial               (Obtained in
                Development              accordance
                Zone                     with the
                                         national



                                                                                                                               162
                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                          policies and
                                          regulations)

                                          Grants
                                          obtained due
                Anhui                     to
                Jiangbei                  conforming
                Industrial                to the local
                Concentrat                supporting                                                 90,342,000.0 Related to
Tax Returns?                    Subsidy                   Yes           No
                ion Zone                  policies such                                                         0 income
                Administr                 as local
                ation                     government’s
                Committe e                investment
                                          attraction
                                          policy

                                          Grants
                                          obtained due
Suqian
                                          to
Economic
                                          conforming
Development
                                          to the local
Zone Finance
                Finance                   supporting                                                              Related to
Bureau                          Subsidy                   Yes           No              230,000.00
                Bureau                    policies such                                                           income
personnel
                                          as local
introduction
                                          government’s
of special
                                          investment
funds
                                          attraction
                                          policy

                                          Grants
                                          obtained due
                                          to
                                          conforming
                Jiangsu
                                          to the local
Awards for      Taizhou New
                                          supporting                                  36,497,930.5                Related to
science and     Enerty          Award                     Yes           No
                                          policies such                                          0                income
technology      Administrativ
                                          as local
                e Committee
                                          government’s
                                          investment
                                          attraction
                                          policy

                                          Grants
2015
                Yangzhong                 obtained due
achievements                                                                                                      Related to
                 Technology Subsidy       to the country Yes            No              301,701.96
transformatio                                                                                                     assets
                 Bureau                   encourage
n Fund
                                          and support


                                                                                                                               163
                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                         specific
                                         industries
                                         (Obtained in
                                         accordance
                                         with the
                                         national
                                         policies and
                                         regulations)

                                         Grants
                                         obtained due
                                         to research
Grant of        Shiijiazhu
                                         and
Glass-tube      ang
                                         development,                                                             Related to
Secondary       Municipal      Subsidy                   Yes           No                5,000.00      5,000.00
                                         technical                                                                assets
Environment Finance
                                         renovation
al Protection Bureau
                                         and
                                         transformatio
                                         n, etc

                                         Grants
Investment                               obtained due
and Subsidies                            to
of “Double                              conforming
Hundred         Henan Office             to the local
Plan” Project of industry               supporting                                                               Related to
                               Subsidy                   Yes           No              100,000.02   100,000.02
granted by      and                      policies such                                                            assets
the People's    information              as local
Government                               government’s
of Henan                                 investment
Province                                 attraction
                                         policy

                                         Grants
                                         obtained due
                                         to research
TFT glass       Zhengzho u               and
substrate       Science &                development,                                                             Related to
                               Subsidy                   Yes           No                4,999.98      4,999.98
technology      Technology               technical                                                                assets
R& D fund       Bureau                   renovation
                                         and
                                         transformatio
                                         n, etc

TFT glass       Zhengzho u               Grants
                                                                                                                  Related to
substrate       Municipal      Subsidy   obtained due Yes              No              333,333.36   333,333.36
                                                                                                                  assets
project         Finance                  to


                                                                                                                               164
                                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Subsidy         Bureau                  conforming
                                        to the local
                                        supporting
                                        policies such
                                        as local
                                        government’s
                                        investment
                                        attraction
                                        policy

Investment
and Subsidies
within                                  Grants
Budget for                              obtained due
Technologica                            to the country
l                                       encourage
Transformati                            and support
                National
on Project by                           specific
                Development                                                                                      Related to
National                      Subsidy   industries       Yes          No              466,666.68   466,666.68
                & Reform                                                                                         assets
Development                             (Obtained in
                Commission
and Reform                              accordance
Commission                              with the
and the                                 national
Ministry of                             policies and
Industry and                            regulations)
Information
Technology

                                        Grants
                                        obtained due
                                        to
                                        conforming
TFT glass       Zhengzhou               to the local
substrate       Municipal               supporting                                                               Related to
                              Subsidy                    Yes          No              666,666.66   666,666.66
project         Finance                 policies such                                                            assets
Subsidy         Bureau                  as local
                                        government’s
                                        investment
                                        attraction
                                        policy

Special                                 Grants
Funds for       Zhengzho u              obtained due
                                                                                                                 Related to
Major           Technology    Subsidy   to               Yes          No               33,333.36     33,333.36
                                                                                                                 assets
Scientific and Bureau                   conforming
Technical                               to the local



                                                                                                                              165
                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Projects by                              supporting
Finance                                  policies such
Bureau of                                as local
Zhengzhou                                government’s
City                                     investment
                                         attraction
                                         policy

                                         Grants
Financial
                                         obtained due
Supports for
                                         to
National Key Zhengzho u
                                         conforming
Industry and Economic
                                         to the local
Technical       and
                                         supporting                                                              Related to
Transformati Technology        Subsidy                   Yes           No              466,666.68   466,666.68
                                         policies such                                                           assets
on Projects     Development
                                         as local
Granted by      Zone Finance
                                         government’s
the Municipal Bureau
                                         investment
Finance
                                         attraction
Bureau
                                         policy

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                   Yes           No              233,333.34   233,333.34
                Finance                  policies such                                                           assets
Economic
                Bureau                   as local
and
                                         government’s
Technologica
                                         investment
l
                                         attraction
Development
                                         policy
Zone

                                         Grants
                                         obtained due
                                         to
Funds for
                                         conforming
Independent Henan
                                         to the local
Innovation of provincial                                                                                         Related to
                               Subsidy   supporting      Yes           No              199,999.98   199,999.98
Provincially    finance                                                                                          assets
                                         policies such
Supported       department
                                         as local
Enterprises
                                         government’s
                                         investment
                                         attraction



                                                                                                                              166
                                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                        policy

                                        Grants
                                        obtained due
                                        to
                                        conforming
Supporting     Henan                    to the local
Funds on       provincial               supporting                                                               Related to
                              Subsidy                   Yes           No               66,666.66     66,666.66
Finance        finance                  policies such                                                            assets
Discounts      department               as local
                                        government’s
                                        investment
                                        attraction
                                        policy

                                        Grants
                                        obtained due
                                        to
Funds for
                                        conforming
Education,
               Zhengzho u               to the local
Science and
               Municipal                supporting                                                               Related to
Culture                       Subsidy                   Yes           No               49,999.98     49,999.98
               Finance                  policies such                                                            assets
Granted by
               Bureau                   as local
the Finance
                                        government’s
Bureau
                                        investment
                                        attraction
                                        policy

                                        Grants
Supporting                              obtained due
Funds for                               to
               Zhengzho u
Industrial                              conforming
               Economic
Structure                               to the local
               and
-adjusting                              supporting                                                               Related to
               Technology     Subsidy                   Yes           No               93,333.36     93,333.36
Projects                                policies such                                                            assets
               Development
Granted by                              as local
               Zone Finance
the Regional                            government’s
               Bureau
Finance                                 investment
Bureau                                  attraction
                                        policy

                                        Grants
               Zhengzhou                obtained due
Industry
               Municipal                to                                                                       Related to
discount and                  Subsidy                   Yes           No               53,333.34     53,333.34
               Finance                  conforming                                                               assets
expenses
               Bureau                   to the local
                                        supporting


                                                                                                                              167
                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                         policies such
                                         as local
                                         government’s
                                         investment
                                         attraction
                                         policy

                                         Grants
                                         obtained due
                                         to
                                         conforming
                Henan                    to the local
Financial       provincial               supporting                                                              Related to
                               Subsidy                   Yes           No              166,666.68   166,666.68
discount        finance                  policies such                                                           assets
                department               as local
                                         government’s
                                         investment
                                         attraction
                                         policy

                                         Grants
                                         obtained due
                                         to
                Zhengzhou
                                         conforming
Industrial      Economic
                                         to the local
restructuring and
                                         supporting                                                              Related to
project         Technology     Subsidy                   Yes           No              160,000.02   160,000.02
                                         policies such                                                           assets
financial       Development
                                         as local
funds           Zone Finance
                                         government’s
                Bureau
                                         investment
                                         attraction
                                         policy

Special
                                         Grants
Funds for
                                         obtained due
High-end
                                         to
Information
                                         conforming
Industry
                Henan Office             to the local
Chain
                of industry              supporting                                                              Related to
Granted by                     Subsidy                   Yes           No              166,666.68   166,666.68
                and                      policies such                                                           assets
thFinance
                information              as local
Bureau of the
                                         government’s
Economic
                                         investment
and
                                         attraction
Technologica
                                         policy
l Develop



                                                                                                                              168
                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                          Grants
                                          obtained due
                                          to
                 Zhengzho u               conforming
2015 project Municipal                    to the local
equipment        Commission               supporting                                                              Related to
                                Subsidy                   Yes           No            1,145,800.02   954,833.35
investment       of industry              policies such                                                           assets
subsidies        and                      as local
                 information              government’s
                                          investment
                                          attraction
                                          policy

Zhengzhou
City Finance                              Grants
Bureau in                                 obtained due
                 Henan
2011 and                                  to
                 Provincial
2012 has                                  conforming
                 Department
been the                                  to the local
                 of Finance
acceptance of                             supporting                                                              Related to
                 and            Subsidy                   Yes           No               86,666.64
the provincial                            policies such                                                           assets
                 Zhengzhou
industrial                                as local
                 Municipal
structure                                 government’s
                 Bureau of
adjustment                                investment
                 Finance
project the                               attraction
second batch                              policy
of funds

                                          Grants
                                          obtained due
                                          to research
                 Shijiazhuang
                                          and
Technical        Municipal
                                          development,                                                            Related to
reconstructio Development Subsidy                         No            No              133,333.34   133,333.34
                                          technical                                                               assets
n                and Reform
                                          renovation
                 Commission
                                          and
                                          transformatio
                                          n, etc

                                          Grants
                 Shijiazhuang             obtained due
Grant of
                 high-tech                to
Glass                                                                                                             Related to
                 Administr      Subsidy   conforming      No            No              500,000.00   500,000.00
Substrate                                                                                                         assets
                 ative                    to the local
Project
                 Committe e               supporting
                                          policies such



