Dongxu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2017 Stock code：000413,200413 Abbreviation：Dongxu Optoelectronic, Dongxu B Announcement：2017-105 Dongxu Optoelectronic Technology Co., Ltd.
The Third Quarterly Report 2017
October 2017
Dongxu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2017 I. Important Notice
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. All of the directors presented the board meeting at which this Quarterly Report was examined.
Mr. Li Zhaoting, The Company leader, Mr.Huang Jinliang, Chief financial officer and the Mr.Gao Feipeng, the person in charge of the accounting department (the person in charge of the accounting )declare: the financial report carried in this report is authentic and completed.
Dongxu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2017 II. Basic information about the company
I.Main financial data and financial index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not.
□ Yes√ No
||||||||
|-|-|-|-|-|-|-|
||As at the end of the||As at the end of last year||Changed （%）over end of||
||reporting period||||prev. year||
|Gross assets（RMB）|48,694,131,849.40||46,826,319,570.41||3.99%||
|Net assets attributable to the|22,897,698,801.62||22,216,300,365.86||||
|shareholders of the listed company|||||3.07%||
|（RMB）|||||||
|||Increase/decrease over||Between beginning of|||
|||||||Changed （%）over|
||Reporting period|the same period of last||the year to the end of|||
|||||||end of prev. year|
|||year（%）||the report period|||
|Operating income（RMB）|3,227,360,295.67|133.93%||7,868,645,823.58||84.64%|
|Net profit attributable to the|390,258,136.00|||1,026,113,886.37|||
|shareholders of the listed company||52.52%||||27.97%|
|（RMB）|||||||
|Net profit after deducting of|||||||
|non-recurring gain/loss attributable to|||||||
||378,226,991.24|138.86%||938,217,539.65||51.76%|
|the shareholders of listed company|||||||
|（RMB）|||||||
|Cash flow generated by business||||332,635,634.84|||
||--|--||||-79.58%|
|operation, net（RMB）|||||||
|Basic earning per share(RMB/Share)|0.080|33.33%||0.210||5.00%|
|Diluted gains per|0.080|||0.210|||
|||33.33%||||5.00%|
|share(RMB/Share)(RMB/Share)|||||||
|Weighted average income/asset ratio|||||||
||1.72%|0.21%||4.51%||-0.72%|
|（%）|||||||

Items and amount of non-current gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
||Amount (Year-beginning to||
|Items||Notes|
||the end of the report period.)||
|Non-current asset disposal gain/loss(including the write-off partfor which assets impairment provision is made)|||
||-36,971.00||

Dongxu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2017
||||
|-|-|-|
|Govemment subsidy recognized in current gain and|||
|loss(excluding those closely related to the Company’s business|76,061,917.45||
|and granted under the state’s policies)|||
|Gain from entrusted investment or assets management|38,932,047.17||
|Gain/loss on loans obtained by entrusting others|6,811,112.87||
|Other non-operating income and expenditure beside for the above|||
||-439,080.66||
|items|||
|Less: Influenced amount of income tax|18,977,141.62||
|Amount of influence of minority interests（After tax）|14,455,537.49||
|Total|87,896,346.72|--|

