The Third Quarterly Report 2016 Stock code：000413,200413 Abbreviation：Dongxu Optoelectronic, Dongxu B Announcement：2016-113 Dongxu Optoelectronic Technology Co., Ltd.
The Third Quarterly Report 2016
The Third Quarterly Report 2016 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. 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 )declare: the financial report carried in this report is authentic and completed
The Third Quarterly Report 2016 II. Main financial data and changes of shareholders
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 reporting||As at the end of last year||Changed （%）over end of||
||period||||prev. year||
|Gross assets（RMB）|39,342,234,739.38||28,798,623,253.33||36.61%||
|Net assets attributable to the|21,766,571,634.57||14,319,481,941.28||||
|shareholders of the listed company|||||52.01%||
|（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）|1,379,624,393.30|38.15%||4,261,683,547.71||68.92%|
|Net profit attributable to the|255,873,197.91|||801,836,908.63|||
|shareholders of the listed company||-24.70%||||8.37%|
|（RMB）|||||||
|Net profit after deducting of|||||||
|non-recurring gain/loss attributable|||||||
||158,346,261.62|49.41%||618,240,914.75||95.18%|
|to the shareholders of listed|||||||
|company（RMB）|||||||
|Cash flow generated by business||||1,629,350,095.12|||
||--|--||||22.47%|
|operation, net（RMB）|||||||
|Basic earning per|0.06|||0.20|||
|||-53.85%||||-28.57%|
|share(RMB/Share)|||||||
|Diluted gains per|0.06|||0.20|||
|||-53.85%||||-28.57%|
|share(RMB/Share)(RMB/Share)|||||||
|Weighted average income/asset|||||||
||1.51%|-2.03%||5.23%||-2.54%|
|ratio（%）|||||||

In RMB
||||
|-|-|-|
||Amount from beginning of||
|Items|the year to the end of the|Notes|
||report period||
|Non-current asset disposal gain/loss(including the write-off partfor which assets impairment provision is made)|||
||-4,535.74||

The Third Quarterly Report 2016
||||
|-|-|-|
|Government subsidies recognized in current gain and|||
|loss(excluding those closely related to the Company’s business|195,277,780.91||
|and granted under the state’s policies)|||
|Gain/loss on loans obtained by entrusting others|2,165,094.33||
|Other non-operating income and expenditure beside for the above|||
||711,781.87||
|items|||
|Less: Influenced amount of income tax|4,418,812.65||
|Amount of influence of minority interests（After tax）|10,135,314.84||
|Total|183,595,993.88|--|

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 2016 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|314,070(including 296,583 shareholders holding A||||||||
||||||the voting power recovered at the|||0|
|shareholders at the period-end|shares and 17,487 shareholders holding B shares)||||||||
||||||end of the reporting period(if any)||||
|Shares held by the top 10 shareholders|||||||||
||||||Amount of|Pledging or freezing|||
||||Share||||||
|||Properties of|||tradable shares||||
|Shareholder name|||proportion|Quantity||Status of the|||
|||shareholder|||with Conditional||Quantity||
||||%|||shares|||
||||||held||||
|Dongxu Group||Domestic Non-State-owned legalperson|11.37%|561,483,467|||||
|||||||Pledge|522,238,042||
|Shijiazhuang Baoshi Electronic GroupCo., Ltd.||Domestic Non-State-owned legalperson|6.73%|332,382,171|||||
|||||||Pledge|148,856,500||
|China Fund Management Co., Ltd.－Huaxia Bank－TTCO Trust Co., Ltd.－TTCO Trust Co., Ltd.－ShunjingNo.5 Single capital trust||Other|4.51%|222,575,516|||||
|Minsheng Royal Fund ManagementCo., Ltd.-Ping An Bank-Ping AnTrust-Ping An Wealth* Huitai No.163Single Fund Trust||Other|3.71%|183,284,457|||||
|Bosera Capital-Ping An Bank- PingAn Trust-Ping An Wealth* HuitaiNo.164 Single Fund Trust||Other|3.38%|167,155,426|||||
|Guangzhou Securities-China GuangfaBank-Guangzhou Securities No.2Collective Asset Management Plan ofKunpeng Dingcheng||Other|2.67%|131,964,809|||||
|Sws Mu Fund Management Co.,Ltd.－China Merchants Bank－HuarunShen State investment trust－Ruihuaincrease funds No. 2 Collectivecapital trust plan||Other|2.25%|111,287,758|||||
|Penghua Fund－Ningbo Bank－DayeTrust－Daye Trust·DongxuOptoelectronic increase funds II||Other|2.25%|111,287,758|||||