                                                                                                                               169
                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                           as local
                                           government’s
                                           investment
                                           attraction
                                           policy

                                           Grants
                                           obtained due
                                           to
                                           conforming
                 Shijiazhua ng             to the local
Industrial
                 high-tech                 supporting                                                               Related to
Development                      Subsidy                    No           No              233,333.34   233,333.34
                 Administrativ             policies such                                                            assets
Fund
                 e Committee               as local
                                           government’s
                                           investment
                                           attraction
                                           policy

                                           Grants
                                           obtained due
                                           to research
                                           and
Project          Shijiazhuang
                                           development,                                                             Related to
finance          Finance         Subsidy                    No           No               15,666.66     15,666.66
                                           technical                                                                assets
discount         Bureau
                                           renovation
                                           and
                                           transformatio
                                           n, etc

                                           Grants
                                           obtained due
                                           to the country
                                           encourage
Industrial
                                           and support
revitalization
                 Shijiazhuang              specific
and                                                                                                                 Related to
                 Finance         Subsidy   industries       No           No            3,257,666.66 3,257,666.66
technological                                                                                                       assets
                 Bureau                    (Obtained in
transformatio
                                           accordance
n project
                                           with the
                                           national
                                           policies and
                                           regulations)

2013             Shijiazhuang              Grants
                                                                                                                    Related to
Production       Municipal       Subsidy   obtained due No               No              166,666.66   166,666.66
                                                                                                                    assets
line             Development               to


                                                                                                                                 170
                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


technology      and deform                conforming
research and Commission                   to the local
development                               supporting
granted funds                             policies such
                                          as local
                                          government’s
                                          investment
                                          attraction
                                          policy

                                          Grants
                                          obtained due
                                          to research
Technology                                and
                Shiijiazhuang
reconstructio                             development,                                                            Related to
                Finance         Subsidy                    No           No            1,078,000.00   411,333.34
n Special                                 technical                                                               assets
                Bureau
funds                                     renovation
                                          and
                                          transformatio
                                          n, etc

                                          Grants
                                          obtained due
                                          to
                                          conforming
Strategic       Shijiazhuang
                                          to the local
emerging        Municipal
                                          supporting                                                              Related to
industries of Development Subsidy                          No           No            1,000,000.00 1,000,000.00
                                          policies such                                                           assets
special grant and deform
                                          as local
funds           Commission
                                          government’s
                                          investment
                                          attraction
                                          policy

                                          Grants
                                          obtained due
                                          to the country
                                          encourage
                                          and support
Glass           Shijiazhuang
                                          specific                                                                Related to
substrate        Finance        Subsidy                    No           No              213,333.34
                                          industries                                                              assets
project grants Bureau
                                          (Obtained in
                                          accordance
                                          with the
                                          national
                                          policies and



                                                                                                                               171
                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                         regulations)

                                         Grants
                                         obtained due
                                         to
                                         conforming
                 Shijiazhuang            to the local
Product line     high-tech               supporting                                                              Related to
                                 Award                    No           No              753,471.70
grants           Administrativ           policies such                                                           assets
                 e Committee             as local
                                         government’s
                                         investment
                                         attraction
                                         policy

                                         Grants
                                         obtained due
                 Wuhu                    to
                 Economic                conforming
                 and Technolo            to the local
Grant of
                 gical                   supporting                                                              Related to
Government                                                Yes          No            1,122,300.00 1,122,300.00
                 Development             policies such                                                           assets
Infrastructure
                 Z one                   as local
                 Finance                 government’s
                 Bureau                  investment
                                         attraction
                                         policy

                                         Grants
                                         obtained due
                                         to the country
Grant of                                 encourage
Industry                                 and support
                 Wuhu
Revitalizatio                            specific
                 Development                                                                                     Related to
n and                                    industries       Yes          No              116,666.64   116,666.64
                 & Reform                                                                                        assets
Technology                               (Obtained in
                 Commission
Reconstructio                            accordance
n Project                                with the
                                         national
                                         policies and
                                         regulations)

Wuhu             Economic                Grants
economic and and Trade                   obtained due
                                                                                                                 Related to
Technologica Development Award           to the country Yes            No              114,800.00
                                                                                                                 income
l                Bureau                  encourage
Development                              and support


                                                                                                                              172
                                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Zone                                      specific
Economic                                  industries
and Trade                                 (Obtained in
Development                               accordance
Bureau                                    with the
export                                    national
incremental                               policies and
Award                                     regulations)

                                          Grants
                                          obtained due
Economic
                                          to
and Trade
                                          conforming
Development Economic
                                          to the local
Bureau of the and Trade
                                          supporting                                    13,312,000.0                Related to
Development Development Award                              Yes            No
                                          policies such                                           0                 income
Zone             Bureau
                                          as local
(2012-2016)
                                          government’s
income tax
                                          investment
rebate
                                          attraction
                                          policy

                                          Grants
                                          obtained due
                                          to the country
The center of
                                          encourage
the Party
                                          and support
Organization
                                          specific
Department       Finance                                                                                            Related to
                             Subsidy      industries       Yes            No              500,000.00
allocation of Bureau                                                                                                income
                                          (Obtained in
the third
                                          accordance
batch of
                                          with the
funding
                                          national
                                          policies and
                                          regulations)

                                                                                        65,632,104.2 102,724,666.
Total                   --        --            --               --             --                                        --
                                                                                                  4            77




52.Non-Operation expense

                                                                                                                          In RMB



                                   Amount of current period           Amount of previous period   The amount of non-operating
                Items
                                                                                                         gains & lossed


                                                                                                                                 173
                                                              Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Total of Non-current assets
                                                             30,537.14                        4,430.74                     30,537.14
Disposition

Including:Disposal of fixed
                                                             30,537.14                        4,430.74                     30,537.14
assets

Other                                                        47,405.21                        8,058.60                     47,405.21

Late fee                                                    372,229.08                                                    372,229.08

Total                                                       450,171.43                       12,489.34




53. 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                                                168,815,696.55                             96,541,646.19

Deferred income tax                                                          10,614,974.68                             -6,258,044.68

Total                                                                       179,430,671.23                             90,283,601.51


(2)Accounting profit and income tax expense adjustment process

                                                                                                                                In RMB

                               Items                                                    Amount of current period

Total profit                                                                                                          875,260,074.26

Income tax expense at statutory / applicable tax rates                                                                131,289,011.14

Effect of different tax rates applicable to subsidiaries                                                                5,128,640.60

Income tax adjustments on prior periods                                                                                  -455,067.73

Effect of non-taxable income                                                                                            3,468,853.45

Affect the use of deferred tax assets early unconfirmed
                                                                                                                         -299,981.46
deductible losses

The current period does not affect the deferred tax assets
                                                                                                                       40,299,215.23
recognized deductible temporary differences or deductible loss

Income tax expense                                                                                                    179,430,671.23




54. Supplementary information to cash flow statement

(1) Other cash received relevant to operating activities
                                                                                                                                In RMB



                                                                                                                                   174
                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                    Items                     Amount of current period               Amount of previous period

Interest income                                                 46,287,121.18                              834,422.60

Government subsidy                                             151,920,830.50                           37,959,400.00

Deposits income                                                   7,195,087.47                          87,399,022.47

Fine income                                                                                                149,451.17

Current account income                                                                                   3,450,177.56

Other                                                                    3,992.00                       30,339,364.32

Petty cash

Total                                                          205,407,031.15                          160,131,838.12


(2)Other cash paid related to operating activities

                                                                                                                 In RMB

                    Items                     Amount of current period               Amount of previous period

Consultation Services fee                                        11,033,384.47                          32,247,294.56

Business expenses                                                 2,414,621.26                           2,127,609.09

Current account                                                 18,284,472.99                           91,000,000.00

Labour insurance expenses                                         1,467,300.61                           1,782,256.94

Advertising expenses                                              3,035,900.89                           9,282,425.84

Water and electricity expense                                     8,040,238.09                          18,775,746.81

Travel expenses                                                   3,162,043.28                           4,427,379.48

Petty cash                                                        1,202,892.54                             549,954.75

Office expenses                                                 19,931,417.84                           16,145,841.08

Deposit                                                        703,722,436.70                            2,900,000.00

Meeting expenses                                                   664,731.28                               82,754.80

Communication fees                                                 181,311.02                              625,548.95

Transportation Fees                                               1,500,571.81                          10,179,140.76

R &D                                                            23,904,716.85                           12,716,824.11

Auto Fees                                                         1,742,196.91                             136,936.54

Other                                                             7,810,897.42                           9,266,581.65

Total                                                          808,099,133.96                          212,246,295.36


(3)Other Cash received related to investment activities

                                                                                                                 In RMB

                    Items                     Amount of current period               Amount of previous period


                                                                                                                    175
                                                Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Investment                                                                                              6,120,000.00

The post-money balance of the cash and
cash equivalents of Jiangsu Jixing’s
acquisition date which deducted the
currency paid for the acquisition.

