Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
Stock code ：000413,200413 Abbreviation：Dongxu Optoelectronic, Dongxu B Announcement No.：2018-046
Summary of 2017 Annual Report of Dongxu Optoelectronic Technology Co., Ltd.
I. Important Notice
This annual report summary is taken form the full text of the Annual Report. Investors are advised to read
carefully the full text of the Annual Report published on the media designated by China Securities Regulatory
Commission in order to fully understand the company’s operation results, financial position and future
Non-standard auditor’s opinion
□ Applicable √ Not applicable
Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital proposed to the
Board during the reporting period.
√ Applicable □Not applicable
Whether provident fund reserve for share capital
□ Yes √ No
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows: total
share of 5,730,250,118 for Base on the Company‘s total share capital as at December 31,2017, the Company
would distribute cash dividend to all the shareholders at the rate of CNY 0.7 for every 10 shares(including tax), 0
bonus share (including tax) and no reserve would be converted into share capital.
Plans for profit distribution on preference shares for the reporting period approved by the Board
□ Applicable √ Not applicable
II. Basic information about the company
1. Company profile
Dongxu Optoelectronic,
Stock abbreviation Stock code： 000413、200413
Dongxu B
Stock exchange for listing： Shenzhen Stock Exchange
Contact person and contact manner Board secretary Securities affairs Representative
Name Gong Xin Wang Qingfei
No.5 Court, No.23 A Fuxing Road, Haidian No.5 Court, No.23 A Fuxing Road, Haidian
Office Address
District, Beijing District, Beijing
Fax 010-68297016 010-68297016
Tel 010-68297016 010-68297016
E-mail gongxin_dx@126.com wangqingfei@dong-xu.com
2.Major operations or products during the reporting period
The Company is a leading manufacturer of optoelectronic display materials and a comprehensive service provider
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Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
of intelligent manufacturing. In the field of optoelectronic display materials, the company’s production capacity of
liquid crystal glass substrates tops in China and ranks fourth in the world, and the company has laterally laid out
for curved cover glass ,color filters and sapphire, etc., with stark advantages of display material industry cluster.
In the field of intelligent manufacturing, the Company’s independently researched and developed whole-set glass
substrate production equipment has strong technology spillover effects, the customers of high-end equipment
business have been expanded to many fields, and meantime, the company has actively expanded the production of
new energy vehicles and strived to build the Closed Loop of Industrial Chain of “high-end materials—
Graphene-based Lithium-ion Battery-New Energy Vehicle".
I. Optoelectronic Display Materials Business System
1. LCD glass substrate business
The liquid crystal glass substrate is a core raw material to the upstream of the liquid crystal display panel, which
accounts for about 15%-20% to the entire panel production cost, with extremely high requirements of
manufacturing process. Based on the breakthrough in the field of complete-set of liquid crystal glass substrate
production equipment, the company took the lead in breaking the international monopoly and achieved the
home-making of liquid crystal glass substrate. The Company is the only enterprise in China that masters the two
kinds of glass substrate production processes-namely overflow fusion method and the floating method-at the same
time. Currently, the Company possesses four production bases of liquid crystal glass substrate respectively located
in Zhengzhou, Shijiazhuang, Wuhu and Fuzhou, covering G5, G6, and G8.5 TFT-LCD liquid crystal glass
substrates. The company has 20 liquid crystal glass substrate production lines (including construction-in-progress
and proposed projects), with that the mass production capacity tops first in China and ranks fourth in the world.
2. Other display materials business
In order to enhance the competitiveness and profitability of the display materials business, the company
implements a horizontal extension strategy of the industry chain. Since 2015, it has successively laid out
curved-surfaced cover glass, color filters and sapphire to optimize its business structure. Industrial clustering
effects appear. The cover glass is used to protect the touch control module and the display screen. The company
mainly produces high-aluminum cover glass and processed into a curved cover glass. The color filter is a key
component of the colorization of the liquid crystal display. The company's main product is the G5 color Filters;
sapphire is widely used in LED substrate materials and optical components and other fields, the company's main
products are 2-inch and 4-inch LED substrate products.