The Third Quarterly Report 2016
||||||||
|-|-|-|-|-|-|-|
|Single fund trust|||||||
|STAS Asset Management－NingboBank－Minsheng Trust－ChinaMinsheng Trust·Zhixin No.208Dongxu Optoelectronic increasecollective fund trust plan|Other|2.25%||111,287,758|||
|Shenzhen Taianer InformationTechnology Co., Ltd.|Domestic Non-State-owned legalperson|2.24%||110,492,845|||
|Qianhai Equity Investment Fund (LP)|Domestic Non-State-owned legalperson|2.24%||110,492,845|||
|Nuoan Fund-IndustrialSecurities-Nanjing Shuangan AssetsManagement Co., Ltd.|Other|2.24%||110,492,845|||
|Shares held by the Top 10 Shareholders of Non-restricted shares|||||||
||||Number of the non-restricted||Share type||
|Shareholders’ Names|||||||
||||shares held||Share type|Quantity|
|Shijiazhuang Baoshi Electronic Group Co., Ltd.|||332,382,171|||332,382,1|
||||||RMB Common shares||
|||||||71|
|Dongxu Group|||121,600,770|||121,600,7|
||||||RMB Common shares||
|||||||70|
|China Securities Finance Co., Ltd.|||54,333,771|||54,333,77|
||||||RMB Common shares||
|||||||1|
|Bank of China－Huaxia New Economic Mixed SecuritiesInvestment Funds|||36,608,098|||36,608,09|
||||||RMB Common shares||
|||||||8|
|Central Huijin Investment Ltd.|||24,205,500|||24,205,50|
||||||RMB Common shares||
|||||||0|
|Xie Xiantuan|||16,188,700|||16,188,70|
||||||RMB Common shares||
|||||||0|
|Wang Yong|||7,430,000||RMB Common shares|7,430,000|
|Yinhua Funds－Agricultural Bank of China－Yinhua CSIFinancial Asset management Plan|||6,632,927||||
||||||RMB Common shares|6,632,927|
|China Merchants Securities(HK) Co., Ltd.|||6,199,611||Foreign shares placed in||
|||||||6,199,611|
||||||domestic exchange||
|China Mensheng Bank－Yinhua Shenzhen 100 indexsecurities investment fund|||4,995,557||||
||||||RMB Common shares|4,995,557|
|Explanation on shareholders participating in the margin|||Among the top ten shareholders holding non-restricted negotiable||||
|trading business|||shares, Dongxu Group and Baoshi Group have relationship and||||

The Third Quarterly Report 2016
|||
|-|-|
||constitute persons taking concerted action. The Company does not|
||know whether there is relationship between the other top 8|
||shareholders holding non-restricted negotiable shares and between|
||such shareholders and the other top 8 shareholders.|
||The natural persons in the top ten Non-restricted common|
|Participation of top 10 unconditional common share|stockholders Xie Xiantuan holds 15,688.700 shares through stock|
|shareholders in securities margin trading (if any)|account with credit transaction and guarantee of Huatai Securities|
||Co., Ltd., taking 0.32% of the total shares in the company.|

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
|||||||
|-|-|-|-|-|-|
|No|Items instatements|Amount at the end ofperiod/ This period|Amount at the beginningof period/Same period of last year|Rate ofchange（%）|Reason for change|
|1|Monetary capital|22,239,580,714.19|12,409,510,170.26|79.21%|Mainly due to sales increase andwill increase the funds in place|
|2|Other accountreceivable|91,394,960.37|55,197,871.28|65.58%|Mainly due to financial leaseslead to margin|
|3|Construction inprocess|1,896,280,268.51|3,433,016,388.90|-44.76%|Mainly due to construction inprogress into fixed assets|
|4|Other non-currentassets|370,900,829.95|243,279,174.31|52.46%|Mainly due to the projectprepayment is reclassified to thissubject|
|5|Advancesreceived|347,957,086.36|97,920,689.41|255.35%|Mainly due to in advance to payback the principal|
|6|Other account||539,796,113.78|-64.58%|Mainly due to Zhengzhou Xufei,|

