Dongxu Optoelectronic Technology Co., Ltd. 2016 Annual Report
Dongxu Optoelectronic Technology Co., Ltd.
2016 Annual Report
March 2017
1
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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.Zhou Bo, Chief financial officer and the Mr.Gao Feipeng, the
person in charge of the accounting department (the person in charge of the accounting )hereby confirm the
authenticity and completeness of the financial report enclosed in this 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 IX Future Development and Prospect in Section IV Operation Conditions Discussion and
Analysis.
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
total share of 4,939,928,983 for Base on the Company‘s total share capital as at December 31,2016, the
Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 for every 10
shares(including tax), 0 bonus share (including tax) and no reserve would be converted into share capital.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s 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. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Definition
Terms to be defined Refers to Definition
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Dongxu Group Refers to Dong Xu Group Co., Ltd.
Baoshi Group Refers to Shijiazhuang Baoshi Electronics Group Co., Ltd
Dongxu Optoelectronic , Company, The
Refers to Dongxu Optoelectronic Technology Co., Ltd.
Company
Dongxu（Yingkou）Optoelectronic Refers to Dongxu（Yingkou）Optoelectronic Display Co., Ltd.
Sichuan 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 Dongxu Optoelectronic Equipment Technology
Shijiazhuang Equipment Refers to
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”.
Sichuan Ruiyi Refers to Sichuan Ruiyi Construction Engineering Co., Ltd.
Dongxu Optoelectronic Technology Co., Ltd.， In 2016, was the
Fuzhou Optoelectronic 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”
BOE Refers to BOE Technology Group Co., Ltd.
IVO Refers to Infovision Optoelectronics Co., Ltd.
CPT Refers to Chunchwa Picture Tubes Co., Ltd.
CRT Refers to Cathode Ray Tube
TFT-LCD Refers to \"Thin Film Transistor Liquid Crystal Display\"
Glass substrate Refers to A thin glass sheet with extremely smooth surface is a basic
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
component of constituting LCD display device as well as one of the
critical basic 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.
The size of the 5th-generation glass substrate is 1100 mm×1300
G5 glass substrate Refers to
mm.
The size of the 6th-generation glass substrate is 1500 mm×1850
G6 glass substrate Refers to
mm.
The size of the 8.5th-generation glass substrate is 2300
G8.5 glass substrate Refers to
mm×2500 mm
Critical original materials of LCD panel for realizing
CF Refers to
colorization display
A two-dimensional carbon material composed of carbon atoms
Polaroid Refers to closely and cyclically packed by benzene ring structures (ie,
hexagonal honeycomb structures)
Refers to two-dimensional carbon materials related to grapheme,
Grapheme materials Refers to
with a layer less than 10 carbon atoms
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
II. Basic Information of the Company and Financial index
I. Company Information
Dongxu Optoelectronic,
Stock abbreviation Stock code： 000413、200413
Dongxu B
Stock abbreviation after change (if any) Dongxu Optoelectronic, Dongxu B
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
No.9, Huanghe Road, Shijiazhuang High-tech Industrial Development Area,
Registered address
Shijiazhuang, Hebei Province
Postal code of the Registered Address
Office Address No.5 Court, No.23 A Fuxing Road, Haidian District, Beijing
Postal code of the office address
Internet Web Site www:dongxuguangdian.com.cn
E-mail dxgd@dong-xu.com
II. 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
III. Information disclosure and placed
Newspapers selected by the Company for China Securities Journal ,Shanghai Securities News,Securities Times,
information disclosure Securities Daily and Hong Kong Commercial Daily
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Internet website designated by CSRC for
http://www.cninfo.com.cn
publishing the Annual report of the Company
The place where the Annual report is prepared
Securities Dept of the Company
and placed
IV. Registration changes of the Company
Organization Code No Change
Changes in principal business
No Change
activities since listing (if any)
Changes is the controlling shareholder
No Change
in the past (is any)
V. Other Relevant Information
CPAs engaged
Name of the CPAs Hebei Guanghuacai Guanghua Certified public Accountants LLP.
Office address 4/F,Anqiao Business Building , No.77 Guangan Street, Changan District, Shijiazhuang
Names of the Certified Public
Wang Fengqi, Meng Xiaoguang
Accountants as the signatories
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
√Applicable □Not applicable
Consistent supervision
Name Office address Representative
period
19-20/F, Guangzhou
International Finance Center
Guangzhou Securities Co.,
Tower , No.5 Zhujiang West Wu Jian, Wang Hongwei 2016.3.21-2017.12.31
Ltd.
Road, Tianhe
District ,Guangzhou.
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□ Applicable √ Not applicable
VI. Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
due to change of the accounting policy and correction of accounting errors.
□ Yes √ No
Changed over last
2016 2015
year（％）
Operating Gross income 6,901,321,122.65 4,650,208,448.10 48.41% 1,600,750,745.69
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
（RMB）
Net profit attributable to
the shareholders of the listed 1,239,928,899.40 1,326,233,674.37 -6.51% 468,902,701.44
company（RMB）
Net profit after deducting
of non-recurring gain/loss
953,819,209.18 822,699,390.70 15.94% 78,312,630.78
attributable to the shareholders
of listed company（RMB）
Cash flow generated by
1,390,048,492.32 1,780,128,962.94 -21.91% -1,017,554,188.65
business operation, net（RMB）
Basic earning per
0.29 0.48 -39.58% 0.17
share(RMB/Share)
Diluted gains per
0.29 0.48 -39.58% 0.17
share(RMB/Share)(RMB/Share)
Net asset earning ratio（%） 7.28% 14.99% -7.71% 6.11%
End of Changed over last
End of 2016 End of 2014
2015 year（％）
28,798,623,253.3 18,488,221,665.4
Gross assets（RMB） 46,826,319,570.41 62.60%
3
Net assets attributable to
14,319,481,941.2
shareholders of the listed 22,216,300,365.86 55.15% 7,677,125,274.36
company（RMB）
VII. The differences between domestic and international 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
VIII. Main Financial Index by Quarters
In RMB
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
First quarter Second quarter Third quarter Fourth quarter
Operating income 1,581,690,834.17 1,300,368,320.24 1,379,624,393.30 2,639,637,574.94
Net profit attributable to the
347,750,532.74 198,213,177.98 255,873,197.91 438,091,990.77
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
269,369,501.10 190,525,152.03 158,346,261.62 335,578,294.43
to the shareholders of listed
company
Net Cash flow generated by
-934,819,444.05 2,215,928,386.99 348,241,152.18 -239,301,602.80
business operation
Whether significant variances exist between the above financial index or the index with its sum and the
financial index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
IX. Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Amount Amount Amount
Items Notes
(2016) (2015) (2014)
Non-current asset disposal
gain/loss(including the write-off part for 19,167.58 -42,342.96 -89,370.72
which assets impairment provision is made)
Govemment subsidies recognized in
current gain and loss(excluding those 356,943,995.5 514,763,264.2 441,054,640.2
closely related to the Company’s business 5 8
and granted under the state’s policies)
Income from the exceeding part
between investment cost of the Company
paid for obtaining subsidiaries , associates
1,804,209.86 18,763,137.14 580.38
and joint-ventures and recognizable net
assets fair value attributable to the Company
when acquiring the investment
Net profit or loss of subsidiaries from
the beginning of the period up to the
business combination date recognized as a 84,703,345.09 44,240,758.16
result of business combination of enterprises
under common control
Reversal of impairment provisions for
14,009,355.59
the accounts receivable on which
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
impairment tests were carried out separately
Gain/loss on loans obtained by
8,022,209.26 4,500,000.00 4,083,333.33
entrusting others
Other non-operating income and
-9,601,776.32 2,588,776.63 175,950.50
expenditure beside for the above items
Less: Influenced amount of income tax 52,541,535.96 82,348,493.83 65,281,344.97
Amount of influence of minority
18,536,579.75 53,402,758.27 33,594,476.24
interests（After tax）
286,109,690.2 503,534,283.6 390,590,070.6
Total --
2 7
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
III. Outline of Company Business
I. 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
The company has successfully completed the transformation and upgrading from the traditional CRT
industry to the panel display industry since the recombination in 2011, the company main business covers
production of the optoelectronic display materials including TFT-LCD, sapphire, color filter and polaroid, etc.,
sales of high-end equipment with provision of corresponding technical services. As well as undertaking the
building installation project and other business. Apart from the main business, the company arranged the strategic
newly-developing materials field related to graphene positively and realized the breakthrough in the single-layer
graphene and graphene lithium ion cell business.
1. High-end equipment and technical service business
Through the independent research and development and technology accumulation for many years, the
company broke through the techniques blockade of foreign manufacturers firstly, developed the whole-set
processing equipment and manufacture technology for the flat panel display glass substrate with the proprietary
intellectual property rights and became the fifth liquid crystal glass substrate manufacturer globally as well as the
enterprise with the electronic glass manufacturing processes for overflow down-draw process and float glass
process. The effective breakthrough in the electronic-grade glass manufacture equipment field provides the solid
foundation for the company high-end equipment business entry into the extension market. The company high-end
equipment and the technology service business adopt mainly the customized production and service methods,
which will be settled based on the production line works progress note and the mainly products include Stocker
automatic control system, polishing automatic line host synthesis equipment and automatic grinding cleaning
equipment, etc.
Recently, the state has been continuously increasing the policy support on the intelligent manufacturing
equipment industry and has issued in succession the \"12th five-year plan\" Development Program for the High-End
Equipment Manufacturing Industry, \"12th five-year plan\" Development Program for the Intelligent Manufacturing
Equipment Industry, \"12th five-year plan\" Special Program for Intelligent Manufacturing Scientific and
Technological Development and Made in China 2025, etc., which provide the huge market space for the
equipment manufacturing industry. As China is on the way transforming from the big manufacturing country to
the powerful manufacturing country, the intelligent manufacturing equipment industry will usher in an era with
rapid-development opportunities and broad market space under the joint action of the domestic equipment
replacement of imported goods, the industrial production replacement of the human work, etc.
2. Display materials business including LC glass substrate and others
The LD glass substrate is the core raw material of the upstream LC display panel and one panel comprises
two glass substrates commonly accounting for 15%-20% of the overall panel production cost or so, which is
characterized with high technical barrier, high monopolization and high profit space, etc. Based on the
breakthrough in the LC glass substrate set manufacturing equipment field, the company breaks the international
monopoly firstly and achieves the domestication of the LC glass substrate. At present, the company possesses 20
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
LC glass substrate production lines (including under-construction and proposed projects) covering G5, G6 and
G8.5 production lines and ranks firstly on the volume production capacity stably. To strive for the territory
advantages and reduce the transport cost, the company adopts the factory building strategy matching nearby with
the panel clients as well as the point-to-point sales strategy and at present the clients extend all over the
mainstream panel factories in Chinese Mainland and Taiwan such as BOE, CATIC, Tianma, IVO, CPT, and
Innolux Corporation, etc.
The company, apart from strengthening the LC glass substrate main business, started to enrich the industrial
structure in 2015 gradually, focused on the horizontal expansion in the optoelectronic display core materials field
and arranged the sapphire materials, CF and polaroid, etc. in succession with continuous improvement of the
industrial distribution frontier, safety and profitability. The sapphire crystal is used extensively in LED substrate
materials, consumer electronics, optical elements and other fields; at present the main products of the company are
2-inch and 4-inch substrate products; CF and polaroid projects are during investment and construction and will
give full play to the co-movement effects after construction together with the company glass substrate business
and increase the ratio of display materials domestication.
As a series of polices at home has been supporting TFT-LCD industry since 2006, the LC panel industry has
risen and developed successively from Japan, South Korea, Taiwan and the Chinese Mainland has become the
second LCD panel industry base following Korea. Up to now, there is a batch of LCD panel manufacturers with
the large scale and international competition including BOE, Huaxing Optoelectronic , CATIC, IVO and Tianma,
etc., and the domestication for the upstream raw materials production will usher in an era with historic
opportunities combining the continuous release of the panel capacity at home.
3. Building installation business
As the company traditional business, the building installation business played an important role in assisting
the company production base building and maintenance, etc. and decreased effectively each engineering
construction cost of the company. At the same time, as the supplement to the main business, the building
installation business has brought about a certain incomes and profits for the company in recent years along with
the continuous development of the industrialization and urbanization at home. Such business of the company
mainly takes the subsidiary Sichuan Ruiyi Constructional Engineering Co., Ltd. as the operation subject, which
possesses the qualification of the architectural engineering construction general contracting Class I and municipal
public works construction general contracting Class I, etc. and mainly conducts the housing building, civil
engineering, public facilities building, other works lump sum and professional construction.
The building installation industry is an important pillar industry for the national economy and also the
important guarantee for the new-type urbanization executed by the state. The new-type urbanization is the largest
domestic-demand potential and also the important driving force for the economic development, which will bring
about the broader market space for the company building installation business through the covered underground
comprehensive pipe rack transformation, sponge city building and shantytown transformation, etc.
II. Major Changes in Main Assets
1.Major Changes in Main Assets
Main assets Major changes
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
The increase for the period was mainly caused by the fixed assets conversion from
Fixed assets the LC glass substrate production lines projects under construction of Shijiazhuang
Xuxin, Wuhu Optoelectronic Technology and Zhengzhou Xufei Company.
The increase for the period was mainly caused by the acquisition of Shanghai
Tanyuan Huigu New Materials Technology Co., Ltd., the proprietary technology
Intangible assets purchase after the successful acquisition as well as the land usage rights purchase by
subsidiaries Fuzhou Dongxu Optoelectronic Technology Co., Ltd. and Taizhou Xiwang
New Energy Technology Co., Ltd.
The decrease for the period was mainly caused by the fixed assets conversion from
Construction in process the LC glass substrate production lines projects under construction of Shijiazhuang
Xuxin, Wuhu Optolectronic Technology and Zhengzhou Xufei Company.
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III. Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The company's core competitiveness is mainly reflected in the following aspects:
1. Strong ability of independent R & D and innovation
As of the end of the reporting period, the company and the trusteeship company and the controlling
shareholder have about 1000 items of independent intellectual property rights related to liquid crystal glass
substrate, PDP glass substrate and High alumina float plate glass being obtained and/or under the application
process. After years of technology accumulation and upon the strong independent research and development
ability, the company has become the only company in China that simultaneously mastered the two kinds of
glass-substrate production process which are the overflow melting method and the floating method. The TFT-LCD
glass substrate whole-set equipment production line was identified as the \"National strategic innovation product\",
and the method for treating glass liquid in platinum channel was awarded “Golden prize of Chinese patents”.
Besides, the company stressed the cooperation and exchanges with domestic and foreign well-known research
institutions and professional universities and colleges, and set up the National Engineering Laboratory for flat
panel display glass technology and equipment, national enterprise technology center, academician workstation,
graphene research institute and so on, which will provide a strong technical support and R&D support for the
company’s further development.
2. The leading position in domestic substrate industry and the scale advantage
At the end of the reporting period, the company has four LCD glass substrate production bases which are
Zhengzhou, Shijiazhuang, Wuhu and Fuzhou production base, with the comprehensive coverage of G5, G6 and
G8.5 TFT-LCD glass substrate products and the production capacity ranked first in China while ranked fourth in
the world. With each production line being put into production, the company’s market share of the domestic LCD
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
glass substrate increased year by year, and the company’s pricing power towards the downstream customers
enhanced, while the scale effect effectively ensured the profitability of the company's substrate product. Upon the
company's leading position in the field of LCD glass substrate, the company expanded the new display material
business represented by polarizer and color filter. The above-mentioned three core display materials will achieve
good tandem effect, thus to effectively enhance the company’s core competitiveness in the field of TFT-LCD.
3.The industry chain integration advantages with the lead of the control power
Dongxu Group as the company dominant shareholder, has evolved into the multi-industry group of
synergetic development of high-end manufacture, new materials, new energy and new-type environmental
protection, etc. through the sound development for 20 years and was listed into “Top 100 Enterprises of the
Brand Value in 2016 China”with the value of 15.896 billion yuan in 2016, whose brand influence became more
prominent. Based on the powerful resources of the dominant shareholder and brand advantages, Dongxu
Optoelectronic started the extended development strategy oriented by “merger plus joint venture”, introduced in
succession several advanced production technologies of Japanese enterprises, entered into fields of polaroid,
sapphire and graphene (graphene lithium ion cell), etc. with the mainline of full play of the industrial synergy,
orientation of realizing the absolute control power and purpose of “one plus one greater than two” effect, and
added the new energy to the rapid development of the company.
4. Policy Support and Costs Advantage
In recent years, the central government has issued a series of policies to boost the domestically-made
photoelectric display materials, and the policies include “raised the tariff of 6-G and below 6-G glass substrate to
6%\", “raised the export tax rebate rate of liquid crystal glass substrate etc. to 17%\" and “critical material matching
rate of small and middle size TFT-LCD panel manufacturing up to 60%”. Meanwhile, considering the investment
promotion and capital introduction and adjustment for industrial structure and so forth factors, many local
governments will provide supports in terms of land, taxes and subsidies. To better cover the needs of downstream
customers, the company adopted the strategy of setting up the matching factory near the panel manufacturers.
Compared to the foreign manufacturers, the strategy would save tariff costs while effectively avoiding the high
transportation costs and reducing the risk of damage to the product. With the company’s expanding production
capacity, constant development of technology and the further dilution of fixed costs such as depreciation, the
company’s costs advantage is increasingly obvious.
5. High-efficient management and decision-making mechanism
Since Dongxu Group becoming the master of the company, the company’s management system got a
thorough transformation from the state-owned enterprise to private company. The company inherited Dongxu
Group’s rich and good operation and management experiences in the electronic glass industry, and developed a
high-efficient management system and incentive mechanism. The company brings together a large number of
high-tech talents, and the management can accurately judge the market and the industrial development direction to
quickly and flexibly grasp the opportunity, with market-oriented means to mobilize the talented people and capital
resources and other resources to timely seize the strategic high ground. In the rapid-changing and high-barrier
consumer electronics industry chain, the company’s advantage of high-efficient management and decision-making
mechanism is becoming more outstanding.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
IV. Management’s Discussion and Analysis
I. General
The year 2016 was the crucial year for implementation of Dongxu Optoelectronic strategies centering on
mainly several main lines of building advanced-line substrate production line, deepening existed products market
layout and promoting the horizontal expansion in the new-material field vigorously, when each production
operation activity were prompted stably. Under the leading of the company Board of Directors and the
management layer as well as the unremitting endeavor of all staff, the company leading position as the LC glass
substrate was strengthened and the optoelectronic display materials and graphene business were laid out smoothly
with forming the good industrial collaboration and cluster effects. Within the report period, the company achieved
the operation revenue of 6.901 billion yuan with comparing by 48.41% compared with that in 2015 and the net
profits of 1.24 billion yuan belonging to the parent company .
Each business of the company was developed in details in 2016 as follows:
1.Strengthen the leading position of LC glass substrate and fill up the black of G8.5 domestication
Under the influence of the tightened supply of LCD panel caused by South Korean production line switching
to OLED, the price of the small and medium size LCD panels in 2016 kept increasing, drove the strong demands
of the LC glass substrate market and stabilization of the price and gross margin. Until the end of the report period,
the company G5 and G6 LC glass substrate production lines with number of 7 and 6 all had realized volume
production with above 80% average comprehensive yield and realization of 1.213 billion yuan for the total sales
incomes of the whole year (increase by 23.82% compared with that in 2015) and 428 million yuan for the gross
profit. The company took part actively in the industrial exhibitions home and abroad, promoted persistently and
strengthened the cognition and reputation of the company brands. At present, the company substrate products
have already covered the mainstream panel manufacturers in Chinese Mainland and Taiwan including BOE,
Shenchao Optoelectronic, Innolux Corporation, IVO, Tianma and AU Optoelectronic, etc. with continuous
promotion of the industrial safety and reliability.
In August 2016, the company collected 6.95 billion yuan capital for the non-public offer shares and such
amount was used for investment and building G8.5 LC glass substrate production line and BOE production line
nearby was selected to build the factory, which would fill in the domestication black effectively of the large-size
glass substrate after reaching the design capacity. Until the end of the report period, The factories and ancillary
clean rooms for partial production lines of the project are completed; and the ancillary electromechanical and
power equipment are being installed. Otherwise, to copy with the display technology upgrading in the future, the
company intensified the research and development, completed smoothly the overall performance parameters test
and overall-performance optimization integration for the LTPS (low-temperature polycrystalline silicon) glass
substrate material and built the communication channel with clients of Everdisplay Optronics and CSOT, etc. In
the future, the company will transform G5 and G6 production lines properly based on the downstream market
demands.
2. Give play to the substrate production technology spillover effects and the high-end equipment
business develops continuously
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
At present, as the only enterprise grasping both the overflow melting method and float glass substrate
production process at home, the company, based on the advanced set-type equipment technology of independent
research and development, realizes the design, production, manufacturing, installation and technology services for
the LC glass substrate and high-alumina cover-plate glass production lines equipment in set and all production
lines are in stable operation with stable promotion of the yield. The strong R&D, production and integration
capacities for the electronic-grade glass manufacture equipment in set bring about the obvious spillover effects for
the high-end equipment business of the company. In 2004, the company entered into the strategic cooperation
agreements with BOE and Infovision Optoelectronics (Kunshan) Co., Ltd. for expanding the panel production line
equipment business with the downstream panel manufacturers.
As the company breaks through the foreign blockade at the aspect of the independent research and
development and settles the solid foundation based on the breakthrough of the front-end equipment with the
highest technical content among the electronic equipment, the company high-end equipment and technical service
business develops continuously, exploit and store a large batch of large-size group clients in the intelligent
application field under the background of the industrial manufacturing equipment replacement of the manual work
and satisfaction of the high-efficient production. Within the report period, the company high-end equipment and
technical service business realized the revenue of 3.887 billion yuan with the gross profit declining to 38.17%
reasonably due to the original whole-set customized equipment transformation into partial generalized equipment.
3. Arrange the optoelectronic display core raw materials and the industrial cluster effects appear
To realize the strategic target of the \"the largest optoelectronic display materials manufacturer in China\" and
keep up with the global display technology and innovation trend, the company, on the basis of strengthening and
improving LC glass substrate main business continuously, expand the new business field continuously combining
the main business and has already laid out the sapphire, CF and polaroid high-end display materials.
Within the period, the company sapphire business was expanded partially with smooth market expansion,
achieved the operation revenue of 550 million yuan with increasing by 95.21% compared that in 2015 and
possessed the stable clients including Xuzhou GAPSS, North Microelectronics and Sino Nitride Semiconductor.
The present products cover the large-size sapphire crystal ingot, 2-6 inches sapphire crystal bar, 2-6 inches
sapphire substrate ,optical window materials and Mobile phone panel and lens cover ,etc. The company G5
TFT-LCD using CF production line project is under construction and will improve efficiently the additional value
of the existed G5 LC glass substrate products after reaching the design capacity, which will also become another
new profit increase point for the company.
Otherwise, to seize quickly the polaroid demands of the large-size LC panel enterprises at home, fill up
efficiently the black for the original polaroid volume production, in February 2016, the company cooperated with
Sumitomo Chemical as one enterprise of the global Top 3 polaroid manufacturer in the polaroid industry hand in
hand. In October 2016, the joint-venture Xuyou Electronic Material Technology (Wuxi) Co., Ltd. was registered
and established officially with Tunghsu photoelectricity holding 51% and the wholly-owned subsidiary thereof
Fuzhou Xuyou Electronic Material Technology Co., Ltd. was registered in December. Such project will invest and
build 2 wide polaroid production lines, among which, the front-end preparation work for 1 line at present is
completed and the front and back sections for one original volume production line are located in Wuxi and
Fuzhou respectively. The workshop transform in Wuxi has already been completed and relevant production
equipment will enter into the site with installation commission.
4. The endogenous and extended two-wheel drive and the graphene business completes multiple-point
layout
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Since 2014, the company conducted the industrial layout (graphene industry) through adoption of the
\"endogenous and extended\" two-wheel drive. The company has conducted the cooperation and exchange with
multiple scientific research institutions in succession including Beijing Institute of Technology, Shanghai Jiaotong
University, China Graphene Alliance and the Catalan Institute of Nanoscience and Nanotechnology, etc.,
constructed the overall industry-university-research technical innovation system and settled the strong technical
strength for the rapid development of the company graphene business. Within the report period, the company built
the graphene industry development funds in the scale of 100 and 200 million yuan respectively with Taizhou New
Energy Industrial Park Management Committee and Jingyang People’s Government in Deyang city, which will
speed up the company layout of the graphene industry.
In March 2016, the company completed the acquisition of Shanghai Tanyuan Huigu through the capital
increment, which is the graphene preparation and application enterprise owning the single-layer graphene
preparation technology, graphene lithium ion materials and cell preparation technology, issued the first \"graphene
lithium ion cell product\"in July, which can realize the short-time rapid charging and discharging and may be
applied in the various power battery fields including the new-energy automobile and unmanned aerial vehicles.
Otherwise, the company plans to invest 1.65 billion yuan in Taizhou to build the graphene lithium ion cell product
project and such project had already obtained the land and completed the filing by the end of the report period
with the continuous promoting of relevant environmental, safety and profession assessment.
5. Correspond to the new-type urbanization building trend and maintain the stability of the building
installation business
As the company traditional business, the building installation business gives an important play to the aspect
of the company production lines building assistance and external works contracting, decreases effectively the
company operation cost and improves the production lines building efficiency. Simultaneously, conforming to the
policy background of the new-type urbanization at present, as the industrialization and urbanization develop
continuously, the company building installation business maintains the stable performance increase through
applying its own advantages. The company building installation business was completed mainly by Sichuan Ruiyi
achieved the total operation revenue of 1.18 billion yuan and 40 million yuan for profits within the report period.
II. Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
2. Revenue and cost
(1)Component of Business Income
In RMB
2016
Increase /decrease
Amount Proportion Amount Proportion
Total operating
6,901,321,122.65 100% 4,650,208,448.10 100% 48.41%
revenue
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Industry
Equipment and
3,886,546,674.10 56.32% 2,335,561,840.90 50.22% 66.41%
Technology serves
Glass substrate 1,213,279,834.92 17.58% 979,843,906.90 21.07% 23.82%
Sapphire material 547,559,756.10 7.93% 280,494,160.83 6.03% 95.21%
Supply chain
24,058,595.55 0.35% 0.00 0.00%
business
Graphene 1,376,522.48 0.02% 0.00 0.00%
Construction
1,183,752,400.10 17.15% 890,941,023.85 19.16% 32.87%
Installation
Electric vacuum
glass devices and
421,367.52 0.01% 7,123,333.34 0.15% -94.08%
supporting electronic
device
Other 44,325,971.88 0.64% 156,244,182.28 3.37% -71.63%
Products
Equipment and
3,886,546,674.10 56.32% 2,335,561,840.90 50.22% 66.41%
Technology serves
Glass substrate 1,213,279,834.92 17.58% 979,843,906.90 21.07% 23.82%
Sapphire material 547,559,756.10 7.93% 280,494,160.83 6.03% 95.21%
Supply chain
24,058,595.55 0.35% 0.00 0.00%
business
Graphene 1,376,522.48 0.02% 0.00 0.00%
Construction
1,183,752,400.10 17.15% 890,941,023.85 19.16% 32.87%
Installation
Electric vacuum
glass devices and
421,367.52 0.01% 7,123,333.34 0.15% -94.08%
supporting electronic
device
Other 44,325,971.88 0.64% 156,244,182.28 3.37% -71.63%
Area
China mainland 6,457,021,842.84 93.56% 4,354,395,626.02 93.64% 48.29%
Hongkong, Macao
444,175,683.53 6.44% 295,812,822.08 6.36% 50.15%
and Taiwan
Overseas 123,596.28 0.00%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and
Operating Profit with Profit over 10%
√ Applicable □ Not applicable
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
Increase/decrease Increase/decrease of Increase/decrease of
Gross
of revenue in the business cost over gross profit rate over
Turnover Operation cost profit
same period of the the same period of the same period of the
rate(%)
previous year(%) previous year (%) previous year (%)
Industry
Equipment and
Technology 3,886,546,674.10 2,403,113,251.28 38.17% 66.41% 122.79% -29.08%
serves
Glass substrate 1,213,279,834.92 785,083,264.44 35.29% 23.82% 25.96% -3.02%
Construction
1,183,752,400.10 1,143,803,109.42 3.37% 32.87% 42.91% -66.80%
Installation
Products
Area
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted
main business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
□ Yes √ No
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
In RMB
2016
Proportion in the Proportion in the ncrease/Decrease
Industry Items
Amount operating costs Amount operating costs (%)
(%) (%)
Equipment and
Technology Operation costs 2,403,113,251.28 49.84% 1,078,657,382.33 38.52% 122.79%
serves
Glass substrate Operation costs 785,083,264.44 16.28% 623,256,190.80 22.26% 25.96%
Sapphire material Operation costs 443,149,119.86 9.19% 227,573,985.00 8.13% 94.73%
Supply chain
Operation costs 23,708,484.55 0.49% 0.00 0.00%
business
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Graphene Operation costs 1,499,115.44 0.03% 0.00 0.00%
Construction
Operation costs 1,143,803,109.42 23.72% 800,382,739.30 28.58% 42.91%
Installation
Electric vacuum
glass devices and
Operation costs 337,094.02 0.01% 5,956,064.28 0.21% -94.34%
supporting
electronic devices
Other Operation costs 20,909,327.23 0.43% 64,527,156.33 2.30% -67.60%
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√ Yes □ No
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
In RMB’0000
Income of Acquire Net Profit of
Time-poi Ratio of
Obtained Method of Determination Basis from the Acquire from the
nt of Obtained Purchasin
Name of Acquirer Cost of Obtained on the Purchasing Purchasing Date to Purchasing Date
Obtained Equity g Date
Equity Equity Date the End of the to the End of the
Equity (100%)
Period Period
Shanghai Tanyuan
Pay consideration and
Huigu New Purchase
March March complete industrial
Material 7,345.45 50.50 and 123.27 546.22
2016 31,2016 and commercial
Technology Co., add share
change registration
Ltd.
Shenzhen Pay consideration and
Xinyingtong Decembe Decembe complete industrial
2,310.00 70.00 Purchass 2,405.86 44.42
Technology Co., r 2016 r 21,2016 and commercial
Ltd. change registration
Notes：Shenzhen Xinyingtong Technology Co., Ltd. has the wholly-owned subsidiary Shenzhen Xingxinda
Technology Co., Ltd.
(2) Consolidation Cost and Goodwill
Shanghai Tanyuan Huigu New Shenzhen Xinyingtong
Items
Material Technology Co., Ltd. Technology Co., Ltd.
Consolidation Cost
—Cash 73,454,500.00 23,100,000.00
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Total consolidation cost 73,454,500.00 23,100,000.00
Less：Reduction: Obtained Definable Net Assets Fair 39,519,115.43 24,904,209.86
Proportion
Amount of merging cost which is less than the fair value 33,935,384.57 -1,804,209.86
proportion of obtained net identifiable asset
(3) The identifiable assets and liabilities of acquirer at purchase date
Shanghai Tanyuan Huigu New Material
Shenzhen Xinyingtong Technology Co., Ltd.
Technology Co., Ltd.
Items
Fair value on purchase Book value on Fair value on purchase Book value on purchase
date purchase date date date
Assets：
Monetary fund 65,834,772.59 65,834,772.59 449,174,013.01 449,174,013.01
Account receivable 1,600.00 1,600.00 456,374,640.98 456,374,640.98
Prepayments 2,006,750.00 2,006,750.00 73,978,005.72 73,978,005.72
Other receivable 457,262.00 457,262.00 72,724,712.95 72,724,712.95
Inventories 802,979.59 1,243,387.97 26,617,601.37 26,617,601.37
Other current assets 198,033.10 198,033.10 26,318,818.20 26,318,818.20
Fixed assets 1,939,350.28 1,847,248.70 736,208.40 736,208.40
Intangible assets 4,444,692.24 7,317,795.33
Long-term deferred 303,253.20 303,253.20
expenses
Deferred income tax 13,815.24
asset
Other Non-current assets 58,094,513.00 58,094,513.00
Liability
Short-term loans 218,628,784.13 218,628,784.13
Bill payable 362,481,473.06 362,481,473.06
Account payable 362,292.10 362,292.10 447,800,348.58 447,800,348.58
Advance receipts 2,441,552.99 2,441,552.99
Employees’ wage 37,656.00 37,656.00 954,355.90 954,355.90
payable
Tax payable 5,079,161.51 5,079,161.51
Other account payable 71,269.20 71,269.20 91,055,394.81 91,055,394.81
Deferred income tax 497,026.72
liability
Net assets 75,517,475.70 78,255,674.11 35,577,442.65 35,577,442.65
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Less：Minority interest
Acquire net assets 75,517,475.70 78,255,674.11 35,577,442.65 35,577,442.65
2. Due to new subsidiaries set up in the current period
On March 17, 2016, Beijing Dongxu Huaqing Investment Co., Ltd as a general partner, Dongxu
Optoelectronic Technology Co.,Ltd as a limited partner and Taizhou Golden Sun Energy Co., Ltd as a limited
partner together set up Taizhou Dongxu Graphene Industry Investment Fund Management Center(Limited
partnership). Such limited partnership company was incorporated in May 4, 2016, and the total amount of capital
contribution agreed in the agreement was RMB 100million, but as of December 31,2016, the actual received
amount of capital contribution was RMB 100 million. For the capital contribution, Taizhou Golden Sun Energy
Co., Ltd subscribed the amount of capital contribution of RMB 75 million, Dongxu Optoelectronic Technology
Co.,Ltd subscribed the amount of capital contribution of RMB 25 million.
On March 8, 2016, Wuhu Dongxu Optoelectronic Technology Co.,Ltd set up subsidiary Fuzhou Dongxu
Investment Development Co., Ltd which the registered capital was RMB 10 million. On December 28, 2016,
State Development Funds Co., Ltd. contributed 500 million yuan with shareholding ratio of 49.5%, Wuhu Dongxu
Optoelectronic Technology Co., Ltd. paid in the registered capital of 500 million yuan with the shareholding ratio
of 50.5% and the total registered capital increase for the company was 1010 million yuan with the paid-in capital
of 500 million yuan by the end of the current period.
On March 31, 2016, Dongxu Optoelectronic Technology Co.,Ltd set up Shenzhen Xuhui Investment Holdings
Co.,Ltd, of which the registered capital was RMB 100 million and the paid-in capital was RMB 20 million.
On June 24, 2016, Fuzhou Dongxu Optoelectronic Technology Co.,Ltd and Dongxu Optoelectronic
Technology Co.,Ltd together set up a new company of Fuzhou Xufu Optoelectronic Technology Co.,Ltd, of which
the registered capital is RMB 65.40 million, among which, Fuzhou Dongxu Optoelectronic Technology Co.,Ltd
shall contribute RMB 54.50 million, Dongxu Optoelectronic Technology Co.,Ltd shall contribute RMB 10.90
million, and the paid-in capital was RMB 65.40 million.
On July 19, 2016, Shanghai Tanyuan Huigu New Materials Technology Co., Ltd. Set up the wholly-owned
subsidiary Taizhou Tanyuan Huigu New Energy Technology Co., Ltd with the registered capital of 150 million
yuan and paid-in capital of 9.9 million yuan; Taizhou Tanyuan Huigu New Materials Technology Co., Ltd. was
changed into Taizhou Xiwang New Energy Technology Co., Ltd. on September 6, 2016.
On July 27, 2016, Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. invested and set up the
wholly-owned subsidiary Xiamen Xuqi Investment Management Co., Ltd. with the registered capital of 10 million
yuan and paid-in capital of 2.5 million yuan.
On October 17,2016, Sichuan Ruiyi Construction engineering Co., Ltd.invested and set up the wholly-owned
subsidiary Sichuan Dongxu Ruiyi Environment Engineering Co., Ltd.with the registered capital of 10 million
yuan and paid-in capital of 0.00 yuan.
On October 17,2016, Sichuan Ruiyi Construction engineering Co., Ltd.invested and set up the wholly-owned
subsidiary Sichuan Dongxu Ruiyi Survey & Disign Co., Ltd. with the registered capital of 10 million yuan and
paid-in capital of 0.00 yuan.
On October 18,2016, Sichuan Ruiyi Construction engineering Co., Ltd.invested and set up the wholly-owned
subsidiary Sichuan Dongxu Ruiyi Trade Co., Ltd. with the registered capital of 10 million yuan and paid-in capital
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
of 0.00 yuan.
On October 18,2016, Sichuan Ruiyi Construction engineering Co., Ltd.invested and set up the wholly-owned
subsidiary Sichuan Dongxu Ruiyi Enterprise Management Co., Ltd. with the registered capital of 10 million yuan
and paid-in capital of 0.00 yuan.
On October 19, 2016, Dongxu Optoelectronic Technology Co., Ltd. set the subsidiary Xuyou Electronic
Material Technology (Wuxi) Co., Ltd. together with Sumitomo Chemical, Dongwoo Fine-chem Co., Ltd. and
TOMI International Co., Ltd. with the registered capital of 18.15 billion Yen and paid-in capital of 12.1 billion
Yen (converted into 748.6546 million yuan based on the current rate upon registration), of which, the holding
ratio is 51%, 17%, 30% and 2% respectively for Dongxu Optoelectronic Technology Co., Ltd., Sumitomo
Chemical, Dongwoo Fine-chem Co., Ltd. and TOMI International Co., Ltd. As specified by the articles of
association, the registered capital will be input by stage based on the company building and operation demands,
among which, the first period contributed capital will be 35% of the contribution amount paid once within 30 days
after the company registration and establishment and the remaining amount will be paid off within one year after
the joint-venture company.
On December 2,2016, Xuyou Electronic Material Technology (Wuxi) Co., Ltd.invested and set up the
wholly-owned subsidiary Fuzhou Xuyou Electronic Material Technology Co., Ltd. with the registered capital of
150 million yuan and paid-in capital of 5 million yuan.
On December 8, 2016, Sichuan Ruiyi Constructional Engineering Co., Ltd. and Sichuan Prosperity Building
Engineering Co., Ltd. set jointly Sichuan Dongxu Prosperity Building Development Co., Ltd. with the registered
capital of 30 million yuan and paid-in capital of 0 yuan, among which, Sichuan Ruiyi Constructional Engineering
Co., Ltd. and Sichuan Prosperity Building Engineering Co., Ltd. paid in 21 million yuan 9 million yuan
respectively.
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of the Company’s top 5 customers
Total sales amount to top 5 customers (RMB) 2,180,750,941.73
Proportion of sales to top 5 customers in the annual sales(%) 31.60%
Proportion of the sales volume to the top five customers in the total sales to
0.00%
the related parties in the year
Information of the Company’s top 5 customers
No Name Amount（RMB） Proportion
1 Customer 1 588,632,477.87 8.53%
2 Customer 2 520,831,109.22 7.55%
3 Customer 3 393,005,303.17 5.69%
4 Customer 4 348,461,538.50 5.05%
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
5 Customer 5 329,820,512.97 4.78%
Total -- 2,180,750,941.73 31.60%
Notes
□ Applicable √Not applicable
Principal suppliers
Total purchase of top 5 Suppliers（RMB） 1,643,049,327.78
Percentage of total purchase of top 5 suppliers In total annual purchase(%) 29.96%
Proportion of purchase amount from the top 5 suppliers in the total
0.00%
purchase amount from the related parties in the year
Information about the top 5 suppliers
No Name Amount（RMB） Proportion
1 Supplier 1 539,810,478.72 9.84%
2 Supplier 2 382,007,676.38 6.96%
3 Supplier 3 322,200,094.25 5.87%
4 Supplier 4 235,707,454.38 4.30%
5 Supplier 5 163,323,624.06 2.98%
Total -- 1,643,049,327.78 29.96%
Notes
□ Applicable √Not applicable
3.Expenses
In RMB
2016 2015 Increase/Decrease(%) Notes
Sale expenses Due to increased sales, marketing
64,047,044.01 44,944,240.87 42.50%
costs rose
Administration expenses 418,934,541.34 421,789,075.31 -0.68%
Financial expenses 344,079,731.62 294,416,400.12 16.87%
4. Research and Development
√ Applicable □Not applicable
R & D investment situation
2016 2015 Increase/Decrease(%)
Number of Research and Development persons (persons) 546 390 40.00%
Proportion of Research and Development persons 10.08% 7.72% 2.36%
Amount of Research and Development Investment (In 88,786,641.58 95,340,666.01 -6.87%
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
RMB)
Proportion of Research and Development Investment of
1.29% 2.05% -0.76%
Operation Revenue
Amount of Research and Development Investment
0.00 18,520,903.08 -100.00%
Capitalization (In RMB)
Proportion of Capitalization Research and Development
0.00% 19.43% -19.43%
Investment of Research and Development Investment
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization
Rate and Its Reasonableness
□ Applicable √Not applicable
5.Cash Flow
In RMB
Items 2016 2015 Increase/Decrease(%)
Subtotal of cash inflow received from operation activities 8,268,927,687.19 5,974,728,361.07 38.40%
Subtotal of cash outflow received from operation
6,878,879,194.87 4,194,599,398.13 63.99%
activities
Net cash flow arising from operating activities 1,390,048,492.32 1,780,128,962.94 -21.91%
Subtotal of cash inflow received from investing activities 6,792,787.54 1,143,295,255.26 -99.41%
Subtotal of cash outflow for investment activities 3,166,453,644.21 5,338,967,728.49 -40.69%
Net cash flow arising from investment activities -3,159,660,856.67 -4,195,672,473.23 -24.69%
Subtotal cash inflow received from financing activities 22,536,445,731.53 15,122,597,079.50 49.02%
Subtotal cash outflow for financing activities 7,681,012,713.62 4,091,475,189.10 87.73%
Net cash flow arising from financing activities 14,855,433,017.91 11,031,121,890.40 34.67%
Net increase in cash and cash equivalents 13,072,565,686.87 8,614,877,020.69 51.74%
Notes to the year-on-year change of the relevant data
□ Applicable√ Not applicable
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
□ Applicable√ Not applicable
III. Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Amount Proportion in total profit Explanation of cause Sustainable (yes or no)
Non-operating revenue 359,451,816.98 23.57% Government grants Yes
IV. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2016 End of 2015 Proportion Notes to the
Proportion in the Proportion in the increase/decreas significant
Amount Amount
total assets(%) total assets(%) e change
Monetary fund 26,056,117,216.86 55.64% 12,409,510,170.26 43.09% 12.55%
Accounts receivable 1,652,714,640.77 3.53% 1,042,538,312.51 3.62% -0.09%
Inventories 2,688,967,436.27 5.74% 2,177,979,684.06 7.56% -1.82%
Real estate
0.00% 0.00% 0.00%
Investment
Long-term equity
72,354,803.70 0.15% 72,426,252.41 0.25% -0.10%
investment
Fixed assets 8,952,341,070.47 19.12% 6,900,189,927.76 23.96% -4.84%
Construction in
1,772,629,310.84 3.79% 3,433,016,388.90 11.92% -8.13%
process
Short-term loans 4,940,816,200.13 10.55% 3,783,300,000.00 13.14% -2.59%
Long-term loans 6,596,159,000.00 14.09% 6,249,397,300.00 21.70% -7.61%
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of the end of this Reporting Period
Items End of Book value Reason
Monetary fund 1,018,782,125.26 Pledged deposit
Fixed assets 7,846,343,779.55 Borrowing as collateral
Invisible assets 250,829,465.51 Borrowing as collateral
Construction in process 550,493,081.70 Borrowing as collateral
Total 9,666,448,452.02
V. Investment situation
1. General
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
√ Applicable □ Not applicable
Investment Amount in 2016(RMB) Investment Amount in 2015(RMB) Change rate
1,640,735,606.57 4,975,533,648.00 -67.02%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
Name Gain or
Progres Whethe
of the Investm Investm Less or Date of
Main Investm Share s up to r to Disclos
Compa ent Capital ent Product Anticip the Disclos
Busines ent Proport Partner Balance Involve ure
ny Amoun Source Horizo Type ated Current ure(Not
s Way ion % Sheet in Index
Investe t n Income Investm e 5)
Date Lawsuit
d ent
Shangh Technic
ai al
Tanyua researc
n h and
Huigu develop
New ment,
Materia technol
l ogy
Techno transfer
Guo
logy ,
Shouw
Co., technic
u, Ma
Ltd. al
Shengji
service,
Acquisi 73,454, Self e, Wu Long-te Graphe Comple 5,000,0 5,462,1 March
technic 50.50% No
tion 500.00 fund Haixia, rm ne ted 00.00 93.69 9,2016
al
Shen
consulti
Wenzh
ng,
uo and
sales of
Shen Li
nano
materia
ls in the
field of
new
materia
ls and
equipm
ent
Shenzh Compu Zhang
Acquisi 23,100, Self Long-te Suppl Comple 444,17 444,17
en ter 70.00% Li and No
tion 000.00 fund rm ychain ted 9.21 9.21
Xinyin hardwa Zeng
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
gtong re and Shaoy
Techno softwar ing
logy e
Co., technol
Ltd. ogy
develop
ment,
import
and
export
busines
s
96,554, 5,444,1 5,906,3
Total -- -- -- -- -- -- -- -- -- -- --
500.00 79.21 72.90
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
Nil
（2）Investment in Derivatives
□ Applicable √ Not applicable
Nil
5.Application of the raised capital
√ Applicable □ Not applicable
（1）General application of the raised funds
√ Applicable □ Not applicable
In RMB’0000
Amount of Total
Accumulat Proportion
raised Amount of Amount of
ive amount of raised Use and
Total capital of the the Raised
Total of raised capital of Whereabo
Total Amount of which the Unused Fund with
Year of Way of amount of capital of which the uts of the
raised the Raised purpose Raised over 2
Raising Raising Raised which the purpose Unused
capital Fund Used was Fund at Years’
Funds purpose has been Raised
at the changed in the Idling
has been changed Fund
the report Current
changed (%)
period Period
directiona Temporary
2013 l 503,880 0 471,469.53 0 0 0.00% 25,159.03 supplemen
add-issua t current
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
nce
directiona
l Continue
2015 800,000 25,262.98 514,847.05 0 0 0.00% 289,923.31
add-issua to invest
nce
Temporary
Corporate
2015 100,000 33.71 100,000 0 0 0.00% 0 supplemen
bonds
t current
directiona
l Continue
2016 695,000 13,874.82 13,874.82 0 0 0.00% 684,513.91
add-issua to invest
nce
1,100,191.
Total -- 2,098,880 39,171.51 0 0 0.00% 999,596.25 --
Notes to use of raised capital
In 2016,The company strictly accordance with \"use of funds raised management system\" and \"raise funds tripartite regulatory
agreement\" to raise funds and special accounts storage use, and timely, truely, accurately and completely disclosure of the deposit
and use of proceeds, there is no violation circumstances.
（2）Promised projects of raised capital
√ Applicable □ Not applicable
In RMB’0000
Date
Accumul Investme
when the
Total ated nt Has any
Project Total Amount project Benefit
raised amount progress Has the material
changed(i investme inested in has realized
Committed investment capital invested ended the predicted change
ncluding nt after the reached in the
projects and investment invested at the end reporting result be taken
partial adjustme reporting the reporting
as of the period(% realized place in
change) nt (1) period predicted period
commited reporting )(3)=(2)( feasibility
applicabl
period(2) 1)
e status
Committed investment projects
Wuhu Optoelectronic
Decemb
Panel display galass 471,469.5
No 496,106.4 496,106.4 0 95.03% er31,201 5,021.16 Yes No
substrate Production
line project
Project of Production
not
Line for the March
No 300,000 300,000 4,051.63 14,760.05 4.92% applicabl No
5th-Generation CF for 31,2018
e
TFT-LCD
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Acquisition for 100% Decemb
share rights of Xufei No 177,000 177,000 7,408.33 177,000 100.00% er31,201 8,499.07 Yes No
Optoelectronic
Acquisition for 100% Decemb
13,803.0
share rights of Xuxin No 198,000 198,000 198,000 100.00% er31,201 6,063.03 Yes No
Optoelectronic
To supplement the Decemb
circulating fund No 125,000 125,000 0 121,537 97.23% er31,201 Yes No
To supplement the
circulating fund No 100,000 100,000 33.71 100,000 100.00% Yes No
（Corporate bonds）
Project of Production
not
Line for the 11,074.7 June
No 695,000 695,000 11,074.78 1.59% applicabl No
8.5th-Generation CF 8 30,2019
e
for TFT-LCD
Subtotal of Committed 2,091,106 2,091,106 36,371.4 1,093,841
-- -- -- 19,583.26 -- --
investment projects .4 .4 7 .36
Investment of excessive raised capital
Nil
2,091,10 2,091,106 36,371.4 1,093,841 19,583.2
Total -- -- -- -- --
6.4 .4 7 .36
Wuhu Optoelectronic panel display glass substrate production-line project will be constructed, input and
Reason or situation
realize the profits per stage; the overall input by the end of the project is not applicable; G5 TFT-LCD CF
thatnot on schedule (on
production lines are not applicable for partial under-construction production lines; G8.5 TFT-LCD glass
specific project)
substrate production lines are not applicable for partial under-construction production lines.
Notes to major
changesin project Nil
feasibility
Amount, application
and application
Not applicable
progress of the
unbooked proceeds
About the change of
the implementation site
Not applicable
of the projects invested
with the proceeds
Adjustment of the
implementation way of Not applicable
investment funded by
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
raised capital
Applicable
(1) On April 17, 2013，The 36th Meeting of the sixth Board of Directors of the Company has examined
andapproved the “Proposal on the Replacement of the Self-funancing Funds pre-put into Investment
Project with the RAISED Funds”, and agreed the company to make arrangement for the funds-raising on
the replacement of the pre-investment based on the plan of non-public issuance of stocks, with the
pre-invested self-financing funds of RMB 2,077,426,324.50 replaced by the raised funds. The company’s
independent directors, board of supervisors and the sponsor institution-Guangzhou securities issued the
clear statement of consent. A special audit report- No.5002-Zhongxin Cai Guan Hua specially Certified
(2013) pertain to the item of replacing the funds pre-invested in the project which should be invested by
the funds raised was issued by Zhongxincai Guanhua Certified Public Accountants (LLP).
Investment projects (2)On December 29, 2015, the 46th meeting of the 7th board of directors and the 18th meeting of the 7th
initial investment and board of supervisors of the Company examined and adopted “Proposal on Using the Raised Fund to
replacement Replace the Self-raised Fund of the Advanced Invested Item to Raise Money for and Invest ”, The
company replaced the self-raising funds in amount of RMB 107,084,200 with the funds raised by the
non-public issuing pertain to the relevant projects, which had been audited and certified by by Zhongxincai
Guanhua Certified Public Accountants (special general partnership) with the report of No.5037
Zhongxincai Guanhua specially Certified (2015) provided.
(3) On January 25, 2017, the 9th meeting of the 8th board of directors of the Company examined and
adopted “Proposal on Using the Raised Fund to Replace the Self-raised Fund of the Advanced Invested
Item to Raise Money for and Invest ”, The company replaced the self-raising funds in amount of RMB
110.7478 million with the funds raised by the non-public issuing pertain to the relevant projects, which had
been audited and certified by by Zhongxincai Guanhua Certified Public Accountants (special general
partnership) with the report of No.105001 Zhongxincai Guanhua specially Certified (2017) provided.
