Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Dongxu Optoelectronic Technology Co., Ltd.
The Semi-annual Report 2017
August 2017
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 I. Important Notice, Table of Contents and Definitions
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. Mr.Li Zhaoting, The Company leader, Mr. Huang Jinliang,Chief financial officer and the Mr.Gao Feipeng, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this semi-annual report.
All the directors attended the board meeting for reviewing the semi-annual Report.
All the directors attended the board meeting for reviewing the Annual Report.
The development strategy, operation plan and other forward-looking statements involved in this report will not constitute any substantive commitment to the investors by the Company. Investors please be aware of the investment risks.
The company has already described the risk items existed in details in the report with reference to (IV) possible risks of X Operation Conditions Discussion and Analysis.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Table of Contents
2017 Semi-Annual Report
I.Important Notice and Definitions
II. Corporate Profile and Key Financial Indicators
III. Business Profile
IV. Performance Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII .Information about Directors, Supervisors and Senior Executives
IX. Corporate Bonds
X. Financial Report
XI. Documents available for inspection
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Definition
||||
|-|-|-|
|Terms to be defined|Refers to|Definition|
|Company Law|Refers to|Company Law of the People’s Republic of China|
|Securities Law|Refers to|Securities Law of the People’s Republic of China|
|CSRC|Refers to|China Securities Regulatory Commission|
|SZSE|Refers to|Shenzhen Stock Exchange|
|Tunghsu Group|Refers to|Tunghsu Group Co., Ltd.|
|Baoshi Group|Refers to|Shijiazhuang Baoshi Electronics Group Co., Ltd|
|Dongxu Optoelectronic , Company, The|||
||Refers to|Dongxu Optoelectronic Technology Co., Ltd.|
|Company|||
|||Guangzhou Securities Co., Ltd.|
|Guangzhou Securities , Sponsor institutions|Refers to||
|Dongxu（Yingkou）Optoelectronic|Refers to|Dongxu（Yingkou）Optoelectronic Display Co., Ltd.|
|Xuhong Optoelectronic|Refers to|Sichuan Xuhong Optoelectronic Technology Co., Ltd.|
|||Wuhu Dongxu Optoelectronic Technology Co., Ltd., was the|
|||implementation unit of the non-public item to raise money for and|
|Wuhu Optoelectronic|Refers to||
|||invest in of “The Project of Production Line for Panel Display Plate”|
|||in 2013|
|Wuhu Equipment|Refers to|Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.|
|Shijiazhuang Equipment|Refers to|Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd.|
|||Dongxu（Kunshan）Display material Co., Ltd.， In 2015, was the|
|||implementation unit of the non-public item to raise money for and|
|Dongxu (Kunshan )|Refers to||
|||invest in “Project of Production Line for the 5th-generation CF for|
|||TFT-LCD”.|
|||Dongxu Construction Group Co., Ltd.( Original Sichuan Ruiyi|
|Dongxu Construction|Refers to||
|||Construction Engineering Co., Ltd.)|
|||Fuzhou Xufu Optoelectronic Technology Co., Ltd.， In 2016, was the|
|Fuzhou Xufu|Refers to|non-public item to raise money for and invest in “Project of|
|||Production Line for the 8.5th-generation CF for TFT-LCD”|
|||Fuzhou Dongxu Optoelectronic Technology Co., Ltd.， In 2016, was|
|Fuzhou Optoelectronic|Refers to|the non-public item to raise money for and invest in “Project of|
|||Production Line for the 8.5th-generation CF for TFT-LCD”|
|Dongxu finance||Tunghsu Group Finance Co., Ltd.|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Shanghai Tanyuan Huigu|Refers to|Shanghai Tanyuan Huigu New Material Technology Co., Ltd.|
|Mingshuo Technology|Refers to|Mingshuo (Beijing) Electronic Technology Co., Ltd|
|||Shanghai Sunlong Bus Co., Ltd. ，|
|SUNLONG|Refers to|2017 issue of shares and payment of cash to buy the assets of the enter|
|||prise|
|BOE|Refers to|BOE Technology Group Co., Ltd.|
|IVO|Refers to|Infovision Optoelectronics Co., Ltd.|
|CSOT|Refers to|China Star optoelectronics Technology Co., Ltd.|
|JONHON|Refers to|China Aviation Optical-Electrical Technology Co Ltd|
|Innolux|Refers to|Innolux Display Corporation|
|Tianma|Refers to|Tianma Microelectronics Co Ltd|
|TFT-LCD|Refers to|Thin Film Transistor Liquid Crystal Display|
|LTPS|Refers to|Low Temperature Poly-silicon|
|AMOLED|Refers to|Active-matrix organic light emitting diode|
|||A thin glass sheet with extremely smooth surface is a basic component|
|||of constituting LCD display device as well as one of the critical basic|
|Glass substrate|Refers to|materials in panel display industry. The glass sheet can be divided into|
|||various generations by its size, and the higher the generation is, the|
|||bigger the size will be.|
|G5 glass substrate|Refers to|The size of the 5th-generation glass substrate is 1100 mm×1300 mm.|
|G6 glass substrate|Refers to|The size of the 6th-generation glass substrate is 1500 mm×1850 mm.|
|G8.5glass substrate|Refers to|The size of the 8.5th-generation glass substrate is 2200mm×2500mm|
|||Critical original materials of LCD panel for realizing colorization|
|CF|Refers to||
|||display|
|||A two-dimensional carbon material composed of carbon atoms closely|
|Polaroid|Refers to|and cyclically packed by benzene ring structures (ie, hexagonal|
|||honeycomb structures)|
|||Refers to two-dimensional carbon materials related to grapheme, with|
|Grapheme materials|Refers to||
|||a layer less than 10 carbon atoms|
|||In addition to mobile phones, tablet PCs and other displays, for the|
|Cover glass|Refers to|touch screen touch module, display and non-touch screen display to|
|||protect the transparent glass lens|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 II. Corporate Profile and Key Financial Indicators
1. Company Information
|||||
|-|-|-|-|
|Stock abbreviation|Dongxu Optoelectronic, Dongxu B|Stock code：|000413、200413|
|Stock abbreviation after||||
||Dongxu Optoelectronic, Dongxu B|||
|change (if any)||||
|Stock exchange for listing|Shenzhen Stock Exchange|||
|Name in Chinese|东旭光电科技股份有限公司|||
|Chinese Abbreviation|东旭光电|||
|English name (If any)|Dongxu Optoelectronic Technology Co., Ltd.|||
|English abbreviation (If any)|Dongxu Optoelectronic|||
|Legal Representative|Li Zhaoting|||

2. Contact person and contact manner
||||
|-|-|-|
||Board secretary|Securities affairs Representative|
|Name|Gong Xin|Wang Qingfei|
||No.5 Court, No.23 A Fuxing Road,|No.5 Court, No.23 A Fuxing Road,|
|Contact address|||
||Haidian District, Beijing|Haidian District, Beijing|
|Tel|010-68297016|010-68297016|
|Fax|010-68297016|010-68297016|
|E-mail|gongxin_dx@126.com|wangqingfei@dong-xu.com|

3. Other
(1). Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not
□ Applicable√ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period, found more details in annual report 2016.
(2). Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable√ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 please find the Annual Report 2016.
(3). Change of business registration
Whether the registration has changed during the report period
Applicable
√ Applicable□Not applicable
On May 12, 2017, The Company received a notice from the sponsor-Guangzhou Securities: Mr. Wang Hongwei, the original sponsor representative, cannot continue to perform his duties due to changes in his work, thus Guangzhou securities hereby appoints Ms. Shi Jianhua to take the place of Mr. Wang Hongwei to perform the relevant duties of continuous supervision, with the continuous supervision period lasts to December 31, 2017. For the detailed information, please refer to the Company's announcement disclosed on Cninfo.com.cn website: No2017-.051, Announcement about Alteration of the Continuous Supervision Sponsor Representative of Non-public Share Issuance.
4. Summary of Accounting Data and Financial Indicators
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes√No
|||||
|-|-|-|-|
||Reporting period|Same period of last year|YoY+/-（%）|
|Operating income（RMB）|4,641,285,527.91|2,882,059,154.41|61.04%|
|Net profit attributable to the shareholders|635,855,750.37|545,963,710.72||
||||16.46%|
|of the listed company（RMB）||||
|Net profit after deducting of non-recurring||||
|gain/loss attributable to the shareholders of|559,990,548.41|459,894,653.13|21.76%|
|listed company（RMB）||||
|Cash flow generated by business operation,|-1,414,361,686.97|1,281,108,942.94||
||||-210.40%|
|net（RMB）||||
|Basic earning per share(RMB/Share)|0.13|0.14|-7.14%|
|Diluted gains per|0.13|0.14||
||||-7.14%|
|share(RMB/Share)(RMB/Share)||||
|Weighted average income/asset ratio（%）|2.84%|3.79%|-0.95%|
||As at the end of the|||
|||As at the end of last year|YoY+/-（%）|
||reporting period|||
|Gross assets（RMB）|47,746,487,539.58|46,826,319,570.41|1.97%|
|Shareholders’ equity attributable to|22,506,905,931.67|22,216,300,365.86||
||||1.31%|
|shareholders of the listed company（RMB）||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 5. Differences between accounting data under domestic and overseas accounting standards
(1)．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
√Applicable□Not applicable
Nil
(2). Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable√Not applicable
Nil
6.Items and amount of non-current gains and losses
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Amount|Notes|
|Non-current asset disposal gain/loss(including the write-off part|-30,537.14||
|for which assets impairment provision is made)|||
|Govemment subsidies recognized in current gain and|65,632,104.25||
|loss(excluding those closely related to the Company’s business|||
|and granted under the state’s policies)|||
|Gain/loss on loans obtained by entrusting others|4,137,082.94||
|Operating income and expenses other than the aforesaid items|18,148.98||
|Other non-business income and expenditures other than the above|22,183,417.04||
|Less: Amount of influence of income tax|15,552,946.64||
|Amount of influence of minority interests(after tax)|522,067.47||
|Total non current gains and losses attributable to|75,865,201.96||
|||--|
|shareholders of the parent company|||

For 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 recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 III. Business Profile
1.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
During the reporting period, the company's main business covered glass substrate, sapphire, color filters, polarizers and other optoelectronic display materials, whole-set equipment and its technical services, building and installation engineering construction, etc; meanwhile, the company has been making great efforts to promote the industrialization of graphene technology represented by grapheme-based lithium batteries and graphene heat dissipation film.
(1). Optoelectronic display material business
The company's products in the field of optoelectronic display materials cover LCD glass substrate, sapphire, color filters, polarizers, etc., and the domestically-made materials for the mentioned products showed the core competitiveness of China in the display industry. The company's liquid crystal glass substrate business steadily ranked first in China and ranked fourth in the world. The company had successively implemented the layout of 20 production lines (including under-construction lines and planned lines) of glass substrate in places such as Shijiazhuang, Zhengzhou, Wuhu and Fuzhou, including G5, G6 and G8.5 glass substrate production lines. At the time when the company continued to consolidate its position in the glass substrate industry, in order to utilize industrial cluster effect, the company had successively expanded the business of sapphire, color filter, polarizer, etc. During the reporting period, the company's Fuzhou first G8.5 production line and Fuzhou Xuyou polarizer production line were put into operation, thus further consolidated the company's position in the industry. The company has a steady and good cooperation relationship with the downstream panel manufacturers, and the LCD glass substrate, polarizer and other products have been mainly sold to BOE, Huaxing Optoelectronic, Dragon Optoelectronics, AVIC Optoelectronics, Qunchuang Optoelectronic, Shen Tianma and other mainstream panel manufacturers, thus gained good economic results.
(2). High-end equipment and technical services business
The whole-set equipment of the LCD glass substrate and touch screen glass production equipment belongs to the head-end equipment of electronic equipment having the highest technology. The company, upon its own independent research and development, made breakthroughs to the foreign blockade of the above-mentioned equipment, realized the comprehensive independent research and development, design, production, manufacture and installation and so on. After years of development, the company has accumulated rich experience in the intelligent manufacturing field, and its relevant equipment has a strong spillover effect. In recent years, the company, based on the previous research and development of glass substrate whole-set equipment, actively expanded and applied more high-end equipment and technical services, continuously developed Group clients of all kinds of intelligent application fields and ensured the growth ability of the company's high-end equipment and technical services business. Currently, the company's high-end equipment and technical services mainly adopts the customized production and service, with the settlement in accordance with the progress node of the production line, mainly including the products of Stocker automation control system, automatic polishing line host synthesis equipment, automatic grinding and cleaning equipment.
(3). Construction and installation business
The company's wholly-owned subsidiary-Dongxu Construction is the implementation main-body for the
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 company's construction and installation business, which effectively reduced the company's construction costs in the assistance of the company's production base construction, maintenance and so on aspects. In recent years, with the continuous development of domestic industrialization and urbanization, the company's construction and installation business has realized a stable growth. Currently, influenced by the national policy, the PPP mode that's characterized in local government's introducing of social capital to participate in public utilities investment will lead the main market of the domestic infrastructure construction. In order to fit the market development trend, the company, during the reporting period, had increased RMB 2 billion-by self-owned funds-to the capital of Dongxu Construction, so as to enhance its competiveness in the PPP business to the underground integrated pipe gallery, municipal infrastructure, sponge city and smart city.
2.Major Changes in Main Assets
(1).Major Changes in Main Assets
|||
|-|-|
|Main assets|Major changes|
|Equity assets|The main reason for this period is to invest in dongxu financial company|
||The main reason for this period is the increase of the fixed assets under construction of|
|Fixed assets||
||the 8.5 generation glass base plate production line in fuzhou|
|Construction in process|This period increases mainly the project construction of polarizing film|

(2)Main Conditions of Overseas Assets
□ Applicable√ Not applicable
3.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In the annual report of 2016, the Company has disclosed five core competencies, namely, "strong ability of independent R& D and innovation ", "domestic substrate leading position and scale advantage", "control-oriented industry chain integration advantage"," policy support and costs advantage" and " efficient management and decision-making mechanism advantage".
IV. Performance Discussion and Analysis
1.General
The year of 2017 is the year of strategic transformation for Dongxu Optoelectronic. When the previous glass
substrate and display materials investment enter into the harvest period, the company committed to put great effort
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 into the industry synergy of big manufacturing industry, and based on the breakthroughs in the field of graphene and grapheme-based lithium-ion batteries, the company launched the acquisition matter of Sunlong Bus, striving to shape a closed-loop industrial chain of "high-end materials– grapheme-based lithium battery-new energy vehicles". In the first half of 2017, every business of the company has been steadily moved forward and has a good operation status, thus further consolidated the company's industrial position and gained certain extent of good economic results.
During the reporting period, the Company achieves an operating income of RMB4641.2855 million , an increase of61.04% over the same period in 2016; the net profit attributable to the parent Company of RMB 635.8558 million, an increase of 16.46% over the same period in 2016.
The company's each business development status in the first half of 2017 and the industry planning of the second half of 2017:
(1).Conforming to the trend and speeding up the construction of high-generation glass substrate production line
In recent years, the large-size and high-generation panel and glass substrate have become the industry trend. According to the research report by research company Witsvie, the average size of television panel worldwide reached 44.7 inches in the first half of 2007, an increase of 1.7 inches from the previous year. The Fuzhou 8.5 generation TFT-LCD liquid crystal glass substrate project, as the company's project invested by the raised money of RMB 6.95 billion by private placement, is an important project in the company's layout for coping with the industrial changes. During the reporting period, the first line of the company's Fuzhou 8.5 generation glass substrate production line has been put into operation and the second line has been under the steady construction. The successful launch of the company's 8.5 generation product into the market had an important impact to consolidate the company's industrial position and balance the rising of the new-generation AMOLED display technology. In the future, the company will, according to the downstream market demand, constantly optimize the LTPS technology and other new glass substrate production technology, thus to better fit the new development trend of the market.
(2). Advance shoulder to shoulder, many achievements of optoelectronic display materials
The company has been engaged in the optoelectronic display industry for more than a decade, starting with the glass substrate industry, closely following-up the world trend of display technology and the innovation trend, thus grasped the historical opportunity of home-manufacturing materials replacing the core display materials, continuously rolled out new products and horizontally expanded, and constructed the core competiveness based on the opportunity of the high-tech optoelectronic display materials. On the basis of the company's constant consolidation and enhancement of the main business of LCD glass substrate, combined with the main business, the company continuously expanded the new business area, and currently the company has successfully been engaged in the three high-end display materials namely sapphire, color filter and polarizer, thus realized achievements in many aspects.
During the reporting period, the company has made a new progress in the lateral extension of core display material. The company's color film project has been speeding up the progress, and it's expected there will be new product line completed in the second half of the year. Fuzhou Xuyou polarizer project has been put into operation in a relatively fast speed, marking that the company officially entered the field of polarizer manufacturing. The polarizer industry will be one of the core pillar industries of the company's optoelectronic display business after the production of glass substrate, and that will shape an industrial synergy effect of the company's existing optoelectronic business that has the industry of glass substrate, color filters and sapphire, thus further enhancing the company's comprehensive strength.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 (3). Preliminary achievement, the optimized layout of graphene business accelerated
During the reporting period, the monolayer grapheme and the grapheme-based lithium ion battery fabricated by Shanghai Tanyuan Graphene has gained the market attention and recognition, and the subsequent single product and the technological upgrading have been actively promoted. The company's Taizhou grapheme-based lithium ion battery project, which has successfully completed the land bidding and auction, project filing, EIA publicity and other procedures, is currently under the communication with the design and construction unit about the design and construction plan under the company's full efforts, and it's carrying out the multi-round demonstration and striving to realize the commencement of project construction as soon as possible.
Meanwhile, the company together with Taizhou graphene industry fund, through the means of acquisition and capital increase, obtained the51% stake of Ming Shuo Technology Company, which has the reversible liquid crystal phase-change graphene composite heat dissipation material as the core technology and it is specializing in providing high-power LED lighting equipment and integrated lighting solutions, with its related graphene lighting products have been actually applied in Beijing and other places and that has gained some extent of economic benefits. In addition, the company's industrial application of heat-dissipation graphene film technology has achieved stage achievement, and the company has signed a "strategic cooperation agreement" with Shanxi Energy Investment and Shanxi Jian Bang Group in connection to the project cooperation of the Graphene electric heating replacing loose coal combustion heating project of Shanxi Provincial rural area.
(4). Regular development but with novelty thoughts and innovation, acquired SUNLONG Bus to enter the new energy automotive industry
With the company's smooth progress and putting-into operation of each project of optoelectronic display materials, thecompany’s main business will tend to become mature and steady. In order to give full play to the industrial synergies of big manufacturing industries and find new profit growth points, the company has decided to enter the field of new energy passenger cars and logistics vehicles. During the reporting period, the Company launched the restructuring project that planned to acquire100% equity of Sunlong Bus through the way to buy assets by issuing shares and paying cash. The company has been engaged in the high-end equipment manufacturing industry for nearly 20 years, possessing a strong ability in technology, management, funds and talents. Sulong Bus has the mature technology, rich-experience industrial management team and excellent product design ability. Meanwhile, upon more than ten years accumulated experience in new energy passenger car, Sulong Bus possessed the good market channels and the excellent overseas market development capabilities. The company acquired Sulong Bus to formally enter the field of new energy passenger car, so as to enrich thecompany’s existed industrial structure. By utilizing the advantage of each other, the company can snatch the good industrial opportunity in the field of new energy passenger bus and logistics vehicles, thus to better provide more opportunities for thecompany’s rapid growth in the next few years.
Furthermore, during the reporting period, the Company invested RMB 100 million to subscribe the new shares of Yi Huatong issued by directional added share-issuance. Yi Huatong is a high-tech company that specialized in hydrogen fuel cell engine research and development and the industrialization. For one hand, the company's subscription is based on the optimistic future development and the profitability of Yi Huatong, and for the other hand, the company can utilize this to build strategic partnership with Yi Huatong, thus speeding up bringing the advanced hydrogen fuel cell engine technology of Yi Huatong into the company's layout of new energy automotive projects, further accelerating the market-launch speed of the company's hydrogen fuel cell vehicle, so as to consolidate the company's industrial position in the new energy automotive market and to bring the new profit growth point for the company.
(5). Fulfilling the commitment, injecting the cover-glass business to enrich the company's profit growth point
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Cover glass belongs to the windows protective screen industry of panel display, and the industry is high technological and has large market scale, large industrial radiation and the obvious stimulation effect. Xuhong Optoelectronic mainly engaged in high aluminum cover glass production and sales, and the high aluminum cover glass possesses the characteristics of high transmittance, high impact resistance, high scratch resistance, high bending toughness, ultra thin and other technical characteristics. In order to solve the horizontal competition, in 2011, Tunghsu Group entrusted the company to carry out the management of Xuhong Optoelectronic and promised to inject its equity into the company. Currently, Xuhong Optoelectronic has a large-scale ultra-thin touch screen glass production line, with the annual production scale of 7 million pieces, and the company had won the first prize award of science and technology progress of Sichuan province and the National Invention Exhibition Gold Award. Xuhong Optoelectronic is one of the domestic companies that take the lead in the research and mass production of high aluminum cover glass, and the Panda Glass, which was rolled out in 2014 by Xuhong, successfully broke the situation of the foreign enterprises' long-term absolute monopoly in the domestic market. Currently, its business covered the area and regions of East China, North China, Southwest China and Southern China.
With the approaching of mobile phone wireless charging and 5G and other new transmission mode, the wide use of flexible OLED brings a vast market space for 3D curve glass. During the reporting period, the company has officially launched the acquisition of Xuhong Optoelectronic equity and will use the raised match funds to construct "Curve Surface display Cover-glass production project". After the completion of the acquisition, the company will have the new income from cover glass, and the flat display glass business layout will be more perfect, which will be conducive to consolidate the company's domestic leading position in the panel glass display. 2.Main business analysis
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
||||||
|-|-|-|-|-|
||This report period|Same period last year|YOY change（%）|Cause change|
||4,641,285,527.91|2,882,059,154.41||The expansion of major|
|Operating income|||61.04%|departments caused sales|
|||||increase|
||3,338,875,149.90|1,938,309,643.65||The main line of business|
|Operating cost|||72.26%|expansion leads to|
|||||increased costs|
|Sale expenses|29,084,235.15|31,577,716.56|-7.90%||
|Administrative expenses|193,715,154.96|236,706,264.85|-18.16%||
||317,954,221.40|94,439,392.61||The main financing cost|
|Financial expenses|||236.68%||
|||||increases|
||179,430,671.23|90,283,601.51||The increase in the total|
|Income tax expenses|||98.74%||
|||||profit|
|R & D Investment|60,448,452.51|45,720,772.21|32.21%||
|Cash flow generated by|-1,414,361,686.97|1,281,108,942.94|-210.40%||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
|business operation, net||||
|Net cash flow generated|-1,221,706,350.75|-607,815,301.45||
||||-101.00%|
|by investment||||
|Net cash flow generated|-484,304,608.85|3,091,864,784.09||
||||-115.66%|
|by financing||||
|Net increasing of cash|-3,111,660,192.21|3,774,917,627.41||
||||-182.43%|
|and cash equivalents||||

Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable√Not applicable
Breakdown of main business
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|Increase/decrease|Increase/decrease|
|||||of revenue in the|of business cost|of gross profit|
||Operation||||||
|||Operation cost|Gross profit|same period of|the same period|in the same|
||revenue||||||
|||||the previous|of the previous|period of the|
|||||year(%)|year(%)|previous year(%)|
|Industry|||||||
|Equipment and|||||||
|Technology|2,447,761,486.65|1,493,187,482.28|39.00%|45.72%|52.21%|-2.60%|
|services|||||||
|Optoelectronic|||||||
||1,010,179,019.72|705,344,018.20|30.18%|33.41%|29.12%|2.32%|
|display materials|||||||
|Graphene|553,117.12|212,805.97|61.53%|8,882.50%|290.54%|846.44%|
|New-type|||||||
|urbanization|518,052,658.25|496,996,645.73|4.06%|18.96%|21.72%|-2.17%|
|construction|||||||
|Electronic|||||||
|communication|656,139,547.42|642,040,363.66|2.15%||||
|products|||||||
|Products|||||||
|Equipment and|||||||
|Technology|2,447,761,486.65|1,493,187,482.28|39.00%|45.72%|52.21%|-2.60%|
|services|||||||
|Optoelectronic|||||||
||1,010,179,019.72|705,344,018.20|30.18%|33.41%|29.12%|2.32%|
|display materials|||||||
|Graphene|553,117.12|212,805.97|61.53%|8,882.50%|290.54%|846.44%|
|New-type|||||||
|urbanization|518,052,658.25|496,996,645.73|4.06%|18.96%|21.72%|-2.17%|
|construction|||||||
|Electronic|656,139,547.42|642,040,363.66|2.15%||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|communication|||||||
|products|||||||
|Area|||||||
|China mainland|4,254,203,301.68|2,975,051,195.40|30.07%|59.93%|70.16%|-4.20%|
|Hongkong,|||||||
|Macao and|378,386,334.24|362,687,161.44|4.15%|78.15%|93.72%|-7.70%|
|Taiwan|||||||
|Overseas|96,193.24|42,959.00|55.34%||||

3.Non-core business analysis
□ Applicable√Not applicable
||||||
|-|-|-|-|-|
|||Proportion in total|||
||Amount|||Sustainable(yes or not)|
|||profit(%)|Related factors description||
|Non-operation|||||
||66,069,887.52|7.55%|Government grants|Yes|
|revenue|||||

4.Analysis of assets and liabilities
(1).Significant changes in asset composition
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of Reporting period||End of same period of last year||||
|||As a|||Change in||
|||percentage of||As a percentage|percentage(%|Reason for significant change|
||Amount||Amount||||
|||total||of total assets(%)|)||
|||assets(%)|||||
||22,873,558,641.80||26,056,117,216||||
|Monetary fund||47.91%||55.64%|-7.73%||
||||.86||||
|Accounts|2,341,912,029.32||1,652,714,640.||||
|||4.90%||3.53%|1.37%||
|receivable|||77||||
||3,670,952,734.10||2,688,967,436.||||
|Inventories||7.69%||5.74%|1.95%||
||||27||||
|Real estate|58,974,678.04||||||
|||0.12%||0.00%|0.12%||
|Investment|||||||
|Long-term equity|477,648,310.87||||||
|||1.00%|72,354,803.70|0.15%|0.85%||
|investment|||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
||9,068,489,094.66||8,952,341,070.|||
|Fixed assets||18.99%||19.12%|-0.13%|
||||47|||
|Construction in|2,457,153,171.64||1,772,629,310.|||
|||5.15%||3.79%|1.36%|
|process|||84|||
||4,474,513,562.31||4,940,816,200.|||
|Short-term loans||9.37%||10.55%|-1.18%|
||||13|||
||5,830,941,823.23||6,596,159,000.|||
|Long-term loans||12.21%||14.09%|-1.88%|
||||00|||

(2).Asset and Liabilities Measured by Fair Value
□ Applicable√ Not applicable
(3). Restricted asset rights as of end of the reporting period
||||
|-|-|-|
|Items|Ending book value|Limited reason|
|Monetary fund|947,883,742.41|Certificates of deposit and pledge|
|Investment property|58,974,678.04|Get the loan with pawn|
|Fixed assets|7,559,438,628.83|Get the loan with pawn|
|Construction in process|751,214,924.79|Get the loan with pawn|
|Intangible assets|248,103,470.07|Get the loan with pawn|
|Total|9,565,615,444.14||

5.Investment situation
(1)．External investment
√ Applicable□Not applicable
||||
|-|-|-|
||Investments made in same period of lastyear||
|Investments made in the reporting period||+/- %|
|6,175,411,729.77|1,102,954,500.00|459.90%|

 (2).Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable□ Not applicable
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of the|Main|Invest|Invest|ShareProportion %|||Invest||Progre||Gain or|Whether|Date of|Disclos|
||||||Capital|||Product|||||||
|Company|Busines|ment|ment|||Partner|ment||ss up|Antici|Less or|to|Disclosu|ure|
||||||Source|||Type|||||||
|Invested|s|Way|Amoun||||Horizo||to|pated|the|Involve|re(Note|Index|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||t||||n||Balanc|Incom|Current|in|5)||
||||||||||e|e|Investm|Lawsuit|||
||||||||||Sheet||ent||||
||||||||||Date||||||
||Technol||||||||||||||
||ogy||||||||||||||
||develop||||||||||||||
||ment,|||||Qian|||||||||
||technol|||||Xinmin|||||||||
||ogy|||||g, Jin|||||||||
||transfer|||||Xiuzhe|||||||||
||; asset|||||n, Chen|||||||||
||manage|||||Wei,|||||||||
||ment,|||||Wang|||||||||
||investm|||||Yingch|||||||||
||ent|||||ao,|||||||||
|||||||||||||||Announ|
|Mingzhuo(Be|manage|||||Beijing|||||||||
|||||||||||||||cement|
|ijing)|ment;|||||Heyiyo|||||||||
|||Purcha|80,142,||Self||Long-t|Graphe|Compl||-375,92||May|number:|
|Electronic|sales of|||51.00%||u||||||No|||
|||se|857.00||fund||erm|ne|eted||7.67||11,2017|2017-04|
|Technology|buildin|||||Invest|||||||||
|||||||||||||||6|
|Co., Ltd|g|||||ment|||||||||
|||||||||||||||CNINF|
||material|||||Partner|||||||||
||s, metal|||||ship|||||||||
||material|||||（LP|||||||||
||s,|||||）,Jiang|||||||||
||electron|||||Wei, Li|||||||||
||ic|||||Hongle|||||||||
||product|||||i and|||||||||
||s,|||||Zhu|||||||||
||househ|||||Lei.|||||||||
||old||||||||||||||
||applian||||||||||||||
||ces, etc||||||||||||||
||Sales of||||||||||||||
|Chuanglian|||||||||||||||
||electron||||||||||||||
|（Huatai）||Purcha||100.00|Self||Long-t|Supply|Compl||5,185,96||||
||ic||0.00|||No||||||No|||
|Hongkong||se||%|fund||erm|chain|eted||2.98||||
||product||||||||||||||
|Co., Ltd.|||||||||||||||
||s||||||||||||||
|Tianlong|Sales of||||||||||||||
|huatai|electron||||||||||||||
|||Purcha||100.00|Self||Long-t|Supply|Compl||||||
|industrial|ic||0.00|||No|||||0.00|No|||
|||se||%|fund||erm|chain|eted||||||
|(Hong|product||||||||||||||
|Kong) co.|s||||||||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|LTD|||||||||||||||
||Electro|||||||Electro|||||||
|Dongxu(Xuh|||||||||||||||
||nic|||||Harald||nic|||||||
|ua)|||||||||||||||
||commu|acquisit|100,20||Self|Rammi|Long-t|commu|Compl||-320,04||||
|International||||55.00%||||||||No|||
||nication|on|8.63||fund|nger|erm|nication|eted||5.40||||
|Equipment|||||||||||||||
||product|||||Doctor||product|||||||
|Co., Ltd.|||||||||||||||
||s|||||||s|||||||
||||80,243,||||||||4,489,98||||
|Total|--|--||--|--|--|--|--|--|0|||--|--|
||||065.63||||||||9.91||||

(3).Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable√ Not applicable
(4).Investment of Financial Asset
（1）Securities investment
□ Applicable√ Not applicable
（2）Investment in Derivatives
□ Applicable√ Not applicable
The Company had no investment in derivatives in the reporting period.
6. Sales of major assets and equity
(1). Sales of major assets
□ Applicable√ Not applicable
The Company had no sales of major assets in the reporting period.
(2).Sales of major equity
□ Applicable√ Not applicable
7.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable□ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over10% net profit influencing to the Company In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Companytype|Sectors|Registeredcapital||||Operating||
|Company Name||||Total assets|Net assets|Turnover||Net Profit|
|||engaged in|||||profit||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|Wuhu Dongxu||Equipment|||||||
|Optoelectronic||and|98,000,000.0|8,944,733,89|2,826,899,34|2,830,168,46|803,918,979.|755,485,990.8|
||Subsidiary||||||||
|Equipment||Technology|0|5.68|4.11|6.00|70|0|
|Technology Co., Ltd||serves|||||||
|Wuhan Dongxu||Photoelectric|||||||
||||2,000,000,00|12,006,625,0|5,466,612,48|404,414,266.|||
|Optoelectronic|Subsidiary|disply glass|||||-119,404.26|12,622,231.34|
||||0.00|58.06|5.58|30|||
|Technology Co., Ltd||substrate|||||||
|Dongxu|||||||||
|||Engineering|100,000,000.|4,602,669,21|3,143,968,40|518,052,658.|19,559,654.6||
|Construction Group|Subsidiary|||||||14,644,719.84|
|||construction|00|2.25|9.52|30|5||
|Co., Ltd.|||||||||
|||Real estate|||||||
|Beijing Xufeng Real|||870,000,000.|2,903,023,95|468,486,727.||||
||Subsidiary|Development||||0.00|6,604,655.21|6,624,244.60|
|estate Co., Ltd.|||00|8.16|21||||
|||and sales|||||||
|||Sales of|||||||
|||optoelectroni|||||||
|Dongxu （Kunshan）|||||||||
|||c devices and|500,000,000.|526,028,832.|498,217,899.||||
|Display Material|Subsidiary|||||0.00|-364,830.51|-360,330.51|
|||other|00|69|62||||
|Co., Ltd.|||||||||
|||electronic|||||||
|||devices|||||||
|Jiangsu Jixing New||Sapphire|392,000,000.|619,817,363.|477,257,330.|223,319,885.|22,824,563.5||
||Subsidiary|||||||20,274,253.55|
|Material Co., Ltd.||material|00|43|78|36|1||
|||Technologica|||||||
|Beijing Xutan New|||||||||
|||l|15,000,000.0|11,218,649.2|||-2,837,414.7||
|Material Technology|Subsidiary||||5,636,967.58|264,245.28||-2,837,414.77|
|||developmen|0|6|||7||
|Co., Ltd.|||||||||
|||t|||||||
|Beijing Dongxu|||||||||
|||Project||104,363,042.|102,357,112.||||
|Huaqing Investment|Subsidiary||5,000,000.00||||-977,503.65|-977,503.65|
|||investment||44|91||||
|Co., Ltd.|||||||||
|Zhengzhou Xufei|||||||||
|||Optoelectron|||||||
|Optoelectronic|||1,650,000,00|5,537,882,26|1,947,564,31|671,849,865.|56,428,410.5||
||Subsidiary|ic display||||||53,750,338.21|
|Technology Co.,|||0.00|5.31|6.60|60|2||
|||materials|||||||
|Ltd.|||||||||
|ShijiazhuangXuxin|||||||||
|||Optoelectron|||||||
|Optoelectronic|||1,906,000,00|3,441,192,63|2,068,503,55|230,378,513.|26,641,852.2||
||Subsidiary|ic display||||||29,045,244.66|
|Technology Co.,|||0.00|0.26|7.21|20|4||
|||materials|||||||
|Ltd.|||||||||
|Fuzhou Dongxu|||||||||
|||Optoelectron|||||||
|Optoelectronic|||10,000,000.0|3,638,855,65|2,877,969,80|46,983,656.1|||
||Subsidiary|ic display|||||5,446,776.41|4,434,987.61|
|Technology Co.,|||0|0.73|5.34|8|||
|||materials|||||||
|Ltd.|||||||||
|Xuyou Electronic|Subsidiary|The|JPY18150|744,019,016.|739,920,421.||5,752,136.43|5,895,922.83|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|Material Technolog||development|million|61|08||||
|(Wuxi) Co., Ltd.||,production|||||||
|||and process|||||||
|||of Graphene|||||||
|||Investment|100,000,000.n00||||||
|Shenzhen Xuhui||||115,859,060.|110,079,953.||-1,188,861.7||
||Subsidiary|Manageme||||94,042.74||-1,088,467.27|
|Investment Co., Ltd.||||24|85||3||
|||t|||||||
|Shanghai Tanyuan|||60,000,000.00||||||
|||Technologica|||||||
|Huigu New Material||||106,800,734.|104,463,802.||-6,900,666.2||
||Subsidiary|l||||194,829.10||20,745,934.23|
|Technology Co.,||||97|03||3||
|||development|||||||
|Ltd.|||||||||

Subsidiaries obtained or disposed in the reporting period
√ Applicable□Not applicable
||||
|-|-|-|
|Name|Mode|Influence|
|Huzhou Mingshuo Optoeletronic|||
||Acquisiton|Profit increase|
|Technology Co., Ltd.|||
|Mingshuo (Beijing) Electronic Technology|||
||Acquisiton|Profit increase|
|Co., Ltd.|||
|Chuanglianhuatai (Hongkong) Co., Ltd.|Acquisiton|Profit increase|
|Tianlonghuatai Industry (Hongkong)|||
||Acquisiton|Profit increase|
|Co.,Ltd.|||
|Dongxu (Xuhua) International Equipment|||
||Acquisiton|Profit increase|
|Co., Ltd.|||
|Hunan Dongxu Weisheng Smart|||
||New establishment|Profit increase|
|Technology Co.,Ltd.|||
|Hunan Dongxu Delai Electronic|||
||New establishment|Profit increase|
|Technology Co., Ltd.|||
|Wuhu Dongxu Weiyu Medical Apparatus|||
||New establishment|Profit increase|
|Technology Co.,Ltd.|||
|Hunan Dongxu Weigao Medical Apparatus|||
||New establishment|Profit increase|
|Technology Co.,Ltd.|||
|Shandong Qihui Medical Technology|||
||New establishment|Profit increase|
|Co.,Ltd.|||
|Guangdong Dongxuweiyu Medical|||
||New establishment|Profit increase|
|Apparatus Technology Co.,Ltd.|||