The Third Quarterly Report 2016 payable 191,189,379.56 Shijiazhuang Xuxin new shareholders to pay the original equity
|||||||
|-|-|-|-|-|-|
|7|Non-currentliability due in 1year|1,665,978,540.07|876,987,200.00|89.97%|Mainly due to financial leases andborrowings increased|
|8|Long-termaccount payable|947,062,155.36|57,000,000.00|1561.51%|Mainly due to increase infinancial leasing|
|9|Deferred income|348,982,112.26|246,925,387.61|41.33%|Mainly due to leasebackleaseback|
|10|Operationalincome|4,261,683,547.71|2,522,921,170.69|68.92%|Mainly due to the currenthigh-end equipment and technicalservices, LCD glass substrate,sapphire material sales revenueincreased|
|11|Operational cost|2,883,454,282.36|1,526,856,989.57|88.85%|Mainly due to the increase insales revenue led to an increase inoperating costs|
|12|Sales expense|48,408,463.62|28,022,381.82|72.75%|Mainly due to increase in thecompany's income and thecorresponding expenditure of theshipping costs, wages andbenefits, advertising and otherincrease|
|13|Asset impairmentloss|5,739,824.95|-4,875,826.03|217.72%|Mainly due to provision for baddebts is increased in the currentperiod|
|14|Non-operationalincome|196,230,891.80|504,291,218.44|-61.09%|Mainly due to reduction ingovernment grants received|
|15|Net cash flowgenerated byfinancing|8,960,824,235.97|2,105,064,497.79|325.68%|Mainly due to increase funds inplace|

II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal.
√ Applicable□ Not applicable
On July 28, 2016, the China Securities Regulatory Commission (CSRC) issued the Reply on Approval of Non-public Issuance of Shares by Dongxu Optoelectronic Technology Co.,Ltd by CSRC[2016] No. 1322 and
approved thecompany’s non-public share-issuance of issuing no more than 1,104,928,457 new shares.
On August 12, 2016, Zhongxing Caiguanghua Certified Public Accountants (Special General Partnership) issued
the Capital Verification Report of ZXCGHSYZ (2016) No. 105007 to verify the non-public to issue
The Third Quarterly Report 2016 1,104,928,457 ordinary shares (A shares)(par value per share is RMB 1.00) with the issuing price of 6.29 yuan / share, and the company has totally raised RMB 6,949,999,994.53.
On August 18, 2015, the company has completed the registration and trusteeship procedure of the shares issued in the non-public share-issuance in China Securities Depository and Clearing Co., Ltd Shenzhen Branch.
August 26, 2016, the new shares have been listed on the Shenzhen Stock Exchange, the limited period of 12 months, is expected to be traded on August 26, 2017 (in case of non-trading days postponed)
||||
|-|-|-|
|||Description of the website for disclosing provisional|
|Overview of material matters|Date of disclosing||
|||announcements|
|Non-public offering throughexamination||China Securities Journal , Securities Times, Shanghai Securities|
||May 19,2016||
|||News ,Hong Kong Commercial Daily and www.cninfo.com.cn.|
|The CSRC issued a formal hairstaling document||China Securities Journal , Securities Times, Shanghai Securities|
||July 28,2016||
|||News ,Hong Kong Commercial Daily and www.cninfo.com.cn.|
|Listing Report||China Securities Journal , Securities Times, Shanghai Securities|
||August 25,2016||
|||News ,Hong Kong Commercial Daily and 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
||||||||
|-|-|-|-|-|-|-|
|||||Time of|Period of||
|Commitmen|Commitment|||||Fulfillm|
|||Type|Contents|making|commitme||
|t|maker|||||ent|
|||||commitment|nt||
||||If listed companies plans to sell tradable stocks through||||
||||the bid trading system of Shenzhen Stock Exchange and||||
||Shijiazhuang||||||
|||Share|sell greater than 5% of shares within six months after the||||
|Commitmen|Baoshi|||||Under|
|||reduction|first sales, will disclose the contents specified by the|March 29,|Long-term||
|t on share|Electronics|||||Fulfillm|
|||commitme|Form Guide to Prompt Announcement of Removing|2007|effective||
|reform|Group Co.,|||||ent|
|||nt|Restriction on Sales of Non-tradable Stocks of Listed||||
||Ltd||||||
||||Companies through the prompt announcement of||||
||||disclosing sales of listed companies.||||
|Commitmen|||||||
|t in the|||||||
|acquisition|||||||
|report or the|||||||
|report on|||||||
|equity|||||||
|changes|||||||
|Commitmen|||||||
|t made upon|||||||
|the assets|||||||