Applicable
(1) On May 29, 2015, the 37th Meeting of the 7th Board of Directors of the company deliberated and
approved Proposal of Using Partial Idle Raised Fund to Supplement Circulating Fund, which agreed the
About the initial company to use the idle raised fund valuing 250 million yuan (taking 5.04% of the actual net raised fund)
investment in the to temporarily supplement the circulating fund of the company. Service life lasts for 12 months since the
projects planned to be approval date by the Board of Directors. The company will return to the special account for fund-raising in
invested with the time when the fund used to supplement the circulation is due. The raised fund above was already refunded
proceeds and the on May 26, 2016 and deposited in the special account for the company raising fund. (2) The company
replacement convoked the 8th meeting of the 8th Board of Directors on December 9, 2016, agreed through deliberation
that the idle 3000 million yuan (43.17% of the actual-raised net fund) among 6950 million yuan raising
fund for “G8.5 TFT-LCD glass substrate production lines project” would be used to supplement the
company working capital temporarily for not less than 12 months from the approval date by Board of
Directors, upon which, such amount would be refunded to the special account for the raising fund.
Using the idle proceeds
to supplement the Not applicable
working capital on
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
temporary basis
About application and
status of the proceeds Used for the construction of the project
unused
Problems existing in
application of the
proceeds and the Nil
information disclosure
or other issues
（3）Changes of raised funds projects
□ Applicable√ Not applicable
There is no change in raised funds in company reporting period.
VI. Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable√ Not applicable
Nil
2.Situation of Substantial Stake Sale
□ Applicable√ Not applicable
VII. 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
Hebei Xubao
Construction
Construction 100,000,000. 134,636,097. 124,718,269.0 -1,171,356.7 -1,148,056.5
Installation Subsidiary 628,097.23
Installation 00 87 6 1
Engineering Co.,
Ltd.
Shijiazhuang
540,680,000. 184,226,939. -5,450,146.4 -5,450,146.4
Baoshi Color Bulb Subsidiary Color bulb. 88,577,329.95
00 94 4
Co., Ltd..
Wuhu Dongxu Equipment
98,000,000.0 8,382,879,42 1,986,445,961 3,324,620,4 1,002,180,83 1,091,144,74
Optoelectronic Subsidiary and
0 1.29 .33 83.37 0.37 6.84
Equipment Technology
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Technology Co., serves
Ltd
Photoelectri
Wuhu Dongxu cdisply
Optoelectronic glass 2,000,000,00 11,660,440,9 5,453,990,254 657,255,20 50,271,830.1
Subsidiary 6,532,830.53
Technology Co., substrate 0.00 18.56 .24 8.71
Ltd. industry
investment
Photoelectric
Wuhan Dongxu
disply glass
Optoelectronic -10,934,269.7 -14,815,690. -14,815,692.
Subsidiary substrate 5,000,000.00 225,674.12
Technology Co., 0 86
industry
Ltd
investment
Sichuan Ruiyi
Construction Construction 100,000,000. 3,467,084,77 1,098,605,420 1,183,752,4 15,901,698.9 11,888,064.2
Subsidiary
Engineering Co., Installation 00 7.11 .62 00.10 9
Ltd.
Beijing Xufeng Real estate
870,000,000. 2,501,130,75 461,862,482.6 -4,654,628.9 -6,214,762.2
Real estate Co., Subsidiary Development 141,105.00
00 8.96 1 1
Ltd. and sales
Sales of opto
Dongxu electronic de
（Kunshan） vices and oth 500,000,000. 533,837,616. 498,578,230.1 -1,441,439.7 -1,416,584.1
Subsidiary
Display Material er electronic 00 13 3 5
Co., Ltd. devices
Jiangsu Jixing
Sapphire 392,000,000. 614,839,260. 456,983,077.2 570,400,89 59,091,537.1 58,154,261.1
New Material Co., Subsidiary
material 00 16 3 1.46 2
Ltd.
Beijing Xutan
Technology
New Material 15,000,000.0 -5,916,674.8 -5,916,674.8
Subsidiary Developme 9,070,282.15 8,474,382.35 143,846.17
Technology Co., 0 6
nt
Ltd.
Beijing Dongxu
Huaqing Project 103,393,929. 103,334,616.5 -1,665,730.9 -1,665,768.4
Subsidiary 5,000,000.00
Investment Co., investment 11 6 3
Ltd.
Beijing Dongxu
Huaqing Project 1,650,000,00 4,495,774,51 1,893,813,978 905,520,20 95,937,691.0 95,509,796.2
Subsidiary
Investment Co., investment 0.00 0.06 .39 9.95 9
Ltd.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Photoelectri
ShijiazhuangXux cDisplay
in Optoelectronic glass 1,906,000,00 3,434,997,81 2,039,458,312 411,308,292 72,782,314.2 72,889,702.6
Subsidiary
Technology Co., substrate 0.00 5.33 .55 .16 6
Ltd. industry
investment
Photoelectri
Fuzhou Dongxu cDisplay
Optoelectronic glass 10,000,000.0 568,342,304. -1,416,278.3 -1,465,182.2
Subsidiary 19,434,817.73
Technology Co., substrate 0 81 5
Ltd. industry
investment
Developme
Xuyou Electronic
nt,Producti
Material JPY 18150 735,474,481. 734,024,498.2 -14,621,054. -14,621,054.
Subsidiary on and
Technolog (Wuxi) million 63 5 08
processing
Co., Ltd.
of polaroid
Shenzhen Xuhui Investment
100,000,000. 19,503,861.3
Investment Co., Subsidiary Manageme 19,477,972.01 -521,976.43 -522,027.99
00
Ltd. nt
Shanghai Tanyuan
Technology
Huigu New
and 60,000,000.0 99,347,781.2 1,232,676.3 -5,966,123.0
Material Subsidiary 83,717,867.80 5,462,193.69
developmen 0 6 1
Technology Co.,
t
Ltd.
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □ Not applicable
Name Mode Influence
Shanghai Tanyuan Huigu New Material
Acquisition Increase profit
Technology Co., Ltd.
Shenzhen Xinyingtong Technology Co.,
Acquisition Increase profit
Ltd.
Taizhou Dongxu Graphene Industry
Investment Fund Management New establishment Under construction period
Center(Limited Partnership)
Fuzhou Dongxu Investment Development
New establishment Under construction period
Co., Ltd.
Shenzhen Xuhui Investment Holding
New establishment Under construction period
Co.,Ltd.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Fuzhou Xufu Optoelectronic Technology
New establishment Under construction period
Co., Ltd.
Taizhou Tanyuan Huigu New Energy
New establishment Under construction period
Technology Co., Ltd.
Xiamen Xuqi Investment Management
New establishment Under construction period
Co., Ltd.
Sichuan Ruiyi Environment Engineering
New establishment Under construction period
Co., Ltd.
Sichuan Dongxu Ruiyi Survey and
New establishment Under construction period
Design Co., Ltd.
Sichuan Dongxu Ruiyi Trade Co., Ltd.
New establishment Under construction period
Sichuan Dongxu Ruiyi Enterprise
New establishment Under construction period
Management Co., Ltd.
Xuyou Electronic Material
New establishment Under construction period
Technology(Wuxi) Co., Ltd.
Fuzhou Xuyou Electronic Material
New establishment Under construction period
Technology( Co., Ltd.
Sichuan Dongxu Prosperity
New establishment Under construction period
ConstructionDevelopment Co., Ltd.
Notes
VIII. Special purpose vehicle controlled by the Company
□ Applicable√ Not applicable
IX. Prospect for future development of the Company
1. The Development Trend of the Industry
The LC glass substrate industry is the typical technology-intensive and capital-intensive industry
characterized with large investment scale, high technical barriers and complicated product process, etc. At present,
there are only several enterprises grasping the whole-set production technologies for the panel display glass
substrate, which is Corning of the USA, Japanese Asahi Glass Co., Ltd. and NEG, AvenStrate Taiwan Inc. and
Tunghsu Group in Mainland etc., and forms the oligopoly structure in the glass substrate industry worldwide and
the first four LC glass substrate manufacturers High occupancy of the global market share.
China is the country with the fastest development of the panel display industry worldwide, the global panel
capacity transfers to the Mainland China in acceleration and the panel manufacturers have strong demands on the
downstream key raw materials including LC glass substrate, polaroid and CF, etc. The self-sufficiency rate for the
display materials in Mainland China is extremely low due to the monopolization of TFT-LCD industrial core raw
materials by the USA, Japan and South Korea. The domestic companies break through the technical blockade
through the independent research and development and bring about the huge import substitution market space for
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
the display materials field.
Ⅱ. Development strategy of the company
Within 3-5 years in the future, the company will grasp firmly the important opportunity of the panel display
industry support by the state, aim at \"building the optoelectronic industry flagship in China\", follow the
talents-based, technology-based and independent development road and strengthen the comprehensive
competition and sustainable development capacity. To realize the \"brand internationalization\" through refining,
professionalizing, strengthening and enlarging the existed enterprises, make Dongxu Optoelectronic become the
world-class LC display materials supplier and strengthen the company industrial position in the LC display
industry at home.
The company will give full play to advantages of the technology, scale and client resources, strengthen the
glass substrate main business through continuously building and completing the remaining production lines for the
G6 TFT-LCD glass substrate production line project with number of 10 as well as investing and building 3 G8.5
TFT-LCD glass substrate production lines, etc. and stabilize the industrial leading position at home;
simultaneously, speed up the optoelectronic display upstream key materials layout through injecting assets for the
collocation high-alumina cover glass, investing and building G5 TFT-LCD using CF and wide polaroid, etc.,
enrich the product system continuously and highlight sufficiently the optoelectronic industry synergy effects;
otherwise, the company will strengthen the core advantages of the set-equipment and technical service, expand the
high-end intelligent equipment business especially 3C equipment business and finally become the important
optoelectronic display flagship enterprise globally.
As the early substrate and materials investment enters into the harvesting period, the company will give full
play to the industrial synergy of large manufacturing industry, focus on the business layout of the new-energy auto
field based on the technical breakthrough in the graphene and graphene lithium ion cell fields, strive to build one
closed industrial chain for “Graphene material - graphene coated lithium iron phosphate cathode material -
graphene lithium-ion battery - new energy automotive industry chain closed loop” and create the condition for
the company entering into the blue ocean market, which will drive the rapid increase of the performance.
Ⅲ. Business plan in 2017
In 2017, the company continues the orientation of development strategy and goal of \"Market Exploring, Cost
Optimizing and Profit Increasing\". Detailed tasks are as follows:
1.Accelerate the construction and production of G6 LCD substrate glass, G8.5 LCD substrate glass, color
filter and polarizer film and closely meet demands of downstream panel maker, so impressive profit can be
achieved by prior large-scale industry investment.
2.Improve qualified product’s rate of LCD substrate glass conscientiously and reduce production cost
effectively by constant research and development and technological reform. Meanwhile, enhance the research and
development of ultrathin glass products and LTPS glass technology.
3.Implement cooperation agreement and investment projects of graphene signed in early stage gradually and
seek excellent contract objects in business circles energetically and push the industrialization of graphene’s related
products in order to improve the renown and discourse power of the company in business circles.
4.Propel actively the company shares issuing, cash payment for purchase of assets and raising the supporting
funds and push rapid development of industry by assets, which is a new profit way for the company.
5.By the brand advantage, improve the market exploring of all businesses in the company and push LCD
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
materials, high-end devices and installation of instruction to realize the steady increase of income and profit.
Ⅳ. Possible risks
1.Macro economy’s periodic fluctuation
Substrate glass industry‘s downstream industry is TFT-LCD panel industry, a periodic one. TFT-LCD
substrate glass products are mainly used in production of TFT-LCD panel, so fluctuation of TFT-LCD panel
industry directly influences the development of substrate glass industry.
2.Uncertainty of expected performance of LCD substrate glass project
The company’s substrate glass production line project is invested by a large fund and is constructed for a
long run. It may run into industrial risk of substrate glass, failure of mass production of substrate glass production
line project of the company or sales income and profit of substrate glass lower than expectation.
3.Substitution of technological upgrading
The company continues research and development and technological reserve and makes breakthrough in
fields. However, in case important technological change happens in its downstream panel LCD industry and the
company fails to realize technological innovation in time, the company faces substitution of technological
upgrading to a certain extent.
X. Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Reception time Way of reception Types of visitors Basic index
Details are disclosed in the investor relationship event record
February 18,2016 By Phone Organization
on CNINFO On February 19,2016
Details are disclosed in the investor relationship event record
March 10,2016 Onsite investigation Organization
on CNINFO On March 10,2016
Details are disclosed in the investor relationship event record
September 8,2016 Onsite investigation Organization
on CNINFO On September 9,2016
January 1,2016 By Phone Individual Company telephone records
Reception times 1,603
Reception agency amount
Reception personal number 1,600
Others
Whether to disclose, reveal or disclose
No
non-public material information
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
V. Important Events
I. Specification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
√ Applicable □ Not applicable
According to the Company Law, Further Implementation of the Cash Dividends of Listed Companies and
The No.3 Regulatory Guidelines for Listed Companies released by China Securities Regulatory Commission,
considering the sustainable development of the company based on comprehensively analyzing the characteristics
of the industry, the company’s operation strategy and planning, the shareholders’ requirements and desires, as
well as considering the company’s current profitability and possible future profit scale, current cash flow,
development stage, funds demand of the invested projects, bank credit and debt finance environment, the
company further improved the cash dividend policy, that the Amendments of Articles of Association on the profit
distribution policy and The Next Three-year Plan on Company Shareholder Returns (2015-2017) were approved
in the 27th meeting of the Seventh Board of Directors on Jan 27, 2015 and 2015 First Extraordinary General
Meeting on Mar 18, 2015. The revised profit distribution policy shall increase the transparency of the profit
distribution, better protect the rights of the public investors and elevate the company’s operation level.
Within the report period, the company profit distribution program would be subject to the Articles of
Association and the Future 3-year Planning for Shareholders Returns of Dongxu Optoelectronic Technology Co.,
Ltd.(2015-2017) strictly, through which, the bonus standards and proportion were definite and clear, relevant
decision-making procedures and mechanisms were complete, the independent shareholders fulfilled their duties
and played a proper role and the medium and small shareholder had opportunities to express opinions and appeals
with practical safeguard of the legal rights and interests thereof.
Special cash dividend policy description
Whether meets the requirements of the provisions of the articles
Yes
of association or shareholders' meeting resolutions:
Whether dividends standard and proportion are clear Yes
Whether decision making and supervision mechanism for profit
Yes
distribution are completed
Whether independent directors perform their duties responsibly
Yes
and play its due role:
Whether the Minority shareholders have adequate opportunity to
express their views and aspirations and Their legitimate rights Yes
and interests have been fully protected
Whether the Cash dividend policy to adjust or change the
Yes
conditions and procedures are compliant and transparent
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve
into share capital in the past three years(with the reporting period inclusive):
In 2014, the company total share capital of 2,662,080,001 shares on December 31, 2014 as base to undistribu
ted profits to all shareholders for every 10 shares of cash dividends CNY 1,0 (including tax). there was no turning
of capital reserve into share capital.
In 2015,the company total share of 3,835,000,526 shares on January 1,2016 for base on the Company’s total share
capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For every 10
shares(including tax) , 0 bonus shares (including tax) and no reserve would be converted into share capital.
In 2016,the company total share of 4,939,928,983 shares on December 31,2016 for base on the Company’s total
share capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For
every 10 shares(including tax) , and no reserve would be converted into share capital.
Dividend distribution of the latest three years
In RMB
Net profit
Ratio in net profit
attributable to the Amount of cash Proportion of cash
attributable to the
Cash dividend over of the parent dividends from cash dividends from cash
Year parent company in
(Including Tax) company in the offer to repurchase offer to repurchase
the consolidated
consolidated shares of the funds shares of the funds
financial statements
financial statements
2016 345,795,028.81 1,239,928,899.40 27.89% 0.00 0.00%
2015 268,450,036.82 1,326,233,674.37 20.24% 0.00 0.00%
2014 266,208,000.10 468,902,701.44 56.77% 0.00 0.00%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□Applicable√ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares)
Cash dividend for everty ten shares
0.70
(Yuan)(Tax-included)
Distribute additional (shares)for 10 shares
A total number of shares as the distribution
4,939,928,983
basis(shares)
Total cash dividend (Yuan)(Tax-included) 345,795,028.81
Profit dividend (Yuan) 696,998,223.03
Proportion of cash dividend in the distributable
100.00%
profit (%)
Cash dividend distribution policy
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
When the development stage of the company is a growth period and there is a significant capital expenditure arrangement, that in
the profit distribution, cash dividend shall not be less than 20% in proportion.
Details of profit distribution or reserve capitalization plan
III. Commitments to fulfill the situation
1.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
Time of
Commitment Peiod of
Commitment Type Contents making Fulfillment
maker commitment
commitment
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 six
months after the first sales, will disclose
Shijiazhuang Share
Commitment on the contents specified by the Form March Long-term Under
Baoshi Electronics reduction
share reform Guide to Prompt Announcement of 29,2007 effective Fulfillment
Group Co., Ltd commitment
Removing Restriction on Sales of
Non-tradable Stocks of Listed
Companies through the prompt
announcement of disclosing sales of
listed companies.
Commitment in
the acquisition
report or the
report on equity
changes
Commitment
made upon the
assets
replacement
1.From the date of commitment letter
Commitmen
issued, except the managed hosting
ts on
company for Dongxue Optoelectronic ,
horizontal
Commitments this company and majority-owned
competition, December Long-term Under
made upon Li Zhaoting subsidiaries do not in any way, directly
related 22, 2011 effective Fulfillment
issuance or indirectly engaged in business and
transaction
Dongxue Optoelectronic and its
and capital
subsidiaries are the same, or similar,
occupation
future Dongxue Optoelectronic shares
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
and its subsidiaries are 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 stones share any act
prejudicial to the control relationship of
Dongxu Optoelectronic interests and its
wholly-owned subsidiaries, holding, or
causing Dongxue Optoelectronic shares
Dongxu Commitmen and its wholly-owned subsidiaries,
Optoelectronic ts on holding form business competition
Investment Co., horizontal decisions. 3. The company will not
Ltd., Shijiazhuang competition, directly invest, purchase and Dongxu April1， Long-term Under
Baoshi Electronics related Optoelectronic identical or similar 2012 effective Fulfillment
Group Co., transaction business enterprises and projects.
Ltd.Dongxu and capital 4.If the assets owned by the Dongxu
Group, occupation Optoelectronic . compete with , the
company will adopt effective measures
and give up the same business. 5. If the
company has horizontal competition
with Dongxu Optoelectronic and lead to
lose to it, the company will bear all the
responsibilities.
6. Before December 31, 2015, by way
of designated placement, the company
will transfer all the shares that Dongxu
Optoelectronic Investment, entrusted to
Zhengzhou Xufei company and all the
shares that are entrusted to Baoshi
Group, to Dongxu Optoelectronics;
Before December 31, 2016, by way of
designated placement, the company will
transfer all the shares that Dongxu
Group entrusted to Dongxu Yingkou
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
and Sichuan Xuhong to Dongxu
Optoelectronics. Within the time limit
mentioned above, if there were the
external factors such as a depression of
industry as a whole, or the changes in
regulatory requirements, which lead to
the result that the shares of hosting
company can not meet the requirements
of capital investment, Li Zhaoting, the
actual controller, Dongxu
Optoelectronic Investment , Dongxu
Group and Baoshi Group as well as the
company will actively negotiate with
related parties, continue to entrust the
above mentioned shares and the power
of management to Dongxu
Optoelectronics. Within the period
when the company is still the
controlling shareholder of Dongxu
Optoelectronics, the commitments are
in effect.
Dongxu Group Co., Ltd. subscribed for
25.01% of the shares privately issued by Valid
Share
the Company and promised that the April period to Under
Dongxu Group limited
period of sale restriction of such shares 18,2013 April Fulfillment
commitment
was 36 months from the first day of 18,2016
listing.
In view of:
The main business of Dongxu
Optoelectronic is the production of
TFT-LCD glass substrate, and the
company now is applying for
non-public offering of ,bonds (2)
Dongxu Group is the controlling
shareholder of Dongxu Optoelectronic;
Other February Valid for 5 Under
Dongxu Group and during the period of holding,
commitment 8,2015 years Fulfillment
Dongxu Group has signed patent license
contracts separately with Dongxu
Optoelectronic and its subsidiaries
including Wuhu Dongxu Optoelectronic
Science and Technology Co., Ltd.
(hereinafter referred to as Wuhu
Optoelectronic), Wuhu Dongxu
Optoelectronic Equipment Technology
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Co., Ltd. (hereinafter referred to as
Wuhu Equipment) and Shijiazhuang
Dongxu Optoelectronic Equipment
Technology Co., Ltd. (hereinafter
referred to as Shijiazhuang Equipment).
For this purpose, Dongxu Group has
made following promises: Any patents
related to panel display glass substrate
not included in the aforesaid Contract
on the Licensing of Patent Exploitation
obtained by Dongxu group in the future,
Dongxu group shall sign a free contract
of licensing the new pertinent patents
with the company and the company’s
subsidiaries (Wuhu Optoelectronic
Technology Co.,Ltd, Wuhu Equipment
Company and Shijiazhuang Equipment
Company) with the same articles of the
former patent licensing contract. After
the company successfully completed the
issuance of corporate bonds, whether
Dongxu group control the company
during the duration of the bonds,
Dongxu group shall renew the patent
licensing contract unreserved with the
company and the company’s
subsidiaries (Wuhu Optoelectronic
Technology Co.,Ltd, Wuhu Equipment
Company and Shijiazhuang Equipment
Company) under the company’s
requirement until the bonds expired.
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
Dongxu To raise
issue expenses, all the funds raised are Valid period
Optoelectronic funds to use February 10, Under
planed to be used to supplement the to December
Technology Co., the 2015 Fulfillment
liquidity and support the R&D, 31,2016
Ltd. commitment
production and material purchase of
glass substrate and the equipment. Thus,
the demands of business operation and
expansion in the company will be
satisfied. The company promises: 1. The
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
funds raised through the public offering
of corporate bonds will not be directly
or indirectly invested in real estate
development business, or used to
increase the capital fund or as loans in
subsidiaries engaged in real estate
business; 2. the funds raised through the
public offering of corporate bonds will
not be used for real estate development
business in any form.
Dongxu investment/Baoshi group
promised the net profit level of the next
three years and profit compensation
scheme in respective to Xufei
Optoelectronic Technology Co., Ltd and
Xuxin Optoelectronic Technology Co.,
Ltd as follows: The Net profits after
deducting non-recurring gain or loss
that are attributable to Xufei
Optoelectronic Technology Co., Ltd in
year 2015, year 2016, year 2017, year
2018 shall accordingly be not less than
RMB 36,669,800, RMB 84,562,800,
RMB 156,531,100, RMB 225,405,200；
The Net profits after deducting
Performance
non-recurring gain or loss that are Valid period
compensatio Marc 2, Under
Baosi Group attributable to Xuxin Optoelectronic to December
n 2015 Fulfillment
Technology Co., Ltd in year 2015, year 31,2018
commitment
2016, year 2017, year 2018 shall
accordingly be not less than
RMB23,348,800, RMB55,420,500,
RMB 86,627,700, RMB 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.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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)
Dongxu Group is the controlling
shareholder of Dongxu Optoelectronic;
and during the period of holding,
Dongxu Group has signed patent license
contracts separately with Dongxu
Optoelectronic and its subsidiaries
including Wuhu Dongxu Optoelectronic
Science and Technology Co., Ltd.
(hereinafter referred to as Wuhu
Optoelectronic), Wuhu Dongxu
Optoelectronic Equipment Technology
Co., Ltd. (hereinafter referred to as
Wuhu Equipment) and Shijiazhuang
Other June 17, Long-term Under
Dongxu Group Dongxu Optoelectronic Equipment
commitment 2015 effective Fulfillment
Technology Co., Ltd. (hereinafter
referred to as Shijiazhuang Equipment).
For this purpose, Dongxu Group has
made following promises: within the
term of validity involving patent right
stated in patent license contracts,
whether Dongxu Optoelectronic is in
the control of Dongxu Group or not,
Dongxu Group promises that when the
above mentioned patent license
contracts expire, the group will
unconditionally renew the contracts
with Dongxu Optoelectronic and its
subsidiaries (Wuhu Optoelectronic,
Wuhu Equipment, Shijiazhuang
Equipment and etc) according to the
terms of original contracts based on the
requirements of Dongxu Optoelectronic.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
To avoid the horizontal competition
with the issuer, the company’s actual
controller-Zhaoting, Li and the holding
company-Dongxu group promised: 1.
As of this declaration and from the date
of commitment letter issued, except the
managed hosting companies, the other
companies directly or indirectly
controlled by the controller or holding
company have no horizontal
competitions with Dongxu
Optoelectronic Technology Co., Ltd. 2.
Any other companies controlled by the
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
Commitmen Optoelectronic Technology Co., Ltd and
ts on companies controlled by Dongxu
horizontal Optoelectronic Technology Co., Ltd as
Dongxu Decembert
competition, long as there are no alterations of the Long-term Under
Group,Li 16,
related actual controller and the holding effective Fulfillment
Zhaoting
transaction company. Any businesses opportunities
and capital under the main business scope of
occupation 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.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
In order to safeguard the the company's
main business of TFT-LCD glass
substrate production, the controlling
shareholder-Dongxu Group Co. Ltd
made a commitment valid in the period
of the company’s application for
non-public share issuance: given (1)
The main business of Dongxu
Optoelectronic Technology Co., Ltd is
TFT-LCD glass substrate production,
and currently it is applying for
non-public share issuance; (2) Dongxu
Group, which is the 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 Optoelectronic
Valid period
Other Equipment Technology Co., Ltd December Under
Dongxu Group to December
commitment (hereinafter referred to as \"Wuhu 16,2015 Fulfillment
31,2030
Equipment\") and Shijiazhuang Dongxu
Optoelectronic Equipment Technology
Co., Ltd (hereinafter referred to as
\"Shijiazhuang Equipment\") during the
control period. Therefore, Dongxu
Group made a commitment as follows:
In the term of validity of the patents
involved in the patent licensing
contract, whether Dongxu Group
controls Dongxu Optoelectronic or not,
after the commitment of the above-said
Patent Licensing Contract expired,
Dongxu 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.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
The company, one of the subscription
objects, promised that after Dongxu
Dongxu Optoelectronic Technology Co., Ltd
Group;Changjiang completed the non public issuance of
Securities shares to the company and specific
(Shanghai )Asset objects for raising funds, the shares
Management Co., (New shares) issued by Dongxu
Ltd.;Kunshan Optoelectronic Technology Co., Ltd and Valid
Share
Development subscribed by the company shall not be December1 period to Under
limited
Zone State transferred to any others in 36 months 6,2015 December Fulfillment
commitment
Investment Co., commenced from the publicly listed 16,2016
Ltd.;Beijing date of the new shares. As a result of the
Yingfei Hailin issuance of new shares by the Company
Investment Center to the Company, the shareholding of
(Limited Dongxu Optoelectronic Co., Ltd. by
partnership). Dongxu Optoelectronic Co., Ltd. will
also be subject to the above
commitments.