8．Structured vehicle controlled by the Company
□ Applicable√ Not applicable
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 9. Prediction of business performance for January -September 2017
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason.
□ Applicable√ Not applicable
10.Risks facing the Company and countermeasures
(1). Risk of market competition
The TFT-LCD glass substrate production industry the company belongs to has been monopolized by foreign manufacturers for a long time, and the USA Corning, Japan Asahi Glass, Nippon Electric Glass and other international giants have a high market share. The glass substrate products produced by the company have the advantages of low costs in production and transportation and timely delivery in the domestic market. At present, the company has a number of 5G and 6G glass substrate production lines in the mass production, having a relatively high market share in the domestic market. The company's 8.5 generation glass substrate production line is under construction, but in the process of project construction, it is facing with the uncertainties of industrial policy, market change and technological upgrading, which may lead to the difference occurred between the forecast and the implementation schedule and implementation effect of the project. Furthermore, compared with the USA Corning, the production line already planned by the company is relatively small, especially in the reserve of production technology of 10G and above 10G glass substrate, the company still has a large gap to catch. In the future, there still will be some uncertainties for the company in connection to whether the company can fit the market trend to develop and roll out the larger size LCD glass substrate products and continuously expand the market share, so that may have a certain impact on the company's operating results.
Solutions: The Company will summarize the construction and operation experience of the 5G and 6G glass substrate production lines and speed up the construction progress of the 8.5G glass substrate line. Meanwhile, in order to snatch the good market opportunity, the company, together with Japan NEG, has already set up a joint venture company to build the postprocessing line of 8.5G line, which will further accelerate the Market launch of the company's 8.5 generation glass substrate, thus reducing the implementation risk of the production line. Furthermore, relying on the company's customer resources and market advantages in the liquid crystal glass substrate, the company actively made the layout of optoelectronic display materials like color filters and polarizers, thus to enhance the added value of products and deepen the cooperation with the downstream customers, so as to shape a good industrial synergy and cluster effect.
(2). Technical upgrading and replacement risk
The TFT-LCD glass substrate's downstream LCD panel has a high maturity of technology, which is suitable for large-scale production. Although the liquid crystal glass substrate, especially the large size liquid crystal glass substrate, can cover many lines and have a long life cycle, the panel display technology belongs to the filed featuring fast-upgrading and replacement of technology. At present, the TFT-LCD technology occupies a dominant position-which has a relatively stable demand of glass substrate, but if there are significant technological changes occurred in the downstream flat panel display industry-like the TFT-LCD technology is replaced by other new technologies such as OLED and the company failed to achieve timely upgrading of the
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 technology, then the company will face a certain degree of risk in technological upgrading and replacement. Solutions: the company has a strong technical strength, and the company is the only domestic company that mastered the two production technological processes of glass substrate namely the overflow melting method and the floating method. The whole-set equipment production line of TFT-LCD glass substrate was recognized as the "National strategic product innovation" and the processing method of molten glass in platinum channel had won the "China Patent Gold Award". In order to cope with the risks of alternative technology, the Company will, based on the gained successful experience of industrialization, continue to increase the R& D funding and strengthen the R& D cooperation with universities and research institutes and enhance the research and development on new-technological display glass products such as ultra-thin glass products, large-size glass products, LTPS glass products and OLED.
(3). Risks in asset acquisitions and business integration
In March 2017, the Company disclosed "Issuing shares and paying cash to buy assets and raise matching funds namely the related transaction scheme", and the scheme has been examined and approved by the Board of Directors, the Supervisory Committee and the Extraordinary Shareholders' General Meeting and then it has been submitted to the CSRC for examination and approval. At present, the scheme has passed the centralized examination of operators by the Ministry of Commerce, and received the "Acceptance notice of administrative license application" issued by CSRC on June 29. Now it is in the stage of giving-reply process to the first feedback. This acquisition of Sunlong Bus will enable the company to enter the field of new energy bus, and the injection of the new assets will face a certain extent risk of business integration.
Solutions: After the completion of the acquisition, the company plans to reorganize the organizational structure of Sunlong Bus and improve its corporate governance; through sending financial staff into the company to strengthen the financial supervision and management of Sunlong Bus; through staff training and cultural exchanges to enhance the cultural identity of staff in Sunlong Bus; maintaining the stabilization of the existing management team and the core technical team of Sunlong Bus and providing the necessary support to the production and operation of Sunlong Bus.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 V. Important Events
1. Annual General Meeting and ExtraordinaryShareholders’ Meetings in the Reporting Period
(1).Annual General Meeting
|||||||
|-|-|-|-|-|-|
|||Investor|||Index to disclosed|
|Meeting|Type||Convened date|Disclosure date||
|||participation ratio|||information|
|The First provisional||||||
||Provisional||||Announcement No.|
|shareholders’||||||
||shareholders’|31.02%|February 10,2017|February 11,2017|2017-010,|
|General meeting in||||||
||General meeting||||www.cninfo.com.cn|
|2017||||||
|The Second||||||
|provisional|Provisional||||Announcement No.|
|shareholders’|shareholders’|18.22%|March 31,2017|April 1,2017|2017-032,|
|General meeting in|General meeting||||www.cninfo.com.cn|
|2017||||||
||Annual||||Announcement No.|
|2016 Shareholders’||||||
||Shareholders’|20.43%|April 17,2017|April 18,2017|2017-038,|
|general meeting||||||
||General Meeting||||www.cninfo.com.cn|
|The Third||||||
|provisional|Provisional||||Announcement No.|
|shareholders’|shareholders’|23.62%|June 2,2017|June 3,2017|2017-059,|
|General meeting in|General meeting||||www.cninfo.com.cn|
|2017||||||
|The Fourth||||||
|provisional|Provisional||||Announcement No.|
|shareholders’|shareholders’|28.76%|June 26,2017|June 27,2017|2017-068,|
|General meeting in|General meeting||||www.cninfo.com.cn|
|2017||||||

2. Preferred stockholders restored voting rights to request to convene ProvisionalShareholders’ Meeting.
□Applicable√Not applicable
2. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
□ Applicable√Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 3. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior management personnel and other related parities.
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
||||||Period||
|||||Time of|||
||Commitment||||of|Fulfil|
|Commitment||Type|Contents|making|||
||maker||||commi|lment|
|||||commitment|||
||||||tment||
||||If listed companies plans to sell tradable stocks||||
||||through the bid trading system of Shenzhen Stock||||
||||Exchange and sell greater than 5% of shares within||||
||Shijiazhuang||||Long-t|Unde|
|Commitment||Share|six months after the first sales, will disclose the||||
||Baoshi|||March|erm|r|
|on share||reduction|contents specified by the Form Guide to Prompt||||
||Electronics|||29,2007|effecti|Fulfil|
|reform||commitment|Announcement of Removing Restriction on Sales of||||
||Group Co., Ltd||||ve|lment|
||||Non-tradable Stocks of Listed Companies through the||||
||||prompt announcement of disclosing sales of listed||||
||||companies||||
|Commitment|||||||
|in the|||||||
|acquisition|||||||
|report or the|||||||
|report on|||||||
|equity changes|||||||
||||Not overstepping its authority to interfere with the||||
||||company's management activities. (2) Not encroach||||
||||the interests of the company. (3) If the CSRC or||||
||||Shenzhen Stock Exchange has different requirements||||
||||on the commitment made by the Company / I to||||
||||ensure the sound implementation of the returns fill-up||||
||||measures for the diluted returns at the period caused||||
|Commitment|||by this transaction, the Company / I shall voluntarily||Long-t|Unde|
||Tunghsu||||||
|made upon the|||and unconditionally make the commitment in||erm|r|
||Group,Li|||June 10,2017|||
|assets|||accordance with the requirements of the CSRC or the||effecti|Fulfil|
||Zhaoting||||||
|replacement|||Shenzhen Stock Exchange. (4) As one of the relevant||ve|lment|
||||liability subjects to the returns fill-up measures, the||||
||||Company / I undertake that strictly abide by the||||
||||above commitment made by the Company / I and||||
||||ensure that the returns fill-up measures of the||||
||||Company / I can be soundly implemented. If the||||
||||Company / I violate the above commitments or refuse||||
||||to fulfill the above commitments, the Company / I||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
||hereby agree to impose relevant penalties or relevant||||
||management measures on the Company / I in||||
||accordance with the relevant regulations and rules||||
||formulated and issued by the securities regulatory||||
||authorities such as the CSRC and the Shenzhen Stock||||
||Exchange.||||
||Undertake that faithfully and diligently perform||||
||duties and protect the lawful rights and interests of||||
||the company and all its shareholders; (2) undertake||||
||that not transfer benefits to other units or individuals||||
||in gratuitous or unfair conditions and not take any||||
||other ways to damage the interests of the company;||||
||(3) undertake that curb the position-related||||
||consumption behavior; (4) undertake not to use the||||
||company's assets to engage in investment or||||
||consumption activities that have nothing to do with||||
||the performance of the duties; (5) undertake that the||||
||remuneration system established by the board of||||
||directors or the remuneration and assessment||||
|Gong Xin, Han|committee is linked to the company's implementation||||
|Zhiguo, Huang|of the returns fill-up measures, and make affirmative||||
|Jinliang, Li|vote for the relevant motions of the board of directors||||
|Zhaoting, Liu|and the general meeting of shareholders when||||
|Wentai, Lu|participating in the decision; (6) if the company||Long-t|Unde|
|Guihua, Wang|launches the equity incentive policy subsequently,||erm|r|
|||June 10,2017|||
|Jianqiang, Wang|then undertake that the terms of exercise of the||effecti|Fulfil|
|Junming, Wang|company's equity incentive to be announced are||ve|lment|
|Lipeng, Wang|linked to the performance of the company's measures||||
|Zhonghui and|of returns fill-up and make affirmative vote for the||||
|Zhang|relevant motions of the board of directors and the||||
|Shuangcai.|general meeting of shareholders when participating in||||
||the decision; (7)If the CSRC or Shenzhen Stock||||
||Exchange has different requirements on the||||
||commitment made by I to ensure the sound||||
||implementation of the returns fill-up measures for the||||
||diluted returns at the period caused by this||||
||transaction, I shall voluntarily and unconditionally||||
||make the commitment in accordance with the||||
||requirements of the CSRC or the Shenzhen Stock||||
||Exchange. (8) As one of the relevant liability subjects||||
||to the returns fill-up measures, I undertake that||||
||strictly abide by the above commitment made by I||||
||and ensure that the returns-fill-up measures of the||||
||Company shall be soundly implemented. I hereby||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||agree to impose relevant penalties or relevant||||
||||management measures on the Company / I in||||
||||accordance with the relevant regulations and rules||||
||||formulated and issued by the securities regulatory||||
||||authorities such as the CSRC and the Shenzhen Stock||||
||||Exchange.||||
|||Commitmen|1.From the date of commitment letter issued, except||||
|||ts on|the managed hosting company for Dongxue||||
|||horizontal|Optoelectronic , this company and majority-owned||Long-t|Unde|
|||competition,|subsidiaries do not in any way, directly or indirectly|December 22,|erm|r|
||Li Zhaoting||||||
|||related|engaged in business and Dongxu Optoelectronic and|2011|effecti|Fulfil|
|||transaction|its subsidiaries are the same, or similar, future||ve|lment|
|||and capital|Dongxu Optoelectronic shares and its subsidiaries are||||
|||occupation|not engaged in the same or similar businesses.||||
||||1.From the date of commitment letter issued, except||||
||||the managed hosting company for Dongxue||||
||||Optoelectronic , this company and majority-owned||||
||||subsidiaries do not in any way, directly or indirectly||||
||||engaged in business and Dongxue Optoelectronic and||||
||||its subsidiaries are the same, or similar, future||||
||||Dongxue Optoelectronic shares and its subsidiaries||||
||||are not engaged in the same or similar businesses.||||
||||2.The company assurances against the use of precious||||
|Commitments|||||||
||Dongxu||stones share any act prejudicial to the control||||
|made upon|||||||
||Optoelectronic|Commitmen|relationship of Dongxu Optoelectronic interests and||||
|issuance|||||||
||Investment Co.,|ts on|its wholly-owned subsidiaries, holding, or causing||||
||Ltd.,|horizontal|Dongxue Optoelectronic shares and its wholly-owned||Long-t|Unde|
||Shijiazhuang|competition,|subsidiaries, holding form business competition||erm|r|
|||||April1， 2012|||
||Baoshi|related|decisions. 3. The company will not directly invest,||effecti|Fulfil|
||Electronics|transaction|purchase and Dongxu Optoelectronic identical or||ve|lment|
||Group Co.,|and capital|similar business enterprises and projects.||||
||Ltd.Tunghsu|occupation|4.If the assets owned by the Dongxu Optoelectronic .||||
||Group,||compete with , the company will adopt effective||||
||||measures and give up the same business. 5. If the||||
||||company has horizontal competition with Dongxu||||
||||Optoelectronic and lead to lose to it, the company will||||
||||bear all the responsibilities.||||
||||6. Before December 31, 2015, by way of designated||||
||||placement, the company will transfer all the shares||||
||||that Dongxu Optoelectronic Investment, entrusted to||||
||||Zhengzhou Xufei company and all the shares that are||||
||||entrusted to Baoshi Group, to Dongxu||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|||Optoelectronics; Before December 31, 2016, by way||||
|||of designated placement, the company will transfer all||||
|||the shares that Tunghsu Group entrusted to Dongxu||||
|||Yingkou and Sichuan Xuhong to Dongxu||||
|||Optoelectronics. Within the time limit mentioned||||
|||above, if there were the external factors such as a||||
|||depression of industry as a whole, or the changes in||||
|||regulatory requirements, which lead to the result that||||
|||the shares of hosting company can not meet the||||
|||requirements of capital investment, Li Zhaoting, the||||
|||actual controller, Dongxu Optoelectronic Investment ,||||
|||Tunghsu Group and Baoshi Group as well as the||||
|||company will actively negotiate with related parties,||||
|||continue to entrust the above mentioned shares and||||
|||the power of management to Dongxu||||
|||Optoelectronics. Within the period when the company||||
|||is still the controlling shareholder of Dongxu||||
|||Optoelectronics, the commitments are in effect.||||
|||In view of:||||
|||The main business of Dongxu Optoelectronic is the||||
|||production of TFT-LCD glass substrate, and the||||
|||company now is applying for non-public offering||||
|||of ,bonds (2) Tunghsu Group is the controlling||||
|||shareholder of Dongxu Optoelectronic; and during the||||
|||period of holding, Tunghsu Group has signed patent||||
|||license contracts separately with Dongxu||||
|||Optoelectronic and its subsidiaries including Wuhu||||
|||Dongxu Optoelectronic Science and Technology Co.,||||
|||Ltd. (hereinafter referred to as Wuhu Optoelectronic),||Valid||
|||Wuhu Dongxu Optoelectronic Equipment Technology||for|Unde|
||Other|Co., Ltd. (hereinafter referred to as Wuhu Equipment)|February|Decem|r|
|Tunghsu Group||||||
||commitment|and Shijiazhuang Dongxu Optoelectronic Equipment|8,2015|ber|Fulfil|
|||Technology Co., Ltd. (hereinafter referred to as||31,202|lment|
|||Shijiazhuang Equipment). For this purpose, Tunghsu||0||
|||Group has made following promises: Any patents||||
|||related to panel display glass substrate not included in||||
|||the aforesaid Contract on the Licensing of Patent||||
|||Exploitation obtained by Tunghsu Group in the||||
|||future, Tunghsu Group shall sign a free contract of||||
|||licensing the new pertinent patents with the company||||
|||and the company’s subsidiaries (Wuhu||||
|||Optoelectronic Technology Co.,Ltd, Wuhu||||
|||Equipment Company and Shijiazhuang Equipment||||
|||Company) with the same articles of the former patent||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|||licensing contract. After the company successfully||||
|||completed the issuance of corporate bonds, whether||||
|||Tunghsu Group control the company during the||||
|||duration of the bonds, Tunghsu Group shall renew the||||
|||patent licensing contract unreserved with the||||
|||company and the company’s subsidiaries (Wuhu||||
|||Optoelectronic Technology Co.,Ltd, Wuhu||||
|||Equipment Company and Shijiazhuang Equipment||||
|||Company) under the company’s requirement until the||||
|||bonds expired.||||
|||In view of: Dongxu Optoelectronic Technology Co.,||||
|||Ltd. is applying for public offering of corporate||||
|||bonds, and the total scale of bonds will not exceed 1||||
|||billion yuan. After the deduction of issue expenses, all||||
|||the funds raised are planed to be used to supplement||||
|||the liquidity and support the R&D, production and||||
|||material purchase of glass substrate and the||Valid||
|Dongxu|To raise|equipment. Thus, the demands of business operation||for|Unde|
|Optoelectronic|funds to use|and expansion in the company will be satisfied. The|February 10,|Decem|r|
|Technology Co.,|the|company promises: 1. The funds raised through the|2015|ber|Fulfil|
|Ltd.|commitment|public offering of corporate bonds will not be directly||31,202|lment|
|||or indirectly invested in real estate development||0||
|||business, or used to increase the capital fund or as||||
|||loans in subsidiaries engaged in real estate business;||||
|||2. the funds raised through the public offering of||||
|||corporate bonds will not be used for real estate||||
|||development business in any form.||||
|||Dongxu investment/Baoshi group promised the net||||
|||profit level of the next three years and profit||||
|||compensation scheme in respective to Xufei||||
|||Optoelectronic Technology Co., Ltd and Xuxin||||
|||Optoelectronic Technology Co., Ltd as follows: The||||
|||Net profits after deducting non-recurring gain or loss||Valid||
||Performance|that are attributable to Xufei Optoelectronic||for|Unde|
||compensatio|Technology Co., Ltd in year 2015, year 2016, year||Decem|r|
|Baosi Group|||Marc 2, 2015|||
||n|2017, year 2018 shall accordingly be not less than||ber|Fulfil|
||commitment|RMB 36,669,800, RMB 84,562,800, RMB||31,201|lment|
|||156,531,100, RMB 225,405,200；The Net profits after||8||
|||deducting non-recurring gain or loss that are||||
|||attributable to Xuxin Optoelectronic Technology Co.,||||
|||Ltd in year 2015, year 2016, year 2017, year 2018||||
|||shall accordingly be not less than RMB23,348,800,||||
|||RMB55,420,500, RMB 86,627,700, RMB||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|||158,345,000. If any year’s actual net profits are less||||
|||than the estimated profits as aforesaid within the||||
|||compensation period, Dongxu investment/Baoshi||||
|||group shall make up the difference in accordance with||||
|||the aforesaid principles in cash to Dongxu||||
|||Optoelectronic Technology Co., Ltd; If the actual net||||
|||profits are not less than the estimated profits, there is||||
|||no need for Dongxu investment / Baoshi group to||||
|||carry out the compensation. The compensation period||||
|||includes the year contained the date on which the||||
|||transaction completed and the subsequent two||||
|||consecutive accounting years.||||
|||In view of:||||
|||(1) The main business of Dongxu Optoelectronic is||||
|||the production of TFT-LCD glass substrate, and the||||
|||company now is applying for non-public offering of||||
|||stock; (2) Tunghsu Group is the controlling||||
|||shareholder of Dongxu Optoelectronic; and during the||||
|||period of holding, Tunghsu Group has signed patent||||
|||license contracts separately with Dongxu||||
|||Optoelectronic and its subsidiaries including Wuhu||||
|||Dongxu Optoelectronic Science and Technology Co.,||||
|||Ltd. (hereinafter referred to as Wuhu Optoelectronic),||||
|||Wuhu Dongxu Optoelectronic Equipment Technology||||
|||Co., Ltd. (hereinafter referred to as Wuhu Equipment)||||
|||||Long-t|Unde|
|||and Shijiazhuang Dongxu Optoelectronic Equipment||||
||Other||June 17,|erm|r|
|Tunghsu Group||Technology Co., Ltd. (hereinafter referred to as||||
||commitment||2015|effecti|Fulfil|
|||Shijiazhuang Equipment). For this purpose, Tunghsu||||
|||Group has made following promises: within the term||ve|lment|
|||of validity involving patent right stated in patent||||
|||license contracts, whether Dongxu Optoelectronic is||||
|||in the control of Tunghsu Group or not, Tunghsu||||
|||Group promises that when the above mentioned||||
|||patent license contracts expire, the group will||||
|||unconditionally renew the contracts with Dongxu||||
|||Optoelectronic and its subsidiaries (Wuhu||||
|||Optoelectronic, Wuhu Equipment, Shijiazhuang||||
|||Equipment and etc) according to the terms of original||||
|||contracts based on the requirements of Dongxu||||
|||Optoelectronic.||||
|Tunghsu|Commitmen|To avoid the horizontal competition with the issuer,||Long-t|Unde|
||||Decembert 16,|||
|Group,Li|ts on|the company’s actual controller-Zhaoting, Li and the||erm|r|
||||2015|||
|Zhaoting|horizontal|holding company-Tunghsu Group promised: 1. As of||effecti|Fulfil|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
||competition,|this declaration and from the date of commitment||ve|lment|
||related|letter issued, except the managed hosting companies,||||
||transaction|the other companies directly or indirectly controlled||||
||and capital|by the controller or holding company have no||||
||occupation|horizontal competitions with Dongxu Optoelectronic||||
|||Technology Co., Ltd. 2. Any other companies||||
|||controlled by the actual controller or holding||||
|||company shall avoid businesses identical or similar to||||
|||the company may lead to a competitive relation and||||
|||cannot do any harm activities to Dongxu||||
|||Optoelectronic Technology Co., Ltd and companies||||
|||controlled by Dongxu Optoelectronic Technology||||
|||Co., Ltd as long as there are no alterations of the||||
|||actual controller and the holding company. Any||||
|||businesses opportunities under the main business||||
|||scope of Dongxu Optoelectronic Technology Co., Ltd||||
|||and its controlled companies shall not take by the||||
|||companies controlled by the actual controller or the||||
|||holding company, and the business opportunities shall||||
|||be given to Dongxu Optoelectronic Technology Co.,||||
|||Ltd and its controlled companies.3. As long as the||||
|||actual controller and the holding company are the||||
|||same, the actual controller and the holding company||||
|||shall continue to strictly performance the relevant||||
|||declarations and commitments of avoiding horizontal||||
|||competition. If I (the company) violated the above||||
|||commitment, I (the company) will bear all the losses||||
|||of Dongxu Optoelectronic and its controlled||||
|||enterprises arising from this.||||
|||In order to safeguard the the company's main business||||
|||of TFT-LCD glass substrate production, the||||
|||controlling shareholder-Tunghsu Group Co. Ltd made||||
|||a commitment valid in the period of the company’s||||
|||application for non-public share issuance: given (1)||||
|||||Valid||
|||The main business of Dongxu Optoelectronic||||
|||||for|Unde|
|||Technology Co., Ltd is TFT-LCD glass substrate||||
||Other||December|Decem|r|
|Tunghsu Group||||||
|||production, and currently it is applying for non-public||||
||commitment||16,2015|ber|Fulfil|
|||share issuance; (2) Tunghsu Group, which is the||||
|||||31,201|lment|
|||controlling shareholder of Dongxu Optoelectronic,||||
|||||8||
|||respectively signed Patent Licensing Contract with||||
|||Dongxu Optoelectronic, Dongxu Optoelectronic’s||||
|||subsidiaries of Wuhu Dongxu Optoelectronic||||
|||Technology Co., Ltd (hereinafter referred to as||||
|||"Wuhu Optoelectronics"), Wuhu Dongxu||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|||Optoelectronic Equipment Technology Co., Ltd||||
|||(hereinafter referred to as "Wuhu Equipment") and||||
|||Shijiazhuang Dongxu Optoelectronic Equipment||||
|||Technology Co., Ltd (hereinafter referred to as||||
|||"Shijiazhuang Equipment") during the control period.||||
|||Therefore, Tunghsu Group made a commitment as||||
|||follows: In the term of validity of the patents involved||||
|||in the patent licensing contract, whether Tunghsu||||
|||Group controls Dongxu Optoelectronic or not, after||||
|||the commitment of the above-said Patent Licensing||||
|||Contract expired, Tunghsu Group will, according to||||
|||the requirements by Dongxu Optoelectronic,||||
|||unconditionally renew Patent Licensing Contract with||||
|||Dongxu Optoelectronic and Dongxu Optoelectronic’s||||
|||subsidiaries (Wuhu Optoelectronics, Wuhu||||
|||Equipment and Shijiazhuang Equipment) according||||
|||to the original contract terms.||||
|Tunghsu||||||
|||The company, one of the subscription objects,||||
|Group;Changjia||||||
|||promised that after Dongxu Optoelectronic||||
|ng Securities||||||
|||Technology Co., Ltd completed the non public||||
|(Shanghai )Asse||||||
|||issuance of shares to the company and specific||||
|t Management||||||
|||objects for raising funds, the shares (New shares)||Valid||
|Co.,||||||
|||issued by Dongxu Optoelectronic Technology Co.,||for|Unde|
|Ltd.;Kunshan|Share|||||
|||Ltd and subscribed by the company shall not be|December16,2|Decem|r|
|Development|limited|||||
|||transferred to any others in 36 months commenced|015|ber|Fulfil|
|Zone State|commitment|||||
|||from the publicly listed date of the new shares. As a||16,201|lment|
|Investment Co.,||||||
|||result of the issuance of new shares by the Company||8||
|Ltd.;Beijing||||||
|||to the Company, the shareholding of Dongxu||||
|Yingfei Hailin||||||
|||Optoelectronic Co., Ltd. by Dongxu Optoelectronic||||
|Investment||||||
|||Co., Ltd. will also be subject to the above||||
|Center (Limited||||||
|||commitments.||||
|partnership).||||||
|||||Valid||
|||||for|Unde|
|Tunghsu|Other|Not act in excess of authority to interfere the||||
||||February|Decem|r|
|Group,Li|Commitmen|company’s management and operating activities, not||||
||||6,2016|ber|Fulfil|
|Zhaoting|t|encroach on the interests of the company.||||
|||||31,201|lment|
|||||9||
|Li Zhaoting,||(a) Promised that not freely or unfairly transfer||Valid||
||||||Unde|
|Zhou Bo,Niu|Other|interests to other units or individuals, nor adopt other||for||
||||February||r|
|Jianlin, Gong|Commitmen|ways to jeopardize the company’s interests. (b)||Decem||
||||6,2016||Fulfil|
|Xin, Lu|t|Promised that restrict the post consumer behaviors of||ber||
||||||lment|
|Guihua, Mu||the directors and senior management personnel. (c)||31,201||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|Tiehu, Zhang||Promised that not use the company's assets to engage||9||
|Shuangcai, Shi||in the investment &consuming activities which are||||
|Zhiqiang , Liu||irrelevant to perform the duties. (d) Promised that the||||
|Wentai,Xiao||salary system set up by the board of directors or the||||
|Zhaoxiong and||Remuneration Committee is relevant to the||||
|Zhou Bo||implementation status of the company’s fill-up return||||
|||measures. (e) Promised that the vesting conditions of||||
|||the company’s equity incentive are relevant to the||||
|||implementation status of the company’s fill-up return||||
|||measures. (f) Promised the full implementation of the||||
|||relevant fill-up return measures established by the||||
|||company and any commitment related to the fill-up||||
|||return measures, if such commitment is breached and||||
|||resulted in losses to the company or the investors, the||||
|||concerning party shall take the responsibility for||||
|||compensating the company or the investors according||||
|||to the law. As one of the relevant responsibility||||
|||bodies of the fill-up return measures, if the oneself||||
|||breaches the above-said commitments or refuse to||||
|||fulfill the above-said commitments, the oneself agrees||||
|||the punishments or relevant supervise measures||||
|||carried out in accordance with the regulations and||||
|||rules issued or enacted by CSRC, Shenzhen Stock||||
|||Exchange and other securities regulatory||||
|||organizations.||||
|China Life AMP||||||
|||The subscription of this issue a total of nine, namely||||
|Asset||||||
|Management||Qianhai Equity Investment Fund||||
|Co., Ltd.;Nuoan||(LP);AEGON-Industrial Fund,Shenzhen Taianer||||
|Fund||Information Technology Co., Ltd.,Penghua Fund||||
|Management||Management Co., Ltd.;China Fund Management Co.,||||
|Co., Ltd.;||Ltd.,China Life AMP Asset Management Co.,||||
|||||Valid||
|Penghua Fund||Ltd.,Nuoan Fund Management Co., Ltd.,Zhongou||||
|||||for|Unde|
|Management|Share|STAS Asset Management(Shanghai)Co., Ltd. And||||
||||August|Augus|r|
|Co., Ltd.;|limited|Sws Mu Fund Management Co., Ltd.The aforesaid||||
||||26,2016|t|Fulfil|
|Qianhai Equity|commitment|issuer has issued the following commitments on the||||
|||||25,201|lment|
|Investment Fund||non-public issue of shares: The allocated shares shall||||
|||||7||
|(LP); Sws Mu||not be transferred within 12 months from the date of||||
|Fund||listing of the new shares and apply for new shares in||||
|Management||the new shares within 12 months Increase the shares||||
|Co., Ltd.;||to lock.||||
|Shenzhen||||||
|Taianer||||||
|Information||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||Technology Co.,||||||
||Ltd.;||||||
||AEGON-Industr||||||
||ial Fund.;||||||
||Zhongou STAS||||||
||Asset||||||
||Management(Sh||||||
||anghai)Co., Ltd;||||||
||CITIC Fund||||||
||Management||||||
||Co., Ltd..||||||
||||Before December 31, 2017, the whole stake of||||
||||Dongxu Yingkou and Sichuan Xu Hong-which is held||||
||||by Tunghsu Group and it’s commissioned to the||||
||||company for management-will be injected into||||
|||Commitmen|Dongxu Optoelectronic by the way of directional||||
|||ts on|add-share-issuance. In the above period, if any other||Valid||
|||horizontal|external factors such as the decline of overall industry||for|Unde|
|||competition,|boom and changes of regulatory requirements led to|December|Decem|r|
||Tunghsu Group||||||
|||related|the trusteeship company’s stake not meeting the|9,2016|ber|Fulfil|
|||transaction|conditions of asset injection, then the actual controller||31,201|lment|
|||and capital|Li Zhaoting, Dongxu Optoelectronic Investment,||7||
|||occupation|Tunghsu Group and Baoshi Group will actively||||
||||consult with the relevant parties to keep the||||
||||above-mentioned stake to be continuously||||
||||commissioned to Dongxu Optoelectronic for||||
||||management.||||
|Equity|||||||
|incentive|||||||
|commitment|||||||
||||Jixing New Material Investment (HK) Co., Ltd. and||||
||||Lubao, Wang (The legal representative of the||||
||||company (HK)) jointly promised that the net profits||||
|||Performance|||||
||||after tax attributable to Jixing New Material||||
|Other|Jixing New|commitment|||||
||||Investment Co., Ltd in year 2015, year 2016, year||Long-t|Unde|
|commitments|Material|and|||||
||||2017 shall accordingly be not less than RMB30,|January 20,|erm|r|
|made to|Investment|compensatio|||||
||||000,000, RMB60,000,000, RMB 100,000,000. If the|2015|effecti|Fulfil|
|minority|(HK) Co., Ltd. ;|n|||||
||||net profits attributable to Jixing New Material||ve|lment|
|shareholders|Wang Lubao|arrangement|||||
||||Investment Co., Ltd after audited in any year of year||||
|||s|||||
||||2015, year 2016 and year 2017 are less than the||||
||||promised net profits, the difference shall be||||
||||compensated by Jixing New Material Investment||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||(HK) Co., Ltd. and Lubao, Wang in cash.||||
||||To ensure Dongxu Optoelectronic Technology Co.,||||
||||Ltd realizing expected benefits on the M&A of||||
||||Shanghai Tanyuan Huigu New Materials Technology||||
||||Co., Ltd, the promisee voluntarily promised the||||
||||profits of Shanghai Tanyuan Huigu New Materials||||
|||Performance|Technology Co., Ltd for the next three years as||||
||||||Valid||
||Guo Shouwu,|commitment|follows: (a) Business performance commitment: the||||
||||||for|Unde|
||Ma Shengjie,|and|net profits of Shanghai Tanyuan Huigu New||||
||||||Decem|r|
||Wu Haixia ,|compensatio|Materials Technology Co., Ltd in year-2016,|March 8,2016|||
||||||ber|Fulfil|
||Shen Wenzhuo|n|year-2017, year-2018 shall accordingly not be less||||
||||||31,201|lment|
||and Shen Li|arrangement|than RMB 5 million, RMB 10 million, RMB 20||||
||||||9||
|||s|million. (b) Compensation mode: if the net profits of||||
||||Shanghai Tanyuan Huigu New Materials Technology||||
||||Co., Ltd in year-2016, year-2017, year-2018||||
||||accordingly do not reach the promised net profits, the||||
||||promised party shall fully compensate the difference||||
||||by cash.||||
||||All eight shareholders of Ming Shuo (Beijing)||||
||||Electronic Technology Co., Ltd namely Chen Wei,||||
||Beijing Heyiyou||||||
||||Zhu Lei, Wang Yingchao, Jin Xiuzhen, Jiang Wei, Li||||
||Investment||||||
|||Performance|Honglei, Beijing He Yiyou Investment Partnership||||
||Partnership( LP)||||||
|||commitment|(limited partnership) and Qian Xinming voluntarily||Valid||
||;Chen Wei,|||||Unde|
|||and|make the commitment for the profits of the next three||for||
||Jiang Wei, Jin|||||r|
|||compensatio|years of Ming Shuo (Beijing) Electronic Technology|May 11,2017|June||
||Xiuzhen, Li|||||Fulfil|
|||n|Co., Ltd and such commitment is as follows: The||30,202||
||Honglei, Qian|||||lment|
|||arrangement|audited net profits after tax in 2017, 2018 and 2019||0||
||Xinming, Wang||||||
|||s|(determined by the lower principle after the deduction||||
||Yingchao and||||||
||||of non recurring gains and losses) are no less than||||
||Zhu Lei.||||||
||||RMB 10.5 million, RMB 20 million and RMB 40||||
||||million respectively.||||
|Executed|||||||
||Yes||||||
|timely or not?|||||||

4. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
√Yes□ No
|||
|-|-|
|Name|Zhongxingcai Guanghua Certified Public Accountants （LLP）|
|The Remuneration of auditing the semi annual financial report by||
|the domestic accounting firm(RMB’0000)||

Whether to change the accounting firm?
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017□ Yes√No
5.Explanations given by board of directors and supervisory board regarding “ Modifiedauditor’s” Issued by CPAs firm for the reporting period
□ Applicable√ Not applicable
6. Explanations given by Board of Directors regarding “ Modifiedauditor’s Report” Issued for last year□ Applicable√ Not applicable
7. Bankruptcy and restructuring
□ Applicable√ Not applicable
No such cases in the reporting period.
8. Legal matters
Signifieant lawsuits or arbitrations
□ Applicable√ Not applicable
No such cases in the reporting period.
Other legal matters
□ Applicable√ Not applicable
9. Punishments and rectifications
□ Applicable√ Not applicable
No such cases in the reporting period.
10. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable√ Not applicable
11.Equity incentive plans, employee stock ownership plans or other incentive measures for employees√ Applicable□Not applicable
1.Equity Incentive Plan
During the reporting period, the third installment of 1.192 million restricted shares of the company's restricted stock incentive plan implemented in 2014 that have yet to be unlocked remained locked state. (For the details, please refer to the "Restricted stock incentive plan (Draft) of Dongxu Optoelectronics Technology Co., Ltd" disclosed on http//Cninfo.com.cn )
2.The Company's Employee Stock Ownership Plan
1. On July 30, 2017, the Second Phase Employee Stock Ownership Plan (Draft) and its Summary of Dongxu Optoelectronics Technology Co., Ltd was examined and approved in the 19th meeting of the 8th term Board of
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Directors. The company planned to implement the Second Phase Employee Stock Ownership Plan to attract and retain outstanding management talent and business backbone personnel. This employee stock ownership planned to use the means of subscribing collective fund trust plan (The collection fund trust plan has an upper limit of 570 million shares and per share is RMB1.0) to purchase in the secondary market (including bulk transactions and auction transactions) and by other ways permitted by laws and regulations to obtain and hold the A shares of Dongxu Optoelectronics, and that shall not be used to buy other listed companies' shares. The related draft plan shall be implemented after getting approval from the company's shareholders' general meeting (For the details, please refer to the "The second-phase employee stock ownership plan (Draft) of Dongxu Optoelectronics Technology Co., Ltd" disclosed on http//Cninfo.com.cn)
2. In the report period, the first phase employee stock ownership plan of Dongxu Optoelectronics Technology Co., Ltd that was implemented in 2015 by the company remained in the lock-up period. (For the details, please refer to "The first-phase employee stock ownership plan (Draft) of Dongxu Optoelectronics Technology Co., Ltd" and the No. 2015-007, Announcement disclosed on http//Cninfo.com.cn)
12.Material related transactions
(1). Related transactions in connection with daily operation
√ Applicable□Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Whether|||||
|||||||||Trading||||||
||||||||||over the|||||
|||||Principl||||limit||||||
||||Subjects|e of|||||approve||Market||Index|
|||||||Amount||approve|||price of||of|
||||of the|pricing|||Ratio in|||||Date of||
|Related|Relation|Type of|||Price of|of trade|||d|Way of|similar||inform|
||||related|the|||similar|||||disclosu||
|parties|ship|trade|||trade|RMB0’||d||payment|trade||ation|
||||transacti|related|||trades|||||re||
|||||||000|||limited||availabl||disclos|
||||ons|transacti||||||||||
|||||||||（RMB|||e||ure|
|||||ons|||||or not|||||
|||||||||’0000）||||||
||||||||||(Y/N)|||||
|Yingchu|Controlled bythe sameactualcontroller|SalesGoods/Laborservicereceived|Construction &installation|Reference pricesetting|9,778.90|9,778.9||30,000|No|Currency|9,778.90|April29,2017|2017-041|
|an||||||||||||||
|Fengxia||||||||||||||
|ng||||||||||||||
|Street||||||||||||||
|Compre||||||||||||||
|hensive||||||||||||||
|Constru||||||||||||||
|ction||||||||||||||
|Manage||||||||||||||
|ment||||||||||||||
|Co., Ltd||||||||||||||
|Yixian|Controlled bythe sameactual|SalesGoods/Laborservice|Construction &installation|Reference pricesetting|778.38|778.38||280,000|No|Currency|778.38|April29,2017|2017-041|
|Xuhua||||||||||||||
|Park||||||||||||||
|Constru||||||||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ction|controller|received|||||||||||
|Develop|||||||||||||
|ment|||||||||||||
|Co.,|||||||||||||
|Ltd.|||||||||||||
|Guangd|Controlled bythe sameactualcontroller|Laborservicereceived|Construction &installation|Reference pricesetting|756.60|756.6|9,528|No|Currency|756.6|June01,2017||
|ong|||||||||||||
|Huakai|||||||||||||
|Real|||||||||||||
|estate|||||||||||||
|Develop|||||||||||||
|ment|||||||||||||
|Co.,|||||||||||||
|Ltd.|||||||||||||
|Shijiazh|Controlled bythe sameactualcontroller|SalesGoods/Laborservicereceived|A frame|Reference pricesetting|253.38|253.38|1,000|No|Currency|253.38|April29,2017|2017-041|
|uang|||||||||||||
|Bofa|||||||||||||
|Mechani|||||||||||||
|cal|||||||||||||
|Equipm|||||||||||||
|ent Co.,|||||||||||||
|Ltd|||||||||||||
|Dongxu|Controlled bythe sameactualcontroller|SalesGoods/Laborservicereceived|A frame|Reference pricesetting|307.69|307.69|1,000|No|Currency|307.69|April29,2017|2017-041|
|( Yingko|||||||||||||
|u)|||||||||||||
|Optoele|||||||||||||
|ctronic|||||||||||||
|Display|||||||||||||
|Co., Ltd|||||||||||||
|Sichuan|Controlled bythe sameactualcontroller|SalesGoods/Laborservicereceived|Custodian fee|Reference pricesetting|319.37|319.37|1,000|No|Currency|319.37|April29,2017|2017-041|
|Xuhong|||||||||||||
|Optoele|||||||||||||
|ctronic|||||||||||||
|Technol|||||||||||||
|ogy Co.,|||||||||||||
|Ltd.|||||||||||||
||Controlled bythe sameactualcontroller|SalesGoods/Laborservicereceived|Interestincome|Reference pricesetting|1,427.88|1,427.88|10,000|No|Currency|1,427.88|April29,2017|2017-041|
|Tunghsu|||||||||||||
|Group|||||||||||||
|Finance|||||||||||||
|Co.,|||||||||||||
|Ltd.|||||||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Dongxu|Controlled bythe sameactualcontroller|SalesGoods/Laborservicereceived|Semi-finishedproducts, PPcases|Reference pricesetting|1,204.98|1,204.98||3,200|No|Currency|1,204.98|April29,2017|2017-041|
|( Yingko||||||||||||||
|u)||||||||||||||
|Optoele||||||||||||||
|ctronic||||||||||||||
|Display||||||||||||||
|Co., Ltd||||||||||||||
|||||||14,827.1||||||||
|Total||||--|--||--|335,728|--|--|--|--|--|
|||||||8||||||||
|Details of any sales return of a large||||||||||||||
|||||Nil||||||||||
|amount||||||||||||||
|Give the actual situation in the report||||||||||||||
|period where a forecast had been||||||||||||||
|made for the total amounts of routine||||Nil||||||||||
|related-party transactions by type to||||||||||||||
|occur in the current period(if any)||||||||||||||
|Reason for any significant difference||||||||||||||
|between the transaction price and the||||Nil||||||||||
|market reference price (if applicable)||||||||||||||