The Third Quarterly Report 2016
||||||||
|-|-|-|-|-|-|-|
|replacement|||||||
||||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||||
|||Commitm|||||
||||subsidiaries, holding, or causing Dongxue Optoelectronic||||
|||ents on|||||
||||shares and its wholly-owned subsidiaries, holding form||||
|||horizontal|||||
||||business competition decisions. 3. The company will not|||Under|
|||competitio||December|Long-term||
||Li Zhaoting||directly invest, purchase and Dongxu Optoelectronic|||Fulfillm|
|||n, related||22, 2011|effective||
||||identical or similar business enterprises and projects.|||ent|
|||transaction|||||
||||4.If the assets owned by the Dongxu Optoelectronic .||||
|||and capital|||||
||||compete with , the company will adopt effective measures||||
|||occupation|||||
||||and give up the same business.5. If the reason of the||||
||||oneself is the cause of horizontal competition with||||
|Commitmen|||||||
||||Baoshi Stock and resulted in losses to Baoshi Stock,||||
|ts made|||||||
||||the oneself will bear the relevant full||||
|upon|||||||
||||responsibilities.6. Under the circumstance with in||||
|issuance|||||||
||||accordance with securities regulatory conditions, the||||
||||oneself promised that all the stake that entrusted to||||
||||the escrow company managed by Baoshi Stock will be||||
||||injected into Baoshi Stock. As long as the oneself is the||||
||||actual controller of Baoshi Stock, the commitment is||||
||||valid.||||
||||1.From the date of commitment letter issued, except the||||
||||managed hosting company for Dongxue Optoelectronic ,||||
||Dongxu||||||
||||this company and majority-owned subsidiaries do not in||||
||Group,||||||
|||Commitm|any way, directly or indirectly engaged in business and||||
||Dongxu||||||
|||ents on|Dongxue Optoelectronic and its subsidiaries are the same,||||
||Optoelectronic||||||
|||horizontal|or similar, future Dongxue Optoelectronic shares and its||||
||Investment|||||Under|
|||competitio|subsidiaries are not engaged in the same or similar||Long-term||
||Co., Ltd.,|||April 1,2012||Fulfillm|
|||n, related|businesses.||effective||
||Shijiazhuang|||||ent|
|||transaction|2.The company assurances against the use of precious||||
||Baoshi||||||
|||and capital|stones share any act prejudicial to the control relationship||||
||Electronics||||||
|||occupation|of Dongxu Optoelectronic interests and its wholly-owned||||
||Group Co.,||||||
||||subsidiaries, holding, or causing Dongxue Optoelectronic||||
||Ltd||||||
||||shares and its wholly-owned subsidiaries, holding form||||
||||business competition decisions. 3. The company will not||||

The Third Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|||directly invest, purchase and Dongxu Optoelectronic||||
|||identical or similar business enterprises and projects.||||
|||4.If the assets owned by the Dongxu 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 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.||||
||Share|Dongxu Group Co., Ltd. subscribed for 25.01% of the||||
|Dongxu|limited|shares privately issued by the Company and promised|April|April|Complet|
|Group|commitme|that the period of sale restriction of such shares was 36|18,2013|18,2016|ed|
||nt|months from the first day of 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||||
||Other|shareholder of Dongxu Optoelectronic; and during the||Valid for 5|Under|
|Dongxu|||February|||
||Commitm|period of holding, Dongxu Group has signed patent||years|Fulfillm|
|Group|||8,2015|||
||ent|license contracts separately with Dongxu Optoelectronic|||ent|
|||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.||||