Guangzhou
Securities Co.,
It was promised that after Dongxu
Ltd., Huaan
Optoelectronic Technology Co., Ltd
Future Asset
completed the non public issuance of
Management
Share shares to the company and specific December Valid period
(Shanghai) Co.,
limited objects for raising funds, the new shares 16, to December Fulfill
Ltd.;Minsheng
commitment subscribed by the company shall not be 2015 16,2016
Bank Fund
transferred to any others in 12 months
Management Co.,
commenced from the publicly listed
Ltd.;Boshi Assets
date of the new shares.
Management Co.,
Ltd.
Not act in excess of authority to
Other Valid period
Dongxu Group,Li interfere the company’s management February Under
Commitmen to December
Zhaoting and operating activities, not encroach on 6,2016 Fulfillment
t 31,2019
the interests of the company.
Li Zhaoting, Zhou (a) Promised that not freely or unfairly
Bo,Niu Jianlin, transfer interests to other units or
Gong Xin, Lu individuals, nor adopt other ways to
Guihua, Mu Other jeopardize the company’s interests. (b) Valid period
February Under
Tiehu, Zhang Commitmen Promised that restrict the post consumer to December
6,2016 Fulfillment
Shuangcai, Shi t behaviors of the directors and senior 31,2019
Zhiqiang , Liu management personnel. (c) Promised
Wentai,Xiao that not use the company's assets to
Zhaoxiong and engage in the investment &consuming
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Zhou Bo activities which are irrelevant to
perform the duties. (d) Promised that
the salary system set up by the board of
directors or the Remuneration
Committee is relevant to the
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 The subscription of this issue a total of
Asset nine, namely Qianhai Equity Investment
Management Co., Fund (LP);AEGON-Industrial
Ltd.;Nuoan Fund Fund,Shenzhen Taianer Information
Management Co., Technology Co., Ltd.,Penghua Fund
Share Valid period
Ltd.; Penghua Management Co., Ltd.;China Fund August Under
limited to August
Fund Management Management Co., Ltd.,China Life AMP 26,2016 Fulfillment
commitment 25,2017
Co., Ltd.; Qianhai Asset Management Co., Ltd.,Nuoan
Equity Investment Fund Management Co., Ltd.,Zhongou
Fund (LP); Sws STAS Asset
Mu Fund Management(Shanghai)Co., Ltd. And
Management Co., Sws Mu Fund Management Co.,
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Ltd.; Shenzhen Ltd.The aforesaid issuer has issued the
Taianer following commitments on the
Information non-public issue of shares: The
Technology Co., allocated shares shall not be transferred
Ltd.; within 12 months from the date of
AEGON-Industria listing of the new shares and apply for
l Fund.; Zhongou new shares in the new shares within 12
STAS Asset months Increase the shares to lock.
Management(Shan
ghai)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 Dongxu
Group and it’s commissioned to the
company for management-will be
injected into Dongxu Optoelectronic by
the way of directional
Commitmen
add-share-issuance. In the above period,
ts on
if any other external factors such as the
horizontal Valid
decline of overall industry boom and
competition, December period to Under
Dongxu Group changes of regulatory requirements led
related 9,2016 December Fulfillment
to the trusteeship company’s stake not
transaction 31,2017
meeting the conditions of asset
and capital
injection, then the actual controller Li
occupation
Zhaoting, Dongxu Optoelectronic
Investment, Dongxu 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
Performance Jixing New Material Investment (HK)
Other Jixing New
commitment Co., Ltd. and Lubao, Wang (The legal
commitments Material
and representative of the company (HK)) January 20, Long-term Under
made to Investment (HK)
compensatio jointly promised that the net profits after 2015 effective Fulfillment
minority Co., Ltd. ; Wang
n tax attributable to Jixing New Material
shareholders Lubao
arrangement Investment Co., Ltd in year 2015, year
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
s 2016, year 2017 shall accordingly be
not less than RMB30, 000,000,
RMB60,000,000, RMB 100,000,000. If
the net profits attributable to Jixing New
Material Investment Co., Ltd after
audited in any year of year 2015, year
2016 and year 2017 are less than the
promised net profits, the difference shall
be compensated by Jixing New Material
Investment (HK) Co., Ltd. and Lubao,
Wang in cash.
The holding company-Dongxu group
and its controlled subsidiaries have
planned to buy the company’s shares in
the transaction market (i.e secondary
market) via Trading System of the
Shenzhen Stock Exchange with the total
amount no more than RMB 100 million
in six months commenced from the date
of the announcement (Jul 11, 2015).
Share Valid period
Dongxu group promised that it will not July 11, Under
Dongxu Group holdings to April
reduce its stake in six months 2015 Fulfillment
commitment 11,2018
subsequently. In light of Dongxu
Optoelectronic Technology Co., Ltd
planned to release its 2015 annual report
on Feb 6, 2016, and the impact of the
window period for regular reports, the
company’s controlling shareholder
plans to extend three months for the
plan of buying shares, beyond that, any
other commitments unchanged.
To ensure Dongxu Optoelectronic
Technology Co., Ltd realizing expected
benefits on the M&A of Shanghai
Performance Tanyuan Huigu New Materials
Guo Shouwu, commitment Technology Co., Ltd, the promisee
Valid
Ma Shengjie, Wu and voluntarily promised the profits of
March period to Under
Haixia , Shen compensatio Shanghai Tanyuan Huigu New
8,2016 December Fulfillment
Wenzhuo and n Materials Technology Co., Ltd for the
31,2019
Shen Li arrangement next three years as follows: (a) Business
s performance commitment: the net
profits of Shanghai Tanyuan Huigu
New Materials Technology Co., Ltd in
year-2016, year-2017, year-2018 shall
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
accordingly not be less than RMB 5
million, RMB 10 million, RMB 20
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.
Executed timely
Yes
or not?
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in
the forecast period, the company has assets or projects meet the original profit forecast made and the reasons
explained
√Applicable □Not applicable
Asset or Project Start date End date of
Reason for
Name of of the the Forecast Actual Disclosure date
less than Reference for the Forecast
Earnings forecastin forecasting earnings earnings of the Forecast
forecast
Forecast g period period
Zhengzhou Pre-program for Private-offering A
Xufei Shares of Dongxu Optoelectronic
January 1, December
Optoelectronic 8,456.28 8,499.07 Completed March 2, 2015 Technology Co., Ltd. in 2015
2016 31, 2016
Technology Co., (revised version) as published on
Ltd. cninfo.com.cn
Shijiazhuang Pre-program for Private-offering A
Xuxin December Shares of Dongxu Optoelectronic
January 1,
Optoelectronic 31, 5,542.05 6,063.03 Completed March 2, 2015 Technology Co., Ltd. in 2015
Technology Co., 2016 (revised version) as published on
Ltd. cninfo.com.cn
Jiangsu Jixing
January 1, December Disclosed on
New Material 6,000 6,174.7 Completed March 2,2015
2016 31, 2016 cinfo.com.cn.( 2015-004)
Co., Ltd.
Shanghai
Tanyuan Huigu
March December Disclosed on
New Material 500 546.22 Completed March 9,2016
1,2016 31,2016 cinfo.com.cn.( 2016-030)
Technology Co.,
Ltd.
The commitments of the operating earnings made by the company’s shareholder and relevant transaction
parties
□ Applicable √ Not applicable
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
IV. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
Nil
V. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the
Qualified Auditor’s Report Issued by the CPAs.
□ Applicable √ Not applicable
VI. Explain change of the accounting policy, accounting estimate and measurement methods as
compared with the financial reporting of last year.
□ Applicable √ Not applicable
Nil
VII. Explain retrospective restatement due to correction of significant accounting errors in the
reporting period
□Applicable √ Not applicable
Nil
VIII. Explain change of the consolidation scope as compared with the financial reporting of last
year.
√ Applicable □ Not Applicable
1.Enterprise consolidation ont under the same control
（1）Enterprise consolidation not under the same control in reporting period
In RMB’0000
Income of
Ratio of Net Profit of
Time-poi Acquire from
Obtained Obtaine Method of Determination Basis Acquire from the
nt of Purchasi the Purchasing
Name of Acquirer Cost of d Obtained on the Purchasing Purchasing Date
Obtained ng Date Date to the
Equity Equity Equity Date to the End of the
Equity End of the
(100%) Period
Period
Shanghai Tanyuan Pay consideration
Huigu New Purchase and complete
March March
Material 7,345.45 50.50 and add industrial and 123.27 546.22
2016 31,2016
Technology Co., share commercial change
Ltd. registration
Pay consideration
Shenzhen Decembe
Decembe and complete
Xinyingtong 2,310.00 70.00 Purchass r 2,405.86 44.42
r 2016 industrial and
Technology Co., 21,2016
commercial change
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Ltd. registration
Note: Shenzhen Xinyingtong Technology Co., Ltd. has the wholly-owned subsidiary Shenzhen Xingxinda
Technology Co., Ltd.
2. Due to new subsidiaries set up in the current period
On March 17, 2016, Beijing Dongxu Huaqing Investment Co., Ltd as a general partner, Dongxu
Optoelectronic Technology Co.,Ltd as a limited partner and Taizhou Golden Sun Energy Co., Ltd as a limited
partner together set up Taizhou Dongxu Graphene Industry Investment Fund Management Center(Limited
partnership). Such limited partnership company was incorporated in May 4, 2016, and the total amount of capital
contribution agreed in the agreement was RMB 100million, but as of December 31,2016, the actual received
amount of capital contribution was RMB 100 million. For the capital contribution, Taizhou Golden Sun Energy
Co., Ltd subscribed the amount of capital contribution of RMB 75 million, Dongxu Optoelectronic Technology
Co.,Ltd subscribed the amount of capital contribution of RMB 25 million.
On March 8, 2016, Wuhu Dongxu Optoelectronic Technology Co.,Ltd set up subsidiary Fuzhou Dongxu
Investment Development Co., Ltd which the registered capital was RMB 10 million. On December 28, 2016,
State Development Funds Co., Ltd. contributed 500 million yuan with shareholding ratio of 49.5%, Wuhu Dongxu
Optoelectronic Technology Co., Ltd. paid in the registered capital of 500 million yuan with the shareholding ratio
of 50.5% and the total registered capital increase for the company was 1010 million yuan with the paid-in capital
of 500 million yuan by the end of the current period.
On March 31, 2016, Dongxu Optoelectronic Technology Co.,Ltd set up Shenzhen XuHui Investment Holdings
Co.,Ltd, of which the registered capital was RMB 100 million and the paid-in capital was RMB 20 million.
On June 24, 2016, Fuzhou Dongxu Optoelectronic Technology Co.,Ltd and Dongxu Optoelectronic
Technology Co.,Ltd together set up a new company of Fuzhou Xufu Optoelectronic Technology Co.,Ltd, of which
the registered capital is RMB 65.40 million, among which, Fuzhou Dongxu Optoelectronic Technology Co.,Ltd
shall contribute RMB 54.50 million, Dongxu Optoelectronic Technology Co.,Ltd shall contribute RMB 10.90
million, and the paid-in capital was RMB 65.40 million.
On July 19, 2016, Shanghai Tanyuan Huigu New Materials Technology Co., Ltd. Set up the wholly-owned
subsidiary Taizhou Tanyuan Huigu New Energy Technology Co., Ltd with the registered capital of 150 million
yuan and paid-in capital of 9.9 million yuan; Taizhou Tanyuan Huigu New Materials Technology Co., Ltd. was
changed into Taizhou Xiwang New Energy Technology Co., Ltd. on September 6, 2016.
On July 27, 2016, Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. invested and set up the
wholly-owned subsidiary Xiamen Xuqi Investment Management Co., Ltd. with the registered capital of 10 million
yuan and paid-in capital of 2.5 million yuan.
On October 17,2016, Sichuan Ruiyi Construction engineering Co., Ltd.invested and set up the wholly-owned
subsidiary Sichuan Dongxu Ruiyi Environment Engineering Co., Ltd.with the registered capital of 10 million
yuan and paid-in capital of 0.00 yuan.
On October 17,2016, Sichuan Ruiyi Construction engineering Co., Ltd.invested and set up the wholly-owned
subsidiary Sichuan Dongxu Ruiyi Survey & Disign Co., Ltd. with the registered capital of 10 million yuan and
paid-in capital of 0.00 yuan.
On October 18,2016, Sichuan Ruiyi Construction engineering Co., Ltd.invested and set up the wholly-owned
subsidiary Sichuan Dongxu Ruiyi Trade Co., Ltd. with the registered capital of 10 million yuan and paid-in capital
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
of 0.00 yuan.
On October 18,2016, Sichuan Ruiyi Construction engineering Co., Ltd.invested and set up the wholly-owned
subsidiary Sichuan Dongxu Ruiyi Enterprise Management Co., Ltd. with the registered capital of 10 million yuan
and paid-in capital of 0.00 yuan.
On October 19, 2016, Dongxu Optoelectronic Technology Co., Ltd. set the subsidiary Xuyou Electronic
Material Technology (Wuxi) Co., Ltd. together with Sumitomo Chemical, Dongwoo Fine-chem Co., Ltd. and
TOMI International Co., Ltd. with the registered capital of 18.15 billion Yen and paid-in capital of 12.1 billion
Yen (converted into 748.6546 million yuan based on the current rate upon registration), of which, the holding
ratio is 51%, 17%, 30% and 2% respectively for Dongxu Optoelectronic Technology Co., Ltd., Sumitomo
Chemical, Dongwoo Fine-chem Co., Ltd. and TOMI International Co., Ltd. As specified by the articles of
association, the registered capital will be input by stage based on the company building and operation demands,
among which, the first period contributed capital will be 35% of the contribution amount paid once within 30 days
after the company registration and establishment and the remaining amount will be paid off within one year after
the joint-venture company.
On December 2,2016, Xuyou Electronic Material Technology (Wuxi) Co., Ltd.invested and set up the
wholly-owned subsidiary Fuzhou Xuyou Electronic Material Technology Co., Ltd. with the registered capital of
150 million yuan and paid-in capital of 5 million yuan.
On December 8, 2016, Sichuan Ruiyi Constructional Engineering Co., Ltd. and Sichuan Prosperity Building
Engineering Co., Ltd. set jointly Sichuan Dongxu Prosperity Building Development Co., Ltd. with the registered
capital of 30 million yuan and paid-in capital of 0 yuan, among which, Sichuan Ruiyi Constructional Engineering
Co., Ltd. and Sichuan Prosperity Building Engineering Co., Ltd. paid in 21 million yuan 9 million yuan
respectively.
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Hebei Guanghua Accounting Firms Co., Ltd.(Special General
Name of the domestic CPAs
Partnership)
Remuneration for domestic accounting firm
(RMB’0000)
Continuous life of auditing service for domestic
accounting firm
Name of domestic CPA Wang Fengqi, Meng Xiaoguang
Has the CPAs been changed in the current period
□ Yes √ No
CPAs firm for the internal control audit
√applicable □ Not applicable
In this year, the Company Guangzhou Securities Co., Ltd. as the Company sponsor in reason of the matter of
non-public issue, during which the Company paid RMB 0.37 million for the sponsor fee.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
2.In this year, the Company hired Guangzhou Securities Co., Ltd. as the Company sponsor in reason of the
matter of non-public issue, during which the Company paid RMB 19 million for the sponsor fee.
X. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable
XI. Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
Nil
XII. Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
Nil
XIII. Situation of Punishment and Rectification
□Applicable √ Not applicable
Nil
XIV. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XV. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock
Ownership Plan or Other Employee Incentive Measures
√applicable □ Not applicable
1.Equity Incentive Plan
1. During the reporting period, as the incentive objects left the job, the company totally bought-back and
wrote-off 100,000 restrictive shares which had been originally granted to the incentive objects but yet being
unlocked.
2. The Company’s business income of 2015 was RMB 4,650,208,448.10 , of which the net profit attributable
to listed company’s shareholders was RMB 1,326,233,674.37 and the net profit attributable to listed company’s
shareholders after deducting non-recurring gains and losses was RMB 822,699,390.70 ; The 40 incentive objects
were qualified in performance appraisal, meeting the requirement of unlocking. On October 28, 2016, the 5th
meeting of the 8th board of directors and the 3rd meeting of the 8th board of supervisors of the Company
examined and adopted “Proposal on Unlocking Restricted Stocks Incentive Plan in the Second Unlocking Period”,
agreeing on the appliance for unlocking40% of the 2.98 million awarded restricted shares of those 40 incentive
objects.
2.Employee Stock Ownership Plan
The scale of Phase 1 for Employee Stock Ownership Plan of Dongxu Optoelectronic was 495.4 million RMB,
subscribing 72,639,296 of non-publicly issued shares of 2015 with full amount through No.2 Changjiang Xingli
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Oriented Plan, where the above shares were listed in SZSE on December 17, 2015, which was with 36-month
locking period.
The employee stock ownership plan is still locked in the reporting period
XVI. Material related transactions
1. Related transactions in connection with daily operation
√Applicable □ Not applicable
Whethe
Trading r over
Principl
limit the Market Index
Subjects e of
Amount price of of
of the pricing Ratio in approve approve Way of Date of
Related Relation Type of Price of of trade similar informa
related the similar paymen disclosu
parties ship trade trade RMB0’ trade tion
transacti related trades d d t re
000 availabl disclos
ons transacti
e ure
ons （RMB limited
’0000） or not
(Y/N)
Controll
Commo
Shijiazh ed by
dity
uang the Referen
purchas Currenc July
Baoshi same Energy ce price 93.16 93.16 0.54% 142.03 No 93.16
ed/labor y 1,2016
Group actual setting
service
Co., Ltd. controll
received
er
Controll
Shijiazhu Commo Machini
ed by
ang Bofa dity ng parts,
the Referen
Mechanic purchas processi 3,640.3 Currenc July
same ce price 3640.36 1.40% 4,000 No 3640.36
al ed/labor ng fees 6 y 1,2016
actual setting
Equipmen service and a
controll
t Co., Ltd. received frame
er
The
Related
parent
manage Equity Referen
Dongxu compan Currenc July
d custodia ce price 95.75 95.76 11.94% 100 No 95.75
Group y of the y 1,2016
/Contrac n fee setting
compan
t
y
Sichuan Controll Related 100+
Equity Referen
Xuhong ed by manage Incentiv Currenc July
custodia ce price 610.71 610.71 76.13% Yes 610.71
Optoelec the d e y 1,2016
n fee setting
tronic same /Contrac custodia
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Technol actual t n fee
ogy Co., controll
Ltd. er
Controll
Dongxu(
ed by Related
Yingkou)
the manage Equity Referen
Optoelect Currenc July
same d custodia ce price 95.75 95.76 11.94% 100 No 95.75
ronic y 1,2016
actual /Contrac n fee setting
Display
controll t
Co., Ltd
er
4,535.7 4,442.0
Total -- -- -- -- -- -- -- --
5
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 refernce price (if applicable)
2. Related-party transactions arising from asset acquisition or sale
□ Applicable √Not applicable
Nil
3. Related-party transitions with joint investments
□ Applicable √Not applicable
Nil
4. Credits and liabilities with related parties
√Applicable □Not applicable
Was there any non-operating credit or liability with any related party?
□ Yes √No
Nil
5. Other significant related-party transactions
□ Applicable √ Not applicable
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Nil
XVII. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
√Applicable □Not applicable
Description of custodies
During the reporting period, the Company continued entrusted with the management of Dongxu( Yingkou)
Optoelectronic Display Co., Ltd. and Sichuan Xuhong Optoelectronic Technology Co., Ltd.
In December 2011, Dongxu Group 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:
Expiration Confirmed
Starting Date
Name of Date of Entrusting
Type of Entrusting of Entrusting
Name of Clients/Contractee Trustee/Cont Entrusting /Contracting Fee
Asset/Contracting Asset /Contracting
ractee /Contracti at the Current
ng Period
Dongxu Group, Yingkou Coastal Management Right of
Development Construction Co., Dongxu(Yingkou)
Dongxu January 2012 Notes 1 1,436,320.75
Ltd.Minmetals (Yingkou) Industrial Park Optoelectroric Display
Optoelectron
Development Co., Ltd. Co., Ltd.
ic
Management Right of
Dongxu Group, Mianyang Investment City Technology
Sichuan Xuhong
Development (Group ) Co., Ltd., Sichuan Co., Ltd. March 2012 Notes 2 6,585,888.51
Optoelectronic
Changhong Electric Co., Ltd.
Technology Co., Ltd.
Total 8,022,209.26
Note 1: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee.
The operation trustee fee is basic management fee and incentive management fee, of which the basic management
fee is 1 million RMB/year, the incentive management fee is counted by 5% of the after-tax net profit yearly
achieved by the trustee company(the base of the incentive management fee deducts the loss of the previous year.)
Note 2: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee.
The operation trustee fee is basic management fee and incentive management fee, of which the basic management
fee is 1 million RMB/year, the incentive management fee is counted by 5% of the after-tax net profit yearly
achieved by the trustee company
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 Dong
Xu Group was changed to 86.64% from 51%.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Items which resulted in profit or loss achieving over 10% of the total profit for the Company
□ Applicable √ Not applicable
Nil
(2) Contract
□ Applicable √ Not applicable
Nil
(3) Lease
□ Applicable √ Not applicable
Nil
2.Guarantees
√Applicable□Not applicable
（1）Guarantees
In RMB’0000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
Date of Guarantee
disclosure Complete
happening Actual for
date/No. of Amount of implementa
Name of the Company (Date of mount of Guarantee type Guarantee term associated
the Guarantee tion
signing guarantee parties
guaranteed or not
agreement) (Yes or no)
amount
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 Two years
June September
Optoelectronic 150,000 47,500 liability from te date No No
20,2013 25,2014
Equipment guaranty of advance of
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Technology Co., Ltd. te loan due
date
Two years
Wuhu Dongxu
The joint from te date
Optoelectronic September
July 1,2016 9,500 9,500 liability of advance of No No
Equipment 23,2016
guaranty te loan due
Technology Co., Ltd.
date
Te debtor
agreed upon
Wuhu Dongxu by te main
The joint
Optoelectronic contract is
July 1,2016 15,700 June 21,2016 15,700 liability No No
Equipment tow years
guaranty
Technology Co., Ltd. from the date
of expiry of
the debt.
Wuhu Dongxu The joint
June November
Optoelectronic 132,000 93,000 liability 8 years No No
20,2013 12,2013
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
September December
Optoelectronic 10,000 10,000 liability 8 years No No
27,2013 13,2013
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
September December
Optoelectronic 10,000 5,000 liability 8 years No No
27,2013 19,2013
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
September February
Optoelectronic 20,000 20,000 liability 8 years No No
27,2013 19,2014
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
September February
Optoelectronic 10,000 10,000 liability 8years No No
27,2013 25,2014
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
September
Optoelectronic 20,000 April 8,2014 20,000 liability 8 years No No
27,2013
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
September
Optoelectronic 20,000 May 6,2014 20,000 liability 8years No No
27,2013
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
Optoelectronic July 1,2016 7,500 June 23,2016 7,500 liability 1 year No No
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
July 1,2016 12,000 June 28,2016 12,000 1 year No No
Optoelectronic liability
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
Optoelectronic July 1,2016 15,000 June 21,2016 15,000 liability 1 year No No
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
October December
Optoelectronic 10,000 10,000 liability 1 year No No
31,2016 6,2016
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
October December
Optoelectronic 10,000 4,000 liability 1 years No No
31,2016 26,2016
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
October November
Optoelectronic 52,300 52,300 liability 6 year No No
31,2016 25,2016
Technology Co., Ltd. guaranty
The joint
Jiangsu Jixing New March
20,000 March 8,2016 20,000 liability 1 year No No
Material Co., Ltd. 8,2016
guaranty
Zhengzhou Xufei The joint
May
Optoelectronic 5,500 May 30,2016 5,500 liability 1 year No No
27,2016
Technology Co., Ltd. guaranty
Zhengzhou Xufei The joint
October November
Optoelectronic 10,000 10,000 liability 1 year No No
31,2016 22,2016
Technology Co., Ltd. guaranty
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
Total guarantee quota to the
to the subsidiaries actually
subsidiaries approved in the 197,500 166,500
incurred in the reporting
reporting period (C1)
period (C2)
）otal balance of actual
Total guarantee quota to the
guarantee to the
subsidiaries approved at the end of 569,500 392,000
subsidiaries at the end of
the reporting period (C3)
the reporting period (C4)
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
The Company’s total guarantee(i.e.total of the first three main items)
Total amount of guarantee
Total guarantee quota approved in actually incurred in the
197,500 166,500
the reportingperiod（A1+B1+C1） reporting period
（A2+B2+C2）
Total balance of the actual
Total guarantee quota already
guarantee at the end of the
approved at theendof the 569,500 392,000
reporting period
reporting period（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the
17.64%
netassetsof the Company (that is A4+B4+C4）%
Including：
Description of the guarantee with complex method
（2）Illegal external guarantee
□ Applicable √ Not applicable
Nil
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
√Applicable□ Not applicable
In RMB’0000
Gains/los
Is a Determin Principal Impairme Actual
Amount Antiecipa ses
related e way for actually nt gains/l
Trustee Kinds for trust Start Date Expiry ted actually
transactio remunerat recover in provision( osses in
financing income recover
n or not ion the period If any) period
in period
CITIC
December
Bank Fixed March 16, Guarantee
No 100,000 16, 0 458.16
Centruy financing 2017 d income
Branch
SPD
Bank,
December January
Zongsan Fixed Guarantee
No 100,000 20, 19, 0 205.48
East financing d income
2016 2017
Road,
Branch
Total 200,000 -- -- -- 0 663.64 0 --
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Capital resources Rasied fund
Accumulated overdue
uncollected principal and interest
Lawsuit involved (if applicable) Nil
Disclosure date for the notice of
approval by the board(if any)
Disclosure date for the notice of
approval by shareholders’
General Meeting ( If any)
Whether there is the trust
Yes
financing in the future
(2)Situation of Entrusted Loans
□ Applicable √ Not applicable
Nil
4. Other significant contract
□ Applicable √ Not applicable
Nil
XVIII. Social responsibilities
1.Overview of the annual targeted poverty alleviation
√ Applicable □Not applicable
（1）Overview of the annual targeted poverty alleviation
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.