II Intelligent manufacturing system business system
1. High-end equipment and technical services business
Relying on the strong independent research and development capability, the Company spent 10 years, through the
innovative mode of production, institute and research, firstly broke through the complete blockade of production
equipment and technology by foreign countries, becoming the only domestic company that has the complete
manufacturing process of the liquid crystal glass substrate and the equipment manufacturing capacity. After years
of development, the Company has accumulated rich industrialization experience in the field of intelligent
manufacturing, with that the related technologies have a strong spillover effect. Since 2014, the company has
actively promoted the industrial chain extension strategy. At present, the company's high-end equipment and
technology service business mainly focuses on customized and integrated production and operation and
maintenance service models, mainly promoting the series of automated production equipment, and the company
has developed several industrial group customers.
2. New Energy Bus Business
The company has been engaged in high-end equipment manufacturing for nearly 20 years. From technology to
management, from capital to talent, the company has a strong extension capability. In 2017, the company acquired
100% equity of Sunlong Bus by issuing shares and paying cash for purchasing the asset. The company has been
deeply plowed in the field of new energy buses for more than ten years, owning mature technology, rich
management experience, wide marketing channels and strong overseas expansion capabilities. This acquisition
marked the company formally entered the new energy automotive industry, and the company will exert the
industrial synergy effect in respect of technology, management, market, resources and other aspects with Sunlong
Bus. That also can enrich the company’s existing industrial structure, better utilize the complementary advantages,
and enable the company to seize the industry opportunities in the field of passenger bus and logistics vehicles in a
timely manner, thus creating more possibilities for the company’s future rapid growth.
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Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
3. Graphene preparation and industrialization business
The graphene, with excellent optical, electrical, thermal and mechanical properties, has important application
prospects in the material science, energy, etc., and it is considered to be a revolutionary new material. Since 2014,
the company has focused on the development and industrial application of graphene in flexible displays,
lithium-ion batteries and thermal materials. Currently, the company's graphene-related industrial application
products mainly cover various types of graphene preparations, graphene-coated cathode materials and lithium-ion
batteries, graphene high-power LED series lamps, and graphene smart electric heating products. The advance
layout for new graphene materials is a strategic input for the company's long-term development in the future,
which fits the future development direction of new materials and new energy vehicles, having the great growth
potential and market space.
III Other businesses
1. Electronic communication product business
In order to solve the industry predicament of “Lack of Chips and Short of Screens” in China, the company,
through the integration of a large number of customer resources and sales channels of optoelectronic display
materials, targeted to pull off the industry integration and coordination of optoelectronic display materials and
related components industries, Meantime, the company actively expanded the import and export channels of
liquid crystal display modules, memory chips and other products, striving to expand the supply and marketing
channels for the Internet of Things equipment and gradually perfecting the sections of customs declaration,
warehousing, logistics and so forth in response to the individual needs of different customers, thus being able to
provide the integrated solutions for customers.
2. Construction & installation business
As a company's traditional business, the construction & installation business has played an important role in
assisting the company's production base’s construction and maintenance, thus effectively reducing the company's
various project construction costs. Meantime, as a supplement to the main business, and with the continuous
development of domestic industrialization and urbanization, the construction & installation business has
contributed a certain amount of revenue and profits for the company in recent years. This business is mainly
operated by the Company’s subsidiary Tunghsu Construction-which possesses the qualifications such as the first
class of general contracting for construction engineering and the first-class of general contracting of municipal
utilities and mainly conducts housing construction, civil engineering, municipal facilities construction and other
engineering general contracting and professional construction.
3.Major accounting data and financial indicators
（1）Major accounting data and financial indicators for the last three years
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
√Yes □No
Reasons for retrospective restatements:
Business merger under the same control.