(2). Related-party transactions arising from asset acquisition or sold
□Applicable√ Not applicable
No such cases in the reporting period.
(3). Related-party transitions with joint investments
□Applicable√ Not applicable
No such cases in the reporting period.
(4). Credits and liabilities with related parties
√ Applicable□Not applicable
Whether has non-operational contact of related liability and debts or not
□ Yes√ No
No such cases in the reporting period.
(5). Other significant related-party transactions
□Applicable√ Not applicable
No such cases in the reporting period.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 13. Particulars about the non-operating occupation of funds by the Controlling shareholder and other related parties of the Company
□Applicable√ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other related parties during the reporting period.
14. Significant contracts and execution
(1).Entrustments, contracting and leasing
（1）Entrustment
√ Applicable□Not applicable
Description of custodies
During the reporting period, the Company continued entrusted with the management of Dongxu( Yingkou) Optoelectronic Display Co., Ltd. and Sichuan Xuhong Optoelectronic Technology Co., Ltd.
In December 2011, Tunghsu Group signed the Equity Trusteeship Agreement with the Company , of which60% share rights of Dongxu (Yingkou) Optoelectronic Display Co., Ltd.,51% share rights of Sichuan Xuhong Optoelectronic Technology Co., Ltd. were entrusted by the Company, where the agreement went into effect as of March 2012. The clients paid the Company 500 thousand RMB of management fee per year for each subject. See details in the table below:
|||||||
|-|-|-|-|-|-|
|Name of Clients/Contractee|Name of|Type of Entrusting|Starting Date|Expiration|Confirmed|
||Trustee/Cont|Asset/Contracting|of Entrusting|Date of|Entrusting|
||ractee|Asset|/Contracting|Entrusting|/Contracting Fee at|
|||||/Contractin|the Current Period|
|||||g||
|Tunghsu Group, Yingkou Coastal DevelopmentConstruction Co., Ltd.Minmetals (Yingkou)Industrial Park Development Co., Ltd.|DongxuOptoelectronicTechnologyCo., Ltd.|Management Right ofDongxu(Yingkou)Optoelectroric DisplayCo., Ltd.|January 2012|Notes 1|707,547.18|
|Tunghsu Group, Mianyang Investment CityDevelopment (Group ) Co., Ltd., SichuanChanghong Electric Co., Ltd.||Management Right ofSichuan XuhongOptoelectronicTechnology Co., Ltd.|March 2012|Notes 2|3,429,535.76|
|Total|||||4,137,082.94|

 Note 1: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee. The operation trustee fee is basic management fee and incentive management fee, of which the basic management fee is 1 million RMB/year, the incentive management fee is counted by5% 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 by5% of the after-tax net profit yearly
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 achieved by the trustee company
Note3:On April 20, 2016, Dongxu (Yingkou) Optoelectronic Display Co.,Ltd, upon the approval by generalshareholders’ meeting, amended the Article of Association, thus the stake of Dongxu (Yingkou) Optoelectronic Display Co.,Ltd held by Dong Xu Group was changed to47.8% from60%.
Note 4:On April 1, 2016, Sichuan Xuhong Optoelectronic Technology Co. Ltd, with the consent of the shareholders' meeting, increased the capital with in accordance with the relevant provisions of Articles of Association; after capital increase, the stake of Sichuan Xuhong Optoelectronic Technology Co. Ltd held by Tunghsu Group was changed to86.64% from51%.
Items which resulted in profit or loss achieving over10% of the total profit for the Company
□ Applicable√ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable√ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable√ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable√ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable√ Not applicable
No such cases in the reporting period.
(2).Significant guarantees
√ Applicable□Not applicable
（1）Guarantees
InRMB’0000
||||||||||
|-|-|-|-|-|-|-|-|-|
|External Guarantee (Exclude controlled subsidiaries)|||||||||
||Relevant||Date of|Actual|||Complete|Guarantee|
|Name of the||Amount of|||||||
||disclosure||happening|mount of|Guarantee type|Guarantee term|implementa|for|
|Company||Guarantee|||||||
||date/No. of||(Date of|guarantee|||tion|associated|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
||the||signing||||or not|parties|
||guaranteed||agreement)|||||(Yes or no)|
||amount||||||||
|Total of external guarantee||||Total of actual external|||||
|approved in Period(A1)||||guarantee in Period(A2)|||||
|||||Total balance of actual|||||
|Total of external guarantee|||||||||
|||||external guarantee at|||||
|approved at Period-end(A3)|||||||||
|||||Period-end(A4)|||||
|Guarantee of the Company for the controlling subsidiaries|||||||||
|||||||||Guarante|
||Relevant|||||||e|
||||Date of||||Complete||
||disclosure|||||||for|
|Name of the||Amount|happening|Actual|||implemen||
||date/No. of||||Guarantee|Guarantee||associate|
|Company||of|(Date o|mount of|||tation||
||the||||type|term||d|
|guaranteed||guarantee|signing|guarantee|||or||
||guaranteed|||||||parties|
||||agreement)||||not||
||amount|||||||(Yes or|
|||||||||no)|
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|June||November||||||
|||132,000||94,000|liability|8 years|No|No|
|Technology Co.,|20,2013||12,2013||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|September||December||||||
|||10,000||10,000|liability|8 years|No|No|
|Technology Co.,|27,2013||13,2013||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|September||December||||||
|||10,000||10,000|liability|8 years|No|No|
|Technology Co.,|27,2013||19,2013||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|September||February||||||
|||20,000||10,000|liability|8 years|No|No|
|Technology Co.,|27,2013||19,2014||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|September||February||||||
|||10,000||10,000|liability|8 years|No|No|
|Technology Co.,|27,2013||25,2014||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|September||||The joint||||
|||20,000|April 8,2014|20,000||8 years|No|No|
|Optoelectronic|27,2013||||liability||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|Technology Co.,|||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|September||||||||
|||20,000|May 6,2014|20,000|liability|8 years|No|No|
|Technology Co.,|27,2013||||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|June||||||||
|||7,500|May 31,2017|7,500|liability|1 year|No|No|
|Technology Co.,|23,2016||||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|June||||||||
|||9,000|June 9,2017|9,000|liability|1 year|No|No|
|Technology Co.,|23,2016||||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|June||||||||
|||3,000|June 9,2017|3,000|liability|1 year|No|No|
|Technology Co.,|23,2016||||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|June||||||||
|||15,000|June 28,2017|15,000|liability|1 year|No|No|
|Technology Co.,|21,2016||||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|June||||||||
|||14,316|June 28,2017|14,316|liability|1 year|No|No|
|Technology Co.,|21,2016||||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|October||December||||||
|||10,000||10,000|liability|1 year|No|No|
|Technology Co.,|31,2016||6,2016||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|October||December||||||
|||10,000||4,000|liability|1 year|No|No|
|Technology Co.,|31,2016||26,2016||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||||||
||||||The joint||||
|Optoelectronic|October||November||||||
|||52,300||52,300|liability|6 years|No|No|
|Technology Co.,|31,2016||25,2016||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu|||||The joint||||
||April||February||||||
|Optoelectronic||6,000||6,000|liability|1 year|No|No|
||19,2016||23,2017||||||
|Technology Co.,|||||guaranty||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|Ltd.|||||||||
|Zhengzhou Xufei|||||||||
||||||The joint||||
|Optoelectronic|May||||||||
|||10,000|May 30,2016|10,000|liability|1.5 years|No|No|
|Technology Co.,|27,2016||||||||
||||||guaranty||||
|Ltd.|||||||||
|Zhengzhou Xufei|||||||||
||||||The joint||||
|Optoelectronic|October||November||||||
|||10,000||5,000|liability|1 year|No|No|
|Technology Co.,|31,2016||29,2016||||||
||||||guaranty||||
|Ltd.|||||||||
|Wuhu Dongxu||||||Two years|||
|Optoelectronic|||||The joint|from te date|||
||June||September||||||
|Equipment||150,000||45,000|liability|of advance of|No|No|
||20,2013||25,2014||||||
|Technology Co.,|||||guaranty|the loan due|||
|Ltd.||||||date|||
|Wuhu Dongxu||||||Two years|||
|Optoelectronic|||||The joint|from te date|||
||||September||||||
|Equipment|July 1,2016|9,500||9,500|liability|of advance of|No|No|
||||23,2016||||||
|Technology Co.,|||||guaranty|the loan due|||
|Ltd.||||||date|||
|Total of guarantee for||||Total of actual guarantee|||||
|subsidiaries||70,000||for subsidiaries in the||54,816|||
|approved in the Period (B1)||||Period (B2)|||||
|Total of guarantee for||||Total of actual guarantee|||||
|subsidiaries||528,616||for subsidiaries at||354,616|||
|approved at Period-end (B3)||||Period-end (B4)|||||
|Guarantee of the subsidiaries for the controlling subsidiaries|||||||||
|||||||||Guarante|
||Relevant|||||||e|
||||Date of||||Complete||
||disclosure|||||||for|
|Name of the||Amount|happening|Actual|||implemen||
||date/No. of||||Guarantee|Guarantee||associate|
|Company||of|(Date o|mount of|||tation||
||the||||type|term||d|
|guaranteed||guarantee|signing|guarantee|||or||
||guaranteed|||||||parties|
||||agreement)||||not||
||amount|||||||(Yes or|
|||||||||no)|
|||||Total amount of guarantee to|||||
|Total guarantee quota to the|||||||||
|||||the subsidiaries actually|||||
|subsidiaries approved in the|||||||||
|||||incurred in the reporting|||||
|reporting period (C1)|||||||||
|||||period (C2)|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
|||Total balance of actual||
|Total guarantee quota to the||||
|||guarantee to the subsidiaries at||
|subsidiaries approved at the end||||
|||the end of the reporting period||
|of the reporting period (C3)||||
|||(C4)||
|Total of Company’s guarantee（namely total of the large three aforementioned）||||
|Total of guarantee in the Period||Total of actual guarantee in||
||54,816||54,816|
|（A1+B1+C1）||the Period（A2+B2+C2）||
|||Total of actual guarantee at||
|Total of guarantee at Period-end||||
||528,616|Period-end|354,616|
|（A3+B3+C3）||||
|||（A4+B4+C4）||
|The proportion of the total amount of actually guarantee in the||||
|||15.76%||
|net assets of the company(A4+B4+C4)||||

Description of the guarantee with complex method
（2）Illegal providing of external guarantees
□ Applicable√Not applicable
No illegal providing of external guarantees in the report period.
(3). Other significant contracts
□Applicable√ Not applicable
No such cases in the reporting period.
15.Social responsibilities
(1).Overview of the annual targeted poverty alleviation
（1）Half-year poverty relieving summary
In December 2016, the company, for promoting the original old liberated area culture of “Jinsui revolutionary base area” in Shanxi and the sustainable development of the educational business as well as inheriting the spirit of arduous struggle for the nation and people of the older generation of revolutionaries, entered into the Donation Agreement with Shanxi Jinsui Culture and Education Development Foundation (hereinafter referred to as “Jinsui Foundation”), under which, the company would donate 3 million yuan to Shanxi Jinsui Culture and Education Development Foundation freely from the its own fund.
During the reporting period, the Company actively followed up and supervised the use of donation funds for poverty alleviation. In July 2017, Shanxi Province Jinsui Cultural and Educational Development Foundation has set up the special commonweal fund "Special fund for Assistance of School Learn and Realizing Dreams ", which
is the Going-school assistance commonweal fund specifically used for helping the fresh high-school graduates
who have passed the graduation-year college entrance examination and would enter the college&universities
from martyrs families and poor families in the old revolutionary base areas of Shanxi Jinsui.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 The Foundation will carry out the organization and implementation work of the special fund in Xing County Shanxi Province from July 2017 to September 2017. According to the commonweal purpose and the relevant provisions of the foundation, this special fund in 2017 will provide no more than RMB 1 million to the 40 new college students of poor families in Dai County Xinzhou City, the 100 new college students of poor families in Xing County Luliang City and the 60 new college students of poor families in Shilou County Luliang City, thus to help them go learning in the college and realize their college& university learning dream.
(2).Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
No
16.Other material events
□Applicable√ Not applicable
No such cases in the reporting period.
17. Material events of subsidiaries
□ Applicable√ Not applicable
VI. Change of share capital and shareholding of Principal Shareholders
1.Changes in share capital
(1). Changes in share capital
In shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase/decrease（+，-）|||||After the Change||
||Amount|Proporti|||Capitaliz|||||
||||Shar|||||||
|||on|e|Bonus|ation of||||Proportio|
||||||common|Other|Subtotal|Quantity||
||||allot|shares|||||n|
||||||reserve|||||
||||ment|||||||
||||||fund|||||
|1.Shares with conditional||||||||||
||1,700,531,769|34.42%||||-299,922|-299,922|1,700,231,847|34.42%|
|subscription||||||||||
|1. State-owned legal||||||||||
||43,988,269|0.89%||||0|0|43,988,269|0.89%|
|person shares||||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|3.Other domestic shares|1,656,543,500|33.53%|-299,922|-299,922|1,656,243,578|33.53%|
|Incl：Domestic legal|||||||
||1,654,982,828|33.50%|0|0|1,654,982,828|33.50%|
|person shares|||||||
|Domestic Natural Person|||||||
||1,560,672|0.03%|-299,922|-299,922|1,260,750|0.03%|
|shares|||||||
|II.Shares with|||||||
||3,239,397,214|65.58%|299,922|299,922|3,239,697,136|65.58%|
|unconditional subscription|||||||
|1.Common shares in RMB|2,989,397,213|60.52%|299,922|299,922|2,989,697,135|60.52%|
|2.Foreign shares in|||||||
||250,000,001|5.06%|0|0|250,000,001|5.06%|
|domestic market|||||||
|III. Total of capital shares|4,939,928,983|100.00%|0|0|4,939,928,983|100.00%|