The donation purpose is as below:
1. In 2017, it plans to donate 200 students with the college entrance examination score higher than the college
entrance examination 2nd-batch admission score in Xingxian, who will be given 5000 yuan as the first tuition of
the first year, which totals 1 million yuan;
2. Donate 1 million as the special fund to donate more excellent students from poor families in Lvliang and
Jinsui;
3. The donation above is the special reflection of the company targeted poverty alleviation, serving the
national strategy of poverty overcoming and assaulting fortified positions as well as careful-performance of social
responsibilities and is also the public-benefit activity to promote the original old liberated area culture of “Jinsui
revolutionary base area” centering on Xingxian in Lvliang of Shanxi and the sustainable development of the
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
educational business. The company exercised the core value of “behave thanksgiving and act dedicatedly”
through the targeted poverty alleviation in the culture and education field.
（2）Information of the listed company’s annual work in targeted poverty alleviation
Measurement
Index Quantity / Status
unit
I. General situation —— ——
II.Itemized investment —— ——
1.Industrial development for getting rid of
—— ——
poverty
2.Transferred to employment to get rid of
—— ——
poverty
3.Relocation to get rid of poverty —— ——
4.Education to get rid of poverty —— ——
5.Improving Health to get rid of poverty —— ——
6.Ecological protection to poverty
—— ——
alleviation
7.Bottom-line Safeguard —— ——
8.Social poverty alleviation —— ——
9.Other items —— ——
III.Awards (content, level) —— ——
（3）Subsequent targeted poverty alleviation program
2. Information of performance of other social responsibilities
For details, please see the Social Responsibility Report disclosed by the company on the same day.
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of
Environmental Protection
No
Whether released Social Responsibility Report
√ Yes □ No
Corporate Social Responsibility Report
Whether contain Standards in the released report
Whether contain
Whether contain corporate
Enterprise nature environmental
social information governance Domestic standards Foreign standards
information
information
Private enterprise Yes Yes Yes
Specific description
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
1. Whether the company has passed the environmental
management system certification（ISO14001） Yes
2.Investment and expense for the annual environmental
901.78
protection of the company （RMB’0000）
3. Performance for the three wastes (industrial wastewater,
Standard
waste gases and residues) emission reduction of the company
4. Company investment in the employee personal
knowledge and skills improvement to improve the employee 147.32
occupational development capacity（RMB’0000）
5. Company donation amount for public welfare (capital,
goods and materials and free professional service)（RMB’0000）
2. Investment and expense for the annual environmental
901.78
protection of the company（RMB’0000）
XIX. Major issues of subsidiary
□ Applicable √ Not applicable
Nil
XX. Material issues of the subsidiaries
□ Applicable √ Not applicable
VI. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In Shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportio Capitaliza
n tion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
1.Shares with conditional 1,565,845, 1,104,928, -970,242, 134,686,3 1,700,531
40.83% 34.42%
subscription 404 457 092 65 ,769
1. State-owned legal person 43,988,26 43,988,26
1.15% 0 0 0.89%
shares 9
1,521,857, 1,104,928, -970,242, 134,686,3 1,656,543
3.Other domestic shares 39.68% 33.53%
135 457 092 65 ,500
Incl：Domestic legal person 1,519,326, 1,104,928, -969,271, 135,656,5 1,654,982
39.62% 33.50%
shares 256 457 885 72 ,828
Domestic Natural Person
2,530,879 0.06% -970,207 -970,207 1,560,672 0.03%
shares
II.Shares with unconditional 2,269,255, 970,142,0 970,142,0 3,239,397
59.17% 65.58%
subscription 122 92 92 ,214
2,019,255, 970,142,0 970,142,0 2,989,397
1.Common shares in RMB 52.65% 60.52%
121 92 92 ,213
2.Foreign shares in domestic 250,000,0 250,000,0
6.52% 0 0 5.06%
market 01
3,835,100, 1,104,928, 1,104,828, 4,939,928
III. Total of capital shares 100.00% -100,000 100.00%
526 457 457 ,983
Reasons for share changed:
√ Applicable □ Not applicable
On January 4, 2016, senior manager’s locked shares increased to be 321,793.
On January 26, 2016, Chen Yinwei resigned from the company, who is one member of stock option incentive
plan. The company repurchased and later cancelled his authorized but not unlocked 100,000 restricted stocks.
On April 18, 2016, among non-public offering shares issued by the company in 2013, 390,093,000 shares
locked for 3 years was released and circulated in stock market.
On August 26, 2016, non-public offering shares issued by the company in 2016 and locked for 12 months
reached 1,104,928,457.
On November 8, 2016, restricted stocks for stock incentive meets the unlocking requirement of the second
phase, 1,19,200 shares was released and circulated in stock market.
On December 19, 2016, among non-public offering shares issued by the company in 2015, 579,178,885
shares locked for 12 months was released and circulated in stock market.
Approval of Change of Shares
√ Applicable □ Not applicable
1. On October 29, 2015, Bill on Repurchasing and Cancellation of Certain Restricted Shares was submitted
for deliberation and approval in the 43th meeting of the 7th Board of Director and agreed to repurchase and cancel
Chen Yinwei’s authorized but not unlocked 100,000 restricted stocks due to his resignation and inconformity with
stock option incentive plan.
2. On December 11, 2012, the company received ZJXK [2012]No. 1661 Approval on Authorization of
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Non-Public Offering Shares of Shijiazhuang Baoshi Electronic Glass Co., Ltd. approved and issued by China
Securities Regulatory Commission and the file agreed that issuer’s new non-public offering shares not exceeded
520 million.
3. On July 28, 2016, the company received ZJXK [2016]No. 1322 Approval on Authorization of Non-Public
Offering Shares of Dongxu Optoelectronic Co., Ltd., approved and issued by China Securities Regulatory
Commission and the file agreed that issuer’s new non-public offering shares not exceeded 1,104,928,457.
4. On October 28, 2016, Bill on Stock Optional Incentive Plan of the 2ndUnlocking Restricted Shares was
submitted for deliberation and approval in the 3th meeting of the 8th Board of Director and consulted 40 members
of incentive plan met unlocking requirement of stock optional incentive plan of unlocking restricted shares and
were qualified in the company, so the file agreed the 2nd unlocking restricted shares for the 40 members.
5. On October 15, 2015, the company received ZJXK [2015]No. 2270 Approval on Authorization of
Non-Public Offering Shares of Dongxu Optoelectronic Co., Ltd., approved and issued by China Securities
Regulatory Commission and the file agreed that issuer’s new non-public offering shares not exceeded
1,186,943,620.
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
In Shares
Number of
Number of Restricted Shares Date of
Initial Restricted Increased Reason for
Shareholder Name Unrestricted in the End of the Restriction
Shares Restricted Shares Restricted Shares
Shares This Term Term Removal
This Term
New non-agency
restricted shares
after the first
Dongxu Group 829,975,697 390,093,000 0 439,882,697 April 18,2016
issue with
non-public issue
of 2013
China Fund New non-agency 222,575,516
Management Co., restricted shares shares will be
0 0 222,575,516 222,575,516
Ltd.－Huaxia Bank after the first released on
－TTCO Trust Co., issue with August 26, 2017
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Ltd.－TTCO Trust non-public issue
Co., Ltd.－ of 2016
Shunjing No.5
Single capital trust
Minsheng Royal
Fund Management New non-agency
Co., Ltd.-Ping An restricted shares
Bank-Ping An after the first December
183,284,457 183,284,457 0
Trust-Ping An issue with 17,2016
Wealth* Huitai non-public issue
No.163 Single of 2015
Fund Trust
Bosera
New non-agency
Capital-Ping An
restricted shares
Bank- Ping An
after the first December
Trust-Ping An 167,155,426 167,155,426 0
issue with 17,2016
Wealth* Huitai
non-public issue
No.164 Single
of 2015
Fund Trust
Sws Mu Fund
Management
Co.,Ltd.－China New non-agency
111,287,758
Merchants Bank restricted shares
shares will be
－Huarun Shen after the first
0 0 111,287,758 111,287,758 released on
State investment issue with
August 26, 2017
trust－Ruihua non-public issue
increase funds of 2016
No. 2 Collective
capital trust plan
Penghua Fund－
New non-agency
Ningbo Bank－ 111,287,758
restricted shares
Daye Trust－Daye shares will be
after the first
TrustDongxu 0 0 111,287,758 111,287,758 released on
issue with
Optoelectronic August 26, 2017
non-public issue
increase funds II
of 2016
Single fund trust
STAS Asset
New non-agency
Management－ 111,287,758
restricted shares
Ningbo Bank－ shares will be
after the first
Minsheng Trust－ 0 0 111,287,758 111,287,758 released on
issue with
China Minsheng August 26, 2017
non-public issue
TrustZhixin
of 2016
No.208 Dongxu
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Optoelectronic
increase collective
fund trust plan
New non-agency
110,492,845
Shenzhen Taianer restricted shares
shares will be
Information after the first
0 0 110,492,845 110,492,845 released on
Technology Co., issue with
August 26, 2017
Ltd. non-public issue
of 2016
New non-agency
110,492,845
Qianhai restricted shares
shares will be
Investment fund after the first
0 0 110,492,845 110,492,845 released on
（Limited issue with
August 26, 2017
Partnership） non-public issue
of 2016
Nuoan New non-agency
110,492,845
Fund-Industrial restricted shares
shares will be
Securities-Nanjing after the first
0 0 110,492,845 110,492,845 released on
Shuangan Assets issue with
August 26, 2017
Management Co., non-public issue
Ltd. of 2016
The shares will
be unlocked by
stages after
meeting the
Stock incentive
unlocking
The 40 hasn’t been
condition for
Shareholders 2,530,879 1,292,000 0 1,238,879 unlocked;
restricted stock
Awarded Stock Executives
with stock
Incentive locked the shares
incentive；
Repurchase of
stock incentive
object
Till the relevant
shareholders
The 9 Non-agency
Non-agency entrust the
Restricted
restricted shares Company to
Shareholders 201,000 0 0 201,000
after the first conduct the
before the First
issue release business
Issue
for the restricted
shares
Other 382,697,945 228,417,209 217,011,132 371,291,868 New non-agency 217,011,132
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
restricted shares shares will be
after the first released on
issue with August 26, 2017
non-public issue
of 2016
Total 1,565,845,404 970,242,092 1,104,928,457 1,700,531,769 -- --
II. Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
√ Applicable □ Not applicable
Description of
Quantity
stock and its Issuing price(Or Expiration date of
Issuing date Issuing quantity Listing date approved for
Derivative interest rate) transaction
listing
securities
Stocks
Dongxu
August 2,2016 RMB 6.29 1,104,928,457 August 26,2016 1,104,928,457
Optoelectronic
Convertible Corporate Bonds, Detachable Convertible Bond and Corporate Bonds
Other derivative securities
Notes
2.Change of asset and liability structure caused by change of total capital shares and structure
√ Applicable □ Not applicable
Approved by CSRC permission[2016] Document No.1322 for “Reply on Approving Non-public Issue of
Share by Dongxu Optoelectronic Technology Co., Ltd.”, the company non-publicly issued 1,104,928,457 of A
shares, of which the issue price was RMB 6.29 /share and the net raised fund was RMB6,908,073,597.53. On
August 26, 2016, 1,104,928,457 of new shares listed in SZSE, where RMB 1,104,928,457 increased in the
company’s share capital, the general share capital was up to RMB 4,939,928,983 and RMB 5,803,145,140.53
increased in the company’s capital reserve.
3.About the existing employees’ shares
□Applicable√Not applicable
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Total
344,054(A The total number o preferred shareh
Total number 361,573（A Total
shares of f preferred shareho olders at the end
of common shares of 343931 shareholders at
332924 lders voting rights of the month
shareholders at households; B the end of the
households; B restored at period-e 0 from the date of
the end of the shares of the month from the
shares of the nd disclosing the
reporting 17642 date of disclosing
17568 (if any)(See annual report(if
period households） the annual report
households) Notes 8) any)(See Notes
8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Amount Amount Number os share pledged/frozen
Proportio Changes
of shares of of
Shareholders Nuture of n of in
held at restricted un-restrict
shareholder shares reporting State of share Amount
period shares ed shares
held（%） period
-end held held
Domestic Non
558,968,8 -271,006, 439,882,6 119,086,1
Dongxu Group -State-owned 11.32% Pledge 558,962,697
00 897 97
legal person
Shijiazhuang Baoshi Domestic Non
332,382,1 332,382,1
Electronic Group Co., -State-owned 6.73% 0 0 Pledge 182,376,500
71
Ltd. legal person
China Fund
Management Co., Ltd.
－Huaxia Bank－
222,575,5 222,575,5 222,575,5
TTCO Trust Co., Ltd. Other 4.51%
16 16
－TTCO Trust Co.,
Ltd.－Shunjing No.5
Single capital trust
Minsheng Royal Fund
Management Co.,
Ltd.-Ping An
Bank-Ping An 183,284,4 183,284,4
Other 3.71% 0
Trust-Ping An 57
Wealth* Huitai
No.163 Single Fund
Trust
Bosera Capital-Ping
An Bank- Ping An
Trust-Ping An 149,609,4 -17,546,0 149,609,4
Other 3.03%
Wealth* Huitai 26 00
No.164 Single Fund
Trust
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Sws Mu Fund
Management Co.,Ltd.
－China Merchants
Bank－Huarun Shen 111,287,7 111,287,7 111,287,7
Other 2.25%
State investment trust 58 58
－Ruihua increase
funds No. 2 Collective
capital trust plan
Penghua Fund－
Ningbo Bank－Daye
Trust－Daye
111,287,7 111,287,7 111,287,7
TrustDongxu Other 2.25%
58 58
Optoelectronic
increase funds II
Single fund trust
STAS Asset
Management－
Ningbo Bank－
Minsheng Trust－
China Minsheng 111,287,7 111,287,7 111,287,7
Other 2.25%
TrustZhixin No.208 58 58
Dongxu
Optoelectronic
increase collective
fund trust plan
Shenzhen Taianer Domestic Non
110,492,8 110,492,8 110,492,8
Information -State-owned 2.24% 0 Pledge 32,000,000
45 45
Technology Co., Ltd. legal person
Domestic Non
Qianhai Equity 110,492,8 110,492,8 110,492,8
-State-owned 2.24% 0 Pledge 110,492,845
Investment Fund (LP) 45 45
legal person
Nuoan Fund-Industrial
Securities-Nanjing 110,492,8 110,492,8 110,492,8
Other 2.24%
Shuangan Assets 45 45
Management Co., Ltd.
Strategy investors or general legal Before the country's top ten shareholders of Shenzhen Taianer Information Technology Co.,
person becomes top 10 shareholders Ltd. and Qianhai Equity Investment Fund (LP) was involved in the company in 2016
due to rights issued (if applicable)（See non-public offering to subscribe, became the top 10 shareholders. The sub-holding
Notes 3） restricted period of 12 months, ie August 26, 2016 to August 25, 2017.
Explanation on shareholders Among the top ten shareholders , Dongxu Group and Baoshi Group have relationship and
participating in the margin trading constitute persons taking concerted action. The company does not know whether there is
business relationship between other 9 shareholders or whether they are persons taking concerted
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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
Minsheng Royal Fund Management Co., Ltd.-Ping
RMB Common
An Bank-Ping An Trust-Ping An Wealth* Huitai 183,284,457 183,284,457
shares
No.163 Single Fund Trust
Bosera Capital-Ping An Bank- Ping An Trust-Ping An RMB Common
149,609,426 149,609,426
Wealth* Huitai No.164 Single Fund Trust shares
RMB Common
Dongxu Group 119,086,103 119,086,103
shares
HuaAn Future Asset-ICBC-No.1 Asset Management RMB Common
96,774,193 96,774,193
Plan of Dongxu Optoelectronic’s Private Placement shares
Bank of China－Huaxia New Economic Mixed RMB Common
34,078,650 34,078,650
Securities Investment Funds shares
RMB Common
Gu Bin 29,597,600 29,597,600
shares
RMB Common
Huijin Asset Management Co., Ltd. 24,205,500 24,205,500
shares
RMB Common
Xie Xiantuan 17,045,700 17,045,700
shares
Foreign shares
placed in
Cuiyi International Marble Co., Ltd. 6,526,399 6,526,399
domestic
exchange
Explanation on associated relationship or consistent
action among the top 10 shareholders of Among the top ten shareholders holding non-restricted negotiable shares,
non-restricted negotiable shares and that between the Baoshi Group and Dongxu Group have relationship and constitute persons
top 10 shareholders of non-restricted negotiable taking concerted action.
shares and top 10 shareholders
Gu Bin and Xie Xiantuan, the first 10 ordinary shareholders with shares
without restricted condition, separately held 29,597,500 and 15,688,700 of
Explanation on shareholders participating in the
the Company’s shares by means of the securities accounts with customer
margin trading business(if any )(See Notes 4)
credit guarantee of Orient Securities and Huatai Securities, which separately
occupy 0.60% and 0.32% of the Company’s total shares.
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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the
Company have no buy –back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Corporation Group Holding; Natural Person Holding
Type of Controlling Shareholders:Legal person
Name of the Legal
Controlling representative/ Date of incorporation Organization code Principal business activities
shareholder Leader
Investing projects with owned funds; Development
of mechanical equipment and electronic products;
Productions and process formulation of various
non-standard equipment and components; Process
and sales of component for abrasive materials and
electromechanical products(no equipment of
public security); Import and export of self-run and
agent goods and technology; Computer system
Dongxu Group Li Zhaoting November 5, 2004 76813036-3 integration ; Software development; Technology
consulting; Installation and engineering consulting
of electromechanical device(no pre-licensing
projects included above). (Operation is allowed
only if being within the confines of the above laws
and regulations and the matters forbidden or
restricted by the State Council; Operation is
allowed once the matters are examined and
approved by other departments.
The equity of the 1.As of December 31, 2016, Dongxu Group held 414,270,000 shares of Tunghsu Azure Renewable Energy Co.,
controlling Ltd. (Stock Abbreviation :Dongxu Azure; Stock code: 000040), accounting for 30.98% of the company’s total
shareholder in equity. 2. As of December 31, 2016, Dongxu Group directly held 8.45 million shares of Shanghai Challenge
other domestic Textile Co., Ltd. (A Share’s stock name: \"Challenge\" and stock code: 002468), accounting for 1.015%;
and foreign listed indirectly held 163.19 million shares of Shanghai Challenge Textile Co., Ltd. through Shanghai Guojun
companies held or Investment Co., Ltd., accounting for 19.61%; held 25.35 million shares of Shanghai Challenge Textile Co., Ltd.
partly held by it in by having the right to vote by trustee, accounting for 3.045%. To sum up, Tunghsu Group had voting right
the report period corresponding to 196.99 million shares of Shanghai Challenge Textile Co., Ltd., accounting for 23.67%.
Change of the actual controller in the reporting period
□Applicable √Not applicable
Nil
3．Information about the controlling shareholder of the Company
Actual controller nature：Domestic naturaol person
Actual controller type：Natural person
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Whether to obtain the right of abode in other countries or
Name Nationality
regions
Li Zhaoting China No
Refer to: 3.Tenure Situation in Chapter 8 Situation of Directors, Supervisors, Senior
Main occupations and duties
Executives and Employee of the Company
1.As of December 31, 2016, Dongxu Group held 414,270,000 shares of Tunghsu
Azure Renewable Energy Co., Ltd. (Stock Abbreviation :Dongxu Azure; Stock code:
000040), accounting for 30.98% of the company’s total equity. 2. As of December 31,
2016, Dongxu Group directly held 8.45 million shares of Shanghai Challenge Textile
Co., Ltd. (A Share’s stock name: \"Challenge\" and stock code: 002468), accounting
Situation of domestic and abroad holding
for 1.015%; indirectly held 163.19 million shares of Shanghai Challenge Textile Co.,
listed companies in the part 10 years
Ltd. through Shanghai Guojun Investment Co., Ltd., accounting for 19.61%; held
25.35 million shares of Shanghai Challenge Textile Co., Ltd. by having the right to
vote by trustee, accounting for 3.045%. To sum up, Tunghsu Group had voting right
corresponding to 196.99 million shares of Shanghai Challenge Textile Co., Ltd.,
accounting for 23.67%.
Change of the actual controller in the reporting period
□Applicable √Not applicable
Nil
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
4.Other corporate shareholder holding over 10% of the Company’s shares
□Applicable √Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring
Party and Other Commitment Subjects
□Applicable √Not applicable
II. Situation of the Preferred Shares
□ Applicable √Not applicable
No preference shares in the Company.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Amount of Amount of
Other
Shares shares shares Shares
chang
Expiry held at increased decreased held at
Office Starting date es
Name Positions Sex Age date of the at the at the the
status of tenure increa
tenure year-beg reporting reporting year-gegi
se/dec
in(share) period(sha period(sha n(share)
rease
re) re)
Board
Li Zhaoting In office Male 51 July 29,2013 0 0 0
chairman
Wang Director,
In office Male 49 July 28,2016 0 0 0
Lipeng GM
Director,
Femal
Gong Xin Board In office 37 June 1,2015 100,000 0 0 100,000
e
secretary
Director, Femal December16,
Zhou Bo In office 37 0 0 0
CFO e
Zhang Independe
In office Male 55 July 29,2013 0 0 0
Shuangcai nt director
Independe
Lu Guihua In office Male 48 July 29,2013 0 0 0
nt director
Independe
Han Zhiguo In office Male 53 July 28,2016 0 0 0
nt director
Chairman
of the
Guo Chunlin supervisor In office Male 37 July 28,2016 0 0 0
y
committee
Femal
Xu Lingzhi Supervisor In office 50 July 28,2016 0 0 0
e
Chen Dewei Supervisor In office Male 53 July 28,2016 0 0 0
October
Xie Juwen Supervisor In office Male 39 0 0 0
15,2014
Wan Femal October
Supervisor In office 31 0 0 0
Huanhuan e 15,2014
Wang Deputy
In office Male 52 July 28,2016 0 0 0
Jianqiang GM
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Wang Deputy
In office Male 39 July 28,2016 0 0 0
Zhonghui GM
Wang Deputy
In office Male 53 July 28,2016 0 0 0
Junming GM
Deputy
Liu Wentai In office Male 47 July 29,2013 150,000 0 25,000 125,000
GM
July
Niu Jianlin Director Dimission Male 52 July 29,2013 150,000 0 18,000 132,000
28,2016
July
Zhou Bo Director Dimission Male 51 July 29,2013 129,172 0 0 129,172
28,2016
Independe July
Mu Tiehu Dimission Male 49 July 29,2013 0 0 0
nt director 28,2016
Chairman
of the
Guo July
supervisor Dimission Male 52 July 29,2013 0 0 0
Zhisheng 28,2016
y
committee
Xie July
Supervisor Dimission Male 60 July 29,2013 0 0 0
Mengxiong 28,2016
Wang July
Supervisor Dimission Male 52 July 29,2013 0 0 0
Jianqiang 28,2016
July
Shi Zhiqiang GM Dimission Male 50 July 29,2013 200,000 0 0 200,000
28,2016
Xiao Deputy July
Dimission Male 32 May 15,2015 0 0 0
Zhaoxiong GM 28,2016
Total -- -- -- -- -- -- 729,172 0 43,000 686,172
II. Change in shares held by directors, supervisors and senior executives
Name Positions Types Date Reason
Niu Jianlin Director Departure on his term July 28,2016 Departure on his term
Zhou Bo Director Departure on his term July 28,2016 Departure on his term
Mu Tiehu Independent director Departure on his term July 28,2016 Departure on his term
Chairman of the
Guo Zhisheng Departure on his term July 28,2016 Departure on his term
supervisory committee
Xie Mengxiong Supervisor In office July 28,2016 Departure on his term
Wang Jianqiang Supervisor In office July 28,2016 Departure on his term
Shi Zhiqiang GM Departure on his term July 28,2016 Departure on his term
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Xiao Zhaoxiong Deputy GM Departure on his term July 28,2016 Departure on his term
III.Posts holding
The professional background, working experience and main responsibilities of the current board members,
supervisors and senior managers in the company
1. Mr. Li Zhaoting，Chinese, born in 1965，graduated from Hebei University of Technology as a mechanical
engineering major, senior engineer, member of the Communist Party of China and the founder of Dongxu Group.