Total                                                             190,962.49                            6,120,000.00


(4)Other Cash payable related to investment activities

                                                                                                                In RMB

                     Items                   Amount of current period               Amount of previous period

Investment

Total                                                          50,000,000.00


(5)Other Cash received related to Financing activities

                                                                                                                In RMB

                     Items                   Amount of current period               Amount of previous period

                 Interest income                              131,901,557.06                           82,859,831.69

                 Finance lease                                103,800,000.00                        1,237,280,000.00

Bill finance                                                                                           58,549,109.63

CDB financing                                                                                         500,000,000.00

Total                                                         235,701,557.06                        1,878,688,941.32


(6)Other Cash payable related to Financing activities

                                                                                                                In RMB

                     Items                   Amount of current period               Amount of previous period

Bank charges                                                     1,926,814.75                             702,462.93

cash deposit                                                      953,930.20

Bill financing                                                                                         77,900,000.00

Finance lease                                                 419,037,111.72                           16,160,141.67

Financing service                                                1,130,000.00

Total                                                         449,714,523.33                           94,762,604.60


  55. Supplement Information for cash flow statement


(1)Supplement Information for cash flow statement


                                                                                                                   176
                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                                                                                                          In RMB


             Supplement Information             Amount of current period                      Amount of previous period

I. Adjusting net profit to cash flow from
                                                                  --                                      --
operating activities

Net profit                                                                 695,829,403.03                        570,324,423.85


Add: Impairment loss provision of assets                                      208,238.02                            3,554,932.15

Depreciation of fixed assets, oil and gas
                                                                           326,123,627.68                        228,573,241.42
assets and consumable biological assets

Amortization of intangible assets                                            8,758,416.76                           7,533,311.24

Amortization of long-term deferred expenses                                  4,057,945.75                           3,393,264.63

Loss on disposals of fixed assets, intangible
assets and other long-term assets ("-" for                                      30,537.14                               4,430.74
gains)

Financial expenses                                                         364,241,342.58                        104,180,049.74

Investment loss                                                             -6,676,924.21                             -81,758.31

Decrease of deferred income tax assets                                      10,409,928.29                          -6,258,044.68

Deferred tax liabilities increase                                              -11,805.12

Decrease of inventory                                                    -981,985,297.83                          -41,358,720.57

Decease of operating receivables                                       -2,509,332,255.72                         -548,903,925.81

Increased of operating Payable                                             673,985,156.66                        960,147,738.54

Net cash flows arising from operating
                                                                       -1,414,361,686.97                        1,281,108,942.94
activities

2.Significant investment and financing
                                                                  --                                      --
activities that without cash flows:

Fixed assets acquired under finance leases                                 110,928,174.00                       1,652,037,077.85

3.Changes Balance of cash and cash
                                                                  --                                      --
equivalents

Ending balance of cash                                                 21,925,674,899.39                       15,739,687,032.14

Less: Beginning balance of cash                                        25,037,335,091.60                       11,964,769,404.73

Net increase of cash and cash equivalents                              -3,111,660,192.21                        3,774,917,627.41

(2) Net Cash paid of obtaining the subsidiary
                                                                                                                          In RMB



                                                                                              Amount




                                                                                                                             177
                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Cash or Cash Equivalent of Enterprise consolidation that Occurred
                                                                                                      57,243,065.638,000,000.00
in the Current Period Paid in the Current Period

Including:                                                                                      --

Mingshuo(Beijing)Electronic Technology Co., Ltd.                                                                    57,142,857.00

Chuanglian Huatai(Hongkong)Co., Ltd.

Dongxu(xuhua) International equipment co. LTD                                                                          100,208.63

Less:Cash or Cash Equivalent Owned by Subsidiary on the
                                                                                                                    54,547,033.56
Purchasing Date

Including:                                                                                      --

Ming shuo(Beijing) electronics Technology Co., Ltd.                                                                 54,255,862.44

Chuang lian hua tai(hongkong) Co., Ltd.                                                                                108,530.20

Dongxu(xuhua) International equipment co. LTD                                                                          182,640.92

Including:                                                                                      --

Received Net Cash Paid by Subsidiary                                                                                  2,696,032.07


(3)Composition of cash and cash equivalents
                                                                                                                           In RMB

                         Items                          Balance in year-end                   Balance in year-Beginning

                    I.      cash                        21,925,674,899.39                         25,037,335,091.60

            Including: value-cash                           425,749.93                                187,232.52

        Bank deposit on demand                                      21,914,145,210.81                            25,009,252,814.98

        Other monetary funds on demand                                   11,103,938.65                              27,895,044.10

III. Balance of cash and cash equivalents at
                                                                    21,925,674,899.39                            25,037,335,091.60
the period end




  56. The assets with the ownership or use right restricted

                                                                                                                           In RMB



Items                                                 Book value in year-end                           Reason

Monetary funds                                                        943,221,108.77 Pledge of collateral

Fixed assets                                                         7,559,438,628.83 Pledge loans

Intangible assets                                                     248,103,470.07 Pledge loans

Real estate investment                                                   58,974,678.04 Pledge loans

Construction in process                                               751,214,924.79 Pledge loans

Total                                                                9,560,952,810.50                       --


                                                                                                                               178
                                                               Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




     57. Foreign currency monetary items

(1) Foreign currency monetary items
                                                                                                                                           In RMB

                                         Closing foreign currency                                                  Closing convert to RMB
                  Items                                                             Exchange rate
                                                  balance                                                                    balance

Including:USD                                             2,906,419.39 6.7744                                                    19,689,247.52

         Euro                                               135,576.50 7.7496                                                      1,050,663.64

         HKD                                                   4,697.04 0.8679                                                            4,076.56

             JPY                                    4,110,917,807.00 0.0605                                                      248,710,527.32

             GBP                                               2,277.81 8.8144                                                           20,077.53

Including:USD                                            18,210,668.16 6.7744                                                   123,366,350.38

       JPY                                          1,705,632,320.16 0.0605                                                      103,190,755.37

Account receivable

Including:USD                                            10,593,354.68 6.7744                                                    71,763,621.94

Short-term loan

Including:USD                                            22,023,777.99 6.7744                                                   149,197,881.62


VIII.Changes of consolidation scope

1.Enterprise consolidation not 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

                                                                                                 Acquired the
Mingshuo(Be
                                                                                                 control right
ijing)Electron
                                57,142,857.0                                                     and         the
ic                May 31,2017                            36.36% Purchase           May 31,2017                        94,042.74        -375,927.67
                                             0                                                   business
Technology
                                                                                                 registration
Co., Ltd.
                                                                                                 has        been



                                                                                                                                               179
                                                             Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                                                                                 changed.

Chuanglian
 Huatai         January                                                        January           Acquired the      386,643,953.
                                                    100.00% Purchase                                                               5,185,962.98
 (Hongkon 1,2017                                                              1,2017            control right                88
 g)Co., Ltd.

Tianlong
Huatai
                January                                                        January           Acquired the
Industry(Hon                                        100.00% Purchase
                1,2017                                                         1,2017            control right
gkong) Co.,
Ltd.

Dongxu(Xuh
ua)
                January                                                        January           Acquired the
International                     100,208.63         55.00% Purchase                                                               -320,045.40
                1,2017                                                         1,2017            control right
Equipment
Co., Ltd.

       (2) Consolidation Cost and Goodwill
                                                                                                                                        In RMB



                                      Mingshuo(Beijing)Electronic Chuanglian Huatai(Hongkong) Dongxu(Xuhua) International
          Combined cost
                                          Technology Co., Ltd.                       Co., Ltd                       Equitment Co., Ltd.

--Cash                                               57,142,857.00                                                                  100,208.63

Total Consolidation cost                             57,142,857.00                                                                  100,208.63

Less:Reduction: Obtained
Definable Net Assets Fair                            23,823,179.29                              -722,450.89                         100,208.63
Proportion

Goodwill/ The Consolidation
Cost is Less Than the Obtained
                                                     33,319,677.71                              722,450.89
Definable Net Assets Fair
Proportion

(3) The identifiable assets and liabilities of acquiree at purchase date
                                                                                                                                        In RMB



                          Mingshuo(Beijing)Electronic        Chuanglian Huatai(Hongkong)Co.,                Dongxu(Xuhua) International
                             Technology Co., Ltd.                              Ltd                                Equitment Co., Ltd.

                      Fair value on       Book value on        Fair value on         Book value on        Fair value on       Book value on
                     purchase date         purchase date       purchase date         purchase date       purchase date         purchase date

Monetary fund             54,255,862.44     54,255,862.44          108,530.20            108,530.20              182,640.92         182,640.92

Account
                           3,237,093.72       3,237,093.72       33,330,248.60        33,330,248.60
receivable



                                                                                                                                            180
                                                     Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Inventories           3,410,416.00    3,410,416.00

Fixed assets          1,760,577.41    1,760,577.41

  Prepayments          337,280.70      337,280.70

Other receivable      6,017,888.47    6,017,888.47                                              4,294.43         4,294.43

Long-term equity
                      3,855,435.58    3,855,435.58
  Investment

Long-term
Deferred                 11,000.00       11,000.00
expenses

Deferred Income
                        16,381.78       16,381.78
tax assets

Other non-current
                          2,200.00        2,200.00
assets

Borrowing                                               33,328,948.60    33,328,948.60

Account payable       2,337,681.38    2,337,681.38         690,688.59       690,688.59

Advance
                       202,015.40      202,015.40
Payments

Employees’ wage
                       332,415.27      332,415.27
payable

Tax payable             59,542.45       59,542.45

Other account
                      2,647,520.16    2,647,520.16         141,592.50       141,592.50          4,737.84         4,737.84
payable

Other current
                      1,811,333.04    1,811,333.04
liabilities

Net assets           65,513,628.40   65,513,628.40        -722,450.89      -722,450.89       182,197.51        182,197.51

Less:Minority
shareholders         41,690,449.11   41,690,449.11                                             81,988.88        81,988.88
equity

Acquire net assets   23,823,179.29   23,823,179.29        -722,450.89      -722,450.89       100,208.63        100,208.63

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 April 26, 2017, Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. and Changsha Shunyan
Management Firm (limited partnership) and Liu Xuehua jointly set up Hunan Dongxu Wei Sheng Intelligent
Technology Co., Ltd,with the registered capital of RMB 50 million, of which Wuhu Dongxu Optoelectronic
Equipment Technology Co., Ltd subscribed RMB 25.5 million , Changsha Shunyan Administration Enterprise (LP)
Subscribed RMB 17 million and Liu Xuehua subscribed RMB 7.5 million, and the paid-up capital was RMB 50
million;
      On April 26, 2017, the subsidiary-Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd and Liu