The Third Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|||(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.||||
|||Dongxu investment/Baoshi group promised the net profit||||
|||level of the next three years and profit compensation||||
|||scheme in respective to Xuxin Optoelectronic Technology||||
|||Co., Ltd as follows: The Net profits after deducting||||
|||non-recurring gain or loss that are attributable to Xuxin||||
|Dongxu||Optoelectronic Technology Co., Ltd in year 2015, year||||
||Performan|||||
|Optoelectronic||2016, year 2017, year 2018 shall accordingly be not less||||
||ce|||||
|Investment||than RMB23.3488million, RMB55.4205million, RMB||||
||commitme|||||
|Co., Ltd.,||86.6277million, RMB 158.345 million. If any year’s|||Under|
||nt and||March|December||
|Shijiazhuang||actual net profits are less than the estimated profits as|||Fulfillm|
||compensat||2,2015|31,2018||
|Baoshi||aforesaid within the compensation period, Baoshi group|||ent|
||ion|||||
|Electronics||shall make up the difference in accordance with the||||
||arrangeme|||||
|Group Co.,||aforesaid principles in cash to Dongxu Optoelectronic||||
||nts|||||
|Ltd||Technology Co., Ltd; If the actual net profits are not less||||
|||than the estimated profits, there is no need for Dongxu||||
|||investment Baoshi group to carry out the compensation.||||
|||The compensation period includes the year contained the||||
|||date on which the transaction completed and the||||
|||subsequent two consecutive accounting years.||||
|Dongxu|Other|In view of:|June 17,|Long-term|Under|
|Group|Commitm|The main business of Dongxu Optoelectronic is the|2015|effective|Fulfillm|

The Third Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
||ent|production of TFT-LCD glass substrate, and the company|||ent|
|||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 Dongxu||||
|||Optoelectronic Equipment 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.||||
|||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||||
||Commitm|controller or holding company have no horizontal||||
||ents on|competitions with Dongxu Optoelectronic Technology||||
||horizontal|Co., Ltd. 2. Any other companies controlled by the actual||||
|Li Zhaoting;|||December||Under|
||competitio|controller or holding company shall avoid businesses||Long-term||
|Dongxu|||16,||Fulfillm|
||n, related|identical or similar to the company may lead to a||effective||
|Group|||2015||ent|
||transaction|competitive relation and cannot do any harm activities to||||
||and capital|Dongxu Optoelectronic Technology Co., Ltd and||||
||occupation|companies controlled by Dongxu Optoelectronic||||
|||Technology Co., Ltd as long as there are no alterations of||||
|||the actual controller and the holding company. Any||||
|||businesses opportunities under the main business scope of||||
|||Dongxu Optoelectronic Technology Co., Ltd and its||||
|||controlled companies shall not take by the companies||||
|||controlled by the actual controller or the holding||||