Li has served successively as the general manager assistant and vice-general manager of Shijiazhuang Diesel
Engine Factory, and Chairman of Hebei Dongxu Investment Group Co., Ltd. Li is now the chairman of the
company and the subsidiaries including Wuhu Dongxu Photo-electric Science &Technology Co., Ltd. At the same
time, he is also the chairman of Dongxu Group and Dongxu Photoelectric Investment, general manager of COE,
and the vice chairman as well as general manager of Chengdu COE. Li is the 12th National People's Congress
member, vice chairman of Innovation Promotion Committee of The Chinese Association of Productivity Science,
vice chairman of Electronic Glass Branch of the Chinese Ceramic Society, honorary board member of Peking
University, board director of Renmin University of China and Beijing Jiaotong University, member of the
standing committee of Hebei Youth Federation, and the executive council member of young entrepreneurs in
Hebei. He has been awarded the “10 Person of the Year of 2012 Innovative China”, “The Most Respected Listed
Company Leaders in 2013”, “Ten Innovation Leaders of China’s Economy in 2014”, “Person of the Year in 2014
of Brand China (Electronic Information)”, “2014 Individual Quality Prize by Hebei Provincial Government”,
“The Most Respected Listed Company Chairman in 2015”, “China's ten largest economy 2016”, “The
Outstanding Private Entrepreneurs of Hebei” and“Outstanding Young Entrepreneurs of Shijiazhuang” etc.
2. Mr. Wang Lipeng, Chinese nationality, was born in 1968, master's degree of Tianjin University.
Beginning to work in 1989, he had served as the factory director of the electron gun factory of Shijiazhuang
Baoshi Electronics Group Co., Ltd, the general manager of Shijiazhuang Bao Dong Electronics Co., Ltd, the
director and the general manager of Shijiazhuang Baoshi Electronic Glass Co., Ltd, the director of chairman office
of Dongxu Group Co., Ltd, the general manager of Sichuan Xu Hong Optoelectronics Technology Co., Ltd and so
on.
3. Ms.Gong Xin, Nationality: Chinese, born in 1979, bachelor degree. She once worked in Capital Edge
Investment and Management as Project Manager of Investment-banking Department, Assistant to Chairman, Vice
General Manager and etc. Now Gong is Chief of Securities Department, Company Direcotr and Board Secretary
of the company.
4.Mr. Zhou Bo, Chinese nationality, was born in 1979, master of School of economics and management of
Tsinghua University (MBA), CPA, CTA. He had served as the general manager of the financial assets
management department of China National Electronics Import and Export Corporation. Currently, he is the
company’s director and chief financial officer.
5.Mr. Lu Guihua, male, born in May 1968, Dr. Accounting, Applied Economics postdoctoral, Central Univer
sity of Finance and Economics Professor of Accounting, Master Instructor, Chinese Certified Public Accountant.
Former Tianjin University associate professor, associate professor at the Central University of Finance and profes
sor at the Central University of Finance and Economics, master's and doctoral tutor. ow is Independent Director of
Hanvon Technology Co., Ltd., China Minsheng Investment Corp., Ltd., Hebei Iron and Steel Co., Ltd. and the
company.
6.Mr. Zhang Shuangcai, Chinese Nationality, born in 1961, PhD in Management, Business Administration
postdoctoral, Democratic National Construction Association. He serves as Associate Dean School of Management,
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Hebei University business professor, World Economic doctoral tutor, accounting, business management
professional master tutor. He used to be Baoding CPPCC Standing Committee, representative of 11th People's
Congress of Hebei Province. Now he is the representative of 12th People's Congress of Hebei Province,
Executive director of the Institute of Hebei Province in budget management, deputy director of the private Center
for Economic Research of Hebei Province, Accounting association executive director, executive director of
Private Entrepreneur Association of Hebei Province, director of the Private Economic and Financial Committee of
Hebei Province, committee member of National Central Economic Committee, independent director of Lekai film
Co., Ltd. ,Boshen tools Co., Ltd. and Tianwei Baobian Electrical Co., Ltd..
7. Mr. Han Zhiguo, Chinese nationality, was born in 1964, bachelor degree, lawyer of Hebei Dianfan Law
Firm. He had served as the teacher of Hebei Vocational College of Politics and Law, and the lawyer of Hebei
Zhengchen Law Firm. From September 2006 to September 2013, he had been served as the independent director
of Shijiazhuang Baoshi Electronic Glass Co., Ltd. Since August 2013, he has been served as the independent
director of Bosun Tools Co., Ltd and the independent director of the company.
8. Mr. Guo Chunlin, Chinese nationality, was born in 1980, bachelor degree in law. He began to work in
2004. From September 2004 to November 2005, he had been served for Beijing Zhongfu Law Firm; from
November 2005 to October 2007, he taught at Communication University of China. He joined Dongxu Group Co.
Ltd in October 2007, and now he is one of the supervisors of Dongxu Group Co. Ltd.
9. Ms. Xu Lingzhi, Chinese nationality, was born in 1967, bachelor degree in accounting. She began to work
in 1988 and joined Dongxu Group Co. Ltd in 2006. Currently, she serves as the director of financial center of
Dongxu Group Co. Ltd and the general manager and supervisor of risk-control center of board-office headquarter
of Dongxu Group Co. Ltd.
10.Mr. Chen Dewei, Chinese nationality, was born in 1964, college degree. Currently, he serves as the
general manager and supervisor of the management center of Dongxu Group Co., Ltd.
11.Mr. Xie Juwen, was born in June 1977, master degree, professional in project management of Beijing
University of Technology. He had served as the R & D Engineer and the project leader of Beiren Group, the
project leader and other posts of Sheet-folding Machine Branch of Beiren Group. Currently, he serves as the
project manager of comprehensive office of the company and the employee-representative supervisor of the
company’s eighth board of supervisors.
12.Ms. Wan Huanhuan, was born in July 1985, bachelor degree, professional in accounting of Industrial and
Commercial University of Chongqing. She had served as the audit manager of Sino Railway Information Group
Co., Ltd, the business manager of Jiangsu Huaxing Certified Public Accountants and the business specialist of
Shenzhen JunZhiYuan Certified Public Accountants. Currently, she serves as the audit manager of the company’s
audit supervision department and the employee-representative supervisor of the company’s eighth board of
supervisors.
13.Mr. Wang Zhonghui, Chinese nationality, was born in 1978, master's degree of Renmin University of
China, having lawyer qualification of People's Republic of China. Over ten years experiences of being a lawyer, in
2009 he joined Dongxu Group, and he had served as the minister of the legal department, the general manager of
legal center and the vice president of the group. Since 2014, he has been served as the chairman of Shenzhen
Xuhui Investment Holdings Ltd, the chairman of Beijing Dongxu Huaqing Investment Co., Ltd, the chairman of
Beijing Tunghsu Carbon New Materials Technology Co., Ltd and the chairman of Shanghai Tan Yuan Graphene
Co., Ltd, responsible for graphene industry investment and development.
14.Mr. Wang Jianqiang, Chinese nationality, was born in 1964, university degree, graduated from mechanical
specialty of Hebei University of Science and Technology. He had served for Shijiazhuang Baoshi Electronics
Group Co., Ltd and had served as the supervisor of the company’s seventh session board of supervisors. Currently,
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
he serves as the chairman of Fuzhou Dongxu Optoelectronic Technology Co., Ltd which is the company’s 8.5
generation glass substrate project company.
15.Mr. Liu Wentai, Chinese nationality, born in 1969, graduated from chemical-mechanical professional of
Qingdao Institute of Chemical Industry, bachelor's degree. He had served as the workshop equipment supervisor
of Shijiazhuang Baoshi Electronics Group Co., Ltd, equipment supervisor of maintenance and engineering
department of Shijiazhuang Baoshi Electric Nitrate Co., Ltd, the director of liquid crystal glass research institute
of Dongxu Group Co., Ltd, the general manger of the thermal engineering department, the vice president of
Dongxu Group with a concurrent post of purchasing director. Currently, he serves as the company’s vice-general
manager and is responsible for the company’s whole sets of equipment and technical services .
16.Mr. Wang Junming, Chinese nationality, was born in 1964, master of Beijing Jiaotong University. He had
served as the vice-general manager of Henan Anfei Electronic Glass Co. Ltd and the general manager of
Zhengzhou Xufei Optoelectronic Technology Co. Ltd. Currently, he is responsible for the company’s polarizer
business.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Names of the receive
Names of the Sharing date of Expiry date of
persons in Titles engaged in the shareholders remuneration or
shareholders office term office term
office allowance from the
shareholder
Li Zhaoting Dongxu Group Board chairman Yes
General Manager of Administration
Guo Chunlin Dongxu Group Yes
center,supervisor
Director of Finance Center and
Xu Lingzhi Dongxu Group General Manager of Risk control Yes
center
Genearal Manager of Comprehensive
Chen Dewei Dongxu Group Yes
management Center,supervisor
Offices taken in other organizations
√Applicable □Not applicable
Whether
receiving
Office term Office term
Name Name of other units Position remuneration
start from ended
from other units
or not
Beijing Dongxu Investment
Li Zhaoting Executive director, Manager No
Management Co., Ltd.
Beijing Dongxu Investment
Li Zhaoting Executive director, Manager No
Development Co., Ltd
Li Zhaoting Dongxu Optoelectronic Board chairman No
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Investment Co., Ltd.
Sichan Xuhong Optoelectronic
Li Zhaoting Executive director No
TechnologyCo., Ltd.
Mudanjiang Xuyang Solar energy
Li Zhaoting Board chairman No
Technology Co., Ltd.
Jinzhou Xulong Solar energy
Li Zhaoting Board chairman No
Technology Co., Ltd.
Tongliao Xutong Solar energy
Li Zhaoting Board chairman No
Technology Co., Ltd.
Dongxu（Yingkou）
Li Zhaoting Board chairman No
Optoelectronic DisplayCo., Ltd.
Chengdu Xushuang Solar energy
Li Zhaoting Board chairman No
Technology Co., Ltd.
Zhong Optoelectronic Technology
Li Zhaoting General Manager No
Co., Ltd.
Zhengzhou Xufei Optoelectronic
Li Zhaoting Director No
Technology Co., Ltd.
Shijiazhuang Baoshi
Li Zhaoting Large-diameter plastic tube Board chairman No
Co., ltd
Beijing Dongxu Tianze Real
Li Zhaoting Board chairman No
Estate Development Co., Ltd.
Hebei Rongzhuo Real Estate
Li Zhaoting Board chairman No
DevelopmentCo., Ltd.
Beijing Dongxu Enterprise
Li Zhaoting Board chairman No
Planning Co., Ltd.
Vice Board chairman, General
Li Zhaoting Ningbo Xuze Industrial Co., Ltd. No
Manager
Li Zhaoting Tibet Financial Leasing Co., Ltd. Board chairman No
Beijing Xufeng Real Estate Co.,
Li Zhaoting Board chairman No
Ltd.
Wuhu Dongxu Optoelectronic
Li Zhaoting Director No
Technology Co., Ltd.
Wuhu Dongxu Optoelectronic Executive director,, General
Li Zhaoting No
Equipment Technology Co., Ltd. Manager
Shijiazhuang Dongxu
Li Zhaoting Optoelectronic Equipment Executive director,, Manager No
Technology Co., Ltd.
Li Zhaoting Wuhan Dongxu Optoelectronic Executive director,, Manager No
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Technology Co., Ltd.
Chengdu Zhong Optoelectronic
Li Zhaoting Executive director,, Manager No
Technology Co., Ltd.
Shijiazhuang Xuling Electrinic
Li Zhaoting Board chairman No
Technology Co., Ltd.
Shijiazhuang XumingTube Co.,
Li Zhaoting Executive director,, Manager No
Ltd.
Shijiazhuang Xuxin
Li Zhaoting Optoelectronic Technology Co., Board chairman No
Ltd.
Hebei Xubao Construction
Li Zhaoting Board chairman No
Installation Engineering Co., Ltd.
Dongxu Technology Group Co.,
Li Zhaoting Director No
Ltd.
Dongxu Technology Development
Li Zhaoting Executive director,, Manager No
Co., Ltd.
Beijing Heran Hengye Technology Executive director,General
Li Zhaoting No
Co., Ltd. Manager
Ningxia Dongxu Solar Energy Board chairman, General
Li Zhaoting No
TechnologyCo., Ltd. Manager
Beijing Dongxu Hongda
Li Zhaoting Executive director,, Manager No
Technology Co., Ltd.
Mudanjiang Xuyang Solar energy
Wang Jianqiang Director No
Technology Co., Ltd.
Jinzhou Xulong Solar energy
Wang Jianqiang Diretor No
Technology Co., Ltd.
Dongxu（Yingkou）Optoelectronic
Wang Jianqiang Director No
DisplayCo., Ltd.
Chengdu Xushuang Solar energy
Wang Jianqiang Director No
Technology Co., Ltd.
Wuhu Dongxu Optoelectronic
Wang Jianqiang Director No
Technology Co., Ltd.
Wuhan Dongxu Optoelectronic
Wang Jianqiang Director No
Technology Co., Ltd.
Chengdu Dongxu Energy
Wang Jianqiang Director No
Technology Co.,Ltd.
Jiangsu Dongxu Yitai Intelligent Executive director,General
Wang Jianqiang No
EquipmentCo., Ltd. Manager
Wang Jianqiang Beijing Hexue Guanglu Board chairman No
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Technology Co., Ltd.
Ningxia Xutang New Material
Wang Jianqiang Supervisor No
Technology Co., Ltd.
Beijing Dongxu Investment
Liu Wentai Director No
Development Co., Ltd.
Wuhu Dongxu Optoelectronic
Liu Wentai Director No
Eq1uipment Technology Co., Ltd.
Zhang Hebei University , College of
Professor Yes
Shuangcai Management
Zhang
Boshen Tooks Co., Ltd. Independent director Yes
Shuangcai
Zhang
Baoding Tianwei Electric Co., Ltd. Independent director Yes
Shuangcai
Hanvon Polytron echnology Co.,
Lu Guihua Independent director Yes
Ltd.
Lu Guihua Mensheng Holding Co., Ltd. Independent director Yes
Lu Guihua Hebei Iron & steel Co., Ltd. Independent director Yes
Central University of Finance and
Lu Guihua Professor Yes
Economics
Han Zhiguo Hebei Zhengchen Law firm Lawyer Yes
Han Zhiguo Boshen Tooks Co., Ltd. Independent director Yes
Punishments to the current and leaving board directors, supervisors and senior managers during the report
period by securities regulators in the recent three years
□ Applicable √Not applicable
IV.Remuneration to directors, supervisors and senior executives in the reporting period
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
The payments for the company board directors, supervisors and senior managers are determined on the salary
management system. The annual payments (including basic wages, bonus, allowance, subsidy, welfare expense
and insurance premium, housing accumulation funds and other pretax net payments paid by the company) paid to
board directors, supervisors and senior managers in 2016 are all based on the salary standard administration
related to the job responsibilities, performance appraisal and salary level of the corresponding post. During the
report period, the salaries for board directors, supervisors and senior managers have been paid monthly.
Remuneration to directors, supervisors and senior executives in the reporting period
In RMB’0000
Total Whether to get
Name Positions Sex Age Office status remuneration paid in the
received from the company related
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Company party
Li Zhaoting Board chairman Male 51 In Office Yes
Wang Lipeng Director, GM Male 49 In Office 47.8
Gong Xin Director/Board secretary Female 37 In Office 62.8
Zhou Bo Director, CFO Male 37 In Office 64.7
Zhang Shuangcai Independent Director Male 55 In Office
Lu Guihua Independent Director Male 48 In Office
Han Zhiguo Independent Director Male 53 In Office 2.5
Chairman of the
Guo Chunlin Male 37 In Office Yes
supervisory committee
Xu Lingzhi Supervisor Female 50 In Office Yes
Chen Dewei Supervisor Male 53 In Office Yes
Xie Juwen Supervisor Male 39 In Office 32.3
Wang Huanhuan Supervisor Female 31 In Office 19.6
Wang Jianqiang Deputy GM Male 52 In Office 36.9
Wang Zhonghui Deputy GM Male 39 In Office 38.7
Wang Junming Deputy GM Male 53 In Office 30.8
Liu Wentai Deputy GM Male 47 In Office
Niu Jianlin Director Male 52 Dimission 25.7
Zhou Bo Director Male 51 Dimission 25.5
Mu Tiehu Independent Director Male 49 Dimission 2.5
Chairman of the
Guo Zhisheng Male 52 Dimission Yes
supervisory committee
Xie Mengxiong Supervisor Male 60 Dimission Yes
Wang Jianqiang Supervisor Male 52 Dimission Yes
Shi Zhiqiang GM Male 50 Dimission 54.45
Xiao Zhaoxiong Deputy GM Male 32 Dimission 33.8
Total -- -- -- -- 552.05 --
Incentive equity to directors, supervisors or/and senior executives in the reporting period
√Applicable□Not applicable
In shares
Number of Number of Exercise Market Number of Number os Number of Grant Number of
Vesting Vested Price of Price in Restricted shares to Restricted Price of Restricted
Name Position Shares Shares Vested the End of Shares at unlock of Shares Restricted Shares in
Within Within Shares Reporting the reporting Granted Shares the End of
Reporting Reporting Within Period Beginning period Within (yuan/shar Reporting
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Period Period Reporting (yuan/shar of Reporting e) Period
Period e) Reporting Period
(yuan/shar Period
e)
Director,
Gong Xin Board 80,000 40,000 0 0 40,000
secretary
Depuuty
Li Wentai General 120,000 60,000 0 0 60,000
Manager
Total -- 0 0 -- -- 200,000 100,000 0 -- 100,000
The equity-incentive restricted shares obtained by the above-said directors and senior management
personnel reached the unlock condition in the current reporting period, and the second lock-period of the
Remark （If any）
restricted-share incentive- plan finished, thus the unlocked proportion accounted for 40% of the total
granted restricted shares, and the remaining 40% is still the restricted shares.
V. Particulars about employees.
（1）Particulars about employees.
Number of in-service staff of the parent company(person)
Number of in-service staff of the main subsidiaries(person) 4,185
The total number of the in-service staff(person) 4,461
The total number of staff receiving remuneration in the
4,461
current period(person)
Retired staff with charges paid by the parent company and
main subsidiaries (person)
Professional
Category Number of persons（person）
Production
1,476
Sales
Tech
1,941
Finance
Administration
Total 4,461
Education
Category Number of persons（person）
Bachelor degree or above 1,643
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
College diploma 1,630
Below college diploma 1,188
Total 4,461
2. Remuneration policies
To keep fair to all employees and competitive in business circles and more importantly to inspire employees,
we stick to a principle \"payment closely matches value of job position, employee’s performance and operation,
development and change of performance of the company itself\" and stick to another principle \"High responsibility,
high requirement, high payment\" based on the company’s fact. In addition, payment inclines to core job positions
and core talents. Make short-term, medium-term and long-term incentive plans. Short-term incentives mainly
include payment (annual pay) and profit sharing. Medium-term incentives include equity subscription and option
subscription. Long-term incentives include employee stock ownership plan and partnership.
3.Training plan
1. Employment training for recruiters: one training is taken per month. Professional learning of recruiters
shall be not less than 2h.
2. (Leadership) training for administrative personnel: build \"Sunshine Plan\" leadership training system in
Tunghsu Group; design blending learning to improve efficiency based on learning preferences of administrators at
different levels.
3. (Professional) training for ready-to-be professionals: provide professional training for ready-to-be
professionals. Professional learning shall be not less than 2h. Build \"Dongxu School\" and \"Dongxu Posthouse\".
4. (Profession Enhancement) training of performance improvement: based on management and profession
channels, provide sub-channel and systematic training separately. Train and reserve administrative personnel to
make performance of company achievable and push the implementation of strategy.
4.Outsourcing situation
□ Applicable √ No Applicable
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
IX. Administrative structure
I. General situation
The company adheres to honest operation, standard operation and performs obligation of information
disclose required in Company Law, Securities Law, Rule of Stock Exchange Listing in Shenzhen Stock Exchange
and Guideline on Standard Operation of Listing Companies on Main Board in Shenzhen Stock Exchange and
other laws and regulations as well as related standard files in order to ensure fairness, timeliness and accuracy of
information disclosure.
Based on standard files on listing companies issued by China Securities Regulatory Commission, the
company constantly adjusts and improves its organizations to ensure completeness, independence and
standardization of organizations. Core management organization is composed of general meeting of shareholders,
Board of Directors, Board of Supervisors and administrative personnel. A good mechanism shall be created
among authorities, decision-making body, supervising body and administrative personnel, namely clearly defied
powers and responsibilities, standard operation, mutual coordination and balance of mutual distraction. Separation
of positions, clearly defined powers and responsibilities and balance of mutual distraction among different
organizations and departments shall be maintained in order to effectively ensure the \"Profession\",
\"Standardization\" and \"Transparency\" of company’s management and even to guarantee all shareholders’ benefits,
especially minority shareholders.
General meeting of shareholders is an authority of the company. In 2016，5 meetings was held totally, among
which 1 meeting was annual general meeting of shareholders, 4 were temporary. Board of Directors serves general
meeting of shareholders. During reporting period, 18 meetings were held in Board of Director and 75 bills were
approved. Special committee is set under Board of Director and 7 meetings were held in 2016. Board of
Supervisors serves all shareholders and 8 meeting were held in reporting period. Above meetings were held in
conformity with related regulations of Articles of Association, Rule of Procedure of General Meeting of
Shareholders, Rule of Procedure of Board of Director, Rule of Procedure of Board of Supervisor. Above meetings
were convened, held and voted reasonably and legally while resolutions were all legal and valid, so the meetings
play an important role in rapid development of the company.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and
the relevant provisions of CSRC,
□ Yes √No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The controlling shareholder of the company has the standard behavior and hasn‘t directly or indirectly
interfered the decision-making and operations of the company beyond the shareholders‘ meeting. “Five
Separations” achieved on the fields of human resource, finance, assets, organization and business by the company
and holding shareholders.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
1. Human resource: Management on labor, personnel and wages by the company is independent from
holding shareholders. Senior managers all receive payments in the company; none of them receive payment from
or serve in controlling shareholder's entities.
2. Finance: An independent financial management department and accounting system have been established.
A formal financial management system has been set up for independent financial decisions. An independent bank
account has been opened for independent tax payment in accordance with the law. No accountant work
simultaneously in controlling shareholder's entities.
3. Assets: The property rights of company's assets are clear and complete. Production system and supporting
facilities independent from holding shareholders have been built up, and free use and embezzlement of corporate
assets by holding shareholders or other related parties will not happen.
4. Organization: A sound organization system has been constructed in the company, with which Board of
Directors, Board of Supervisors and internal organizations operate independently and no affiliation exists between
holding shareholders and functional departments. All the holding shareholders participate in corporate decisions in
accordance with legal procedures and have caused no influence on the independence of the corporate operation
and management.
5. Business: The company operates independently with complete business structure as well as independent
production, sale and financial systems. The company operates and manages independently in accordance with the
statutory scope of business, and no shareholders will directly or indirectly control and intervene in the supply and
sale. Complete and independent business has been maintained with major shareholders.
III. Competition situations of the industry
√ Applicable e □ Not applicable
Name of Nature of
Problem Holding Holding
Causes of Problems Solving Measures Schedule and Follow-up Plan
Types Shareholder Shareholder
s s
It is planned to inject all the
equities of Dongxu (Yingkou) and
The non-public issuing of Dongxu Group, Sichuan Sichuan Xuhong into the company
stocks for funds raising “G6 Xuhong, Dongxu before December 31, 2016. If the
FPD LCD glass substrate (Yingkou) and the equities of the trustee companies
production line” shareholders signed are unable to satisfy the conditions
Competiti
Dongxu carried out by Sichuan entrusted management of capital infusion due to the
ons in the Individual
Group Xuhong and Dongxu agreements with the industry downturn, changes of
industry
(Yingkou), which are company, which supervision requirements and other
controlled by the holding authorizes the company to external factors, the above
shareholder Dongxu Group, manage the right of mentioned equities and right of
has caused competition operation uniformly operation will be still host by the
company.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Sessions Type Meeting Date Disclosure date Disclosure index
participation ratio
Announcement
No.2016—024,Chin
a Securities Daily,
The First provisional
Provisional Securities Time,
shareholders’
shareholders’ 30.37% February 22,2016 February 23,2016 Shanghai Securities
General meeting in
General meeting News ,Hongkong
2016
Commercial Daily
and
www.cninfo.com.cn
Announcement
No.2016—026,Chin
a Securities Daily,
Annual Securities Time,
2015 Shareholders’
Shareholders’ 30.42% February 29,2016 March 1,2016 Shanghai Securities
general meeting
General Meeting News ,Hongkong
Commercial Daily
and
www.cninfo.com.cn
Announcement
No.2016—087,Chin
The Second a Securities Daily,
provisional Provisional Securities Time,
shareholders’ shareholders’ 30.46% July 28,2016 July 29,2016 Shanghai Securities
General meeting in General meeting News ,Hongkong
2016 Commercial Daily
and
www.cninfo.com.cn
Announcement
No.2016—109,Chin
The Third a Securities Daily,
provisional Provisional Securities Time,
shareholders’ shareholders’ 20.50% Septembet 26,2016 September 27,2016 Shanghai Securities
General meeting in General meeting News ,Hongkong
2016 Commercial Daily
and
www.cninfo.com.cn
The Fourth Provisional 28.77% December 26,2016 December 27,2016 Announcement
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
provisional shareholders’ No.2016—135,Chin
shareholders’ General meeting a Securities Daily,
General meeting in Securities Time,
2016 Shanghai Securities
News ,Hongkong
Commercial Daily
and
www.cninfo.com.cn
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
V. Duty performance of independent Directors
1. Attendance of Board Meetings and General Meetings
Independent Directors’ Attendance at Board Meetings
Number of Failure to
Number of
Board meetings Number of personally attend
Independent Number of spot meetings Number of
necessary to be attendances by board meetings
Directors attendances attended by absence
attended in the representative successively
Communication
reporting period twice (Yes/No)
Lu Guihua 18 18 0 0 0 No
Zhang Shuangcai 18 18 0 0 0 No
Han Zhiguo 8 8 0 0 0 No
Mu Tiehu 10 10 0 0 0 No
Number of general meetings attended
by independent directors as non-voting
delegates
Notes to failure to personally attend Board Meetings Successively Twice
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
During the report period, the independent directors of the company has strictly followed the relevant laws
and regulations of “Governance Rules of Listed Companies”, “Stock Listed Rules in Shenzhen Stock Exchange”
and “Guidance Suggestion on the Establishment of Independent Directors System by the Listed Company”, and
the provisions of “Articles of Association” to attend the Board of Directors and Shareholders of the company,
conscientiously perform their duties, express the constructive comments or suggestions for the development
decisions of the company, review the major matters, such as the affiliated transactions, the appointment of senior
executives, use of funds-raising and external guarantee, and issue the opinions of the independent directors, which
has effectively ensured the impartiality and objectivity of decision-making of the Board of Directors, maintained
the whole interests of the company and the legitimate rights of miedium and small shareholders, and played a
positive role in the company‘s standard operation and healthy development.