                                                                                                                       181
                                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Haijun and Liao Shaoye jointly set up Hunan Dongxu Deilai Electronic Technology Co., Ltd, With the Registered
capital of RMB 50 million, of which Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.subscribed
RMB 25.5 million, Liu Haijun Subscribed RMB 17 million and Liao Shaoye subscribed RMB 7.5 million, and the
paid-up capital was RMB 36.8883815 million;
    On April 18, 2017, the subsidiary- Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd, Changsha
Wenchao Administration Enterprise (LP) and Ning Yongchao jointly set up Wuhu Dongxu Weiyu Medical
apparatus Technology Co., ltd,the Registered capital of RMB 100 million, of which Wuhu Dongxu Optoelectronic
Equipment Technology Co., Ltd subscribed RMB 51 million, Changsha Wenchao Administration Enterprise (LP)
subscribed RMB 34 million and Ning Yongchao subscribed RMB 15 million, and the paid-up capital was RMB
100 million;
     On April 26, 2017, Wuhu Dongxu Weiyu Medical apparatus Technology Co., ltd sep up wholl owned
subsidiary Hunan Dongxu Weigao Medical apparatus Technology Co., ltd, The Registered capital of RMB 20
million, and the paid-up capital was RMB 20 million.
    , Optoelectronic Equipment Technology Co., Ltd and Liu Haijun and Liao Shaoye jointly set up Hunan
Dongxu Deilai Electronic Technology Co., Ltd;
     On May 8, 2017, the subsidiary-Shenzhen Xuhui Investment Holding Co., Ltd. and Taizhou Dongxu Graphene
Industry Investment Fund Management Center (limited partnership) acquired Mingshuo (Beijing) Electronic
Technology Co., Ltd and part of the equity of its wholly-owned subsidiary-Huzhou Mingshuo Optoelectronics
Technology Co., Ltd. with the registered capital of Ming Shuo (Beijing) Electronic Technology Co., Ltd was RMB
78.571429, and the paid-up capital was RMB 44.255429. Thereinto, Shenzhen Xu Hui Investment Holdings
Co.,Ltd contributed funds of RMB 28.571429,Taizhou Dongxu Graphene Industry Investment Fund Management
Center (limited partnership) contributed funds of 11.5 million, Qian Xinming contributed funds of RMB 3.85
million, Jin Xiuzhen contributed funds of RMB 2.04435 million, Chen Wei contributed funds of RMB 7.5922
million, Wang Yingchao contributed funds of RMB 2.86055 million, Beijing Heyiyou Investment Partnership
contributed funds of RMB 10.89935 million , Jiang Wei contributed funds of RMB 1.43605 million, Li Honglei
contributed funds of RMB 5.63255 million and Zhu Lei contributed fund of 4.18495 million.
     On June 6, 2017, Wuhu Dongxu Weiyu Medical apparatus Technology Co., ltd, set up a wholly-owned
subsidiary-Shandong Qi Hui Medical apparatus Technology Co., ltd, with the registered capital of RMB 20 million
and the paid-up capital of RMB 5 million.
     On June 29, 2017, Wuhu Dongxu Weiyu Medical apparatus Technology Co., ltd, set up a wholly-owned
subsidiary-Guangdong Dongxu Weiyu Medical apparatus Technology Co., ltd, with the registered capital of RMB
20 million and the paid-up capital of RMB 0.00.
    On April 13, 2017, the subsidiary-Dongxu Construction Group Co., Ltd acquired 100.00% stake of Hebei
Xubao Construction and Installation Co., Ltd-which is a wholly-owned subsidiary of the company, thus Hebei
Xubao Construction and Installation Co., Ltd has become the sub-subsidiary of the company.


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

  Shijiazhuang                       9 Huanghe Road,
                   Shijiazhuang                        Manufacturing             81.26%                    Establish
Colour Bulb Co.,                     Shijiazhuang


                                                                                                                           182
                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


       Ltd.                       High-tech
                                  Industrial
                                  Development
                                  Area,
                                  Shijiazhuang,
                                  Hebei Province

                                  Room 302, A floo
 Wuhu Dongxu
                                            r,
 Optoelectronic
                                  Management Co
   Equipment        Wuhu                                  Manufacturing             95.00%                    Establish
                                  mmittee of Jiangb
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.
                                  21, Ring Road 18
Dongxu
                                  1 West Third Sect Construction &                                            Non control
Construction        Sichuan                                                        100.00%
                                  ion,Jinniu District installation                                            combination
Group Co., 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

Dongxu                            Room 1517,
                    Kunshan                               Manufacturing             80.00%                    Establish
(Kunshan)                       Building 1



                                                                                                                            183
                                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Display Material                  (International
Co., Ltd.                         Building), No.
                                  167, Qianjin
                                  Middle Road,
                                  Suzhou City,
                                  Jiangsu Province

                                  66,No 3
Zhengzhou Xufei                   Jingnan Road,
 Optoelectronic                   Econornic &                                                             Non control
                   Zhengzhou                          Manufacturing            100.00%
 Technology Co.,                  Technology                                                              combination
 Ltd.                             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
Fuzhou Dongxu
                                  Building,
 Optoelectronic
                   Fuzhou         Processing trade    Manufacturing            100.00%                    Establish
 Technology Co.,
                                  Free zone,
 Ltd.
                                  Fuzhou,
                                  Fujian.(No.9,



                                                                                                                        184
                                                       Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                   Xinjiang Road,
                                   Xincuo Town,
                                   Fuqing City)

                                   9 Huanghe Road,
Shijiazhuang                       Shijiazhuang
Dongxu                             High-tech
Optoelectronic                     Industrial
                    Shijiazhuang                       Manufacturing                               95.00% Establish
Equipment                          Development
Technology Co.,                    Area,
Ltd.                               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.

                                   9 Huanghe Road,
                                   Shijiazhuang
Hebei Xubao
                                   High-tech
Construction
                                   Industrial          Onstruction &
Installation        Shijiazhuang                                                                  100.00% Establish
                                   Development         installation
Engineering Co.,
                                   Area,
Ltd.
                                   Shijiazhuang,
                                   Hebei Province

                                   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



                                                                                                                         185
                                                   Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                              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.

                              297, Room
Fuzhou Xufu                   109,Supervision
Optoelectronic                Building,
                   Fuzhou                          Manufacturing             16.67%            83.33% 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                Room 205, 2/F, 7
 Graphene                     Building ,
 Industry                     No.818 ,
                                                   Investment
 Investment Fund Taizhou      Longfeng Road,                                 25.00%                    Establish
                                                   Management
 Management                   New Energy
 Center (limited              Industry Zone ,
 partnership)                 Taizhou

                              A, C Building,
Taizhou Xiwang
                              No.29-1 Shiji
 New Enerty
                   Taizhou    Road, Jiulong        Manufacturing                              100.00% Establish
 Technology Co.,
                              Town, Hailing
 Ltd.
                              District , Taizhou

Xiamen Xuqi                   D,3 unit, D          Investment
                   Xiamen                                                                     100.00% Establish
Investment                    Building, Xiamen Management



                                                                                                                     186
                                                    Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Management Co.,               Internationa
Ltd.                          Shipping Center,
                              No.97 Xiangyu
                              Road, Fujian)
                              free trade zone
                              (FTZ) in Xiamen
                              area, China

                              No.1509, A unit,
Shenzhen                      Spacefight
Xinyingtong                   Building Shennan                                                           Non control
                   Shenzhen                         Supply chain                                70.00%
Technology Co.,               Road, Futian                                                               combination
Ltd.                          District ,Shenzhe
                              n.

Xuyou Electronic
  Material                    No. 61 Xinmei
  Technology       Wuxi       Road, Xinwu           Manufacturing             51.00%                     Establish
  (Wuxi) Co.,                 District, Wuxi
  Ltd.

                              1/F,
                                   TechnologyInn
                                   ovation
                                   Center ,
Fuzhou Xuyou
                                   Rongqiao
Electronic
                                   Enconomic &
Material           Fuzhou                           Manufacturing                              100.00% Establish
                                   Technology
Technology Co.,
                                   Development
Ltd.
                                   Zone, No.36
                                   Xihuan North
                                   Road, Shizhu
                                   Street, Fuqing

                              Room 605,
Sichuan                       Machinery
 DongxuRuiyi                  Building, No.14       Envinonment
                   Chengdu                                                                     100.00% Establish
 Environment                  First Huan Road, control
 Co., Ltd.                    Jinjiang District
                              Chendu

                              Room 606
Sichuan Dongxu                Machinery
 Ruiyi Survey                 Building, No.14       Construction &
                   Chengdu                                                                     100.00% Establish
 and Design Co.               First Huan Road, installation
 Ltd.                         Jinjiang District
                              Chendu



                                                                                                                       187
                                                    Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                               Room 607
                               Machinery
Sichuan
                               Building, No.14
 DongxuRuiyi        Chengdu                         rade                                       100.00% Establish
                               First Huan Road,
 Trade Co., Ltd.
                               Jinjiang District
                               Chendu

                               Room 608
Sichuan Dongxu                 Machinery
                                                    Technology
 Ruiyi Enterprise              Building, No.14
                    Chengdu                         consultation                               100.00% Establish
 Management                    First Huan Road,
                                                    Service
 Co., Ltd.                     Jinjiang District
                               Chendu

                               No.846.Tianfu
Sichuan Dongxu
                               South Road
Proserity
                               Huayang Street,      Construction
 Construction       Chengdu                                                                     70.00% Establish
                               Tianfu District,      Installation
 Development
                               Chengdu,
 Co., Ltd.
                               Sichuan

                               Room 201, A
                               Building, No.
Shenzhen
                               Qianhai Bay 1
Xngxinda                                                                                                 Non control
                    Shenzhen   Road,                Supply chain                               100.00%
Technology Co.,                                                                                          combination
                               Shenzhen-Hongk
Ltd.
                               ang Cooperation
                               Area, Shenzhen

                               Romm
Chuanglian                     C,21/F.,Central
Huatai                         88,88 Des Vorux                                                           Non control
                    Hongkong                        Supply chain                               100.00%
(Hongkong)                   Road                                                                      combination
Co., Ltd.                      Central,Hong
                               Kong

                               Romm
Tianlong Huatai                C,21/F.,Central
 Industry                      88,88 Des Vorux                                                           Non control
                    Hongkong                        Supply chain                               100.00%
 (Hongkong)                  Road                                                                      combination
 Co., Ltd.                     Central,Hong
                               Kong

Dongxu(Xuhua)
International                  Zeil 79, Frankfurt                                                        Non control
                    Germany                         Supply chain                               100.00%
Equipment Co.,                 am Main                                                                   combination
Ltd.