The Third Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|||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.||||
|Dongxu||||||
|Group;Changj||||||
|iang Securities||||||
|(Shanghai )As||The company, one of the subscription objects, promised||||
|set||that after Dongxu Optoelectronic Technology Co., Ltd||||
|Management||completed the non public issuance of shares to the||||
|Co.,||company and specific objects for raising funds, the shares||||
|Ltd.;Kunshan|Share|(New shares) issued by Dongxu Optoelectronic||||
||||||Under|
|Development|limited|Technology Co., Ltd and subscribed by the company shall|December16|December||
||||||Fulfillm|
|Zone State|commitme|not be transferred to any others in 36 months commenced|,2015|16,2018||
||||||ent|
|Investment|nt|from the publicly listed date of the new shares. As a result||||
|Co.,||of the issuance of new shares by the Company to the||||
|Ltd.;Beijing||Company, the shareholding of Dongxu Optoelectronic||||
|Yingfei Hailin||Co., Ltd. by Dongxu Optoelectronic Co., Ltd. will also be||||
|Investment||subject to the above commitments.||||
|Center||||||
|(Limited||||||
|partnership).||||||
|Guangzhou||||||
|Securities Co.,||||||
|Ltd., Huaan||||||
|Future Asset||||||
|Management||It was promised that after Dongxu Optoelectronic||||
|(Shanghai)|Share|Technology Co., Ltd completed the non public issuance||||
||||||Under|
|Co.,|limited|of shares to the company and specific objects for raising|December16|December||
||||||Fulfillm|
|Ltd.;Minsheng|commitme|funds, the new shares subscribed by the company shall|,2015|16,2016||
||||||ent|
|Bank Fund|nt|not be transferred to any others in 12 months commenced||||
|Management||from the publicly listed date of the new shares||||
|Co., Ltd.;||||||
|Boshi Assets||||||
|Management||||||
|Co., Ltd.||||||
|Dongxu|To raise|In view of: Dongxu Optoelectronic Technology Co., Ltd.||||
||||||Under|
|Optoelectronic|funds to|is applying for public offering of corporate bonds, and the|February 10,|Valid for 5||
||||||Fulfillm|
|Technology|use the|total scale of bonds will not exceed 1 billion yuan. After|2016|years||
||||||ent|
|Co., Ltd.|commitme|the deduction of issue expenses, all the funds raised are||||

The Third Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
||nt|planed to be used to supplement the liquidity and support||||
|||the R&D, 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 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. The term of validity of the promises||||
|||is consistent with the duration of the corporate bonds||||
|||issued in the company this time.||||
|Qianhai||||||
|Equity||||||
|Investment||||||
|Fund||||||
|(LP);AEGON-||||||
|Industrial||||||
|Fund;Shenzhe||||||
|||The subscription of this issue a total of nine, namely||||
|n Taianer||||||
|Information||Qianhai Equity Investment Fund (LP);AEGON-Industrial||||
|Technology||Fund,Shenzhen Taianer Information Technology Co.,||||
|Co.,||Ltd.,Penghua Fund Management Co., Ltd.;China Fund||||
|Ltd.;Penghua||Management Co., Ltd.,China Life AMP Asset||||
|Fund||Management Co., Ltd.,Nuoan Fund Management Co.,||||
||Share|||||
|Management||Ltd.,Zhongou STAS Asset Management(Shanghai)Co.,|||Under|
||limited||August|August||
|Co.,||Ltd. And Sws Mu Fund Management Co., Ltd.The|||Fulfillm|
||commitme||26,2016|25,2017||
|Ltd.;China||aforesaid issuer has issued the following commitments on|||ent|
||nt|||||
|Fund||the non-public issue of shares: The allocated shares shall||||
|Management||not be transferred within 12 months from the date of||||
|Co.,||listing of the new shares and apply for new shares in the||||
|Ltd.;China||new shares within 12 months Increase the shares to lock.||||
|Life AMP||||||
|Asset||||||
|Management||||||
|Co.,||||||
|Ltd.;Nuoan||||||
|Fund||||||
|Management||||||
|Co.,||||||
|Ltd.;Zhongou||||||