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting period
1.Performance of duties of the Nomination Committee
In 2016, The Nomination Committee of the Board of Directors earnestly performs their duties, and reviews
and make recommendations on the company’s general manager ,Deputy general manager, Board secretary and
CFO candidates as per the provisions of “Implementation Rules of Nomination Committee of the Board of
Directors”.
2.Performance of Remuneration and Appraisal Committee
In 2016, Remuneration and Appraisal Committee under the Board of Directors have conscientiously
performed their duties, and conducted the review and provide the suggestions on the subsidy of the independent
directors of the company according to the provisions of “Detailed Rules for Implementation of Remuneration and
Appraisal Committee under the Board of Directors”.
3. Performance of Audit Committee
In 2016, Audit Committee under the Board of Directors has conscientiously performed the duties, conducted
the duty of care, actively performs all kinds of works according to the relevant provisions of “Detailed Rules for
Implementation of Audit Committee under the Board of Directors” and “Articles of Association”, and mainly
made communication, control and review on the annual audits of the company.
Audit Committee and the certified accountants have made fully communication on the audit plans, business
engagement letters, risks and control matters. The Audit Committee has reviewed the audit opinions and the
financial accounting statements issued by the certified accountants, and supervised the certified accountants to
submit the audit report within the appointment time. At the same time, the Audit Committee believes that the
certified accountants have strictly followed the provisions of the independent audit rules from CPAs to perform
the audit work, the audit time is enough, the audit personnel is allocated reasonably, the certificated competence is
qualified, and the financial accounting statements audited by the certified accountants shall reflect the true,
accurate and complete financial condition.
4. Performance of Strategy Committee
In accordance with related provisions of The Detailed Rules for Implementing the Strategy Committee of the
Board and Articles of Incorporation, Strategy Committee of the company is diligent and dutiful in fulfilling its
duties and carrying out its work in 2016. It mainly focuses on the discussion and revision of strategic development
planning of the company.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
□Yes √No
The supervisory Committee has no objection against any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
The company puts store by performance evaluation of administrative personnel, so the company gradually
improves evaluation and inspiration mechanism of administrative personnel and builds improved payment
management system and performance management system and finally found payment and evaluation committee
under Board of Director, which is in charge of evaluating administrative personnel. Performance evaluation has a
close influence on payment of administrative personnel. The company makes a scientific and effective inspiration
mechanism.
IX. Internal control situations
1. Specific situations on major defects of internal control discovered during report period
□ Yes √ No
2. Self-evaluation report on internal control
Disclosure date of appraisal report on internal control March 28,2017
Disclosure index of appraisal report on internal control http://www.cninfo.com.cn
Proportion of total unit assets covered by appraisal in the
total assets of the consolidated financial statements of the 90.00%
company
Proportion of total unit incomes covered by appraisal in
the total business incomes of the consolidated financial 90.00%
statements of the company
Standards of Defects Evaluation
Type Financial Report Non-financial Report
Evaluation standards of internal control defects in financial Criteria of quality refers to the severity
reports are based on the degree of importance of the misstatement of involved business nature, which can
due to the internal control defects. The degree of importance be determined by the nature, range of
mainly relies on following factors: (1) the possibility of loss or influence and other factors of direct or
fraud of related assets or debts; the severity degree of defect potential negative effects. The following
Standard control relies on the possibility of prevention, discovery or signs indicate possible major defects in
correction of misstatement concerning to account or presentation; internal control of non-financial reports:
(2) involved account, presentation and related recognized (1) invalid supervision on internal
property: whether there is a recognized direct relationship with control by Audit Committee and the
one or more financial statements; (3) whether the control for internal audit authority; (2) lack of
evaluation and compensation can offset the control defects, democratic decision-making process,
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
whether the control for evaluation and compensation is precise such as the decision-making process of
enough to prevent, discover or correct possible majors “major policies, appointment or
misstatements; (4) whether it can arouse attention of personnel in dismissal of cadres in important
charge of supervising enterprise financial reports: a. control positions, arrangement of major projects
defects have been existed since previous year and recognized as and utilization of sizable funds”; (3)
major ones; b. control defects exist in the rising business or violation of state laws and regulations,
high-risk business of the company; c. control defects exist in for example environment pollution; (4)
fields highly focused by Board of Directors or Audit Committee, the outflow of managers and technicians;
such as special part or sensitive business; (5) the interaction (5) lack of system control or systemic
among control defects: whether control defects, which influence failure in major business; (6) no
the same important account, presentation and related recognized rectification of major or important
or internal control factors, form major defects; (6) the possible defects concerning to the results of
influences caused by control defects in future. When a cautious internal control appraisal.
manager considers a control defect or the combination of control
defects are obstacles in formulating basic recording transactions
with applicable financial reports in a reasonable way, then the
control defect or the combination of control defects should be
considered as the indication of major defects. The following signs
indicate major defects in internal control of financial reports: (1)
any degree of fraud carried out by board members, supervisors
and senior managers; (2) financial statements re-published by the
company to correct major misstatements due to fraud or mistakes;
(3) major misstatements existed in the current financial
statements of the company, which have not been discovered
during the operation of internal control; (4) invalid supervision on
internal control carried out by Audit Committee and internal audit
authority; (5) invalid internal control environment in the
company; (6) major deviation on budgets; (7) negative effects
due to the punishments by regulators; (8) huge losses of the
company; (9) total amount of associated business surpasses the
upper limit of associated business amount approved by general
meeting of shareholders; (10) defects influencing the revenue
trend, such as profit and loss results; (11) other defects
influencing the sound judgment by statement users.
① Single defect: a. when the influence level reaches or surpasses (1) Defects and problems concerning to
3% of the profits before tax when appraising the annual the internal control: Single defect: when
consolidated statements of Dongxu Photo-electricity, it will be the influence level reaches or surpasses
considered as major defect; b. when the influence level is lower 0.3% of the sales revenue when
Standards of than 3% but reaches or surpasses 0.3% of the profits before tax appraising the annual consolidated
Quantitation when appraising the annual consolidated statements of Dongxu statements of Dongxu Photo-electricity,
Photo-electricity, it will be considered as major defect; c. when it it will be considered as major defect; b.
is not belonged to major or important defects, then it will be when the influence level is lower than
considered as normal defect. ② The collection of defects 3% but reaches or surpasses 0.3% of the
influencing the same important account title or disclosure: a. sales revenue when appraising the annual
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
when the influence level after collection reaches or surpasses 3% consolidated statements of Dongxu
of the profits before tax when appraising the annual consolidated Photo-electricity, it will be considered as
statements of Dongxu Photo-electricity, it will be considered as major defect; c. when it is not belonged
major defect; b. when the influence level after collection is lower to major or important defects, then it will
than 3% but reaches or surpasses 0.3% of the profits before tax be considered as normal defect. ② The
when appraising the annual consolidated statements of Dongxu collection of defects influencing the
Photo-electricity, it will be considered as major defect; c. when it same important account title or
is not belonged to major or important defects, then it will be disclosure: a. when the influence level
considered as normal defect. after collection reaches or surpasses
0.3% of the sales revenue when
appraising the annual consolidated
statements of Dongxu Photo-electricity,
it will be considered as major defect; b.
when the influence level after collection
is lower than 0.3% but reaches or
surpasses 0.03% of the sales revenue
when appraising the annual consolidated
statements of Dongxu Photo-electricity,
it will be considered as major defect; c.
when it is not belonged to major or
important defects, then it will be
considered as normal defect. (2) For
internal control defects and problems
including personal fraud, please refer to
the integrity management related rules of
the company. Standards of internal
control defects and problems including
personal fraud: a. normal defects: less
than one million yuan, or punishments by
the government departments following
the provincial level (including
provincial) without negative effects on
regular reports or disclosures published
by Dongxu Photo-electricity; b. major
defects: one million yuan (including one
million) to ten million yuan, or
punishments by the government
departments at the national level without
negative effects on regular reports or
disclosures published by Dongxu
Photo-electricity; c. major defects: 10
million yuan or more or defects which
have been officially announced and
caused negative effects on regular reports
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
or disclosures published by Dongxu
Photo-electricity
Number of major
defects in financial
reporting（a）
Number of major
defects in non
financial reporting (a)
Number of important
defects in financial
reporting（a）
Number of important
defects in non
financial reporting（a）
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
Internal Control audit report
ZXCGHSZZD(2017)No.:105007
To All Shareholders of Dongxu Optoelectronic Technology Co., Ltd：
In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing standards of Chinese
Certified Public Accountant, we audited the effective-ness of the financial report’s internal control for Dongxu Optoelectronic
Technology Co., Ltd . (the Company) dated 31December 2016.
I. As for responsibility of internal control,
The Company established and improved and implemented internal control effectively based on Basic Norms of Enterprises Internal
Control, Supporting Guidelines for Enterprise Internal Control and Evaluation Guild lines for Enterprises Internal Control, and
board of the director is responsible for evaluating its effectiveness.
II. Auditor’s responsibilities
Our responsibility is to express an opinion on the effectiveness of internal control for the financial statements based on our audit.
And disclosed major deficits of noted internal control without financial statement concerned.
III. Inherent feature of internal control:
The internal control has an inherent limitation, and exist mistakes that can not prevent and being discovered. Moreover, the internal
control might be inappropriate due to the changes of conditions, or fails to follow the controlling policies and procedures, to
speculate future effectiveness of the internal control in line with the auditing result has a certain risks.
IV. Auditing opinion: in our opinion, the Company.
In line with Basic Norms of Enterprises Internal Control and relevant regulations, shows an effectiveness internal control of
financial report in all major aspects dated 31 December 2016.
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Disclosure of internal audit report Disclosure
Disclosure date of audit report
March 28,2017
of internal control (full-text)
Index of audit report of
http://www.cninfo.com.cn
internal control (full-text)
Internal audit report’s opinion Unqualified audit opinion
Non-financial reporting the
No
existence of significant deficiencies
Has the CPAs issued a qualified auditor’s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board
of Directors
√Yes □No
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
X. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without
payment in full at maturity on the approval date for annual report disclosed
Yes
1. Basic information of the corporate bonds
Bond Method of repayment
Abbreviated Interest
Bond Name Code Issue Date Date Due Balance(RMB’ of the principal and
Bond Name Rate
0000) interest payment
Interest paid every
year, the principal
2015- corporate bond of
15 Dongxu May will be repaid with
Dongxu Optoelectronic 112243 May 19,2015 100,000 6.00%
bonds 19,2020 the last unpaid
Technology Co., Ltd
interest in one time
as the bond due
Listed place or Transaction place for the
Shenzhen Stock Exchange
corporate bonds
Arrangement of investor’s eligibility Investor’s puttable right
Information about interest paid and bonds The first period bond interest 60,000,000.00 was paid in full amount on schedule in the
honored during the reporting period current 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
International
Guangzhou Business Finance Center, Shi Jianhua,
Name Contacts Telephone 020-88836999
Securities Co., Ltd. Address No.5 Zhujiang Yan Xiangjun
West Road, Tianhe
District Guangzhou
City
The credit rating agency who follow up and rate the corporate bonds in the reporting period:
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Business Room 508 Ailiyuan Apartment, No.38 Water
Name United Rating Co.,Ltd
Address Park North Road, Nankai District, Tianjin City
3.Information about the use of the funds raised by issuing corporate bonds
The information of the use of the funds raised by Using the funds raised by issuing corporate bonds strictly conforming to the
issuing corporate bonds and related purpose stipulated by Rules of Management and Use of the Raised Funds and
implementation procedure the Prospectus, and implemented the corresponding approval procedures
Ending balance of the year(RMB’0000) 33.81
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 provisions The use of the raised funds conformed to the purpose promised in the Prospectus
specified in the Prospectus
4. Information about the rating of the corporate bonds
On April 1, 2016, United Ratings Co., Ltd. issued trace rating report LHPZ [2016] No.243 based on the
company’s 2015 Annual Report. This rating result is long-term credit rating AA+ and its outlook is \"Steady\".
According to the United Rating Co.,Ltd’s requirements on tacking and rating, a regular rating shall be carried
out within 2 months after the company’s disclosure of 2016 annual report. Also, the United Rating Co.,Ltd shall
carry out randomly tracking and rating during the duration of the corporate bonds based on relevant information.
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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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
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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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.
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 Dec, 2016, checking the bank statement of the designated account for the raised funds. Also, the
trustee has been continuously supervising the use of the raised funds.
8. The key accounting data and financial indicators of the latest two years to the end of the reporting period
In RMB’0000
Items 2016 2015 Rate of change in the same period
Earnings before interest, tax,
262,082.19 233,623.36 12.18%
depreciation and amortization
Current ratio 380.90% 259.46% 121.44%
Debt ratio 50.73% 49.44% 1.29%
Quick ratio 316.23% 208.76% 107.47%
EBITDA/Total debts 11.03% 16.41% -5.38%
Interest coverage ratio 3.79 5.69 -33.39%
Cash interest coverage ratio 3.13 4.4 -28.86%
EBITDA interest coverage ratio 4.79 6.72 -28.72%
Loans repayment rate 100.00% 100.00% 0.00%
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Interest payment rate 100.00% 100.00% 0.00%
The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over
the last year
□ Applicable √ Not applicable
The company current ratio and quick-action ratio both increase and the cashability improves.
9. 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.
10.Information about the bank credit obtaining and use, as well as repayment of the bank loans during the
reporting period
The balance of the total amount of the short-term and long-term loans is RMB 12,586,849,200.13, increased
RMB1,705,164,700.13 compared with the end of year 2015, which mainly because of the need of the production and
operation and the construction of projects. The company strictly conformed to requests of bank loans to use the
funds and fully repaid the interest and principal to the bank in time.
11. 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.
12. Major events occurred during the reporting period
During the reporting period, the company had increased the guarantee amount of RMB1.665 million for its
controlled subsidiaries and wholly-owned subsidies, beyond that, there were no major events occurred in
accordance with the article-45 specified in the Measures on Issuance and Management for Corporate Bonds
13. Whether the corporate bonds have a guarantor
□ Yes √No
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
XI. Financial Report
I. Audit report
Type of audit opinion Unqualified audit opinion
Date for signing the auditor’s report March 27,2017
Zhongxingcai Guanghua Ceritified Public Accountants
Name of audit firm
(SpecialGeneral Partnership)
The audit of the report ZXCGHSKZD(2017)No.:105010
Certified public accountant's name Wang Fengqi ,Meng Xiaoguang
Auditors Report
To all shareholders of Shareholders of Dongxu Optoelectronic Technology Co., Ltd.:
We audited accompanying financial statements of Dongxu Optoelectronic Technology Co., Ltd.. (hereinafter
referred to as \"the Company\"), including Consolidation and parent Company balance sheet on December 31, 2016,
Consolidation and parent Company profit statement, Consolidation and parent Company cash flow statement for
the year 2016 and Consolidation and parent Company statement of change in shareholders' equity and the notes to
financial statements..
Ⅰ.Management’s responsibility for the financial statements
Preparation of financial statements in accordance with the Accounting Standards for Business Enterprises is
the responsibility of the management of the Company. Such responsibility includes: (1) Prepare the financial
statements according to business enterprises regulation, so that making reasonable accounting estimate. (2) design,
implementation and maintenance of internal control related to the preparation of financial statements so that
financial statements are free from material misstatement caused by fraudulent practices or errors;
II. Responsibility of certified public accountants
We are responsible for expressing opinions on financial statements based on our audit. We conducted audit
in accordance with the audit criteria for Chinese certified public accountants. The audit criteria for Chinese
certified public accountants require us to abide by professional ethics, plan and conduct audit to obtain reasonable
assurance as to whether financial statements are free from material misstatement. Audit involves carrying out
audit procedure to obtain the audit evidences about the amounts and disclosure of financial statements. The
selected audit procedure relies on the judgment of certified public accountants, including the appraisal of risk of
material misstatement of financial statements caused by fraudulent practices or errors. While appraising risks, we
considered the internal control related to the preparation of financial statements to design proper audit procedure
but the purpose is not to express an opinion on the effectiveness of internal control. The audit also includes the
appraisal of suitability of accounting policies selected by the management, the reasonableness of accounting
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
estimate and the overall presentation of financial statements.
We believe that the audit evidences obtained by us are full and appropriate and provide a basis for expressing
audit opinion.
III. Audit opinion
In our opinion, the financial statements of Dongxu Optoelectronic Technology Co., Ltd. Wharf present fairly,
in all material respects, the company‘s and consolidated financial position as of 31 December 2016, and the
Company‘s and consolidated results of operations and cash flows for the year then ended in accordance with
Accounting Standards for Business Enterprises.
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.
December 31,2016
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 26,056,117,216.86 12,409,510,170.26
Settlement provision
Outgoing call loan
Financial assets measured at fair value with
variations accounted into current income account
Derivative financial assets
Bill receivable 55,340,287.95 51,014,152.00
Account receivable 1,652,714,640.77 1,042,538,312.51
Prepayments 862,432,895.10 418,910,587.57
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 186,071,085.24 55,197,871.28
Repurchasing of financial assets
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Inventories 2,688,967,436.27 2,177,979,684.06
Assets held for sales
Non-current asset due in 1 year 139,395.72
Other current asset 3,203,453,317.38 1,216,401,769.76
Total of current assets 34,705,096,879.57 17,371,691,943.16
Non-current assets：
Loans and payment on other’s behalf disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 72,354,803.70 72,426,252.41
Property investment
Fixed assets 8,952,341,070.47 6,900,189,927.76
Construction in progress 1,772,629,310.84 3,433,016,388.90
Engineering material 304,468.05 38,214.99
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 578,194,545.68 462,291,286.50
R & D petrol
Goodwill 33,935,384.57
Long-germ expenses to be amortized 11,756,506.76 16,560,387.39
Differed income tax asset 312,555,500.36 299,129,677.91
Other non-current asset 387,151,100.41 243,279,174.31
Total of non-current assets 12,121,222,690.84 11,426,931,310.17
Total of assets 46,826,319,570.41 28,798,623,253.33
Current liabilities
Short-term loans 4,940,816,200.13 3,783,300,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair value with
variations accounted into current income account
Derivative financial liabilities
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Bill payable 393,136,676.05 410,594,929.94
Account payable 1,165,418,491.73 675,736,226.62
Advance payment 414,078,061.38 97,920,689.41
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 42,851,392.30 36,856,257.86
Tax payable 224,310,530.71 105,451,423.67
Interest payable 81,610,513.91 55,405,608.76
Dividend payable 30,000,000.00 20,000,000.00
Other account payable 114,993,136.80 539,796,113.78
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 1,618,589,512.42 905,454,163.08
Other current liability 85,535,473.05 64,936,000.00
Total of current liability 9,111,339,988.48 6,695,451,413.12
Non-current liabilities：
Long-term loan 6,596,159,000.00 6,249,397,300.00
Bond payable 5,653,912,494.73 988,400,388.00
Including：preferred stock
Sustainable debt
Long-term payable 1,514,308,568.67 57,000,000.00
Long-term payable employees’s remuneration
Special payable
Expected liabilities
Differed income 380,949,662.27 246,925,387.61
Differed income tax liability 413,257.79
Other non-current liabilities 500,000,000.00
Total non-current liabilities 14,645,742,983.46 7,541,723,075.61
Total of liability 23,757,082,971.94 14,237,174,488.73
Owners’ equity
Share capital 4,939,928,983.00 3,835,000,526.00
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 15,207,210,810.89 9,391,388,905.89
Less：Shares in stock 4,422,320.00 9,011,520.00
Other comprehensive income
Special reserves
Surplus reserves 188,044,070.48 132,723,528.42
Common risk provision
Undistributed profit 1,885,538,821.49 969,380,500.97
Total of owner’s equity belong to the parent
22,216,300,365.86 14,319,481,941.28
company
Minority shareholders’ equity 852,936,232.61 241,966,823.32
Total of owners’ equity 23,069,236,598.47 14,561,448,764.60
Total of liabilities and owners’ equity 46,826,319,570.41 28,798,623,253.33
Legal representative ：Li Zhaoting
Person-in-charge of the accounting work：Zhou Bo
Person-in -charge of the accounting organ：Gao Feipeng
2. Balance sheet of the Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 16,951,756,537.76 9,835,157,652.41
Financial assets measured at fair value with
variations accounted into current income account
Derivative financial assets
Bill receivable 946,400.00 611,200.00
Account receivable 19,896,753.26 25,928,808.63
Prepayments 4,280,852.37 5,148,881.09
Interest receivable
Dividend receivable 570,000,000.00 380,000,000.00
Other account receivable 4,925,419,456.78 1,257,350,098.69
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Inventories 500,254,494.97 337,875,634.06
Assets held for sales
Non-current asset due in 1 year
Other current asset 2,000,019,211.84 19,211.84
Total of current assets 24,972,573,706.98 11,842,091,486.72
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 11,373,791,986.49 9,838,056,379.92
Property investment
Fixed assets 49,516,721.87 54,559,265.28
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 9,951,171.11 10,196,051.07
R & D petrol
Goodwill
Long-germ expenses to be amortized
Differed income tax asset 3,712,603.85 784,271.45
Other non-current asset
Total of non-current assets 11,436,972,483.32 9,903,595,967.72
Total of assets 36,409,546,190.30 21,745,687,454.44
Current liabilities
Short-term loans 3,242,500,000.00 2,630,000,000.00
Financial liabilities measured at fair value with
variations accounted into current income account
Derivative financial liabilities
Bill payable 159,820,750.00 69,458,800.00
Account payable 147,012,816.26 131,278,936.59
Advance payment 10,587.90 115,587.90
Employees’ wage payable 3,700,741.68 3,725,606.27
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Tax payable 20,970,299.00 15,710,028.19
Interest payable 72,569,720.24 42,908,777.78
Dividend payable
Other account payable 2,889,692,312.04 3,495,678,670.89
Liabilities held for sales
Non-current liability due in 1 year 400,005,000.00
Other current liability 20,000.00
Total of current liability 6,936,282,227.12 6,388,896,407.62
Non-current liabilities：
Long-term loan 2,887,600,000.00 640,000,000.00
Bond payable 5,653,912,494.73 988,400,388.00
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Differed income 5,000.00
Differed income tax liability
Other non-current liabilities
Total of Non-current liabilities 8,541,512,494.73 1,628,405,388.00
Total of liability 15,477,794,721.85 8,017,301,795.62
Owners’ equity
Share capital 4,939,928,983.00 3,835,000,526.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 15,130,191,736.27 9,321,098,967.43
Less：Shares in stock 4,422,320.00 9,011,520.00
Other comprehensive income
Special reserves
Surplus reserves 169,054,846.15 113,734,304.09
Undistributed profit 696,998,223.03 467,563,381.30
Total of owners’ equity 20,931,751,468.45 13,728,385,658.82
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Total of liabilities and owners’ equity 36,409,546,190.30 21,745,687,454.44
3.Consolidated income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 6,901,321,122.65 4,650,208,448.10
Incl：Business income 6,901,321,122.65 4,650,208,448.10
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 5,725,821,216.58 3,581,146,792.66
Incl：Business cost 4,821,602,766.24 2,800,353,518.04
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 51,699,289.86 35,549,264.79
Sales expense 64,047,044.01 44,944,240.87
Administrative expense 418,934,541.34 421,789,075.31
Financial expenses 344,079,731.62 294,416,400.12
Asset impairment loss 25,457,843.51 -15,905,706.47
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 553,208.83 4,147,238.73
Incl: investment gains from affiliates -71,448.71 426,252.41
Gains from currency exchange
（“-”for loss）
III. Operational profit（“-”for loss） 1,176,053,114.90 1,073,208,894.17
Add ：Non-operational income 359,451,816.98 557,753,811.42
Including：Income from disposal of
34,237.22
non-current assets
Less：Non business expenses 10,286,220.31 656,012.54
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Incl：Loss from disposal of non-current
15,069.64 43,425.70
assets
IV.Total profit(“-”for loss) 1,525,218,711.57 1,630,306,693.05
Less：Income tax expenses 214,694,055.23 237,783,006.87
V. Net profit 1,310,524,656.34 1,392,523,686.18
Net profit attributable to the owners of
1,239,928,899.40 1,326,233,674.37
parent company
Minority shareholders’ equity 70,595,756.94 66,290,011.81
VI. Other comprehensive income
Net of profit of other comprehensive inco
me attributable to owners of the parent co
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will be
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
ncial statements
6.Other
Net of profit of other comprehensive inco
me attributable to Minority shareholders’
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
equity
VII. Total comprehensive income 1,310,524,656.34 1,392,523,686.18
Total comprehensive income attributable
1,239,928,899.40 1,326,233,674.37
to the owner of the parent company
Total comprehensive income
70,595,756.94 66,290,011.81
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.29 0.48
(II)Diluted earnings per share 0.29 0.48
The current business combination under common control, the net profits of the combined party before achiev
ed net profit of RMB 0, last period the combined party realized RMB 0.