Hunan Dongxu        Changsha   201-2,2 Building Supply chain                                   100.00% Establish


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                                                   Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Weisheng                      g, No.1 Tongxin
intelligent                   Road,
technology Co.,               Wangcheng
Ltd.                          Economic
                              Development
                              Zone, Changsha.

                              01-2,2 Building
                              g, No.1 Tongxin
Hunan Dongxu
                              Road,
Delai Electronic
                   Changsha   Wangcheng            Supply chain                               100.00% Establish
Technology Co.,
                              Economic
Ltd.
                              Development
                              Zone, Changsha.

                              Room 307-1, B
Wuhu Dongxu                    Building, CMC
Weiyu Medical                  of Jiangbei
Instrument         Wuhu        Industrial                                                     100.00% Establish
Technology Co.,                Concentration
Ltd.                           Area, Wuhu,
                               Anhui

                              Room 1313, 13/F,
                              4 Building, 2
Hunan Dongxu                  District, Jinqiao
Weigao Medical                Market, Purui
Instrument         Changsha   west Road,           Supply chain                               100.00% Establish
Technology Co.,               Wangcheng
Ltd.                          Economic
                              Development
                              Zone, Changsha.

                              Room B288,
                               2/F,Beijing
Mingshuo
                               Chenmao
(Beijing)
                               Hongxiang                                                                Non control
Electronic         Beijing                         Manufacturing                               51.00%
                               Hotel, No.15                                                             combination
Technology Co.,
                               Longxiang
Ltd.
                               Road, Haidian
                               District, Beijing

Huzhou
                              No.800,
Mingshuo
                               Rujiadian Road,                                                          Non control
Optoelectronic     Huzhou                          Manufacturing                              100.00%
                               Lianshi Town,                                                            combination
Technology Co.,
                               Huzhou
Ltd.



                                                                                                                      189
                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                     Room 902, 9/F,
                                     International
Shangdong
                                     Wealth Center,
 QihuiMedical
                   Jinan             No.156, Jingqi        Supply chain                                  100.00% Establish
 Technology Co.,
                                     Road, Shizhong
 Ltd.
                                     District, Jinan,
                                     Shandong

                                     Room B, 104
                                     Unit,
                                     No.Building,
Guangdong                            Tianfu
Dongxu Weiyu                         Technology
Medical            Foshan            Center, Xianan        Supply chain                                  100.00% Establish
Instrument Co.,                      Ershang Yuanxi
Ltd.                                 Industry Area,
                                     Guicheng Street,
                                     Nanhai District,
                                     Foshan

Notes: holding proportion in subsidiary different from voting proportion:
Other notes:
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.
 (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%               40,110,808.85            30,000,000.00            241,895,271.51
Equipment Technology


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                                                                Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Co., Ltd.

Jiangsu Jixing New
                                                 49.50%                   10,035,755.51                                             236,242,378.74
Material Co., Ltd.

Xuyou Electronic
Material Technology                              49.00%                     2,876,620.75                                            359,413,409.33
(Wuxi )Co., Ltd.

Shanghai Tanyuan Huigu
    New Material                                 49.50%                   10,269,237.44                                               51,709,582.00
    Technology Co., Ltd.

Dongxu(Kunshan)
Display Material Co.,                            20.00%                        -72,066.10                                             99,643,579.92
Ltd.


(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
             8,643,58 301,147, 8,944,73 5,697,30 420,528, 6,117,83 8,143,19 239,681, 8,382,87 5,986,43 410,000, 6,396,43
Equipme
             6,658.24      237.44 3,895.68 5,794.96        756.61 4,551.57 7,927.02             494.27 9,421.29 3,459.96          000.00 3,459.96
nt
Technolo
gy Co.,
Ltd.

Jiangsu
Jixing
             289,579, 330,237, 619,817, 136,468, 6,091,55 142,560, 267,316, 347,522, 614,839, 151,462, 6,393,25 157,856,
New
              766.77       596.66    363.43     478.93        3.72       032.65       881.20    378.96      260.16     927.25        5.68       182.93
Material
Co., Ltd.

Xuyou
Electroni
c
             318,428, 425,590, 744,019, 4,098,59                       4,098,59 715,998, 19,476,2 735,474, 1,449,98                           1,449,98
Material                                                      0.00
              029.81       986.80    016.61       5.53                      5.53      252.12     29.51      481.63       3.38                      3.38
Technolo
gy
(Wuxi



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                                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


)Co.,
Ltd.

Shanghai
 Tanyua
 n Huigu
 New
 Materia 27,880,6 78,920,0 106,800, 1,935,48 401,452. 2,336,93 23,077,9 76,269,8 99,347,7 15,216,6 413,257. 15,629,9
 l              95.96    39.01      734.97           0.27         67        2.94        26.17       55.09     81.26        55.67            79       13.46
 Technol
 ogy
 Co.,
 Ltd.

Dongxu
(Kunsh
an)         264,352, 261,676, 526,028, 27,810,9                       27,810,9 380,566, 153,271, 533,837, 35,259,3                               35,259,3
                                                               0.00                                                                        0.00
Display       678.60    154.09      832.69          33.07                  33.07       410.60   205.53      616.13         86.00                     86.00
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 2,830,168,46 755,485,990. 755,484,621. -701,105,382. 1,423,880,48 479,358,368. 479,358,368. 1,081,984,21
c Equipment              6.16                77                84                38             4.78              65                 65                  2.37
Technology
Co., Ltd.

Jiangsu
Jixing New       223,319,885. 20,274,253.5 20,274,253.5                                223,976,847. 16,278,201.0 16,278,201.0
                                                                     2,406,278.55                                                           6,352,806.87
Material Co.,                36                 5                5                                  42                3                3
Ltd.

Xuyou
Electronic
Material                                                             -1,414,361,68
                                  5,895,922.83 5,895,922.83
Technology                                                                      7.00
(Wuxi )
Co., Ltd.

Shanghai
                   194,829.10 20,745,934.2 20,745,934.2 -6,548,738.14                      6,157.72 -1,106,271.37 -1,106,271.37              -816,509.12
 Tanyuan

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                                                                 Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


 Huigu New                                      3               3
 Material
 Technology
 Co., Ltd.

Dongxu
(Kunshan)
                                                                    337,152,293.
Display                   0.00        -360,330.51    -360,330.51                                 -1,811,972.93 -1,811,972.93 -7,143,942.55
                                                                             10
Material Co.,
Ltd.


2. Equity in joint venture arrangement or associated enterprise

 (1) Significant joint venture arrangement or associated enterprise
                                                                                                     Proportion               Accounting
                                                                                                                            treatment of the
                       Main operating                                                                                        investment of
       Name                                 Registration place Business nature
                              place                                                       Directly            Indirectly     joint venture or
                                                                                                                               associated
                                                                                                                               enterprise

                                            2814-2816,
                                            Office Building
                                            (A),Letai Center,
Tunghsu Group                               No.39.                                                                         Equity method
                      Hebei                                     Finance services               40.00%
Finance Co., Ltd.                           Zhongshan East                                                                 accounting
                                            Road,
                                            Shijiazhuang,
                                            Hebei

(2) Main financial information of significant associated enterprise
                                                                                                                                      In RMB

                                                            Closing balance/This period                    Opening balance/Last period



Current assets                                                               4,222,854,038.02

Non-current assets                                                           4,951,451,490.74

Total of assets                                                              9,174,305,528.76

Current liabilities                                                          8,213,561,979.32

Total liabilities                                                            8,213,561,979.32

Attributable to shareholders of the parent
                                                                               960,743,549.44
company

Share of net assets calculated by stake                                        384,297,419.78

Book value of equity investment in                                             384,297,419.78


                                                                                                                                            193
                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


associates

Business income                                                             75,053,678.73

Net profit                                                                 -39,256,450.56

Total comprehensive income                                                 -39,256,450.56

(3)Summary financial information of insignificant joint venture or associated enterprise
                                                                                                                                In RMB



                                                      Closing balance/This period                  Opening balance/Last period

Joint venture:                                                      --                                           --

Total investment book value                                                 93,350,891.09                                 72,354,803.70

The total number of shares in each of the
                                                                    --                                           --
following shares

--Net                                                                          196,087.39                                     81,758.31

-- Total comprehensive income                                                  196,087.39                                     81,758.31

Associated enterprise:                                       93,350,891.09                               72,354,803.70

The total number of shares in each of the
                                                                    --                                           --
following shares


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.
     The company ensures that the company's overall credit risk is within a manageable range through quarterly audits of existing
customer credit ratings and monthly audits of accounts receivable aging analysis. In monitoring the customer's credit risk, according
to the customer's credit characteristics of its grouping. Customers who are rated as "high risk" will be placed on the restricted


                                                                                                                                    194
                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


customer list and the company will be able to credit it in the next period, subject to additional approval, otherwise it must be required
to pay the corresponding payment in advance.
      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 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 2016 and January –June 2017.
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                           2017.06.30                       Exchange rate                     2017.6.30
                                 balance of foreign currency                                        balance of RMB Conversion
Monetary fund

Including:USD                           2,906,419.39                          6.7744                      19,689,247.52

Euro                                      135,576.50                           7.7496                       1,050,663.64

HKD                                        4,697.04                            0.8679                         4,076.56

JPY                                   4,110,917,807.00                         0.0605                     248,710,527.32

GBP                                        2,277.81                            8.8144                        20,077.53

Account receivable

Including:USD                          18,210,668.16                          6.7744                     123,366,350.38

JPY                                   1,705,632,320.16                         0.0605                     103,190,755.37

Account payable

Including: JPY

USD                                     10,593,354.68                          6.7744                      71,763,621.94

       Euro

Long-term loans

Including:USD



                                                                                                                                     195
                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Short-term loan

Including:USD                          22,023,777.99                        6.7744                    149,197,881.62



XI.   Related party and related party transactions
1. Parent company information of the enterprise
                                                                                         The parent company The parent company
                                                                        Registered
       Name            Registered address             Nature                              of the Company's      of the Company’s
                                                                          capital         shareholding ratio        vote ratio

                      No.369, Zhujiang      Investment ,
Tunghsu Group         Road, High-tech       production and R & RMB16.8. billion                       11.32%                18.14%
                      zone, Shijiazhuang    D, etc.