 Reasons for share changed:
√ Applicable□ Not applicable
On July 28, 2016, the general elections of the board of directors and the board of supervisors were completed. After six months commenced from the date the directors, supervisors and senior executives leave the post, all the shares held by such executives will become the outstanding shares.
Approval of Change of Shares
□ Applicable√ Not applicable
Ownership transfer of share changes
□ Applicable√ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period
□ Applicable√ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security regulators
□ Applicable√ Not applicable
(2). Change of shares with limited sales condition
□ Applicable√ Not applicable
2.Issuing and listing
□ Applicable√ Not applicable
3. Shareholders and shareholding
In Shares
|||||
|-|-|-|-|
|Total number of common|391,573（Including 373,915 shareholders holding A sharesand 17,658 shareholders holding B shares）|Total number of preferred||
|shareholders at the end of||shareholders that had restored|0|
|the||the||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|reporting period||||||voting right at the end of the||||
|||||||reporting period (if any) (note||||
|||||||8)||||
|Particulars about shares held above 5% by shareholders or top ten shareholders||||||||||
|||||||||Number os share||
|||Proporti|Number of|Changes||||||
||Nature of||||Amount of||Amount of|pledged/frozen||
|||on of|shares held|in||||||
|Shareholders|shareholde||||restricted||un-restricted|State||
|||shares|at period|reporting||||||
||r||||shares held||shares held|of|Amount|
|||held（%）|-end|period||||||
|||||||||share||
|Tunghsu Group|DomesticNon-State-owned legalperson|11.32%|558,968,800|0|439,882,697||119,086,103|||
|||||||||Pledge|558,962,697|
|Shijiazhuang Baoshi ElectronicGroup Co., Ltd.|DomesticNon-State-owned legalperson|6.73%|332,382,171|0|0||332,382,171|||
|||||||||Pledge|153,520,000|
|China Fund Management Co.,Ltd.－Huaxia Bank－TTCOTrust Co., Ltd.－TTCO TrustCo., Ltd.－Shunjing No.5Single capital trust|Other|4.51%|222,575,516|0|222,575,516||0|||
|Sws Mu Fund ManagementCo.,Ltd.－China MerchantsBank－Huarun Shen Stateinvestment trust－Ruihuaincrease funds No. 2 Collectivecapital trust plan|Other|2.25%|111,287,758|0|111,287,758||0|||
|Penghua Fund－Ningbo Bank－Daye Trust－DayeTrust·Dongxu Optoelectronicincrease funds II Single fundtrust|Other|2.25%|111,287,758|0|111,287,758||0|||
|STAS Asset Management－Ningbo Bank－Minsheng Trust－China Minsheng Trust·ZhixinNo.208 Dongxu Optoelectronicincrease collective fund trustplan|Other|2.25%|111,287,758|0|111,287,758||0|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Shenzhen Taianer InformationTechnology Co., Ltd.|DomesticNon-State-owned legalperson|2.24%|110,492,845|0|110,492,845|0||||
||||||||Pledge||110,492,845|
|Qianhai Equity InvestmentFund (LP)|DomesticNon-State-owned legalperson|2.24%|110,492,845|0|110,492,845|0||||
||||||||Pledge||48,492,845|
|Nuoan Fund-IndustrialSecurities-Nanjing ShuanganAssets Management Co., Ltd.|Other|2.24%|110,492,845|0|110,492,845|0||||
|Minsheng Royal FundManagement Co., Ltd.-Ping AnBank-Ping An Trust-Ping AnWealth* Huitai No.163 SingleFund Trust|Other|2.09%|103,146,380|-80,138,077|0|103,146,380||||
|||Before the country's top ten shareholders of Shenzhen Taianer Information||||||||
|Strategy investors or general legal person||Technology Co., Ltd. and Qianhai Equity Investment Fund (LP)||||||||
|becomes top 10 shareholders due to rights||Where involved in the company in 2016 non-public offering to subscribe, became the||||||||
|issued (if applicable)（See Notes 3）||top 10 shareholders. The sub-holding restricted period of 12 months, ie August||||||||
|||28,2016 to August 17,2017.||||||||
|||Among the shareholders , Tunghsu Group and Baoshi Group have relationship and||||||||
|Notes to the related relationship between||constitute persons taking concerted action. The company does not know whether there||||||||
|the top ten shareholders or their concerted||is relationship between other shareholders or whether they are persons taking||||||||
|action||concerted action defined in Administrative Measures Relating to Acquisitions of||||||||
|||Listed Companies||||||||
|Shareholding of top 10 shareholders of unrestricted shares||||||||||
||||Quantity of unrestricted shares held at|||Share type||||
|Name of the shareholder||||||||||
||||the end of the reporting period (Note 4)|||Share type||Quantity||
|Shijiazhuang Baoshi Electronic Group Co., Ltd.|||332,382,171|||RMB Common||||
|||||||||332,382,171||
|||||||shares||||
|Tunghsu Group|||119,086,103|||RMB Common||||
|||||||||119,086,103||
|||||||shares||||
|Minsheng Royal Fund Management Co., Ltd.-PingAn Bank-Ping An Trust-Ping An Wealth* HuitaiNo.163 Single Fund Trust|||103,146,380|||||||
|||||||RMB Common||||
|||||||||103,146,380||
|||||||shares||||
|HuaAn Future Asset-ICBC-No.1 Asset ManagementPlan of Dongxu Optoelectronic’s Private Placement|||49,877,765|||RMB Common||||
|||||||||49,877,765||
|||||||shares||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
|China Securities Finance Co., Ltd.|34,080,112|RMB Common||
||||34,080,112|
|||shares||
|Bank of China－Huaxia New Economic MixedSecurities Investment Funds|34,078,650|RMB Common||
||||34,078,650|
|||shares||
|Huijin Asset Management Co., Ltd.|24,205,500|RMB Common||
||||24,205,500|
|||shares||
|Xie Xiantuan|17,044,700|RMB Common||
||||17,044,700|
|||shares||
|Shen Jufeng|9,474,500|RMB Common||
||||9,474,500|
|||shares||
|Wang Yong|7,780,000|RMB Common||
||||7,780,000|
|||shares||
|Explanation on associated relationship or consistent||||
||The top 10 tradable shareholders of Shijiazhuang Baoshi Electronic Group C|||
|action among the top 10 shareholders of||||
||o., Ltd. and the top ten shareholders of Tunghsu|||
|non-restricted negotiable shares and that between the||||
||Group Co., Ltd. have relationship and constitute persons taking concerted act|||
|top 10 shareholders of non-restricted negotiable||||
||ion.|||
|shares and top 10 shareholders||||
||The top 10 tradable common shareholders Xie Xiantuan and Shen Jufeng by|||
||Huatai Securities Co., Ltd..and Shanghai Securities Co., Ltd. customer|||
|Notes to the shareholders involved in financing||||
||credit-backed securities trading account were holding 17,044,700 shares,|||
|securities (if any)(See Notes 4)||||
||9,469,500 shares, accounting for0.35% and 0.19% of the total shares|||
||respectively.|||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy–back agreement dealing in reporting period.
4. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable√ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable√ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
VII. Situation of the Preferred Shares
□Applicable√Not applicable
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 The Company had no preferred shares in the reporting period
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 VIII. Information about Directors, Supervisors and Senior Executives
1. Change in shares held by directors, supervisors and senior executives
√ Applicable□Not applicable
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Amount of|Amount of||Number of|Number of|Number of|
|||||||Shares||||
||||Shares|shares|shares||restricted|restricted|restricted|
|||||||held at||||
||||held at|increased|decreased||stock|stock|stock|
|||Office||||the||||
|Name|Position||the|at the|at the||granted at|granted at|granted at|
|||status||||year-end||||
||||year-beg|reporting|reporting||the|the reporting|the|
|||||||ing||||
||||in(share)|period(sha|period(sha||year-begin|period(share|year-ending|
|||||||（share）||||
|||||re)|re)||. share)|)|(share)|
|Li Zhaoting|Board chairman|In office|0|0|0|0|0|0|0|
|Wang Lipeng|Director,GM|In office|0|0|0|0|0|0|0|
||Director,|||||||||
|Gong Xin||In office|100,000|0|0|100,000|100,000|0|100,000|
||Board secretary|||||||||
|Zhang||||||||||
||Independent director|In office|0|0|0|0|0|0|0|
|Shuangcai||||||||||
|Lu Guihua|Independent director|In office|0|0|0|0|0|0|0|
|Han Zhiguo|Independent director|In office|0|0|0|0|0|0|0|
||Chairman of the|||||||||
|Guo Chunlin|supervisory|In office|0|0|0|0|0|0|0|
||committee|||||||||
|Xu Lingzhi|Supervisor|In office|0|0|0|0|0|0|0|
|Chen Dewei|Supervisor|In office|0|0|0|0|0|0|0|
|Xie Juwen|Supervisor|In office|0|0|0|0|0|0|0|
|Wang||||||||||
||Supervisor|In office|0|0|0|0|0|0|0|
|Huanhuan||||||||||
|Wang||||||||||
||Deputy GM|In office|0|0|0|0|0|0|0|
|Jianqiang||||||||||
|Wang||||||||||
||Deputy GM|In office|0|0|0|0|0|0|0|
|Zhonghui||||||||||
|Liu Wentai|Deputy GM|In office|125,000|0|0|125,000|150,000|0|150,000|
|Wang||||||||||
||Deputy GM|In office|0|0|0|0|0|0|0|
|Junming||||||||||
|Huang|CFO|In office|0|0|0|0|0|0|0|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Jinliang||||||||||
|Zhou Bo|Director, CFO|Dimission|0|0|0|0|0|0|0|
|Total|--|--|225,000|0|0|225,000|250,000|0|250,000|

 2. Change in shares held by directors, supervisors and senior executives
√ Appicable□Not applicable
||||||
|-|-|-|-|-|
|Name|Positions|Types|Date|Reason|
|Zhou Bo|Director,CFO|Dimission|April 28,2017|Job change|
|Huang Jinliang|CFO|Appointment|April 28,2017|New Appointment|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due but not folly cashed on the approval date of annual report
Yes
1. Basic information of the corporate bonds
|||||||||
|-|-|-|-|-|-|-|-|
||||||Bond|||
||Abbreviated|||||Interes|Method of repayment of the|
|Bond Name||Code|Issue Date|Date Due|Balance(R|||
||Bond Name|||||t Rate|principal and interest payment|
||||||MB’0000)|||
|2015- corporate|||||||Interest paid every year, the|
|bond of Dongxu|15 Dongxu||May||||principal will be repaid with the|
|||112243||May 19,2020|100,000|6.00%||
|Optoelectronic|bonds||19,2015||||last unpaid interest in one time as|
|Technology Co., Ltd|||||||the bond due|
|Listed place or Transaction place for||||||||
|||Shenzhen Stock Exchange||||||
|the corporate bonds||||||||
|Arrangement of investor’s eligibility||Investor’s puttable right||||||
|Information about interest paid and||||||||
|||The first period bond interest 60,000,000.00 was paid in full amount on schedule in the||||||
|bonds honored during the reporting||||||||
|||current period.||||||
|period||||||||
|Implementation of relevant special||||||||
|clauses(if applicable) such as option||||||||
|||None happened in the reporting period||||||
|clause for the bond issuer or investors||||||||
|and exchangeable clause||||||||

2.Information about the bond trustee and credit rating agency
||||||||||
|-|-|-|-|-|-|-|-|-|
|Bond trustee:|||||||||
||||19-20/F, Main Tower , Guangzhou||||||
||Guangzhou|||||Shi Jianhua,|||
|||Business|International Finance Center, No.5||||Telepho||
|Name|Securities Co.,||||Contacts|Yan||020-88836999|
|||Address|Zhujiang West Road, Tianhe||||ne||
||Ltd.|||||Xiangjun|||
||||District Guangzhou City||||||
|The credit rating agency who follow up and rate the corporate bonds in the reporting period:|||||||||
|||||Business|Room 508 Ailiyuan Apartment, No.38 Water||||
|Name|United Rating Co.,Ltd||||||||
|||||Address|Park North Road, Nankai District, Tianjin City||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 3.Information about the use of the funds raised by issuing corporate bonds
|||
|-|-|
|The information of the use of the funds raised|Using the funds raised by issuing corporate bonds strictly conforming to the purpose|
|by issuing corporate bonds and related|stipulated by Rules of Management and Use of the Raised Funds and the Prospectus,|
|implementation procedure|and implemented the corresponding approval procedures|
|Operation status of the special account for the||
||Normal|
|raised funds||
|Whether the use of the raised funds||
|conforming to the purpose, use plan and other|The use of the raised funds conformed to the purpose promised in the Prospectus|
|provisions specified in the Prospectus||

4. Information about the rating of the corporate bonds
On May 24,2017, United Ratings Co., Ltd. issued trace rating report LHPZ[2017] No. 448 based on thecompany’s 2016 Annual Report. This rating result is long-term credit ratingAA+ and its outlook is "Steady".“"15 Dongxu bond" bond credit rating of AA ,
5. The corporatebond’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 thebond’s date due. The interest payment day of this corporate bond is May 19 of each year from 2016 to 2020(If it is not a working day, the payment day will be postponed to the first working day after the day).If the investors exercise the puttable right at the end of the third year in the duration of the bond, the interest payment day of the bonds sold back is May 19 of each year from 2016 to 2018.
2. The payment of the interest of the bonds shall be handled through the bond registration institution and other related institutions. The concrete information of the interest payment will be specified in the Interest Payment Announcement issued on the media designated by CSRC, with in accordance with the relevant state regulations. 3. According to relevant national tax laws and regulations, the investor of the corporate bond shall fully bear the relevant tax should be paid.
II. The repayment of the principal
1. The principal will be fully repaid in a time, and its repaying day is May 19, 2020. If the investors exercise the puttable right at the end of the third year in the duration of the bond, the repaying day of the principal of the bonds being sold back is May 19, 2018. (If the repaying day aforesaid is not a working day, the repaying day shall be postponed to the first working day after the original day, and there is no need to pay interest in the deferred period)
2. The repayment of the principal of the bonds will be handled through the bond registration institution and other related institutions. The concrete information of repayment of the principal of the bonds will be specified in the Principal Repayment Announcement issued on the media designated by CSRC, with in accordance with the
relevant state regulations.
Safeguard measures for the repayment
I. A designated special department in charge of the repayment working
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 The company designated its finance department to take the lead in the coordination work for repayment of the bonds and the finance department shall coordinate other relevant departments to schedule the demanded funds for the repayment of the bonds in everyyear’s financial budget, for ensuring the repayment of the interest and principal of the bonds is timely, guaranteeing thebond-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 thecompany’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 exceeds10% 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 exceeding10% of the net asset audited in the last accounting year; (7) Planning to dispose the asset or debt with subject amount exceeding10% of the net asset audited in the last accounting year; (8) Planning to change the bond trustee; (9) Failing to perform or Planning to change the stipulations specified in the Prospectus; (10) Alteration of the designated person for specially in charge of the relevant matters of the corporate bonds; (11) Occurrence of suspending the bond transaction; (12) Others may significantly impact the repaying of the interest and principal or circumstances specified by laws, administrative regulations and stipulations by the CSRC or exchange.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017Ⅴ. Setting up the capital management plan and strictly implementing the plan
After the issuance of the bonds, the company shall further reinforce thecompany’s assets and liabilities management, liquidity management, use management of the raised funds, funds management and so forth according to thecompany’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 everyyear’s interest or principal of the bonds to adequately protect theinvestor’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 thecompany’s credit status, and paid a visit to the company in June 2017, checking the bank statement of the designated account for the raised funds. Also, the trustee has been continuously supervising the use of the raised funds.
8. The key accounting data and financial indicators of the latest two years to the end of the reporting period InRMB’0000
|||||
|-|-|-|-|
||As at the end of the reporting|||
|Items||As at the end of last year|YoY+/-（%）he same period|
||period|||
|Current ratio|331.70%|380.90%|-49.20%|
|Debt ratio|50.52%|50.73%|-0.21%|
|Quick ratio|296.36%|316.23%|-19.87%|
||Reporting period|Same period of last year|YoY+/-（%）|
|EBITDA/Total debts|2.8326|2.9984|-5.53%|
|Interest coverage ratio|100.00%|100.00%|0.00%|
|Cash interest coverage ratio|100.00%|100.00%|0.00%|

The material reasons for the changed ratio of the accounting data or financial indicators exceeds30% over the last
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 year
□ Applicable√ Not applicable
9. The company fails to repay the debt
□ Applicable√ Not applicable
No such cases in the reporting period.
10. Information about the repayment of interest and principal for other bonds or debt financing instruments 1. Bonds issuing, interest payment and cashing within the report period
The company
8th
Board of Directors approved the application to National Association of Financial Market Institutional Investors (NAFMII) for registration and issuance of less than 4.7 billion yuan medium term note on September 8, 2016. The extraordinary generalshareholders’ 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 ofZJXK[2015] No. 635, the company issued toward the public 1 billion bones on May 19, 2015 and the first period bond interest 60,000,000.00 was paid in full amount on schedule in the current period.
11.Information about the bank credit obtaining and use, as well as repayment of the bank loans during the reporting period
12. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of the bonds during the reporting period
During the reporting period, the company had been strictly conforming to the stipulations specified in the Prospectus of the issuance of the bonds to use the raised funds, and the company had fulfilled the commitments of not using any raised funds to indirectly or directly invest real estate business or raise capital for the subsidiaries engaged in real estate business.
13. Major events occurred during the reporting period
14. Whether the corporate bonds have a guarantor
□ Yes√No
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 X. Financial Report
I.Auditor’s report
Whether the semi-annual report is audited
√ Yes□No
|||
|-|-|
|Type of audit opinion|Standard Unqualified Audit Opinion|
|Date for signing the auditor’s report|August 10,2017|
|Name of audit firm|Zhongxingcai Guanghua Certified Public Accountants （LLP）|
|The audit report number|ZXCGHSZZD(2017)No.:105085|
|Name of the certified accountants|Qi Zhenghua, Meng Xiaoguang|

Whether the semi-annual report is non-standard audit report
□ Yes√No
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1.Consolidated Balance sheet
Prepared by: Dongxu Optoelectronic Technology Co., Ltd.
June 30,2017
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|22,873,558,641.80|26,056,117,216.86|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Bill receivable|94,998,273.32|55,340,287.95|
|Account receivable|2,341,912,029.32|1,652,714,640.77|
|Prepayments|1,800,672,152.60|862,432,895.10|
|Insurance receivable|||
|Reinsurance receivable|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Provisions of Reinsurance contracts|||
|receivable|||
|Interest receivable|16,239,166.23||
|Dividend receivable|||
|Other account receivable|1,028,308,709.54|186,071,085.24|
|Repurchasing of financial assets|||
|Inventories|3,670,952,734.10|2,688,967,436.27|
|Assets held for sales|3,855,435.58||
|Non-current asset due in 1 year|||
|Other current asset|2,624,314,218.42|3,203,453,317.38|
|Total of current assets|34,454,811,360.91|34,705,096,879.57|
|Non-current assets：|||
|Loans and payment on other’s behalf|||
|disbursed|||
|Disposable financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|477,648,310.87|72,354,803.70|
|Property investment|58,974,678.04||
|Fixed assets|9,068,489,094.66|8,952,341,070.47|
|Construction in progress|2,457,153,171.64|1,772,629,310.84|
|Engineering material||304,468.05|
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|570,576,105.15|578,194,545.68|
|R & D petrol|1,941,747.58||
|Goodwill|67,977,513.17|33,935,384.57|
|Long-germ expenses to be amortized|16,507,614.66|11,756,506.76|
|Differed income tax asset|302,145,572.07|312,555,500.36|
|Other non-current asset|270,262,370.83|387,151,100.41|
|Total of non-current assets|13,295,531,614.25|12,121,222,690.84|
|Total of assets|47,746,487,539.58|46,826,319,570.41|
|Current liabilities|||
|Short-term loans|4,474,513,562.31|4,940,816,200.13|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Bill payable|219,260,464.01|393,136,676.05|
|Account payable|1,218,159,019.40|1,165,418,491.73|
|Advance payment|742,441,952.77|414,078,061.38|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|45,837,714.84|42,851,392.30|
|Tax payable|136,565,229.52|224,310,530.71|
|Interest payable|178,823,882.97|81,610,513.91|
|Dividend payable|62,702,011.96|30,000,000.00|
|Other account payable|130,162,161.94|114,993,136.80|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liability due in 1 year|3,083,133,090.74|1,618,589,512.42|
|Other current liability|95,735,818.64|85,535,473.05|
|Total of current liability|10,387,334,909.10|9,111,339,988.48|
|Non-current liabilities：|||
|Long-term loan|5,830,941,823.23|6,596,159,000.00|
|Bond payable|5,660,557,536.50|5,653,912,494.73|
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|1,366,525,476.86|1,514,308,568.67|
|Long-term payable employees’s|||
|remuneration|||
|Special payable|||
|Expected liabilities|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Differed income|375,000,727.41|380,949,662.27|
|Differed income tax liability|401,452.67|413,257.79|
|Other non-current liabilities|500,000,000.00|500,000,000.00|
|Total non-current liabilities|13,733,427,016.67|14,645,742,983.46|
|Total of liability|24,120,761,925.77|23,757,082,971.94|
|Owners’ equity|||
|Share capital|4,939,928,983.00|4,939,928,983.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|15,207,757,024.07|15,207,210,810.89|
|Less：Shares in stock|4,422,320.00|4,422,320.00|
|Other comprehensive income|-1,368.93||
|Special reserves|||
|Surplus reserves|188,044,070.48|188,044,070.48|
|Common risk provision|||
|Undistributed profit|2,175,599,543.05|1,885,538,821.49|
|Total of owner’s equity belong to the|||
||22,506,905,931.67|22,216,300,365.86|
|parent company|||
|Minority shareholders’ equity|1,118,819,682.15|852,936,232.61|
|Total of owners’ equity|23,625,725,613.81|23,069,236,598.47|
|Total of liabilities and owners’ equity|47,746,487,539.58|46,826,319,570.41|