Changed over
2016 2015
last year（％）
2017
After
Before adjustment After adjustment Before adjustment After adjustment
adjustment
Operating Gross income
17,336,364,158.13 6,901,321,122.65 7,632,049,549.25 127.15% 4,650,208,448.10 4,927,624,975.64
（Yuan）
Net profit attributable to the
shareholders of the listed 1,743,666,827.25 1,239,928,899.40 1,303,685,863.90 33.75% 1,326,233,674.37 1,245,417,797.94
company（Yuan）
Net profit after deducting of
non-recurring gain/loss
attributable to the 1,539,583,478.72 953,819,209.18 961,311,896.59 60.15% 822,699,390.70 734,157,856.81
shareholders of listed
company（Yuan）
Cash flow generated by 1,265,773,428.34 1,390,048,492.32 748,957,164.24 69.00% 1,780,128,962.94 2,009,859,853.55
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Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
business operation, net（Yuan）
Basic earning per
0.33 0.29 0.28 17.86% 0.48 0.31
share(Yuan/Share)
Diluted gains per
share(Yuan/Share)(Yuan/Shar 0.33 0.29 0.28 17.86% 0.48 0.31
e)
Net asset earning ratio（%） 7.09% 7.28% 7.55% -0.46% 14.99% 13.66%
Changed over
End of 2016 End of 2015
last year（％）
End of 2017
After
Before adjustment After adjustment Before adjustment After adjustment
adjustment
Gross assets（Yuan） 67,683,329,226.91 46,826,319,570.41 50,287,380,415.68 34.59% 28,798,623,253.33 31,923,601,760.52
Net assets attributable to
shareholders of the listed 30,922,796,455.46 22,216,300,365.86 23,286,206,822.68 32.79% 14,319,481,941.28 14,525,631,433.60
company（Yuan）
（2）Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 2,258,246,760.26 2,673,890,819.09 3,447,509,517.00 8,956,717,061.78
Net profit attributable to the
387,022,905.51 265,439,462.24 426,091,959.40 665,112,500.10
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
352,582,887.68 222,570,280.19 409,366,560.51 555,063,750.34
to the shareholders of listed
company
Net Cash flow generated by
-631,749,226.89 -489,775,177.76 1,839,587,401.52 547,710,431.47
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
4.Share capital and shareholders
（1）Number of holders of ordinary shares and preference shares with restored voting right and Top 10
shareholders
In shares
376,913 361,666
(including
Total number of (including
359,516 Total shareholders at the 344,320sharehold Total
common shareholders The total number of
end of the month from the ers holding A preferred shareholders at
shareholders at holding A preferred shareholde
shares and
shares and 0 the end of the month from 0
the end of the date of disclosing the annual 17,346 rs voting rights resto
17,397 the date of disclosing the
shareholders red at period-end
reporting period shareholders report annual report
holding B
holding B
shares）
shares）
Shareholdings of Top 10 shareholders
Shareholders Proportion Number or share
Nature of Amount of restricted
of shares Number of shares pledged/frozen
shareholder held at period -end
held（%） shares held State of share Amount
Domestic Non
Tunghsu Group -State-owned 15.90% 910,975,591 791,889,488 Pledge 484,882,697
legal person
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Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
Shijiazhuang Baoshi Domestic Non
Electronic Group Co., -State-owned 5.80% 332,382,171 0 Pledge 120,000,000
Ltd. legal person
Shanghai Huimao Domestic Non
Enterprise Management -State-owned 4.58% 262,626,262 262,626,262 0
Co., Ltd. legal person
China Fund
Management Co., Ltd.
－Huaxia Bank－TTCO
Trust Co., Ltd.－TTCO Other 2.54% 145,759,116 0
Trust Co., Ltd.－
Shunjing No.5 Single
capital trust
Domestic Non
Ping An Securities Co.,
-State-owned 2.16% 123,975,516
Ltd.
legal person
Minsheng Royal Fund
Management Co., Ltd－
-Ping An Bank-Daye Other 1.70% 97,192,224 97,192,224
TrustZengli 2 single
Fund Trust
Tunghsu Optoelectronic
Technology Co., Ltd.－ Other 1.27% 72,639,296 72,639,296
The first ESOP
Beixin Ruifeng Fund－
China Merchants Bank
－Daye Trust－Daye Other 1.08% 62,095,032 62,095,032
TrustProfit increase 3
single fund plan
Shenzhen Taianer Domestic Non
Information Technology -State-owned 1.07% 61,165,682 0 Pledge 61,165,682
Co., Ltd. legal person
Wanhe Securities－
China Merchants Bank
－Wanhe Securities and Other 0.96% 55,246,500 0
No.1 Collective asset
management plan
Among the top ten shareholders , Tunghsu Group and Baoshi Group have relationship
and constitute persons taking concerted action. The company does not know whether
Explanation on shareholders participating
there is relationship between other 8 shareholders or whether they are persons taking
in the margin trading business
concerted action defined in Administrative Measures Relating to Acquisitions of Listed
Companies.