The Third Quarterly Report 2016
||||||||
|-|-|-|-|-|-|-|
||STAS Asset||||||
||Management(||||||
||Shanghai)Co.,||||||
||Ltd.;Sws Mu||||||
||Fund||||||
||Management||||||
||Co., Ltd.||||||
|Equity|||||||
|incentive|||||||
|commitment|||||||
||||Jixing New Material Investment (HK) Co., Ltd. and||||
||||Lubao, Wang (The legal representative of the company||||
|||Performan|(HK)) jointly promised that the net profits after tax||||
|||ce|attributable to Jixing New Material Investment Co., Ltd||||
||Wang Lvbao,||||||
|||commitme|in year 2015, year 2016, year 2017 shall accordingly be||||
||Jixing New|||||Under|
|||nt and|not less than RMB30 million, RMB60 million, RMB 100|January|Long-term||
||Material|||||Fulfillm|
|||compensat|million. If the net profits attributable to Jixing New|20,2015|effective||
||Investment|||||ent|
|||ion|Material Investment Co., Ltd after audited in any year of||||
||(HK) Co., Ltd.||||||
|||arrangeme|year 2015, year 2016 and year 2017 are less than the||||
|||nts|promised net profits, the difference shall be compensated||||
||||by Jixing New Material Investment (HK) Co., Ltd. and||||
||||Lubao, Wang in cash.||||
||Dongxu|Other|Not act in excess of authority to interfere the company’s|||Under|
|||||February|Long-term||
||Group,Li|Commitm|management and operating activities, not encroach on the|||Fulfillm|
|||||6,2016|effective||
|Other|||||||
||Zhaoting|ent|interests of the company.|||ent|
|commitment|||||||
||||(a) Promised that not freely or unfairly transfer interests||||
|s made to|||||||
||||to other units or individuals, nor adopt other ways to||||
|minority|||||||
||||jeopardize the company’s interests. (b) Promised that||||
|shareholders|Li Zhaoting,||restrict the post consumer behaviors of the directors and||||
||Zhou Bo,Niu||senior management personnel. (c) Promised that not use||||
||Jianlin, Gong||the company's assets to engage in the investment||||
||Xin, Lu||&consuming activities which are irrelevant to perform the||||
||Guihua, Mu||duties. (d) Promised that the salary system set up by the||||
|||Other||||Under|
||Tiehu, Zhang||board of directors or the Remuneration Committee is|February|Long-term||
|||Commitm||||Fulfillm|
||Shuangcai,||relevant to the implementation status of the company’s|6,2016|effective||
|||ent||||ent|
||Shi Zhiqiang ,||fill-up return measures. (e) Promised that the vesting||||
||Liu||conditions of the company’s equity incentive are relevant||||
||Wentai,Xiao||to the implementation status of the company’s fill-up||||
||Zhaoxiong||return measures. (f) Promised the full implementation of||||
||and Zhou Bo||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||||

The Third Quarterly Report 2016
||||||||
|-|-|-|-|-|-|-|
||||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.||||
||||To ensure Dongxu Optoelectronic Technology Co., Ltd||||
||||realizing expected benefits on the M&A of Shanghai||||
||||Tanyuan Huigu New Materials Technology Co., Ltd, the||||
||||promisee voluntarily promised the profits of Shanghai||||
|||Performan|||||
||||Tanyuan Huigu New Materials Technology Co., Ltd for||||
||Guo Shouwu,|ce|||||
||||the next three years as follows: (a) Business performance||||
||Ma Shengjie,|commitme|||||
||||commitment: the net profits of Shanghai Tanyuan Huigu|||Under|
||Wu Haixia ,|nt and||March|December||
||||New Materials Technology Co., Ltd in year-2016,|||Fulfillm|
||Shen|compensat||8,2016|31,2019||
||||year-2017, year-2018 shall accordingly not be less than|||ent|
||Wenzhuo and|ion|||||
||||RMB 5 million, RMB 10 million, RMB 20 million. (b)||||
||Shen Li|arrangeme|||||
||||Compensation mode: if the net profits of Shanghai||||
|||nts|||||
||||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 or|Yes||||||
|not?|||||||
||Notes: The above-mentioned commitment party Mu Tiehu, Zhou Bo, Niu Jianlin, Shi Zhiqiang, Xiao Zhaoxiong have||||||
||been elected as a director of the board of directors is no longer a senior executive positions.||||||

IV．Prediction of Business performance for 2016
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
The Third Quarterly Report 2016 VI. Investment in derivatives
□ Applicable√Not applicable
There is no derivative investment during the report period.
VII. Registration form of such Activities as Reception, Research, Communication, Interview in the Reporting Period
√Applicable□Not applicable
|||||
|-|-|-|-|
|Reception time|Way of reception|Types of visitors|Basic index|
||||Shenzhen Stock Exchange site|
|February 18,2016|By Phone|Organization||
||||interactive company zone|
||||Shenzhen Stock Exchange site|
|March 10,2016|Field research|Organization||
||||interactive company zone|
||||Shenzhen Stock Exchange site|
|September 8,2016|Field research|Organization||
||||interactive company zone|
|January 1,2016 to September 30,2016|By Phone|Individual|None|

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. Dongxu Optoelectronic Technology Co., Ltd.
Board Chairman: Li Zhaoting
Issue day approved by the Board ofDirectors：October 31,2016