For theCompany’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.
The Third Quarterly Report 2017 II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders
In shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Total preference shareholders with||||
|Total number of common||405,506（Including 388047shareholders holding a||||||||
|||||||the voting power recovered at the|||0|
|shareholders at the period-end||shares and 17459 shareholders holding B shares）||||||||
|||||||end of the reporting period(if any)||||
|Shares held by the top 10 shareholders||||||||||
||||Share||Amount of tradable||Pledging or freezing|||
||Properties of|||||||||
|Shareholder name|||proportion|Quantity|shares with||Status of the|||
||shareholder|||||||Quantity||
||||%||Conditional held||shares|||
|Tunghsu Group Co., Ltd.|Domestic Non-State-owned legalperson||11.32%|558,968,800|439,882,697|||||
||||||||Pledge|553,962,697||
|Shijiazhuang Baoshi ElectronicGroup Co., Ltd.|Domestic Non-State-owned legalperson||6.73%|332,382,171|0|||||
||||||||Pledge|153,520,000||
|China Fund Management Co.,Ltd.－Huaxia Bank－TTCOTrust Co., Ltd.－TTCO TrustCo., Ltd.－Shunjing No.5Single capital trust|Other||3.51%|173,239,116|0|||||
|Minsheng Royal FundManagement Co., Ltd.-Ping AnBank-Ping An Trust-Ping AnWealth* Huitai No.163 SingleFund Trust|Other||1.86%|91,642,280||||||
|Qianhai Equity InvestmentFund（LP）|Domestic Non-State-owned legalperson||1.74%|86,024,545||||||
|Dongxu OptoelectronicTechnology Co., Ltd.－TheIphase of ESOP|Other||1.47%|72,639,296|72,639,296|||||
|Nuoan Fund－XingyeSecurities－Nanjing ShuanganAssets Management Co., Ltd.|Other||1.45%|71,494,714||||||
|Shenzhen Taianer InformationTechnology Co., Ltd.|Domestic Non-State-owned legalperson||1.39%|68,765,682||||||
||||||||Pledge|61,165,682||
|Penghua Fund－Ningbo Bank|Other||1.25%|61,987,758||||||

The Third Quarterly Report 2017
||||||||
|-|-|-|-|-|-|-|
|－Daye Trust－DayeTrust·Dongxu Optoelectronicincrease funds II Single fundtrust|||||||
|STAS Asset Management－Ningbo Bank－Minsheng Trust－China Minsheng Trust·ZhixinNo.208 Dongxu Optoelectronicincrease collective fund trustplan|Other|1.25%||61,987,758|||
|Shares held by the Top 10 Shareholders of Non-restricted shares|||||||
||||Number of the non-restricted shares||Share type||
|Shareholders’ Names|||||||
||||held||Share type|Quantity|
|Shijiazhuang Baoshi Electronic Group Co., Ltd.|||332,382,171||RMB Common||
|||||||332,382,171|
||||||shares||
|China Fund Management Co., Ltd.－Huaxia Bank－TTCO Trust Co., Ltd.－TTCO Trust Co., Ltd.－Shunjing No.5 Single capital trust|||173,239,116||||
||||||RMB Common||
|||||||173,239,116|
||||||shares||
|Tunghsu Group Co., Ltd.|||119,086,103||RMB Common||
|||||||119,086,103|
||||||shares||
|Minsheng Royal Fund Management Co., Ltd.-Ping AnBank-Ping An Trust-Ping An Wealth* Huitai No.163Single Fund Trust|||91,642,280||||
||||||RMB Common||
|||||||91,642,280|
||||||shares||
|Qianhai Equity Investment Fund（LP）|||86,024,545||RMB Common||
|||||||86,024,545|
||||||shares||
|Nuoan Fund－Xingye Securities－Nanjing ShuanganAssets Management Co., Ltd.|||71,494,714||RMB Common||
|||||||71,494,714|
||||||shares||
|Shenzhen Taianer Information Technology Co., Ltd.|||68,765,682||RMB Common||
|||||||68,765,682|
||||||shares||
|Penghua Fund－Ningbo Bank－Daye Trust－DayeTrust·Dongxu Optoelectronic increase funds II Singlefund trust|||61,987,758||||
||||||RMB Common||
|||||||61,987,758|
||||||shares||
|STAS Asset Management－Ningbo Bank－MinshengTrust－China Minsheng Trust·Zhixin No.208 DongxuOptoelectronic increase collective fund trust plan|||61,987,758||||
||||||RMB Common||
|||||||61,987,758|
||||||shares||
|HuaAn Future Asset-ICBC-No.1 Asset ManagementPlan of Dongxu Optoelectronic’s Private Placement|||49,877,765||RMB Common||
|||||||49,877,765|
||||||shares||
||||Among the top ten shareholders holding non-restricted negotiable shares,||||
|Explanation on shareholders participating in the margin|||||||
||||Tunghsu Group and Baoshi Group have relationship and constitute||||
|trading business|||||||
||||persons taking concerted action. The Company does not know whether||||