2. Subsidiaries of the Company
See details to Notes VII, Situation of the enterprise subsidiaries refer to the Notes.

3.Other Related parties information of the enterprise


                   Other Related parties name                             Relation of other Related parties with the company

Dongxu Technology Group Co., Ltd.                                  The shareholders of 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., Ltd.          Controlled by the same actual controller

Shijiazhuang Baoshi Xuming Tube Co., Ltd.                          Controlled by the same actual controller

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 Bofa Mechanical 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 Intelligent 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

Tibet Financial Leasing Co., Ltd.                                  Controlled by the same actual controller



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                                                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Li Qing                                                               The spouse of the actual controller


4. 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

Baoshi Group           Security fees                 360,500.00                                                             1,500,000.00

Chengdu Dongxu
 Energy Saving
                       ESL                         1,326,857.00                                                                 1,787.18
 Technology Co.,
 Ltd.

Shijiazhuang
Baoshi Zhonghe
                       Door                                                                                                  259,246.66
Steel Plastic Shape
Co., Ltd.

Shijiazhuang Bofa
                       Machining part
Mechanical                                                                                                                18,568,179.46
                       and A frame
Equipment Co., Ltd.

Sichuan Southwest
Mechanery Industry House lease                        62,400.00               60,000.00
Group Co., Ltd.

Total                                              1,749,757.00               60,000.00                                   20,903,766.36

Related transactions on sale goods and receiving services
                                                                                                                                 In RMB

          Related parties            Content of related transaction   Amount of current period             Amount of previous period

Chengdu Zhong Optoelectronic
                                  Semi-manufacture                                                                          3,106,153.76
Technology Co., Ltd.

Chengdu Zhong Optoelectronic
                                  Traction roll project                                504,871.80                            188,888.89
Technology Co., Ltd.

Yinchuan Fengxxiang Street
Comprehensive Contruction         Construction installation                         97,789,036.93
Management Co., Ltd.

Yixian Xuhuayuan Park             Construction installation                          7,783,800.00


                                                                                                                                       197
                                                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Construction Development Co.,
Ltd.

Guangdong Huakai Real Estate
                                    Construction installation                          7,565,972.68
 Development Co., Ltd.

Dongxu Technology Group
                                    Graphene(Battery)                                    2,735.05
 Co.,Ltd.

Shijiazhuang Bofa Mechanical
                                    A frame                                            2,533,760.68
Equipment Co., Ltd

Dongxu(Yingkou)
Optoelectronic Display Co.,         Semi-manufacture                                  12,049,825.21
Ltd.

Dongxu(Yingkou)
Optoelectronic Display Co.,         A frame                                            3,076,923.08
Ltd.

Total                                                                               131,306,925.43                         3,295,042.65


(2)Related trusteeship or contracting

Related trusteeship or contracting in which the Company is the undertake
                                                                                                                                 In RMB



        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
Tunghsu     Group,      Yingkou        Coastal Dongxu           Management Right of      January 2012    Notes 1     707,547.18
Development          Construction          Co., Optoelectron      Dongxu(Yingkou)
Ltd.Minmetals (Yingkou) Industrial Park ic                      Optoelectroric Display
Development Co., Ltd.                          Technology             Co., Ltd.
Tunghsu Group, Mianyang Investment City Co., Ltd.               Management Right of      March 2012      Notes 2     3,429,535.76
Development (Group ) Co., Ltd., Sichuan                           Sichuan Xuhong
Changhong Electric Co., Ltd.                                       Optoelectronic
                                                                Technology Co., Ltd.
                  Total                                                                                              4,137,082.94



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, Tunghsu Group 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

                                                                                                                                      198
                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


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.

     Notes 1:Trusteeship costs include basic management fees and incentive management fees(0.5 million/years),
including basic management fee of 1 million per year, incentive management fees per year managed company
with net operating profit after tax of 5% calculation(Base incentive management fees deduct prior years' losses)
     Notes 2: Trusteeship costs include basic management fees and incentive management fees(0.5 million/years),
including basic management fee of 1 million per year, incentive management fees per year managed company
with net operating profit after tax of 5% calculation.
Notes 3:On April 20, 2016, Dong Xu (Yingkou) Optoelectronic Display Co.,Ltd, upon the approval by general
shareholders’ meeting, amended the Article of Association, thus the stake of Dong Xu (Yingkou) Optoelectronic
Display Co.,Ltd held by Dong Xu Group was changed to 47.8% from 60%.
Notes4. On April 1, 2016, Sichuan Xu Hong Optoelectronic Technology Co. Ltd, with the consent of the
shareholders' meeting, increased the capital with in accordance with the relevant provisions of Articles of
Association; after capital increase, the stake of Sichuan Xu Hong Optoelectronic Technology Co. Ltd held by
Dong Xu Group was changed to 86.64% from 51%.
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

Tunghsu Group , Li
                                      200,000,000.00 November 4,2016        November 3,2017             No
Zhaoting

Li Zhaoting                           200,000,000.00 August 30,2016         August 30,2017              No

Li Zhaoting                           200,000,000.00 October 19,2016        October 19,2017             No

Tunghsu Group , Li
                                      200,000,000.00 November 4,2016        November 4,2017             No
Zhaoting, Li Qing

Tunghsu Group , Li
                                      360,000,000.00 December 29,2016       December 29,2017            No
Zhaoting, Li Qing

Tunghsu Group , Li
                                      200,000,000.00 September 30,2016      September 29,2017           No
Zhaoting, Li Qing


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                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Tunghsu Group , Li
                        200,000,000.00 November 4,2016        November 4,2017          No
Zhaoting, Li Qing

Tunghsu Group           200,000,000.00 November 3,2016        November 3,2017          No

Tunghsu Group           200,000,000.00 September 28,2016      September 27,2017        No

Tunghsu Group            50,000,000.00 November 23,2016       November 23,2017         No

Li Zhaoting              40,000,000.00 December 29,2016       December 29,2017         No

Li Zhaoting              60,000,000.00 May 17,2016            May 17,2017              Yes

Li Zhaoting              60,000,000.00 December 6,2016        December 6,2017          No

Tunghsu Group            50,000,000.00 December 29,2016       December 29,2017         No

Li Qing, Li Zhaoting     50,000,000.00 November 29,2016       November 29,2017         No

Tunghsu Group , Li
                         20,000,000.00 August 10,2016         August 9,2017            No
Zhaoting

Tunghsu Group , Li
                         30,000,000.00 September 29,2016      August 9,2017            No
Zhaoting

Tunghsu Group , Li
                         50,000,000.00 October 13,2016        August 8,2017            No
Zhaoting

Tunghsu Group , Li
                            693,700.00 September 26,2016      August 9,2017            No
Zhaoting

Tunghsu Group , Li
                        100,000,000.00 December 23,2016       December 23,2018         No
Zhaoting, Li Qing

Tunghsu Group , Li
                        200,000,000.00 December 27,2016       December 27,2018         No
Zhaoting, Li Qing

Tunghsu Group , Li
                        200,000,000.00 December 29,2016       December 29,2018         No
Zhaoting, Li Qing

Tunghsu Group , Li
                        387,700,000.00 April 29,2016          April 29,2018            No
Zhaoting, Li Qing

Tunghsu Group , Li
                        599,800,000.00 June 7,2016            June 7,2019              No
Zhaoting, Li Qing

Tunghsu Group , Li
                        100,000,000.00 May 17,2016            May 17,2018              No
Zhaoting, Li Qing

Tunghsu Group           100,000,000.00 May 20,2016            May 20,2018              No

Tunghsu Group            81,500,000.00 May 25,2016            May 26,2018              No

Tunghsu Group            18,500,000.00 June 13,2016           June 13,2018             No

Tunghsu Group, Dongxu
Optoelectronic
                        400,000,000.00 November 30,2016       November 30,2019         No
Investment Co., Ltd.,
Li Zhaoting



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                                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Tunghsu Group             200,000,000.00 December 15,2016       December 15,2018         No

Tunghsu Group             100,000,000.00 August 5,2016          August 3,2018            No

Tunghsu Group, Li
                          150,000,000.00 May 2,2013             April 11,2022            No
Zhaoting, Li Qing.

Tunghsu Group, Li
                          100,000,000.00 September 26,2013      April 11,2022            No
Zhaoting, Li Qing.

Tunghsu Group, Li
                          300,000,000.00 April 1,2014           April 11,2022            No
Zhaoting, Li Qing.

Tunghsu Group, Li
                          150,000,000.00 April 10,2015          April 12,2022            No
Zhaoting, Li Qing.