Notes to the shareholders involved in
Not applicable
financing securities (if any)
(2)Total preference shareholders and the shares held by the Top 10 Preference shareholders
□ Applicable √ Not applicable
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Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
(3)Block diagram of the ownership and control relations between the Company and the actual controller
5. Corporation bonds
（1）Basic information of the corporate bonds
Abbreviated Bond Bond
Bond Name Code Date Due Interest Rate
Name Balance(RMB’0000)
2015- corporate bond of Dongxu
15 Dongxu bonds 112243 May 19,2020 100,000 6.00%
Optoelectronic Technology Co., Ltd
Information about interest paid and bonds The first period bond interest 60,000,000.00 was paid in full amount on schedule in
honored during the reporting period the current period
（2）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".
(For details, please refer to the "Tracking Rating Announcement" of the company disclosed on www.cninfo.com
on May 26, 2017)
According to the United Rating Co.,Ltd’s requirements on tacking and rating, a regular rating shall be carried out
within 2 months after the company’s disclosure of 2017 annual report. Also, the United Rating Co.,Ltd shall carry
out randomly tracking and rating during the duration of the corporate bonds based on relevant information.
（3）The key accounting data and financial indicators of the latest two years to the end of the reporting
period
In RMB’0000
Items 2017 2016 At the same time rate of cange
Debt ratio 52.64% 51.52% 1.12%
EBITDA/Total debts 12.82% 12.17% 0.65%
Interest coverage ratio 3 3.48 -13.79%
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Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
III. Discussion and Analysis of the Management
1. Business Operation summary in the reporting period
The Company requires investors to read the full text of this annual report carefully and take note of the following
risk factors.
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The year of 2017 is a hard-working, vibrant and progressive year for Tunghsu Optoelectronic. The company
focused on the business objectives, actively explored and innovated, steadily implemented every work, soundly
consolidated each business sector, smoothly laid out the businesses of optoelectronic display materials, new
energy vehicles and graphene, and formed a good industrial synergy and clustering effect.Within the report period,
the company achieved the operation revenue of 17.336 billion yuan with comparing by 127.15% compared with
that in 2016 and the net profits of 1.744 billion yuan belonging to the parent company with increasing by 33.75%
compared with that in 2016.
Each business of the company was developed in details in 2017 as follows:
(1)Optoelectronic display material business
1. Fitting the trend, shaping the production capacity of high-generation glass substrate
During the reporting period, the liquid crystal display panel industry maintained a boom cycle, and the
downstream panel makers achieved high growth rates, boosting the demand for the company’s liquid crystal glass
substrates and other optoelectronic display materials. In 2017, the company's liquid crystal glass substrate
products covered the products of three generations namely G5, G6, and G8.5, and the total sales revenue for the
entire year was RMB 2.065 billion , The company's glass substrate products have comprehensively covered the
mainstream panel makers in the mainland and Taiwan including BOE, Shenchao Optoelectronic, Innolux,
Longteng Optoelectronics, Shenzhen Tianma and AU Optronics, with increasing enhancement on the industrial
safety and stability.
In recent years, the large-size, high-generation panel and glass substrate have become the industry trend.
According Sigmaintell’s estimate, the average panel size of TV will increase 1.7 inches as driven by a rapid
growth of the demand for large-size panel in 2018, which will lead to a growth of more than 7% in the demand of
total panel area. The company's Fuzhou 8.5 generation TFT-LCD liquid crystal glass substrate project is a key
project for the company to cope with the large-size development of the panel. During the reporting period, the
post-processing production lines of the first and second production lines of Fuzhou Xufu G8.5 Production Line
have been put into operation successively, which have successfully matched for BOE, beginning to contribute
Revenue of RMB 432 million for the company. The smooth launch of G8.5 generation glass substrates to the
market has played a crucial role in the company's efforts to achieve full coverage of medium and high generation
glass substrate products and consolidate its leading position in the industry.