The Third Quarterly Report 2017
|||
|-|-|
||there is any relationship among the rest 8 ordinary shareholders or|
||between the rest eight top shareholders of unlimited-sale common stock|
||and the rest 8 ordinary shareholders, nor know whether they belong to the|
||persons acting in concert stipulated by "Measures for the administration of|
||the takeover by listed companies".|
|Participation of top 10 unconditional common share||
||Not applicable|
|shareholders in securities margin trading (if any)||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy–back agreement dealing in reporting period.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period
□ Applicable√Not applicable
III Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Amount at the|||||
||||||Amount at the end of||beginning of period||Rate of change|||
||No||Items in statements||||||||Reason for change|
||||||period/ This period||/Same period of last||（%）|||
||||||||year|||||
|1||Account receivable||2,815,556,458.91||1,652,714,640.77||70.36||Mainly due to the expansionof business scale and income||
|2||Advance payments||1,986,345,935.58||862,432,895.10||130.32||Mainly due to the newprepaid payment and equitypurchase||
|3||Other accountreceivable||319,700,792.58||186,071,085.24||71.82||Mainly due to the increase inmargin||
|4||Inventories||3,706,559,024.47||2,688,967,436.27||37.84||Mainly due to stocking||
|5||Long term shareequity investment||505,025,114.92||72,354,803.70||597.98||Mainly due to the increase inequity investment||
|6||Construction inprogress||2,932,425,322.50||1,772,629,310.84||65.43||Mainly due to theconstruction of productionline||

The Third Quarterly Report 2017
|||||||
|-|-|-|-|-|-|
|7|Goodwill|156,849,701.01|33,935,384.57|362.20|Mainly due to the mergerunder the same control|
|8|Long-term prepaidexpenses|18,712,963.05|11,756,506.76|59.17|Mainly due to the increase inthe use of patents andhousing renovation fees|
|9|Notes payable|263,884,722.25|393,136,676.05|-32.88|Mainly due to payment due|
|10|Account payable|1,809,200,506.64|1,165,418,491.73|55.24|Mainly due to the increase ininventories|
|11|Advances fromcustomers|893,259,362.12|414,078,061.38|115.72|Mainly due to the increase inconstruction equipment|
|12|Interest payable|238,293,444.92|81,610,513.91|191.99|Mainly due to the votes andcorporate bonds|
|13|Other payable|238,163,230.93|114,993,136.80|107.11|Mainly due to the increase inmargin|
|14|Business revenue|7,868,645,823.58|4,261,683,547.71|84.64|Mainly due to the expansionof business scale in thecurrent period|
|15|Operating cost|5,937,363,039.53|2,883,454,282.36|105.91|Mainly due to the increase inoperating costs due to theincrease in operating costs|
|16|Business taxes andsurcharges|58,051,137.61|25,082,445.26|131.44|Mainly due to the increase inoperating income due to theincrease in tax revenue|
|17|Financial expenses|411,695,344.38|189,141,367.36|117.67|Mainly due to the currentcorporate bonds and interestaccrued|
|18|Investment income|21,302,358.40|-29,947.57|71,232.18|Mainly due to the equitymethod of accounting forinvestment income andfinancial benefits|
|19|Non-operatingincome|76,654,784.57|196,230,891.80|-60.94|Mainly due to thereclassification of newgovernment subsidies|
|20|Income taxexpense|274,936,572.22|131,886,161.05|108.47|Mainly due to the increase inthe scale of business profits|