Tunghsu 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
Tunghsu Group holds
90% of the shares of
Dongxu Technology
Group,

Tunghsu 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
Tunghsu Group holds
90% of the shares of
Dongxu Technology
Group,

Tunghsu Group, Li
Zhaoting, Li Qing, and
Li Zhaoting holds 10%
of the shares of Dongxu
Technology Group,         159,000,049.50 June 8,2016            April 7,2018             No
Tunghsu Group holds
90% of the shares of
Dongxu Technology
Group,

Tunghsu Group, Li
Zhaoting, Li Qing, and
                           40,999,950.50 June 21,2016           April 20,2018            No
Li Zhaoting holds 10%
of the shares of Dongxu



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                                         Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Technology Group,
Tunghsu Group holds
90% of the shares of
Dongxu Technology
Group,

Tunghsu Group , Li
                       100,000,000.00 March 3,2017           March 2,2019             No
Zhaoting

Tunghsu Group , Li
                       204,000,000.00 March 29,2017          September 28,2018        No
Zhaoting

Tunghsu Group , Li
                       100,000,000.00 March 31,2017          March 30,2018            No
Zhaoting, Li Qing

Tunghsu Group , Li
                       300,000,000.00 June 2,2017            June 2,2019              No
Zhaoting, Li Qing

Tunghsu Group , Li
                       200,000,000.00 May 15,2017            May 15,2019              No
Zhaoting, Li Qing

 Li Zhaoting           108,333,333.32 January 6,2017         January 6,2019           No

 Li Zhaoting            16,666,666.66 January 17,2017        January 6,2019           No

Tunghsu Group , Li
                       199,000,000.00 February 24,2017       August 23,2018           No
Zhaoting

Tunghsu Group , Li
                        97,000,000.00 March 29,2017          September 28,2018        No
Zhaoting

Tunghsu Group , Li
                       200,000,000.00 June 28,2017           June 27,2018             No
Zhaoting

Tunghsu Group           50,000,000.00 June 30,2017           June 29,2018             No

Tunghsu Group , Li
                        45,000,000.00 January 3,2017         December 28,2017         No
Zhaoting

Tunghsu Group          100,000,000.00 June 19,2017           April 4,2018             No

Tunghsu Group , Li
                       100,000,000.00 March 25,2016          February 28,2017         Yes
Zhaoting

Tunghsu Group          200,000,000.00 January 15,2016        January 15,2017          Yes

Li Zhaoting            400,000,000.00 April 15,2016          April 14,2017            Yes

Tunghsu Group          200,000,000.00 June 3,2016            June 3,2017              Yes

Tunghsu Group , Li
                       100,000,000.00 April 14,2016          April 13,2017            Yes
Zhaoting, Li Qing

Tunghsu Group , Li
                        42,500,000.00 April 15,2016          April 17,2017            Yes
Zhaoting

Tunghsu Group           60,000,000.00 June 30,2016           June 29,2017             Yes

Tunghsu Group          100,000,000.00 March 25,2016          March 25,2017            Yes


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                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Tunghsu Group                          30,000,000.00 March 31,2016              March 30,2017             Yes

Tunghsu Group                          45,000,000.00 January 27,2016            January 27,2017           Yes

Tunghsu Group                          45,000,000.00 February 29,2016           February 28,2017          Yes

Tunghsu Group                          15,000,000.00 April 1,2016               March 31,2017             Yes

Tunghsu Group                         450,000,000.00 January 28,2013            January 27,2021           No

Tunghsu Group, Li
                                       90,000,000.00 April 12,2013              April 11,2022             No
Zhaoting, Li Qing

Tunghsu Group, Li
                                      200,000,000.00                                                      Yes
Zhaoting, Li Qing

Tunghsu Group, Li                                                                                         No
                                      228,046,429.92
Zhaoting

Tunghsu Group                         254,117,655.73                                                      No

Tunghsu Group, Li                                                                                         No
                                       85,000,000.00
Zhaoting

Tunghsu Group, Li                                                                                         No
                                      150,000,000.00
Zhaoting

Tunghsu Group, Li                                                                                         No
                                       84,419,919.77
Zhaoting

Tunghsu Group, Li                                                                                         No
                                      200,000,000.00
Zhaoting

Notes


(4) Rewards for the key management personnel

                                                                                                                              In RMB

                    Items
                                            Amount of current period                              Amount of previous period
Rewards for the key management
                                                                                 289.98                                       247.91
personnel

5.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

                      Dongxu
Account receivable    (Yingkou )                 14,128,295.50
                      Optoelectronic


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                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                     Display Co., Ltd.

                     Hebei Baoshi
                     Energy saving
Account receivable                                     10,000.00                                    10,000.00
                     lighting technology
                     Co., Ltd.

                     Sichuan Xuhong
Account receivable   Optoelectronic                 1,925,162.08                                 5,458,541.80
                     Technology Co., Ltd

                     Yinchuan Fengxiang
                      Street
                      Comprehensive
Account receivable                                103,801,081.48
                      Construction
                      Management Co.,
                      Ltd.

                     Chengdu Dongxu
Prepayments          Intelligent                      166,857.00
                     Technology Co., Ltd.

                     Hebei Baoshi
                     Energy saving
Prepayments                                            60,000.00                                    60,000.00
                     lighting technology
                     Co., Ltd.

                     Hebei Decoration
Prepayments          Printing Machinery               835,680.87                                  835,680.87
                     Co., Ltd.

                     Shijiazhuang Baoshi
Prepayments          Electronic vacuum                420,000.00
                     Glass Co., Ltd.

                     Shijiazhuang Baoshi
Prepayments                                           270,279.00                                  620,279.00
                     Group

                     Chengdu Zhong
Bill receivable      Optoelectronic                                                               710,000.00
                     Technology Co., Ltd

Other non-current
                     Tunghsu Group                132,132,857.44                             132,132,857.44
assets


(2)Payables


                                                                                                                          In RMB

              Name                         Related party              Book balance at year end      Book balanc at year beginning

Account payable                    Shijiazhuang Bofa Mechanical                          8,747.20                    8,959,301.52



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                                                          Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                 Equipment Co., Ltd.

                                 Shijiazhuang XumingTube Co.,
Account payable                                                                                                      14,948.00
                                 Ltd.

                                 Shijiazhuang Baoshi Electronic
Account payable                                                                                                   4,354,418.46
                                 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                         240,296.40                     441,578.40
                                 Co., Ltd.
                                 Shijiazhuang Xuling Electronic
Account payable                                                                     1,320,164.09                  1,320,164.09
                                 Technology Co., Ltd.

Account payable                  Shijiazhuang Baoshi Group                                                          514,401.13

                                 Chengdu Dongxu Intelligent
Account payable                                                                     1,253,553.92
                                 Technology Co., Ltd.

Advance revenue                  Tunghsu Group                                     66,261,470.09                 69,676,000.00

                                 Chengdu Zhong Optoelectronic
Advance revenue                                                                      724,355.00                     207,291.65
                                 Technology Co., Ltd

                                 Jinzhou Xulong New Material
Other payable                                                                                                     1,500,000.00
                                 Technology Co., Ltd.

Other payable                    Shijiazhuang Baoshi Group                         12,024,173.50                 10,455,242.86

Other payable                    Tunghsu Group                                     13,951,402.32                 13,873,229.83

                                 Shijiazhuang Baoshi Electronic
Other payable                                                                                                       264,000.00
                                 vacuum Glass Co., Ltd.

                                 Sichuan Xuhong Optoelectronic
Other payable                                                                                                       872,857.78
                                 Technology Co., Ltd.

                                 Shijiazhuang XumingTube Co.,
Other payable                                                                          97,031.00                     97,031.00
                                 Ltd.


XII. Stock payment

1. The Stock payment overall situation
□ Applicable √Not applicable


2. The Stock payment settled by equity

√ Applicable □Not applicable
                                                                                                                        In RMB



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                                                               Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


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
                                                                         Nil
differences of the previous period

Equity-settled share-based payment included in the total amount of
                                                                                                                          11,419,300.00
capital reserves

This period of equity-settled share-based payment confirmation
                                                                                                                              796,800.00
total costs


XIII. Commitments

1. Significant commitments

Significant commitments at balance sheet date
As of June 30, 2017, there was no significant commitment or contingency in the Group.
2. Contingency
(1) Significant contingency at balance sheet date
     Nil
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.

XIV. Enents after balance sheet date

1.Notes of ohter significant events

On July 3, 2017, Wuhu Dongxu Weiyu Medical Devices Technology Co., Ltd set up a wholly-owned
subsidiary-Anhui Weiwang Medical Devices Technology Co., Ltd.,with the Registered capital Of RMB 20
million and the paid-up capital of RMB 0.00.
On July 5, 2017, Wuhu Dongxu Weiyu Medical Devices Technology Co., Ltd set up a wholly-owned
subsidiary-Liaoning Dongxu Weiyu Medical Devices Technology Co., Ltd., with ther registered capital of RMB
20 million and the paid-up capital of RMB 0.00.
On July 12,2017, Wuhu Dongxu Weiyu Medical Devices Technology Co., Ltd set up a wholly-owned
subsidiary-Guangxi Dongxu Weigao Medical Devices Technology Co., Ltd., with ther registered capital of RMB
20 million and the paid-up capital of RMB 0.00.
On July 19,2017, Zhengzhou Xufei Optoelectronic Technology Co., Ltd.acquired 100% stake of Suzhou Tengda
Phonology Technology Co., Ltd. with ther registered capital of RMB 24 million and the paid-up capital of RMB
24 million .




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                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


XIV. Notes s of main items in financial reports of parent company

(1)Account receivable

        1.Classification accojunt receivables.
                                                                                                                               In RMB

                                       Amount in year-end                                     Amount in year-beginning

                          Book Balance        Bad debt provision                  Book Balance       Bad debt provision
    Classification                                                    Book
                         Amount Proportio Amount Proportio                      Amount Proportio Amount Proportion( Book value
                                                                      value
                                     n(%)                  n(%)                            n(%)                  %)

Account receivables
provided bad debt        15,279,1             719,428.             14,559,67 20,464,                567,495.2              19,896,753.
                                    100.00%                4.71%                          100.00%                  2.77%
provision in credit         02.26                   91                   3.35 248.49                       3                       26
risk groups

                         15,279,1             719,428.             14,559,67 20,464,                567,495.2              19,896,753.
Total                               100.00%                4.71%                          100.00%                  2.77%
                            02.26                   91                   3.35 248.49                       3                       26

Accounts receivable of individual significance and subject to individual impairment assessment.