Legal representative ：Li Zhaoting
Person-in-charge of the accounting work：Zhou Bo
Person-in -charge of the accounting organ：Gao Feipeng
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 594,015,768.80 721,162,496.33
Incl：Business cost 377,499,453.37 389,424,836.30
Business tax and surcharge 2,310,745.51 1,025,210.11
Sales expense 684,247.25 2,744.00
Administrative expense 50,896,860.49 66,780,037.74
Financial expenses 173,879,327.05 218,014,246.30
Asset impairment loss 372,456.70 -10,244,819.52
Add：Gains from change of fir value （“-”for
loss）
Investment gain（“-”for loss） 570,553,208.83 380,426,252.41
Incl: investment gains from affiliates -71,448.71 426,252.41
II. Operational profit（“-”for loss） 558,925,887.26 436,586,493.81
Add ：Non-operational income 49,775.95 29,440.95
Including：Income from disposal of
10,914.16
non-current assets
Less：Non business expenses 8,698,575.00 33,908.44
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Incl：Loss from disposal of non-current
41,000.83
assets
III.Total profit(“-”for loss) 550,277,088.21 436,582,026.32
Less：Income tax expenses -2,928,332.40 8,313,698.99
IV. Net profit（“-”for net loss） 553,205,420.61 428,268,327.33
V.Net of profit of other comprehensive income
（I）Other comprehensive income items that will
not be reclassified into gains/losses in the
subsequent accounting period
1.Re-measurement of defined benefit plans of chan
ges in net debt or net assets
2.Other comprehensive income under the equity me
thod investee can not be reclassified into profit or lo
ss.
（II）
Other comprehensive income that will be reclassifie
d into profit or loss.
1.Other comprehensive income under the equity me
thod investee can be reclassified into profit or loss.
2.Gains and losses from changes in fair value availa
ble for sale financial assets
3.Held-to-maturity investments reclassified to gains
and losses of available for sale financial assets
4.The effective portion of cash flow hedges and loss
es
5.Translation differences in currency financial state
ments
6.Other
VI. Total comprehensive income 553,205,420.61 428,268,327.33
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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
I.Cash flows from operating activities
Cash received from sales of goods or
7,709,262,453.89 5,320,383,955.63
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 335,301,799.88 201,893,711.00
Other cash received from business
224,363,433.42 452,450,694.44
operation
Sub-total of cash inflow 8,268,927,687.19 5,974,728,361.07
Cash paid for purchasing of
5,330,442,354.14 2,802,640,506.75
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 506,670,414.87 450,784,386.72
Taxes paid 558,240,024.97 627,085,942.98
Other cash paid for business activities 483,526,400.89 314,088,561.68
Sub-total of cash outflow from 6,878,879,194.87 4,194,599,398.13
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
business activities
Cash flow generated by business
1,390,048,492.32 1,780,128,962.94
operation, net
II.Cash flow generated by investing
Cash received from investment
1,080,000,000.00
retrieving
Cash received as investment gains 624,657.54 3,720,986.32
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 48,130.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 6,120,000.00 59,574,268.94
Sub-total of cash inflow due to
6,792,787.54 1,143,295,255.26
investment activities
Cash paid for construction of
fixed assets, intangible assets 828,349,480.63 539,895,733.55
and other long-term assets
Cash paid as investment 4,792,951,994.94
Net increase of loan against pledge
Net cash received from subsidiaries and
338,104,163.58
other operational units
Other cash paid for investment
2,000,000,000.00 6,120,000.00
activities
Sub-total of cash outflow due to
3,166,453,644.21 5,338,967,728.49
investment activities
Net cash flow generated by investment -3,159,660,856.67 -4,195,672,473.23
III.Cash flow generated by financing
Cash received as investment 7,931,678,682.37 7,984,999,980.50
Incl: Cash received as investment from
521,242,556.53 20,500,000.00
minor shareholders
Cash received as loans 7,771,761,556.00 5,848,934,138.87
Cash received from bond placing 4,662,400,000.00 987,000,000.00
Other financing –related ash received 2,170,605,493.16 301,662,960.13
Sub-total of cash inflow from financing
22,536,445,731.53 15,122,597,079.50
activities
Cash to repay debts 6,289,451,400.00 2,886,415,300.00
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Cash paid as dividend, profit, or
1,026,672,454.15 910,290,074.11
interests
Incl: Dividend and profit paid by
20,000,000.00 30,000,000.00
subsidiaries to minor shareholders
Other cash paid for financing activities 364,888,859.47 294,769,814.99
Sub-total of cash outflow due to
7,681,012,713.62 4,091,475,189.10
financing activities
Net cash flow generated by financing 14,855,433,017.91 11,031,121,890.40
IV. Influence of exchange rate
-13,254,966.69 -701,359.42
alternation on cash and cash equivalents
V.Net increase of cash and cash
13,072,565,686.87 8,614,877,020.69
equivalents
Add: balance of cash and cash
11,964,769,404.73 3,349,892,384.04
equivalents at the beginning of term
VI ..Balance of cash and cash
25,037,335,091.60 11,964,769,404.73
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 rending of services 699,026,374.97 836,777,633.78
Tax returned 1,087,987.52 400,038.32
Other cash received from business operation 357,156,884.07 2,778,636,800.26
Sub-total of cash inflow 1,057,271,246.56 3,615,814,472.36
Cash paid for purchasing of merchandise and services 520,896,541.92 638,609,349.11
Cash paid to staffs or paid for staffs 10,818,244.29 12,448,459.82
Taxes paid 13,408,035.17 5,254,948.30
Other cash paid for business activities 3,116,834,772.50 698,242,344.14
Sub-total of cash outflow from business activities 3,661,957,593.88 1,354,555,101.37
Cash flow generated by business operation, net -2,604,686,347.32 2,261,259,370.99
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 380,624,657.54
Net cash retrieved from disposal of fixed assets, intangible
assets, and other long-term assets
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 23,563,779.00
Sub-total of cash inflow due to investment activities 404,188,436.54
Cash paid for construction of
fixed assets, intangible assets 91,025.64
and other long-term assets
Cash paid as investment 1,871,949,217.01 4,616,797,294.94
Net cash received from subsidiaries and other operational
units
Other cash paid for investment activities 3,223,701,000.00 6,120,000.00
Sub-total of cash outflow due to investment activities 5,095,741,242.65 4,622,917,294.94
Net cash flow generated by investment -4,691,552,806.11 -4,622,917,294.94
III.Cash flow generated by financing
Cash received as investment 6,910,436,125.84 7,964,499,980.50
Cash received as loans 6,172,700,000.00 3,268,000,000.00
Cash received from bond placing 4,662,400,000.00 987,000,000.00
Other financing –related ash received 183,657,813.79 46,580,667.53
Sub-total of cash inflow from financing activities 17,929,193,939.63 12,266,080,648.03
Cash to repay debts 2,912,600,000.00 1,300,000,000.00
Cash paid as dividend, profit, or interests 603,168,436.60 477,547,800.15
Other cash paid for financing activities 587,464.25 28,491,515.51
Sub-total of cash outflow due to financing activities 3,516,355,900.85 1,806,039,315.66
Net cash flow generated by financing 14,412,838,038.78 10,460,041,332.37
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents 7,116,598,885.35 8,098,383,408.42
Add: balance of cash and cash equivalents at the beginning
9,835,157,652.41 1,736,774,243.99
of term
VI ..Balance of cash and cash equivalents at the end of term 16,951,756,537.76 9,835,157,652.41
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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
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 hare 928,45 07,668. 78,682.
,556.53
holders 7.00 84
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of -4,589,2 4,589,2
shares paid and 00.00 00.00
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
accounted as
owners’ equity
10,314, 10,314,
4．Other
236.16 236.16
-323,77 -298,45
（III）Profit 55,320, -30,000,
0,578.8 0,036.8
allotment 542.06 000.00
8
1.Providing of 55,320, -55,320,
surplus reserves 542.06 542.06
2.Providing of
common risk
provisions
3．Allotment to the -268,45 -298,45
-30,000,
owners (or 0,036.8 0,036.8
000.00
shareholders) 2
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 5,758,1 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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
end of this term 3.00 .89 20.00 ,070.48 49 ,232.61 .47
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
2,662, 4,972,9 1,633,1 9,310,2
I.Balance at the 82,025, -39,946,
080,00 66,918. 64,105. 89,380.
end of last year 280.68 925.56
1.00 24 99 35
Add: Change
of accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 2,662, 4,972,9 1,633,1 9,310,2
82,025, -39,946,
beginning of 080,00 66,918. 64,105. 89,380.
280.68 925.56
current year 1.00 24 99 35
1,172, 4,418,4 1,009,3 -1,391, 5,251,1
III.Changed in the 9,011,5 50,698,
920,52 21,987. 27,426. 197,282 59,384.
current year 20.00 247.74
5.00 65 53 .67 25
（1）Total 1,326,2 1,392,5
66,290,
comprehensive 33,674. 23,686.
011.81
income 37
（II）Investment 1,172, 6,538,4 7,727,3
9,011,5 25,000,
or decreasing of 920,52 06,824. 15,829.
20.00 000.00
capital by owners 5.00 45
1．Ordinary Share 1,173, 6,767,5 7,965,5
25,000,
s invested by hare 020,52 02,719. 23,244.
000.00
holders 5.00 49
2 ． Holders of oth
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
er equity instrume
nts invested capital
3．Allotment to the
9,011,5 -9,011,5
owners (or
20.00 20.00
shareholders)
-229,09 -229,19
-100,0
4．Other 5,895.0 5,895.0
00.00
4
(IV) Internal -316,90 -286,20
50,698, -20,000
transferring of 6,247.8 8,000.1
247.74 ,000.00
owners’ equity 4
1. Capitalizing of
50,698, -50,698,
capital reserves (or
247.74 247.74
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up -266,20 -286,20
-20,000
losses by surplus 8,000.1 8,000.1
,000.00
reserves. 0
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
-2,119,9 -1,462, -3,582,4
（VI）Other 84,836. 487,294 72,131.
80 .48 28
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
3,835, 9,391,3 14,561,
IV. Balance at the 9,011,5 132,723 969,380 241,966
000,52 88,905. 448,764
end of this term 20.00 ,528.42 ,500.97 ,823.32
6.00 89 .60
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
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
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 hareh
8,457.00 ,668.84 ,125.84
olders
2 ． Holders of oth
er equity instrume
nts invested capital
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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
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
Amount in last year
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
In RMB
Amount in last year
Other Equity instrusment
Other
Less: Common Attribut Total of
Items Share Capital Compreh Surplus
preferre Sustain Shares in risk able owners’
Capital Other reserves ensive reserves
d stock able stock provision profit equity
Income
debt
I.Balance at the 2,662,08 2,782,714 70,907,47 348,329 5,864,031
end of last year 0,001.00 ,603.79 1.36 ,886.80 ,962.95
Add: Change
of accounting
policy
Correcting of
previous errors
Other
II.Balance at the
2,662,08 2,782,714 70,907,47 348,329 5,864,031
beginning of
0,001.00 ,603.79 1.36 ,886.80 ,962.95
current year
III.Changed in the 1,172,92 6,538,384 9,011,520 42,826,83 119,233 7,864,353
current year 0,525.00 ,363.64 .00 2.73 ,494.50 ,695.87
（I）Total
428,268 428,268,3
comprehensive
,327.33 27.33
income
(II) Investment or
1,172,92 6,538,384 9,011,520 7,702,293
decreasing of
0,525.00 ,363.64 .00 ,368.64
capital by owners
1．Ordinary Share
1,173,02 6,767,502 7,940,523
s invested by hareh
0,525.00 ,719.49 ,244.49
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and 9,011,520 -9,011,52
accounted as .00 0.00
owners’ equity
-100,00 -229,118, -229,218,
4．Other
0.00 355.85 355.85
-309,03
（III）Profit 42,826,83 -266,208,
4,832.8
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
allotment 2.73 3 000.10
1.Providing of 42,826,83 -42,826,
surplus reserves 2.73 832.73
2．Allotment to the -266,20
-266,208,
owners (or 8,000.1
000.10
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the 3,835,00 9,321,098 9,011,520 113,734,3 467,563 13,728,38
end of this term 0,526.00 ,967.43 .00 04.09 ,381.30 5,658.82
III.Brief introduction of the Company
Approved by Hebei Economic System Reform Commission with the Approval of Establishment of Dongxu
Optoelectronic Technology Co., Ltd.（Hereinafter referred to as “The Company”or “Dongxu Optoelectronic”）(Ji
Ti Gfai Wei Gu Zi(1992) No.5 Document) in 1992, Shijiazhuang Baoshi Electronic Glass Co., Ltd. is a joint stock
limited company company jointly established by Shijiazhuang Kinescope General Factory (transformed into
Shijiazhuang Baoshi Electronics Group Co., Ltd.later), China Electronic Import and export Corporaqtion and
Zonghua Hebei Import and Export Company. At the Time of establishment, the Company had 25.68 million
shares (the par value of each share is RMB 10) and total share capital of RMB 256.80 million.
On July 17, 1993, the Company held a provisional shareholders' general meeting and decided to split the stock
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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 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 Electro
nic Glass 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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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 Photoelect
ric Science&Technology Co. Ltd permitted by China Securities Regulatory Commission and also was resolved in
the 7th board of the forty-eight meeting and the first extraordinary shareholders' general meeting， it is approved t
hat the company issues new shares less than 1,104,928,457.00 privately. The planned number of privately issued s
tocks is less than (including) 1,104,928,457.00. The actual issuance number of the stock is 1,104,928,457.00, and t
he modified equity capital is 4,939,928,983.00 yuan.
As of December 31, 2016, 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 Parent Company is the Dongxu Group，Uitimate controller is Li Zhaoting.
Financial statements and notes to the financial statements approved at the 12th meeting of the August Board
of of Directors on March 24, 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).
In2016, 17 subsidiaries and 17 sub-subsidiaries were included in the consolidation scope by the company, see
details at Note IX “Rights and Interests in Other Subjects ”. The consolidation scope of the company increased by
16 companies year on year at this reporting period, see details at Note VIII.“Change of Consolidation Scope”
IV.Basis for the preparation of financial statements
1.Basis for the preparation
The financial statements of the company are prepared based on the going-concern assumption and the actual
transactions and items,，the Company prepared financial statements in accordance with the ASBE-Basic Standard
and revised thereafter, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of
Accounting Standards for Business Enterprises and other regulations(hereinafter referred to as “the Accounting
Standards for Business Enterprises”, “China Accounting Standards” or “CAS”)，Rules for Preparation Convention
of Disclosure of Public Offering Companies No.15 – General Regulations for Financial Reporting (revised in
2014) by China Securities Regulatory Commission.
In accordance with relevant provisions of the Accounting Standards for Business Enterprises, the Group
adopted the accrual basis in accounting. Except for some financial instruments, where impairment occurred on an
asset, an impairment reserve was withdrawn accordingly pursuant to relevant requirements.
2. Going-concern
The company has the capacity to continually operate within 12 months at least since the end of report period,
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
and hasn’t the major issues impacting on the sustainable operation ability.
Whether the company needs to comply with the disclosure requirements of the particular industry
No
V. Principal Accounting Policies and Estimations
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Important prompt:
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 accounti
ng standards in line with of system, and have truly and completely reflected of the financial status in December
31, 2016 , operational results, cash flow, and other relevant information of January –December 2016.
2.Accounting year:
The Group’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year..from
January 1 to December 31 as one accounting year.
3. Operating Cycle
The normal business cycle refers to the period from the assets used for processing after purchased by the company
to the cash or cash equivalents achieved. 12 months are regarded as one operating cycle in the company, and which is as
the division criterion for the liquidity of assets and liabilities. The parent company and the subsidiay- Shijiazhuang
Colour Bulb Co., Ltd., Wuhu Dongxu Optoelectronic Equipment Co., Ltd., 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-Fuzhou Dongxu Optoelectronic Technology
Co., Ltd., Xuyou Electronic Material Technology(Wuxi) Co., Ltd. And Shanghai Tanyuan Huigu New Material
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 development 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 Subsidiary-Shenzhen Xuhui Investment Holding
Co., Ltd.,which are 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-Fuzhou Xufu Optoelectronic Technology Co., Ltd, Taizhou Xiwang New energy Technology
Co., Ltd.and Fuzhou Xuyou Electronic Material Technology Co., Ltd.,which are engaged in Manufacturing
industry, with normal operating cycle that is one year;The Sub-subsidiary-Sichuan Dongxu Ruiyi Survey Design
Co., Ltd. And Sichuan Dongxu Frosper Construction Development Co., Ltd., which are engaged in Construction
installation industry, with normal operating cycle that is one year;The Sub-Subsidiary –Sichuan Dongxu Ruiyi
Enterprise Management Co., Ltd.,,which is engaged in technology serves industry; with normal operating cycle
that is one year;The Sub-Subsidiary- Beijing Dongxu Investment Development Co., Ltd, which is engaged in
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
investment management industry, with normal operating cycle that is one year; The Sub-Subsidiary- Xiamen Xuqi
Investment Management Co., Ltd., Fuzhou Dongxu Investment Development , Taizhou Dongxu Graphene
Indusgry Investment Fund Management Center(LP), which are engaged in investment management industry, with
normal operating cycle that is one year; The Sub-Subsidiary- Shenzhen Xinyingtong Technology Co., Ltd.,
Shenzen Xingxinda Technology Co., Ltd.,which are engaged in supply chain industry, with normal operating
cycle that is one year;The sub-subsidiary-Sichuan Ruiyi Trade Co.,Ltd, is engaged in Trade industry, with normal
operating cycle that is one year.
4.Standard currency for bookkeeping：
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting treatment methods of the merger of enterprises under the control of the same company
and different companies
Business combination refers to the transactions or items with one reporting entity formed by the combination
of two or more separate enterprises. The business combination shall be divided into the business combination
under common control and the business combination under non-common control.
(1) Business Combination under Common Control
The business combination under common control refers to the business combination in which all of the
combining enterprises are ultimately controlled by the same party or parties both before and after the combination,
and that control is not transitory. Of which, the combining party is that acquiring the control right to other
combining enterprises at combining date, and the combining date means the date that the combining party actually
acquires the control right of the combined party.
The assets and liabilities acquired by the combining party are measured in accordance with the book value of
the combined party at the combining date. For the balance between the book value of net assets acquired by the
combining party and the book value of the combining valuable consideration (or the nominal amount of issued
shares), the capital reserves (stock premium) shall be adjusted, or the retained earnings shall be adjusted when the
capital reserves (stock premium) are insufficient.
All the costs directly incurred for the business combination by the combining party shall be recorded into the
current profits and losses when occurred.
（2）Business Combination under Non-common Control
The business combination under non-common control refers to the business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties both before and after the
combination. Of which, the acquirer is that obtaining the control right to other combining enterprises at
acquisition date, and other combining enterprises refers to the acquiree. The acquisition date means the date that
the acquirer actually obtains the control right of the acquiree. For the business combination under non-common
control, the merger costs include the assets paid for obtaining the control right of acquiree by the acquirer, the
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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
by the acquiree during the merger on the acquisition date, is recognized as the business reputation. While the
merger cost is less than the fair value shares of identifiable net assets obtained by the acquiree during the merger,
all the measurement on the identifiable assets, the liabilities, the fair value of liabilities and the merger cost
obtained by the acquiree should firstly be rechecked, and the difference shall be recorded into the current profits
and costs if the merger cost is still less than the fair value shares of identifiable net assets obtained by the acquiree
during the merger after rechecking.
If the deductible temporary difference of acquiree obtained by the acquirer is not recognized due to the
recognition condition of the deferred income tax assets unmet on the acquisition date. Within 12 months after the
acquisition date, the relevant deferred income tax assets shall be recognized and the business reputation shall be
reduced if the acquired new or further evidence shows that the relevant situation has already existed and the
economic benefit gained by the acquiree from the deductible temporary difference is expected to achieve, and the
differences are recognized as the current profits and losses if the business reputation is insufficient to offset. With
the exception of the above, the deferred income tax assets related to the business combination are recorded into
the current profits and losses.
For the business combination under non-common control realized step-by-step through multiple transactions,
the multiple transactions shall be judged if belong to “the package deal” according to the “Notice on Issuance of
Interpretation of Accounting Standards for Business Enterprises from Ministry of Finance” (Finance and
Accounting [2012] No.19) and the judgment standards on “the package deal” in Article 51 of “Accounting
Standards for Business Enterprises No.33 – Consolidated Financial Statement” (please see 5 (2) in Notes 3). For
the package deal, please refer to above description of this section and Notes 3, 12 “Long-term Equity Investment”
to conduction the accounting treatment. For the non-package deal, the relevant accounting treatment should be
respectively conducted for the individual financial statement and the consolidated financial statements:
For the individual financial statements, the sum of the book value of equity investment from the purchased
party held before the purchase date and the new investment cost at the purchase date shall be as the initial
investment cost of the investment. For the other comprehensive incomes involved in the equity of the acquiree
held before the acquisition date, the investment and the relevant other comprehensive incomes shall be disposed
through the accounting treatment on the same basis of the direct disposal of the relevant assets or liabilities by the
acquiree (Namely, the rest is transferred into the current investment incomes with the exception of the
corresponding shares of changes caused by the net liabilities or the net assets of the defined benefit plans
re-measured by the acquiree as per the equity method).
In the consolidated financial statements, the equity of the acquiree held before the acquisition date shall be
measured again as per the fair value of the equity on the acquisition date, and the difference between the fair value
and the book value is recorded into the current investment income. For the other comprehensive incomes involved
in the equity of the acquire held before the acquisition date, the relevant other comprehensive incomes shall be
disposed through the accounting treatment on the same basis of the direct disposal of the relevant assets or
liabilities by the acquire (Namely, the rest is transferred into the current investment incomes on the acquisition
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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
through the business combination under non-common control, the business performance and the cash flow after
the acquisition date have been properly included in the consolidated profit statement and the consolidated cash
flow statement, and the opening balance and the comparison balance of the consolidated financial statement shall
not be adjusted. For the subsidiaries increased through the business combination under common control, the
business performance and the cash flow from the beginning of current combination period to the combination date
have been properly included in the consolidated profit statement and the consolidated cash flow statement, and the
comparison balance of the consolidated financial statement shall be adjusted simultaneously.
When the preparation of the consolidated financial statement, the necessary adjustment shall be made
according to the accounting policy of the company and the financial statement of the subsidiaries during the fiscal
period if the accounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For
the subsidiaries acquired through the business combination under non-common control, the financial statement
shall be adjusted on the basis of the fair value of the identifiable net assets on the acquisition date.
All the major balances, transactions and the unrealized profits of the company shall be offset in the
preparation of the consolidated financial statement.
Those not belong to the company in the shareholders’ equity and the current net profit or loss of the
subsidiaries shall be respectively as the minority equity and the minority interest income and individually listed
under the shareholders’ equity and the net profit of the consolidated financial statement. The minority equity
portion from the net profit or loss in current period shall be as “minority interest income” and listed under the net
profit in the consolidated financial statement. Moreover, the minority equity is still offset even if the losses of the
subsidiaries undertaken by the minority shareholders are beyond the portion of the shareholders’ equity shared by
the minority shareholders of the company at the beginning of period.
When the control on the original subsidiaries lost due to the disposal of partial equity investment or other
reasons, the remaining equity should be measured again according to the fair value on the control lost date. The
difference of the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the
net assets portion of the original subsidiaries calculated from the purchase date as per the original stock proportion
shall be recorded into the current investment income after the control lost. Other comprehensive returns relevant
to the original subsidiary shares investment shall be disposed through the accounting treatment on the same basis
of the direct disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely, all the rest
are transferred into the current investment incomes, with the exception of the changes caused by the net liabilities
or the net assets of the defined benefit plans re-measured by the original subsidiaries). Thereafter, the subsequent
measurement shall be made for the rest equity according to the relevant provisions of “Accounting Standards for
Business Enterprises No. 2 – Long-term Equity Investment” or “Accounting Standards for Business Enterprises
No. 22 – Recognition and Measurement of Financial Instruments”. For the details, please see Notes V, 14
“Long-term Equity Investment” or Notes V, 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 14, (2) ④ in Notes V,) and “The Control on Original
Subsidiary Lost due to Disposal of Part of Equity Investment or Other Reasons” (details please see forepart). For
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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
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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
profits and losses of the current period, except for ① the balance of exchange arising from special foreign
currency borrowings for the purchase and construction of qualified assets subject to the principle of borrowing
costs. ② the exchange balance generated from other book balances in the foreign currency monetary items
available for sale with the exception of the post-amortization costs shall be recorded into other comprehensive
incomes.
The non-monetary items of foreign currency measured at the historical cost shall still be measured by the
amount of functional currency translated at the spot exchange rate on the transaction date. The non-monetary
items of foreign currency measured at the fair value shall be translated at the spot exchange rate on the fair value
recognized date, and the gap of the translated amount of functional currency and the original the amount of
functional currency shall be as the fair value variation (change in exchange rate included) to make treatment and
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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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. 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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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
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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
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
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
Donggxu Optoelectronic Technology Co.,Ltd. 2016 Annual Report
period: 1)sum of consideration the portion whose recognition has been stopped and the accumulative amount
changes in fair value originally recorded owner’s equities which is corresponding to stopped, the book value of
the portion whose recognition has been stopped; 2) the book value of the portion whose recognition has been
stopped.
For the financial asset sold with recourse attached, it is to transfer the financial asset held by endorsement,
prior to confirmation that nearly all of the risks and rewards related to the ownership of the financial asset has
been transferred to transferee. Where this enterprise has transferred nearly all of the risks and rewards related to
the ownership of the financial asset to the transferee, it shall stop recognizing the financial asset. If it retained
nearly all of the risks and rewards related to the ownership of the financial asset, it shall not stop recognizing the
financial asset. Where this enterprise does not transfer or retain nearly all of the risks and rewards related to the
ownership of a financial asset, it shall deal with it according to principles stipulated above.
(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