 Legal representative：Li Zhaoting
Person-in-charge of the accountingwork：Huang Jinliang
Person-in -charge of the accountingorgan：Gao Feipeng
2. Balance sheet of the Parent Company
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|10,805,236,113.83|16,951,756,537.76|
|Financial assets measured at fair value|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|with variations accounted into current|||
|income account|||
|Derivative financial assets|||
|Bill receivable|450,000.00|946,400.00|
|Account receivable|14,559,673.35|19,896,753.26|
|Prepayments|9,921,641.91|4,280,852.37|
|Interest receivable|||
|Dividend receivable||570,000,000.00|
|Other account receivable|7,811,632,642.58|4,925,419,456.78|
|Inventories|479,930,164.82|500,254,494.97|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|1,501,365,249.58|2,000,019,211.84|
|Total of current assets|20,623,095,486.07|24,972,573,706.98|
|Non-current assets：|||
|Disposable financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|15,476,184,303.46|11,373,791,986.49|
|Property investment|||
|Fixed assets|46,995,082.55|49,516,721.87|
|Construction in progress|||
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|9,784,286.69|9,951,171.11|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Differed income tax asset|337,853.35|3,712,603.85|
|Other non-current asset|1,381,400.00||
|Total of non-current assets|15,534,682,926.05|11,436,972,483.32|
|Total of assets|36,157,778,412.12|36,409,546,190.30|
|Current liabilities|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Short-term loans|2,660,000,000.00|3,242,500,000.00|
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Bill payable||159,820,750.00|
|Account payable|146,849,648.18|147,012,816.26|
|Advance payment|421,587.90|10,587.90|
|Employees’ wage payable|3,845,281.50|3,700,741.68|
|Tax payable|19,655,819.05|20,970,299.00|
|Interest payable|168,253,395.67|72,569,720.24|
|Dividend payable|62,702,011.96||
|Other account payable|2,802,343,584.48|2,889,692,312.04|
|Liabilities held for sales|||
|Non-current liability due in 1 year|1,775,233,333.36|400,005,000.00|
|Other current liability|||
|Total of current liability|7,639,304,662.10|6,936,282,227.12|
|Non-current liabilities：|||
|Long-term loan|2,535,266,666.62|2,887,600,000.00|
|Bond payable|5,660,557,536.50|5,653,912,494.73|
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Employees’ wage payable|||
|Special payable|||
|Expected liabilities|||
|Differed income|||
|Differed income tax liability|||
|Other non-current liabilities|||
|Total of Non-current liabilities|8,195,824,203.12|8,541,512,494.73|
|Total of liability|15,835,128,865.22|15,477,794,721.85|
|Owners’ equity|||
|Share capital|4,939,928,983.00|4,939,928,983.00|
|Other equity instrument|||
|Including：preferred stock|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Sustainable debt|||
|Capital reserves|15,130,988,536.27|15,130,191,736.27|
|Less：Shares in stock|4,422,320.00|4,422,320.00|
|Other comprehensive income|||
|Special reserves|||
|Surplus reserves|169,054,846.15|169,054,846.15|
|Undistributed profit|87,099,501.48|696,998,223.03|
|Total of owners’ equity|20,322,649,546.90|20,931,751,468.45|
|Total of liabilities and owners’ equity|36,157,778,412.12|36,409,546,190.30|

 3.Consolidated income statement
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I. Income from the key business|4,641,285,527.91|2,882,059,154.41|
|Incl：Business income|4,641,285,527.91|2,882,059,154.41|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|3,925,002,093.95|2,325,029,677.70|
|Incl：Business cost|3,338,875,149.90|1,938,309,643.65|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Insurance policy dividend paid|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|45,165,094.52|20,441,727.88|
|Sales expense|29,084,235.15|31,577,716.56|
|Administrative expense|193,715,154.96|236,706,264.85|
|Financial expenses|317,954,221.40|94,439,392.61|
|Asset impairment loss|208,238.02|3,554,932.15|
|Add：Gains from change of fir value|||
|（“-”for loss）|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Investment gain（“-”for loss）|6,676,924.21|81,758.31|
|Incl: investment gains from affiliates|-15,506,492.83|81,758.31|
|Gains from currency exchange|||
|（“-”for loss）|||
|Other income|86,680,000.00||
|III. Operational profit（“-”for loss）|809,640,358.17|557,111,235.02|
|Add ：Non-operational income|66,069,887.52|103,509,279.68|
|Including：Income from disposal of|||
|non-current assets|||
|Less：Non business expenses|450,171.43|12,489.34|
|Incl：Loss from disposal of non-current|||
||30,537.14|4,430.74|
|assets|||
|IV.Total profit(“-”for loss)|875,260,074.26|660,608,025.36|
|Less：Income tax expenses|179,430,671.23|90,283,601.51|
|V. Net profit|695,829,403.03|570,324,423.85|
|Net profit attributable to the owners of|||
||635,855,750.37|545,963,710.72|
|parent company|||
|Minority shareholders’ equity|59,973,652.66|24,360,713.13|
|VI. Other comprehensive income|-1,368.93||
|Net of profit of other comprehensive inco|||
|me attributable to owners of the parent co|-1,368.93||
|mpany.|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
|gains/losses in the subsequent accounting|||
|period|||
|1.Re-measurement of defined benefit pla|||
|ns of changes in net debt or net assets|||
|2.Other comprehensive income under the|||
|equity method investee can not be reclass|||
|ified into profit or loss.|||
|（II）|||
|Other comprehensive income that will be|-1,368.93||
|reclassified into profit or loss.|||
|1.Other comprehensive income under the|||
|equity method investee can be reclassifie|||
|d into profit or loss.|||
|2.Gains and losses from changes in fair v|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|alue available for sale financial assets|||
|3.Held-to-maturity investments reclassifi|||
|ed to gains and losses of available for sal|||
|e financial assets|||
|4.The effective portion of cash flow hedg|||
|es and losses|||
|5.Translation differences in currency fina|||
||-1,368.93||
|ncial statements|||
|6.Other|||
|Net of profit of other comprehensive inco|||
|me attributable to Minority shareholders’|||
|equity|||
|VII. Total comprehensive income|695,828,034.10|570,324,423.85|
|Total comprehensive income attributable|||
||635,854,381.44|545,963,710.72|
|to the owner of the parent company|||
|Total comprehensive income|||
||59,973,652.66|24,360,713.13|
|attributable minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.13|0.14|
|(II)Diluted earnings per share|0.13|0.14|

 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB 0, last period the combined party realized RMB 0.
Legal representative：Li Zhaoting
Person-in-charge of the accountingwork：Huang Jinliang
Person-in -charge of the accountingorgan：Gao Feipeng
4. Income statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I. Income from the key business|38,597,681.18|383,847,821.44|
|Incl：Business cost|28,092,263.28|236,140,885.06|
|Business tax and surcharge|3,585,313.26|521,358.24|
|Sales expense||684,247.25|
|Administrative expense|22,819,056.56|27,351,438.20|
|Financial expenses|251,791,850.48|75,426,926.67|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Asset impairment loss|-279,738.15|230,615.03|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|6,675,734.01|81,758.31|
|Incl: investment gains from affiliates|-15,507,683.03|81,758.31|
|Other income|||
|II. Operational profit（“-”for loss）|-260,735,330.24|43,574,109.30|
|Add ：Non-operational income|6,388.00|51,255.93|
|Including：Income from disposal|||
|of non-current assets|||
|Less：Non business expenses|||
|Incl：Loss from disposal of|||
|non-current assets|||
|III.Total profit(“-”for loss)|-260,728,942.24|43,625,365.23|
|Less：Income tax expenses|3,374,750.50|6,546,013.74|
|IV. Net profit（“-”for net loss）|-264,103,692.74|37,079,351.49|
|V.Net of profit of other comprehensive i|||
|ncome|||
|（I）Other comprehensive income|||
|items that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pl|||
|ans of changes in net debt or net assets|||
|2.Other comprehensive income under th|||
|e equity method investee can not be recl|||
|assified into profit or loss.|||
|（II）|||
|Other comprehensive income that will b|||
|e reclassified into profit or loss.|||
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||
|2.Gains and losses from changes in fair|||
|value available for sale financial assets|||
|3.Held-to-maturity investments reclassif|||
|ied to gains and losses of available for s|||
|ale financial assets|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|4.The effective portion of cash flow hed|||
|ges and losses|||
|5.Translation differences in currency fin|||
|ancial statements|||
|6.Other|||
|VI. Total comprehensive income|-264,103,692.74|37,079,351.49|
|VII. Earnings per share：|||
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||

5. Consolidated Cash flow statement
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||4,944,527,769.84|3,428,041,704.57|
|rending of services|||
|Net increase of customer deposits|||
|and capital kept for brother company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from|||
|other financial bodies|||
|Cash received against original insurance|||
|contract|||
|Net cash received from reinsurance|||
|business|||
|Net increase of client deposit and|||
|investment|||
|Net increase of trade financial asset|||
|disposal|||
|Cash received as interest, processing fee|||
|and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Tax returned|71,010,781.41|121,533,678.40|
|Other cash received from business|||
||205,407,031.15|160,131,838.12|
|operation|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Sub-total of cash inflow|5,220,945,582.40|3,709,707,221.09|
|Cash paid for purchasing of|||
||5,057,263,911.26|1,610,664,099.74|
|merchandise and services|||
|Net increase of client trade and advance|||
|Net increase of savings n central bank|||
|and brother company|||
|Cash paid for original contract claim|||
|Cash paid for interest, processing fee|||
|and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|237,953,186.59|292,568,158.80|
|Taxes paid|531,991,037.56|313,119,724.25|
|Other cash paid for business activities|808,099,133.96|212,246,295.36|
|Sub-total of cash outflow from business|||
||6,635,307,269.37|2,428,598,278.15|
|activities|||
|Cash flow generated by business|||
||-1,414,361,686.97|1,281,108,942.94|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||5,399,999,000.00||
|retrieving|||
|Cash received as investment gains|22,183,417.04||
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|||
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received|190,962.49|6,120,000.00|
|Sub-total of cash inflow due to|||
||5,422,373,379.53|6,120,000.00|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|1,215,593,735.72|306,468,934.04|
|and other long-term assets|||
|Cash paid as investment|5,375,599,000.00|299,846,640.00|
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and|||
||2,886,994.56|7,619,727.41|
|other operational units|||
|Other cash paid for investment|50,000,000.00||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|activities|||
|Sub-total of cash outflow due to|||
||6,644,079,730.28|613,935,301.45|
|investment activities|||
|Net cash flow generated by investment|-1,221,706,350.75|-607,815,301.45|
|III.Cash flow generated by financing|||
|Cash received as investment|185,130,000.00|81,000,000.00|
|Incl: Cash received as investment from|||
||185,130,000.00|81,000,000.00|
|minor shareholders|||
|Cash received as loans|3,252,676,666.66|4,077,100,000.00|
|Cash received from bond placing|||
|Other financing –related ash received|235,701,557.06|1,878,688,941.32|
|Sub-total of cash inflow from financing|||
||3,673,508,223.72|6,036,788,941.32|
|activities|||
|Cash to repay debts|2,975,447,331.44|2,251,801,800.00|
|Cash paid as dividend, profit, or|||
||732,650,977.80|598,359,752.63|
|interests|||
|Incl: Dividend and profit paid by|||
||30,000,000.00||
|subsidiaries to minor shareholders|||
|Other cash paid for financing activities|449,714,523.33|94,762,604.60|
|Sub-total of cash outflow due to|||
||4,157,812,832.57|2,944,924,157.23|
|financing activities|||
|Net cash flow generated by financing|-484,304,608.85|3,091,864,784.09|
|IV. Influence of exchange rate|||
||8,712,454.36|9,759,201.83|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-3,111,660,192.21|3,774,917,627.41|
|equivalents|||
|Add: balance of cash and cash|||
||25,037,335,091.60|11,964,769,404.73|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||21,925,674,899.39|15,739,687,032.14|
|equivalents at the end of term|||

6. Cash Flow Statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||51,105,726.47|404,441,782.23|
|rending of services|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Tax returned|||
|Other cash received from business|||
||4,513,958,096.78|200,000,000.00|
|operation|||
|Sub-total of cash inflow|4,565,063,823.25|604,441,782.23|
|Cash paid for purchasing of|||
||172,870,594.52|363,482,385.72|
|merchandise and services|||
|Cash paid to staffs or paid for staffs|5,039,091.78|5,700,415.82|
|Taxes paid|8,445,826.76|9,832,273.74|
|Other cash paid for business activities|7,197,399,250.81|878,044,549.66|
|Sub-total of cash outflow from business|||
||7,383,754,763.87|1,257,059,624.94|
|activities|||
|Cash flow generated by business|||
||-2,818,690,940.62|-652,617,842.71|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||5,399,999,000.00||
|retrieving|||
|Cash received as investment gains|592,183,417.04||
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|||
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received||6,120,000.00|
|Sub-total of cash inflow due to|||
||5,992,182,417.04|6,120,000.00|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets||7,800.00|
|and other long-term assets|||
|Cash paid as investment|9,117,899,000.00|1,392,801,140.00|
|Net cash received from subsidiaries and|||
|other operational units|||
|Other cash paid for investment|||
||170,000,000.00||
|activities|||
|Sub-total of cash outflow due to|||
||9,287,899,000.00|1,392,808,940.00|
|investment activities|||
|Net cash flow generated by investment|-3,295,716,582.96|-1,386,688,940.00|
|III.Cash flow generated by financing|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Cash received as investment|||
|Cash received as loans|2,016,666,666.66|3,062,700,000.00|
|Cash received from bond placing|||
|Other financing –related ash received|108,271,893.76|70,281,601.36|
|Sub-total of cash inflow from|||
||2,124,938,560.42|3,132,981,601.36|
|financing activities|||
|Cash to repay debts|1,576,266,666.68|1,220,000,000.00|
|Cash paid as dividend, profit, or|||
||552,539,171.23|389,290,594.79|
|interests|||
|Other cash paid for financing activities|28,679,113.18|245,087,948.72|
|Sub-total of cash outflow due to|||
||2,157,484,951.09|1,854,378,543.51|
|financing activities|||
|Net cash flow generated by financing|-32,546,390.67|1,278,603,057.85|
|IV. Influence of exchange rate|||
||433,490.32||
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||-6,146,520,423.93|-760,703,724.86|
|equivalents|||
|Add: balance of cash and cash|||
||16,951,756,537.76|9,835,157,652.41|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||10,805,236,113.83|9,074,453,927.55|
|equivalents at the end of term|||

7. Consolidated Statement on Change inOwners’ Equity
Amount in this period
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||
|||Other Equity||||||||||||
|||||||||||||Minor||
|||instrusment|||||Other|||Commo|||Total of|
|Items||||||||||||||
||Share|||||Less:||Speciali|||Attribut|shareho||
|||||iOther|Capital||Compre||Surplus|n risk|||owners’|
||Capita|prefer||||Shares||zed|||able|lders’||
||||Susta||reserves||hensive||reserves|provisio|||equity|
||l|red||||in stock||reserve|||profit|equity||
||||nable||||Income|||n||||
|||stock||||||||||||
||||debt|||||||||||
||4,939,||||15,207,||||||1,885,5||23,069,|
|I.Balance at the||||||4,422,3|||188,044|||852,936||
||928,98||||210,810||||||38,821.||236,598|
|end of last year||||||20.00|||,070.48|||,232.61||
||3.00||||.89||||||49||.47|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|Add: Change of|||||||||
|accounting|||||||||
|policy|||||||||
|Correcting of|||||||||
|previous errors|||||||||
|Merger of entities|||||||||
|under common|||||||||
|control|||||||||
|Other|||||||||
|II.Balance at the|4,939,|15,207,||||1,885,5||23,069,|
||||4,422,3||188,044||852,936||
|beginning of|928,98|210,810||||38,821.||236,598|
||||20.00||,070.48||,232.61||
|current year|3.00|.89||||49||.47|
|III.Changed in the||546,213||-1,368.9||290,060|265,883|556,489|
|current year||.18||3||,721.56|,449.54|,015.35|
|（1）Total|||||||||
|||||||635,855|59,973,|695,829|
|comprehensive|||||||||
|||||||,750.37|652.66|,403.03|
|income|||||||||
|（II）Investment|||||||||
||||||||186,888|187,434|
|or decreasing of|||||||||
||||||||,381.50|,594.68|
|capital by owners|||||||||
|1．Ordinary Share|||||||||
|||546,213|||||186,888|186,888|
|s invested by share|||||||||
|||.18|||||,381.50|,381.50|
|holders|||||||||
|2．Holders of oth|||||||||
|er equity instrume|||||||||
|nts invested capital|||||||||
|3．Amount of|||||||||
|shares paid and|||||||||
|accounted as|||||||||
|owners’ equity|||||||||
|||546,213||||||546,213|
|4．Other|||||||||
|||.18||||||.18|
|||||||-345,79||-345,79|
|（III）Profit|||||||||
|||||||5,028.8||5,028.8|
|allotment|||||||||
|||||||1||1|
|1.Providing of|||||||||
|surplus reserves|||||||||
|2.Providing of|||||||||
|common risk|||||||||
|provisions|||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|3．Allotment to the|||||||-345,79||-345,79|
|owners (or|||||||5,028.8||5,028.8|
|shareholders)|||||||1||1|
|4．Other||||||||||
|(IV) Internal||||||||||
|transferring of||||||||||
|owners’ equity||||||||||
|1. Capitalizing of||||||||||
|capital reserves (or||||||||||
|to capital shares)||||||||||
|2. Capitalizing of||||||||||
|surplus reserves||||||||||
|(or to capital||||||||||
|shares)||||||||||
|3．Making up||||||||||
|losses by surplus||||||||||
|reserves.||||||||||
|4. Other||||||||||
|(V). Special||||||||||
|reserves||||||||||
|1. Provided this|||||5,289,1||||5,289,1|
|year|||||90.20||||90.20|
||||||-5,289,1||||5,289,1|
|2．Used this term||||||||||
||||||90.20||||90.20|
|||||-1,368.9||||19,021,|19,020,|
|（VI）Other||||||||||
|||||3||||415.38|046.45|
||4,939,|15,207,|||||2,175,5|1,118,8|23,625,725,613.82|
|IV. Balance at the|||4,422,3|-1,368.9||188,044||||
||928,98|757,024|||||99,543.|19,682.||
|end of this term|||20.00|3||,070.48||||
||3.00|.07|||||05|15||

 Amount in last year
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||
|||Other Equity|||||||||||Total|
|||||||||||||Minor||
|||instrusment|||||Other|||Commo|||of|
|Items||||||||||||||
||Share|||||Less:||Speciali|||Attribut|shareho||
||||||Capital||Compre||Surplus|n risk|||owner|
||Capita|prefer||||Shares||zed|||able|lders’||
||||Sustai||reserves||hensive||reserves|provisio|||s’|
||l|red||Other||in stock||reserve|||profit|equity||
||||nable||||Income|||n|||equity|
|||stock||||||||||||
||||debt|||||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||
|-|-|-|-|-|-|-|-|
||3,835,|9,391,3|||||14,561,|
|I.Balance at the|||9,011,5|132,723|969,380|241,966||
||000,52|88,905.|||||448,764|
|end of last year|||20.00|,528.42|,500.97|,823.32||
||6.00|89|||||.60|
|Add: Change of||||||||
|accounting||||||||
|policy||||||||
|Correcting of||||||||
|previous errors||||||||
|Merger of entities||||||||
|under common||||||||
|control||||||||
|Other||||||||
|II.Balance at the|3,835,|9,391,3|||||14,561,|
||||9,011,5|132,723|969,380|241,966||
|beginning of|000,52|88,905.|||||448,764|
||||20.00|,528.42|,500.97|,823.32||
|current year|6.00|89|||||.60|
||1,104,|5,815,8|||||8,507,7|
|III.Changed in the|||-4,589,2|55,320,|916,158|610,969||
||928,45|21,905.|||||87,833.|
|current year|||00.00|542.06|,320.52|,409.29||
||7.00|00|||||87|
|（1）Total|||||1,239,9||1,310,5|
|||||||70,595,||
|comprehensive|||||28,899.||24,656.|
|||||||756.94||
|income|||||40||34|
|（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|||||53|
|1．Ordinary Share|1,104,|5,805,5|||||7,431,6|
|||||||521,242||
|s invested by share|928,45|07,668.|||||78,682.|
|||||||,556.53||
|holders|7.00|84|||||37|
|2．Holders of oth||||||||
|er equity instrume||||||||
|nts invested capital||||||||
|3．Allotment to the||||||||
||||-4,589,2||||4,589,2|
|owners (or||||||||
||||00.00||||00.00|
|shareholders)||||||||
|||10,314,|||||10,314,|
|4．Other||||||||
|||236.16|||||236.16|
|(IV) Internal|||||-323,77||-298,45|
|||||55,320,||-30,000||
|transferring of|||||0,578.8||0,036.8|
|||||542.06||,000.00||
|owners’ equity|||||8||2|
|1. Capitalizing of||||55,320,|-55,320,|||
|capital reserves (or||||542.06|542.06|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|to capital shares)|||||||||
|2. Capitalizing of|||||||||
|surplus reserves|||||||||
|(or to capital|||||||||
|shares)|||||||||
|3．Making up||||||-268,45||-298,45|
||||||||-30,000||
|losses by surplus||||||0,036.8||0,036.8|
||||||||,000.00||
|reserves.||||||2||2|
|4. Other|||||||||
|(VI )Special|||||||||
|reserves|||||||||
|1. Provided this|||||||||
|year|||||||||
|2．Used this term|||||||||
|（VII）Other|||||||||
|IV. Balance at the|||||||||
|end of this term|||||||||
|(V) Special|||||||||
|reserves|||||||||
|1. Provided this||||5,758,1||||5,758,1|
|year||||64.61||||64.61|
|||||-5,758,1||||-5,758,1|
|2．Used this term|||||||||
|||||64.61||||64.61|
||||||||49,131,|49,131,|
|（VI）Other|||||||||
||||||||095.82|095.82|
||4,939,|15,207,||||1,885,5||23,069,|
|IV. Balance at the|||4,422,3||188,044||852,936||
||928,98|210,810||||38,821.||236,598|
|end of this term|||20.00||,070.48||,232.61||
||3.00|.89||||49||.47|