□ Applicable√ Not applicable

Account receivable on which bad debt provisions are provided on age basis in the group
√ Applicable □ Not applicable
                                                                                                                               In RMB

                                                                               Year-end balance
               Aging
                                         Account receivable                   Bad debt provision                Proportion

Sub item within 1 year

3-4 years                                                909,668.39                        454,834.20                         50.00%

Over 5 years                                             264,594.71                        264,594.71                        100.00%

Total                                                1,174,263.10                          719,428.91                         61.27%

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:
                                                                               Year-end balance
               Aging
                                         Account receivable                   Bad debt provision                Proportion

Related party combination                           14,104,839.16

Total                                               14,104,839.16



(2) Top five of account receivable of closing balance collected by arrears party


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                                                            Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017




The total receivable amount of top five closing balances collected by the debtors in the current reporting period is
RMB 13,846,839.16 , which accounts for 90.63% of the total other receivables. The total amount of balances in the
end of the period for corresponding accrued bad-debt provision is RMB 0.00.

2.Other receivable

(1)Classification of Other receivable

                                                                                                                                 In RMB

                                       Amount in year-end                                        Amount in year-beginng

                          Book Balance        Bad debt provision                   Book Balance        Bad debt provision
    Classification                                                     Book
                         Amount Proportio Amount Proportio                       Amount Proportio Amount Proportion( Book value
                                                                       value
                                     n(%)                   n(%)                             n(%)                  %)

Other account
                                                                                  4,927,3
receivables provided     7,813,09             1,466,58              7,811,632                        1,967,568               4,925,419,4
                                    100.00%                 0.02%                 87,025. 100.00%                    0.04%
bad debt provision in    9,223.07                  0.49                ,642.58                             .56                    56.78
                                                                                       34
credit risk groups

                                                                                  4,927,3
                         7,813,09             1,466,58              7,811,632                        1,967,568               4,925,419,4
Total                               100.00%                 0.02%                 87,025. 100.00%                    0.04%
                         9,223.07                  0.49                ,642.58                             .56                    56.78
                                                                                       34

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

Sub item within 1 year

Credit period                                             830,521.97

Subtotal within 1 year                                         39.90                                2.00                          5.00%

1-2 years                                                   2,605.70                             260.57                         10.00%

2-3 years                                                 130,129.79                          39,038.93                         30.00%

3-4 years                                                   8,497.64                           4,248.82                         50.00%

Over 5 years                                          1,423,030.17                          1,423,030.17                       100.00%

Total                                                 2,392,397.27                          1,466,580.49                        61.30%

Notes:

Other receivable account in Group on which bad debt provisions were provided on percentage basis:
√Applicable □Not applicable

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                                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                            Name                                  Closing balance                 Bad debt provision
                 Related party transaction                        7,049,173,656.75

                            Deposit                                760,643,666.66

Personal loans                                                          284,950.89

Personal insurance and provident fund                                   457,898.51

Export rebate                                                           146,652.99

Total                                                             7,810,706,825.80



Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio:
□Applicable√Not applicable

(2)Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB 0.00; recovery or payback for bad debts Amount is RMB 5
00,988.07.
Where the current bad debts back or recover significant amounts:
                                                                                                                         In RMB

                     Name                                      Amount                                    Method


(3)Other account receivable classified by account nature

                                                                                                                         In RMB

                     Nature                            Closing book value                        Opening book value

Deposit                                                                  760,643,666.66                           5,853,833.34

Personal loans                                                               284,950.89                             179,023.27

Related party transaction                                           7,049,173,656.75                          4,918,192,744.41

Current fund                                                               1,635,319.74

Personal insurance and provident fund                                        457,898.51                                21,023.59

Export rebate                                                                146,652.99

Other                                                                        757,077.53                           3,140,400.73

Total                                                               7,813,099,223.07                          4,927,387,025.34

(4) 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

Beijing Xufeng
                        Current account      2,200,142,347.30 Credit period                       28.16%
Property Co., Ltd.

Wuhu Dongxu             Current account      1,677,351,260.33 Credit period                       21.47%


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                                                              Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Optoelectronic
Equipment
Technology Co., Ltd.

Wuhu Dongxu
Optoelectronic           Current account            1,104,687,825.99 Credit period                             14.14%
Technology Co., Ltd.

Zhengzhou Xufei
Optoelectronic           Current account            1,407,336,950.00 Credit period                             18.01%
Technology Co., Ltd.

Dongxu Construction
                         Current account             318,069,264.18 Credit period                               4.07%
 Group Co., Ltd.

Total                             --                6,707,587,647.80             --                            85.85%


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 15,377,709,832.6                            14,999,537,182.7 11,679,609,832.6                             11,301,437,182.7
                                            378,172,649.84                                                 378,172,649.84
subsidiary                             3                                     9                       3                                        9

Investment       to
joint ventures and
                       476,647,120.67                           476,647,120.67         72,354,803.70                          72,354,803.70
associated
enterprises

                      15,854,356,953.3                        15,476,184,303.4 11,751,964,636.3                             11,373,791,986.4
Total                                       378,172,649.84                                                 378,172,649.84
                                       0                                     6                       3                                        9


(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

Shijiazhuang
Baoshi Color Bulb       439,341,956.80                                                439,341,956.80
Co., Ltd.

Hebei Xubao
                        100,000,000.00                         100,000,000.00
Construction



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                                                        Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Engineering
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.

Dongxu
Construction        1,000,453,728.53 2,000,000,000.00                    3,000,453,728.53
Group 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)
                     400,000,000.00                                       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
Huaqing
                        3,500,000.00                                         3,500,000.00
Investment Co.,
Ltd.

Shijiazhuang
Xuxin
                    1,966,568,609.92                                     1,966,568,609.92
Optoelectronic
Technology Co.,



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                                                           Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


Ltd.

Zhengzhou Xufei
Optoelectronic
                     1,791,853,741.58                                        1,791,853,741.58
Technology Co.,
Ltd.

Fuzhou Dongxu
Optoelectronic
                       10,000,000.00 1,735,000,000.00                        1,745,000,000.00
Technology Co.,
Ltd.

Shanghai Tanyuan
Huigu New
Material               73,454,500.00                                           73,454,500.00
Technology Co.,
Ltd.

Fuzhou Xufu
Optoelectronic
                       10,900,000.00      13,100,000.00                        24,000,000.00
Technology Co.,
Ltd.

Shenzhen Xuhui
 Investment            20,000,000.00      50,000,000.00                        70,000,000.00
 Holding Co., Ltd.

Taizhou Dongxug
Graphene Industry
Investment Fund
                       25,000,000.00                                           25,000,000.00
Management
Center(Limited
Partnership)

Xuyou Electronic
Materal
                      383,402,995.80                                          383,402,995.80
Technology
(Wuxi)Co., Ltd.

Less:
Long-terminvestm
                      378,172,649.84                                                                             378,172,649.84
ent depreciation
reserves

                     11,679,609,832.6                                        15,377,709,832.6
Total                                   3,798,100,000.00    100,000,000.00                                       378,172,649.84
                                   3                                                       3


(2)Investment to joint ventures and associated enterprises

                                                                                                                        In RMB



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                                                                      Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017


                                                           Increase /decrease in reporting period
                                                                                                                                            Closing
                                                                     Adjustme
                                                                                                            Withdraw                        balance
                                             Decrease Gain/loss        nt of                   Declarati
                Opening         Add                                                   Other                    n                 Closing       of
   Name                                         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          72,354,80                                171,370.9                                                               72,526,17
  Commerc              3.70                                      6                                                                   4.66
  ial
  Factoring
  Co., Ltd.

Tunghsu
 Group                        400,000,0                  -15,702,5                                                              384,297,4
 Finance                         00.00                      80.22                                                                   19.78
 Co., Ltd.

Dongxu(De
 yang)Grap
 hene
                              19,800,00                                                                                         19,823,52
 Developme                                              23,526.23
                                      0.00                                                                                           6.23
 nt Fund
 Partnership
 (LP)

               72,354,80 419,800,0                       -15,507,6                                                              476,647,1
Total
                       3.70      00.00                      83.03                                                                   20.67


  4.Business income and Business cost

                                                                                                                                              In RMB


               Items                                 Amount of current period                                  Amount of previous period
                                               Income                          Cost                         Income                   Cost

  Main business                                  11,006,532.52                  6,941,391.49                369,700,169.65           236,073,823.43

  Other business                                 27,591,148.66                 21,150,871.79                  14,147,651.79                 67,061.63

  Total                                          38,597,681.18                 28,092,263.28                383,847,821.44           236,140,885.06




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5. Investment income

                                                                                                                In RMB

                    Items                     Amount of current period              Amount of previous period

Income from long-term equity investment
                                                               -15,507,683.03                              81,758.31
measured by adopting the Equity method

Other investment income                                         22,183,417.04

Total                                                            6,675,734.01                              81,758.31


XVI. Supplementary Information

1.Current non-recurring gains/losses

√ Applicable □Not applicable
                                                                                                                In RMB

Items                                                 Amount                                  Notes

Gains/Losses on the disposal of non-current
                                                                   -30,537.14
assets

Government grants recognized in the current
period, except for those acquired in the
ordinary course of business or granted at                       65,632,104.25
certain quotas or amounts according to the
country’s unified standards

Gain/loss on loans obtained by entrusting
                                                                 4,137,082.94
others

Other non-operating income and expenditure
                                                                    18,148.98
beside for the above items

Other profit and loss items that meet the
                                                                22,183,417.04
definition of non-recurring profit and loss

Less: Influenced amount of income tax                           15,552,946.64

Amount of influence of minority interests                         522,067.47

Total                                                           75,865,201.96                   --

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




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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                                        2.84%                       0.13                       0.13
Company.

Net profit attributable to the
Common stock shareholders of
                                                                    2.50%                       0.11                       0.11
Company after deducting of
non-recurring gain/loss.


3. Differences between accounting data under domestic and overseas accounting standards

1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.

□Applicable      √Not applicable




                              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.Original audit report seal with accounting firms and signature and seal from CPA;
4. 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


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Issue day approved by the Board of Directors:August , 2017




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