2. Collaborative layout, becoming an integrated supplier of photoelectric display core materials
At the end of 2017, the company completed the acquisition of Xuhong Optoelectronic and formally incorporated
the high alumina cover glass production line into the company's optoelectronic display industry system. Xuhong
Photoelectric is one of the domestic enterprises that led the R&D and firstly realized the mass production of the
high-aluminum cover glass, and its produced high-aluminum cover glass has the technical characteristics such as
high light transmittance, high impact resistance, high scratch resistance, high flexural toughness and being
ultra-thin. The company took “King Panda” glass as its breakthrough point, vigorously explored end users,
broadened the production process belt and optimized the structure of sales products, hence the sales has kept
reaching the new heights. In 2017, the company, with the raised funds and self-own funds and with Xuhong
Optoelectronic as the main body, invested RMB 1.497 billion to construct the “Production project of curved cover
glass for curved display”, which was a signature measure taken by the company to fit the trend of OLED flexible
display.
During the reporting period, the first production line of the company's fifth-generation TFT-LCD color filter
production project has been completed, which’s expected to efficiently increase the added-value of the existing
G5 liquid crystal glass substrates after it reaching the targeting output in 2018. In July 2017, the company by cash
acquired 100% equity of Tengda Optics, which mainly engages in research and development, production and sales
of optoelectronic display thin film devices, with the main products are optical film and photoelectric tape and the
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Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
main customer is BOE, hence this acquisition has enhanced the adhesion of major customers.
(II)Intelligent manufacturing service system
1. Completed the acquisition, the sales of Sunlong Bus increased significantly
During the reporting period, the company acquired 100% equity of Sunlong Bus by issuing shares and paying
cash to purchase the asset, hence Sunlong Bus became a wholly-owned subsidiary of the Company. Established in
2005, Sunlong Bus is a domestic passenger bus production company with excellent technology, outstanding
market channels and excellent overseas market development capabilities. In 2017, Sunlong Bus sold a total of
7155 buses-including 5779 new energy buses, The company achieved a net profit of RMB 315 million for the
entire year and achi\ieved a performance commitment.Under the background of the decline of the entire new
energy passenger car market, sales of Sunlong New Energy Bus increased by more than 350% year –on-year,
achieving a significant increase in contrarians, an increase in the industry, a market share of more than 5% , and
ranking among the top eight in the industry. As of now, the company has plans to build new energy passenger bus
and logistics vehicle industry bases in Nanning, Mianyang and Suqian. The new bases will help Sunlong to seize
more market share and increase the production and sales.
In addition, in June 2017, the company invested 100 million yuan to subscribe for add-directional shares of
Yihuatong’s non-public share issuance. Yihuatong is a high-tech enterprise specializing in R&D and
industrialization of hydrogen fuel cell engines. For one hand, this subscription by the company is based on the
future development and profitability of Yihuatong, and for another hand, it’s aimed for establishing the strategic
partnership with Yihuatong, thus to accelerate the introduction of Yihua’s advanced hydrogen fuel cell engine
technology to the company’s new energy vehicle projects which are in the layout, so as to speed up the roll-out of
the company’s hydrogen fuel cell vehicles to market, which will better strengthen the company's position in the
new energy automotive market and bring new profit growth points to the company.
2. Continuous advancement, steady development of high-end equipment business
The high-end equipment and technical services, control systems and special equipment for the glass substrate are
mostly customized products. Due to the confidentiality and market competition issues related to the core
technologies and production processes, before 2014, the company mainly provided the equipment design,
production, manufacture, installation and technical service of whole-set equipment for the TFT-LCD glass
substrate production lines and high alumina cover glass production lines in our group. However, with the
construction of those lines of production basically finished, the company, based on years of experience in the field
of electronic glass equipment manufacturing, began to steer the high-end equipment business to the market
besides the group and carried out the vertical expansion on the optoelectronic industry chain.