The Third Quarterly Report 2017 II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal.
√Applicable□Not applicable
(I) The Phase II Employee Stock Ownership Plan of the company
The Company held the 19th meeting of the 8th Board of Directors and the 5th extraordinary shareholders' general meeting respectively on July 30, 2017 and on August 15, 2017, examined and approved the Proposal about the Phase II Employee Stock Ownership Plan (draft) of Dongxu Optoelectronic Technology Co., Ltd and its Summary. On September 5, 2017, the Collective Fund Trust Plan of Zhonghai Trust-Dongxu Optoelectronics ESOP was set up. As of the date of this report, the company's Phase II ESOP has not yet bought the company's stock due to the factors such as the company's third quarterly report disclosure window period.
The company's Phase II ESOP planned to complete the purchase of the company's stock in the secondary market within the valid period.
(II) The matter of the Company's share issuance and paying cash to purchase the assets and raise the matching funds namely the related transaction
On August 24, 2017, the company received the notice from the CSRC that the Company's share issuance and paying cash to purchase the assets and raise the matching funds namely the related transaction matter was conditionally approved by CSRC through the forty-ninth merger and reorganization committee work conference held on August 24, 2017 by CSRC's Audit Committee of Mergers and Reorganization of listed companies. The Company will complete the issuance of shares to buy assets and raise the matching funds and complete the registration, listing of new shares and other related work as soon as possible after receiving the approval document from the China Securities Regulatory Commission.
||||
|-|-|-|
|||Description of the website for disclosing provisional|
|Overview of material matters|Date of disclosing||
|||announcement|
|The restructuring project wasreviewed and approved||China securities Journal, Hongkong Commercial Daily,|
||August 24,2017|Secutities Daily , Secutities Times, Shanghai Securities|
|||News and http://www.cninfo.com.cn.|
|The Phase II employee stockownership plan was reviewed andapproved||China securities Journal, Hongkong Commercial Daily,|
||August 16,2017|Secutities Daily , Secutities Times, Shanghai Securities|
|||News and http://www.cninfo.com.cn.|

III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
□ Applicable√ Not applicable
The company has no commitments completed in period and those without completed till lend of the period from actual controller, shareholders, related parties, purchaser and companies.
The Third Quarterly Report 2017IV．Prediction of Business performance for 2017
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason.
□ Applicable√ Not applicable
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
□ Applicable√ Not applicable
The company has no commitments completed in period and those without completed till lend of the period from actual controller, shareholders, related parties, purchaser and companies.
IV．Prediction of Business performance for January- June 2017
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason.
□ Applicable√ Not applicable
V. Investment in securities
□ Applicable√ Not applicable
No securities investment in period.
VI. Investments in derivatives
□ Applicable√ Not applicable
There is no derivative investment during the report period.
VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference
√Applicable□Not applicable
|||||
|-|-|-|-|
|Reception time|Way of reception|Types of visitors|Basic index|
||||Shenzhen Stock Exchange site|
|September 19,2017|Field research|Organization||
||||interactive company zone|
|From January 1,2017 to||||
||By Phone|Individual|Nil|
|September 30,2017||||

The Third Quarterly Report 2017 VIII. Outward Guarantee against the Regulations
□ Applicable√ Not applicable
The Company had no guarantee outside against the regulation in the reporting period.
IX. Non-operational Occupancy of theCompany’s Capital by the Controlling Shareholder and its Related Parties
□ Applicable√ Not applicable
The Company had no non-operational fund occupation from controlling shareholders and its related party. X.Implementation of the social Responsibility of taking targeted measures to alleviate poverty in light of local Conditions.
The third Quarter poverty relieving summary
In December 2016, the company, for promoting the original old liberated area culture of “Jinsui revolutionary base area” in Shanxi and the sustainable development of the educational business as well as inheriting the spirit of arduous struggle for the nation and people of the older generation of revolutionaries, entered into the Donation Agreement with Shanxi Jinsui Culture and Education Development Foundation (hereinafter referred to as “Jinsui Foundation”), under which, the company would donate 3 million yuan to Shanxi Jinsui Culture and Education Development Foundation freely from the its own fund. The donation money is mainly used for the financing of the outstanding students of the poor families in the old liberated areas, the establishment of the Jinsui base information database, the landscaping project of Memorial Cemetery of Jinsui Martyrs, the relocated burial of the revolutionary martyrs, etc.
During the reporting period, the Company actively followed up and supervised the use of donation funds for poverty alleviation. From August 17, 2017 to August 19,2017, the company and the Jin Sui Cultural and Educational Development Foundation together carried out the sunshine activities to aid students in Xing county and Shilou County in Shanxi province, and each of the 207 outstanding students of the poor families selected by Jin Sui Cultural and Educational Development Foundation was granted RMB 5,000 of tuition aid and inspirational scholarship, thus to ensure that they enter school smoothly and finish their studies better.
Dongxu Optoelectronic Technology Co., Ltd.
Board Chairman: Li Zhaoting
Issue day approved by the Board ofDirectors：October 30,2017