Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
Dongxu Optoelectronic Technology Co., Ltd.
The Semi-annual Report 2017
August 2017
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.
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
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.
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
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
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）
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.
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
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
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.
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
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%
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%
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
3,670,952,734. 2,688,967,436.
Inventories 7.69% 5.74% 1.95%
10
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
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
Construction in 2,457,153,171. 1,772,629,310.
5.15% 3.79% 1.36%
process 64
4,474,513,562. 4,940,816,200.
Short-term loans 9.37% 10.55% -1.18%
31
5,830,941,823. 6,596,159,000.
Long-term loans 12.21% 14.09% -1.88%
23
(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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
materials
Ltd.
Xuyou Electronic Subsidiary The JPY18150 744,019,016. 739,920,421. 5,752,136.43 5,895,922.83
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
Material Technolog development million 61
(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
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
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
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
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.
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.
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
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
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
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
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
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
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
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
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
Zhaoting horizontal holding company-Tunghsu Group promised: 1. As of effecti Fulfil
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,
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
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
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
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
Tiehu, Zhang Promised that not use the company's assets to engage
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
(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
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,
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
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
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
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?
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
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
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
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 -- -- -- -- --
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.
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
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
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
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
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)
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.
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
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
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
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
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
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
No.208 Dongxu Optoelectronic
increase collective fund trust
plan
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
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
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
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
The Company had no preferred shares in the reporting period
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
Wang Lipeng Director,GM In office 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
Shuangcai
Lu Guihua Independent director In office 0 0 0 0 0 0
Han Zhiguo Independent director In office 0 0 0 0 0 0
Chairman of the
Guo Chunlin supervisory In office 0 0 0 0 0 0
committee
Xu Lingzhi Supervisor In office 0 0 0 0 0 0
Chen Dewei Supervisor In office 0 0 0 0 0 0
Xie Juwen Supervisor In office 0 0 0 0 0 0
Wang
Supervisor In office 0 0 0 0 0 0
Huanhuan
Wang
Deputy GM In office 0 0 0 0 0 0
Jianqiang
Wang
Deputy GM In office 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
Junming
Huang CFO In office 0 0 0 0 0 0
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
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
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
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.
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
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
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
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
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
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
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
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
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）
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
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
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
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
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
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
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
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
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.Providing of
surplus reserves
2.Providing of
common risk
provisions
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
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
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
（1）Total 1,239,9 1,310,5
70,595,
comprehensive 28,899. 24,656.
756.94
income 40
（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
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
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
1. Capitalizing of 55,320, -55,320,
capital reserves (or 542.06 542.06
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
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
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
（I）Total -264,10
-264,103,
comprehensive 3,692.7
692.74
income
(II) Investment or
796,800.0 796,800.0
decreasing of
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
-345,79
（III）Profit -345,795,
5,028.8
allotment 028.81
1.Providing of
surplus reserves
2．Allotment to the -345,79 -345,795,
owners (or 5,028.8 028.81
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
shareholders)
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
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
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)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
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
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.
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
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
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.
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.
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
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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%
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
(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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
(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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
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%
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
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
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
characteristics basis
Receivables that are
individually
insignificant but with 746,626. 746,626.
0.03%
provision for bad 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
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%
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
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%
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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%
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
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
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
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
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
n and
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
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
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
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
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 --
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：
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
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
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
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
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.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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：
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
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
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
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
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
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
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
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
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
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
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
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