Thanks to the independent research and development of the company, it has broken through the foreign blockade
of technology and products and built a solid foundation for the front-end equipment that features the highest
technological content in the electronic equipment. Under the backdrop of the domestic manufacturing using
machine to replace labor and meet the high-efficiency production, the company’s high-end equipment and
technical service business has been well advanced and gradually been supplied to the domestic high-end customer,
and it has set foot in the panel industry equipment and other general-purpose equipment supply. During the
reporting period, the company’s high-end equipment and technology service business realized revenue of RMB
7.24 billion, and developed and reserved a number of large group customers who have a good demand in the field
of intelligent application like China Star Optoelectronics and Guoxian Optoelectronics.
3. Achieved initial results, the selection-in-better layout of graphene business advanced rapidly
During the reporting period, the single-layer graphene and graphene-based lithium-ion battery related products
produced by Shanghai Tanyuan Huigu received the market attention and recognition, and the further single
product and technology upgrades have been advancing. In April 2017, the company released the second
generation of Graphene-king mobile power, which has improved features in terms of charging efficiency, safety,
and functionality, and has achieved the mass supply. In addition, the company's small Graphene-king electric
battery has been partially applied to downstream companies such as Xiangqi electric bicycle and Continental
Pigeon electric bicycle, and the spec of the power battery is approximately 36V~40V/10Ah, with full-charge in 15
minutes and endurance of 35km~40km and the cycle life of over 1500 times. The promotion of the applicability of
Graphene-king power batteries has opened up the market space for the company's industrial application of
graphene-based power batteries.
The company is committed to promoting the industrialization of graphene. In 2017, it achieved a double
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Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
breakthrough in LED lighting products and electric heating products. In May 2017, the company acquired the
51% stake of Mingshuo Technology, whose core technology centers on the reversible liquid crystal phase change
graphene composite heat dissipation material, and it is a professional supplier for the high-power LED lighting
equipment and the integrated solutions of lighting, with products already being actually used in about 20 cities
like Beijing and Mudanjiang, and in December, the company signed a "sales contract" with Japan's Ohkura Co.,
Ltd and thus harvested the first overseas order for such products. In 2017, Mingshuo Technology realized the net
profit of RMB 12.6373 million. Plus, the Company, taking the waterborne graphene conductive ink technology as
the core, has developed the graphene electric heater, graphene heating floor and other products, and the company
signed the "Strategic cooperation agreement" with Shanxi Nengtuo and Shanxi Jianbang Group to cooperate on
the rural project of adopting graphene electric heating replacing the burning and heating of bulk coal in Shanxi
Province.
(III) Other value-added business systems
1. Industry Extension, Electronic Communication Supporting Products Business
During the reporting period, in order to increase the company's industrial synergy and profitability, the company
added the electronic communication products business, which mainly was the business of import and export of
purchase and sales of the products including the memory chip products, high-end peripherals and e-sports main
computers, LCD screen modules and whole machine products partly based on the company's existing customer
resources and sales channels accumulated by the businesses such as the high-end equipment and liquid crystal
display materials business. And in the reporting period, the company through the acquisition of Shenzhen
Xinyingtong Technology Co., Ltd, gathered a group of operation teams with rich experiences and strong market
development ability, step-by-step perfected the sections including the procurement, production, warehousing and
logistics, distribution and sales, and improved the overall management efficiency and risk management and
control capabilities. In 2017, the Company’s electronic communication product business achieved the revenue of
RMB 2.141 billion.
2. Old business presented vitality, steady development of the construction & installation business
During the reporting period, the company enhanced its market competitiveness in the PPP project field through
the capital increase and other methods, and accelerated the completion of PPP business cooperation in the
underground integrated pipe corridor, municipal infrastructure, sponge city, smart city and other fields. In recent
years, the construction & installation business of the company has effectively reduced the construction cost of the
company by assisting the company's production base construction and maintenance. Meantime, as a supplement to
the main business, with the continuous development of domestic industrialization and urbanization, the
construction & installation business also contributed a certain amount of revenue and profits for the company.
During the reporting period, the company's construction & installation business realized the operating revenue of
RMB 1.896 billion.
2. Material change in principal activities during the reporting period
□ Yes √No
3. Products accounting for over 10% of revenue or profit from principal activities of the Company
□ Applicable √ Not applicable
4. Seasonal or cyclical operations requiring special attention
□ Yes √No
5. Material difference of revenue, operating costs or net profit attributable to holders of ordinary shares of
the Company for the reporting period from the last reporting period
□ Applicable √ Not applicable
6. Suspension in trading or delisting
□ Applicable √ Not applicable
7. Events relating to the financial report
(1) Reason for changes in accounting policies, accounting estimates and accounting methods as compared
to the financial report for the prior year
√ Applicable □Not applicable
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Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
(1) Changes in accounting policies
① Accounting policy changes due to the implementation of the new Accounting Standards for Business
Enterprises
a. On April 28, 2017, the Ministry of Finance issued the "No. 42 Accounting Standard for Business
Enterprises-Non-current Assets for Sale, Disposal Group, and Termination of Operation" (Cai Hui (2017) No. 13),
effective from May 28th 2017, and that the future applicable law is required for the non-current assets held for
sale, disposal group and termination of operation existed on the effective date.
b. On May 10, 2017, the Ministry of Finance issued the Accounting Standards for Business Enterprises No. 16 –
Governmental Subsidy (Revised in 2017) (CH (2017) No. 15), which will take effect on June 12, 2017. The
governmental subsidy existed on January 1, 2017 will be handled by prospective application, and the
governmental subsidy newly added between January 1, 2017 and the implementation date of this Code will be
adjusted in accordance with the Code.
c. On December 25, 2017, the Ministry of Finance issued the Notice on the Issuance of the Revised Format of
Financial Statements for General Enterprises (Caihui [2017] No. 30), which is applicable to the preparation of
financial statements for the 2017 and subsequent periods.
The impact of the Company’s implementation of the above three accounting policies on the presentation of the
items and amounts in the previous financial statements is as follows:
In RMB
Basis for change in Impact of increase +/ decrease- in the amount in
No Name of report item affected
accounting policy 2016
Non-operating income -34,237.22
1 CK [2017] No. 30 Non-operating expenses -1,435.20
Assets disposal income +32,802.02
(2) Changes in accounting estimates
There are no changes in accounting estimates during the current period.
(2) Reason for retrospective restatement to correct major accounting errors during the reporting period
□ Applicable √ Not applicable
Nil
(3) Reason for changes in scope of the consolidated financial statements as compared to the financial report
for the prior year
√ Applicable □Not applicable
1.Enterprise consolidation not under the same control in reporting period
In RMB
Income of Net Profit
Determinati Acquire of Acquire
Time-poin Ratio of
Obtained Method of on Basis on from the from the
Name of t of Obtained Purchasin
Cost of Obtained the Purchasin Purchasin
Acquirer Obtained Equity g Date
Equity Equity Purchasing g Date to g Date to
Equity (100%)
Date the End of the End of
the Period the Period
Enterprise
Mingshuo
consolidat
(Beijing)
ion not Acquisition
Electronic 2017.5.31 5,714.29 36.36 2017.5.31 4,979.56 1,813.62
under the of control
Technology
same
Co., Ltd.
control
Chuanglian Enterprise Acquisition 113,622.3
2017.1.1 100 2017.1.1 1,151.02
Huatai(HK) consolidat of control 7
10
Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
Co., Ltd. ion not
under the
same
control
Enterprise
Tianlong
consolidat
Huatai
ion not Acquisition
Industry 2017.1.1 100 2017.1.1
under the of control
(HK) Co.,
same
Ltd.
control
Enterprise
Tunghsu
consolidat
Xuhua(Inter
ion not Acquisition
national) 2017.1.1 10.02 55 2017.1.1 0.13 -90.68
under the of control
Equipment
same
Co., Ltd.
control
Enterprise
consolidat
Shanghai
2017.10.2 300,000.0 ion not 2017.10.2 Acquisition 251,342.5
Sunlong Bus 100 22,059.13
6 0 under the 6 of control 8
Co., Ltd.
same
control
Enterprise
Suzhou
consolidat
Tengda
ion not Acquisition
Optical 2017.7.10 11,500.00 100 2017.7.10 14,548.78 2,143.66
under the of control
Technology
same
Co., Ltd.
control
Chenzhou
Enterprise
Hongcheng
consolidat
Public
ion not Acquisition
Transport 2017.9.20 1,000.00 57 2017.9.20 -82.89
under the of control
Construction
same
Developmen
control
t Co., Ltd.
Enterprise
Daosui consolidat
Group ion not Acquisition
2017.12.1 10,446.86 51 2017.12.1 31,483.86 383.06
Engineering under the of control
Co., Ltd. same
control
Enterprise
Ningbo consolidat
Xude 2017.12.3 ion not 2017.12.3 Acquisition
485 100
Technology 1 under the 1 of control
Co., Ltd. same
control
2. Business combination under the same control
In RMB
Net profit Income
Income of Net profit
of the of the
the of the
combined merged
Recogniti combined combined
Propor party from party
Combi on basis party from party
tion of Combinatio Combin the during
ned Basis of the during the
the n date ed party beginning the
party combinati beginning of period of
profits of the year compari
on date the year to compariso
to the date son
the date of n
of the period
the merger
merger
Cheng Controlled Pay Chengd
du by Li considerat u
Tungh Zhaoting November ion and Tunghsu 264,977,513 -11,025,6 337,652, 21,463,46
100
su The 16 complete Intellige .73 54.14 393.44 7.86
Intelli ultimate industrial nt
gent controller and Technol
11
Dongxu Optoelectronic Technology Co., Ltd. Summary of 2017 Annual Report
Techn commerci ogy Co.,
ology al change Ltd.
Co., registratio
Ltd. n
Sichua
Pay
n
considerat
Xuhon Sichuan
Controlled ion and
g Xuhong
by Li complete
Optoel Optoele
Zhaoting industrial 372,820,156 90,116,10 399,663, 48,839,79
ectroni 100 October 26, ctronic
The and .08 0.98 708.85 5.67
c Technol
ultimate commerci
Techn ogy Co.,
controller al change
ology Ltd.
registratio
Co.,
n
Ltd.
3. New Important subsidiaries in this period
On April 26, 2017, Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. and Changsha Shunyan
Management Firm (limited partnership) and Liu Xuehua jointly set up Hunan Tunghsu Wei Sheng Intelligent
Technology Co., Ltd,with the registered capital of RMB 50 million, of which Wuhu Tunghsu 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 Tunghsu Optoelectronic Equipment Technology Co., Ltd and Liu Haijun
and Liao Shaoye jointly set up Hunan Tunghsu Deilai Electronic Technology Co., Ltd, With the Registered
capital of RMB 50 million, of which Wuhu Tunghsu 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 50 million;
On April 18, 2017, the subsidiary- Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd, Changsha
Wenchao Administration Enterprise (LP) and Ning Yongchao jointly set up Wuhu Tunghsu Weiyu Medical
apparatus Technology Co., ltd,the Registered capital of RMB 100 million, of which Wuhu Tunghsu
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 September 20, 2017, Suzhou Tengda Optics Technology Co., ltd, set up a wholly-owned
subsidiary-Chongqing Xufu Optoelectronic Technology Co., ltd, with the registered capital of RMB 20 million
and the paid-up capital of RMB 20 million.
On September 22, 2017, Chenzhou Hongsheng Public Transport Construction and Development Co., Ltd. and
Chenzhou Wanli Construction Investment Co., Ltd. jointly established Chenzhou Xuhong Transportation and
Transportation Construction Co., Ltd., with the registered capital of RMB 70 million and the paid-up capital of
RMB30 million.in which Chenzhou Hongsheng Public Transport Construction and Development Co., Ltd. holds
90% of the equity.
On December 5, 2017, Shanghai Sunlong Bus Co., ltd, set up a wholly-owned subsidiary-Zhangjiakou Sunlong
New Energy automobile sale Co., ltd, with the registered capital of RMB 1 million and the paid-up capital of
RMB 0.00 million.
Dongxu Optoelectronic Technology Co., Ltd.
Chairman: Li Zhaoting
Issue day approved by the Board of Directors：April 19，2018
12