 8.Statement of change inowner’s Equity of the Parent Company
Amount in this period
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period|||||||||||
|||Other Equity instrusment|||||Other|||||
|||||||Less:|||Common|Attribut|Total of|
|Items|Share||||Capital||Compreh|Surplus||||
|||preferre||||Shares in|||risk|able|owners’|
||Capita||Sustain|Other|reserves||ensive|reserves||||
|||d stock||||stock|||provision|profit|equity|
||||able||||Income|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||
|-|-|-|-|-|-|-|-|
|||debt||||||
|I.Balance at the|4,939,92||15,130,19|4,422,320|169,054,8|696,998|20,931,75|
|end of last year|8,983.00||1,736.27|.00|46.15|,223.03|1,468.45|
|Add: Change of||||||||
|accounting||||||||
|policy||||||||
|Correcting of||||||||
|previous errors||||||||
|Other||||||||
|II.Balance at the||||||||
||4,939,92||15,130,19|4,422,320|169,054,8|696,998|20,931,75|
|beginning of||||||||
||8,983.00||1,736.27|.00|46.15|,223.03|1,468.45|
|current year||||||||
|||||||-609,89||
|III.Changed in the|||796,800.0||||-609,101,|
|||||||8,721.5||
|current year|||0||||921.55|
|||||||5||
|（I）Total||||||-264,10||
||||||||-264,103,|
|comprehensive||||||3,692.7||
||||||||692.74|
|income||||||4||
|(II) Investment or||||||||
||||796,800.0||||796,800.0|
|decreasing of||||||||
||||0||||0|
|capital by owners||||||||
|1．Ordinary Share||||||||
|s invested by share||||||||
|holders||||||||
|2．Holders of oth||||||||
|er equity instrume||||||||
|nts invested capital||||||||
|3.Amount of||||||||
|shares paid and||||||||
|accounted as||||||||
|owners’ equity||||||||
||||796,800.0||||796,800.0|
|4．Other||||||||
||||0||||0|
|||||||-345,79||
|（III）Profit|||||||-345,795,|
|||||||5,028.8||
|allotment|||||||028.81|
|||||||1||
|1.Providing of||||||||
|surplus reserves||||||||
|2．Allotment to the||||||-345,79|-345,795,|
|owners (or||||||5,028.8|028.81|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|shareholders)|||||1||
|3．Other|||||||
|(IV)Internal|||||||
|transferring of|||||||
|owners’ equity|||||||
|1. Capitalizing of|||||||
|capital reserves (or|||||||
|to capital shares)|||||||
|2. Capitalizing of|||||||
|surplus reserves|||||||
|(or to capital|||||||
|shares)|||||||
|3．Making up|||||||
|losses by surplus|||||||
|reserves.|||||||
|4. Other|||||||
|(V) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||
|2．Used this term|||||||
|（VI）Other|||||||
|IV. Balance at the|4,939,92|15,130,98|4,422,320|169,054,8|87,099,|20,322,649,546.90|
|end of this term|8,983.00|8,536.27|.00|46.15|501.48||

 Amount in last year
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year|||||||||||
|||Other Equity instrusment||||||||||
||||||||Other|||||
|||||||Less:|||Common|Attribut|Total of|
|Items|Share||||Capital||Compreh|Surplus||||
|||preferre|Sustain|||Shares in|||risk|able|owners’|
||Capital|||Other|reserves||ensive|reserves||||
|||d stock|able|||stock|||provision|profit|equity|
||||||||Income|||||
||||debt|||||||||
|I.Balance at the|3,835,00||||9,321,098|9,011,520|||113,734,3|467,563|13,728,38|
|end of last year|0,526.00||||,967.43|.00|||04.09|,381.30|5,658.82|
|Add: Change of||||||||||||
|accounting||||||||||||
|policy||||||||||||
|Correcting of||||||||||||
|previous errors||||||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|Other|||||||
|II.Balance at the|||||||
||3,835,00|9,321,098|9,011,520|113,734,3|467,563|13,728,38|
|beginning of|||||||
||0,526.00|,967.43|.00|04.09|,381.30|5,658.82|
|current year|||||||
|III.Changed in the|1,104,92|5,809,092|-4,589,20|55,320,54|229,434|7,203,365|
|current year|8,457.00|,768.84|0.00|2.06|,841.73|,809.63|
|（I）Total|||||||
||||||553,205|553,205,4|
|comprehensive|||||||
||||||,420.61|20.61|
|income|||||||
|(II) Investment or|||||||
||1,104,92|5,809,092|-4,589,20|||6,918,610|
|decreasing of|||||||
||8,457.00|,768.84|0.00|||,425.84|
|capital by owners|||||||
|1．Ordinary Share|||||||
||1,104,92|5,805,507||||6,910,436|
|s invested by share|||||||
||8,457.00|,668.84||||,125.84|
|holders|||||||
|2．Holders of oth|||||||
|er equity instrume|||||||
|nts invested capital|||||||
|3.Amount of|||||||
|shares paid and|||-4,589,20|||4,589,200|
|accounted as|||0.00|||.00|
|owners’ equity|||||||
|||3,585,100||||3,585,100|
|4．Other|||||||
|||.00||||.00|
||||||-323,77||
|（III）Profit||||55,320,54||-268,450,|
||||||0,578.8||
|allotment||||2.06||036.82|
||||||8||
|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)|||||2||
|3．Other|||||||
|(IV)Internal|||||||
|transferring of|||||||
|owners’ equity|||||||
|1. Capitalizing of|||||||
|capital reserves (or|||||||
|to capital shares)|||||||
|2. Capitalizing of|||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|surplus reserves|||||||
|(or to capital|||||||
|shares)|||||||
|3．Making up|||||||
|losses by surplus|||||||
|reserves.|||||||
|4. Other|||||||
|(V) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||
|2．Used this term|||||||
|（VI）Other|||||||
|IV. Balance at the|4,939,92|15,130,19|4,422,320|169,054,8|696,998|20,931,75|
|end of this term|8,983.00|1,736.27|.00|46.15|,223.03|1,468.45|

 III.Brief introduction of theCompany：
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 “DongxuOptoelectronic”）(Ji Ti Gfai Wei Gu Zi(1992) No.5 Document) in 1992, Shijiazhuang Baoshi Electronic Glass Co., Ltd. is a joint stock limited company company jointly established by Shijiazhuang Kinescope General Factory (transformed into Shijiazhuang Baoshi Electronics Group Co., Ltd.later), China Electronic Import and export Corporaqtion and Zonghua Hebei Import and Export Company. At the Time of establishment, the Company had 25.68 million shares (the par value of each share is RMB 10) and total share capital of RMB 256.80 million.
On July 17, 1993, the Company held a provisional shareholders' general meeting and decided to split the stock equity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result, the total number of the Company's shares became 256.80 million and its total share capital became RMB 256.80 million. Approved by Securities Commission under State Council with the Approval of Issue of 100 Million Domestically Listed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zheng Wei Fa (1996) No. 15 Document) on June 11, 1996, the Company issued 100 million domestically listed foreign investment shares (B shares) (the par value of each share is RMB 1). Approved by China Securities Regulatory Commission with the Approval of the Application of Shijiazhuang Baoshi Electronic Glass Co., Ltd. to Publicly Issue Shares (Zheng Jian Fa Zi (1996) No. 174 Document) on August 30 of the same year, the Company publicly issued 26.20 million shares (the par value of each share is RMB 1). As of September 17, 1996, the total share capital of the Company increased to RMB 383 million.
On July 17, 1993, the Company held a provisional shareholders' general meeting and decided to split the stock equity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result, the total number of the Company's shares became 256.80 million and its total share capital became RMB 256.80 million.
Approved by Securities Commission under State Council with the Approval of Issue of 100 Million Domestically
Listed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zheng Wei Fa (1996) No. 15
Document) on June 11, 1996, the Company issued 100 million domestically listed foreign investment shares (B
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 shares) (the par value of each share is RMB 1). Approved by China Securities Regulatory Commission with the Approval of the Application of Shijiazhuang Baoshi Electronic Glass Co., Ltd. to Publicly Issue Shares (Zheng Jian Fa Zi (1996) No. 174 Document) on August 30 of the same year, the Company publicly issued 26.20 million shares (the par value of each share is RMB 1). As of September 17, 1996, the total share capital of the Company increased to RMB 383 million.
The 6th Provisional shareholder meeting in 2013 approved the name change of Shijiazhuang Baoshi Electronic G lass Co., Ltd. to Dongxu Optoelectronic Technology Co., Ltd..
According to the resolution of annual shareholder meeting in 2013 and the provisions of amendments to articles of association approved on April 27, 2014, the company has transferred 20 shares for each 10 shares to all shareholders, and with total shares of 1806 million transferred on the basis of the general capital of 903 million on December 31, 2013. Thus, the registered capital of RMB1806 million applied to add by the company should be transferred into the share capital by the capital reserve with the reference date on May 27, 2014, and the registered capital is RMB2709 million after changed.
As per the provisions of “Restricted Stock Incentive Plan of Dongxu Optoelectronic Technology Co., Ltd. (Draft)” and its summary proposal approved after the second temporaryshareholders’ 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 temporaryshareholders’ resolution in 2014, the company has repurchased 49,999,999.00 B shares released outside, and the repurchased shares shall be written off and the registered capital is reduced correspondingly. Thus, the company shall decrease the share capital of RMB49,999,999.00 and the capital reserve of RMB218,024,376.60, and the share capital is RMB2,662,080,001.00 after changed.
Referring to the resolutions determined on the
27th
Meeting of the
7th
Board of Directors of the company, the 31st Meeting of the
7th
Board of Directors, the
1st
General Meeting of Extraordinary Shareholders in 2015, the 38th Meeting of the
7th
Board of Directors and the Regulatory Approval No.[2015] 2270 by China Securities Regulatory Commission: Replies on Approval of Private Issuing of Stocks by Dongxu Photoelectric Technology Co., Ltd., it is approved that the company issues new shares less than 1,186,943,620 privately. The planned number of privately issued stocks is less than (including) 1,186,943,620. The actual issuance number of the stock is 1,173,020,525, and the modified equity capital is 3,835,100,526.00 yuan.
According to ZJXK[2016] NO. 1322 document On the Approval of Non-public Stock to Dongxu Photoelectric Science&Technology Co. Ltd permitted by China Securities Regulatory Commission and also was resolved in the 7 th board of the forty-eight meeting and the first extraordinary shareholders' generalmeeting， it is approved that t he company issues new shares less than 1,104,928,457.00 privately. The planned number of privately issued stock s is less than (including) 1,104,928,457.00. The actual issuance number of the stock is 1,104,928,457.00, and the modified equity capital is 4,939,928,983.00 yuan.
As of June 30, 2017, Registered capital :RMB 4,939,928,983.00, Legal representative: Li Zhaoting,
Enterprise unified social credit code: 911301001043959836, Registered Address: No.9, Huanghe Road, Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei Province.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Dongxu Optoelectronic Parent Company is the TunghsuGroup，Uitimate controller is Li Zhaoting.
In the reporting period, 16 subsidiaries and 29 sub-subsidiaries were included in the consolidation scope by the company, see details at Note 7 “Rights and Interests in Other Subjects ”. The consolidation scope of the company increased by 11 companies year on year at this reporting period, see details at Note 6“Change of Consolidation Scope”
Financial statements and notes to the financial statements approved at the 20th meeting of the 8th Board of of Directors on August 10, 2017.
Business scope: electronic vacuum glass devices and supporting electronic components, automotive parts production and sales and after-sales services; management of the enterprise's own products export business and the business of mechanical equipment, spare parts, raw materials imports business (except the goods and technology that the country limit or prohibit to import and export), flat panel display glass substrate industry, investment, construction and operation and related technology development, technology consulting, technology services, technology transfer. (Can not operate the laws, regulations and the State Council decided to ban or restrict, ; can operate after get approval from other departments).
IV.Basis for the preparation of financial statements
1.Basis for the preparation
The financial statements of the company are prepared based on the going-concern assumption and the actual transactions anditems,，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, andhasn’t the major issues impacting on the sustainable operation ability.
V. Principal Accounting Policies and Estimations
Important prompt:
Nil
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 1.Statement on compliance with accounting standards for business Enterprises
The Company state: the financial statements prepared are in line with the requirements in enterprise accounting st andards in line with of system, and have truly and completely reflected of the financial status in June
30,2017 , operational results, cash flow, and other relevant information of January–June 2017.
2.Accounting year:
TheGroup’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year..from January 1 to December 31 as one accounting year.
3. Operating Cycle
The normal business cycle refers to the period from the assets used for processing after purchased by the company to the cash or cash equivalents achieved. 12 months are regarded as one operating cycle in the company, and which is as the division criterion for the liquidity of assets and liabilities. The parent company and the subsidiay- Shijiazhuang Colour Bulb Co., Ltd., which is engaged in manufacturing industry, with normal operating cycle that is one year;The Subsidiary-Wuhu Dongxu Optoelectronic Equipment Co., Ltd., Which is engaged in Manufacturing industry, with normal operating cycle that is more than one year; The subsidiarys-Wuhu Dongxu Optoelectronic Technology Co., Ltd., Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. , Zhenzhou Xufei Optoelectronic Technology Technology Co., Ltd, Jiangsu Jixing New Material Co., Ltd., Dongxu(Kunshan) Display Material Co., Ltd.and Wuhan Dongxu Optoelectronc Technology Co., Ltd., Which are engaged in Manufacturing industry, with normal operating cycle that is shorter than one year ; The Subsidiary-Sichuan Ruiyi Construction Engineering Co., Ltd. And Hebei Xubao Construction installation engineering Co., Ltd., which are engaged in Construction installation, with normal that is more than one year; The Subsidiary-Beijing Xufeng Real estate, which is engaged in real estate Development industry, with normal operating cycle that is more than one year; The Subsidiary-Beijing Xutan New Material Co., Ltd., which is engaged in Technology service industry, with normal operating cycle that is shorter than one year; The Subsidiary-Beijing Dongxu Huaqing Investment Co., Ltd., which is engaged in Investment Management Industry, with normal operating cycle that is shorter than one year; The Sub-Subsidiary,Jiangsu Dongxu Yitai Intelligent Equipment Co.,Ltd, is engaged in manufacturing industry but with uncertain operating cycle; The Sub-Subsidiary,Shijiazhuang Dongxu Optoelectronic Euqipment Technology Co., Ltd, which is engaged in Manufacturing industry, with normal operating cycle that is one year; The Sub-Subsidiary,Beijing Dongxu Investment Development Co., Ltd., which is engaged in Investment industry, with normal operating cycle that is one year; The sub-subsidiary, Wuhu Ruiyi Service Co.,Ltd, is engaged in labor dispatch, with normal operating cycle that is one year.
4.Standard currency forbookkeeping：
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting treatment methods of the merger of enterprises under the control of the same company and different companies
Business combination refers to the transactions or items with one reporting entity formed by the combination of
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 two or more separate enterprises. The business combination shall be divided into the business combination under common control and the business combination under non-common control.
(1) Business Combination under Common Control
The business combination under common control refers to the business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory. Of which, the combining party is that acquiring the control right to other combining enterprises at combining date, and the combining date means the date that the combining party actually acquires the control right of the combined party.
The assets and liabilities acquired by the combining party are measured in accordance with the book value of the combined party at the combining date. For the balance between the book value of net assets acquired by the combining party and the book value of the combining valuable consideration (or the nominal amount of issued shares), the capital reserves (stock premium) shall be adjusted, or the retained earnings shall be adjusted when the capital reserves (stock premium) are insufficient.
All the costs directly incurred for the business combination by the combining party shall be recorded into the current profits and losses when occurred.
（2）Business Combination under Non-common Control
The business combination under non-common control refers to the business combination in which all of the combining enterprises are not ultimately controlled by the same party or parties both before and after the combination. Of which, the acquirer is that obtaining the control right to other combining enterprises at acquisition date, and other combining enterprises refers to the acquiree. The acquisition date means the date that the acquirer actually obtains the control right of the acquiree. For the business combination under non-common control, the merger costs include the assets paid for obtaining the control right of acquiree by the acquirer, the liabilities occurred or borne and the fair value of equity securities issued, the intermediary fees for audit, legal services, evaluation and consultation when the business combination issued, and other management costs shall be recorded into the current profits and losses when occurred. The transaction costs of equity securities or debt securities issued for the merger consideration by the acquirer shall be included into the initially recognized amount of the equity securities or the debt securities. The contingent consideration involved shall be recorded into the merger cost as per the fair value at the acquisition date. Within 12 months after the acquisition date, the combining business reputation should be adjusted correspondingly if the contingent consideration is required to adjust because of new or further evidence for the existed situation on the acquisition date. The merger cost issued by the acquirer and the identifiable net assets acquired in the combination are measured as per the fair value on the acquisition date. The difference of the merger cost minus the fair value shares of identifiable net assets obtained by the acquiree during the merger on the acquisition date, is recognized as the business reputation. While the merger cost is less than the fair value shares of identifiable net assets obtained by the acquiree during the merger, all the measurement on the identifiable assets, the liabilities, the fair value of liabilities and the merger cost obtained by the acquiree should firstly be rechecked, and the difference shall be recorded into the current profits and costs if the merger cost is still less than the fair value shares of identifiable net assets obtained by the acquiree during the merger after rechecking.
If the deductible temporary difference of acquiree obtained by the acquirer is not recognized due to the recognition condition of the deferred income tax assets unmet on the acquisition date. Within 12 months after the acquisition date, the relevant deferred income tax assets shall be recognized and the business reputation shall be reduced if the acquired new or further evidence shows that the relevant situation has already existed and the economic benefit gained by the acquiree from the deductible temporary difference is expected to achieve, and the differences are recognized as the current profits and losses if the business reputation is insufficient to offset. With the exception of the above, the deferred income tax assets related to the business combination are recorded into the current profits and losses.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 For the business combination under non-common control realized step-by-step through multiple transactions, the multiple transactions shall be judged if belong to “the package deal” according to the “Notice on Issuance of Interpretation of Accounting Standards for Business Enterprises from Ministry of Finance” (Finance and Accounting[2012] No.19) and the judgment standards on “the package deal” in Article 51 of “Accounting Standards for Business Enterprises No.33– Consolidated Financial Statement” (please see 5 (2) in Notes 3). For the package deal, please refer to above description of this section and Notes 3, 12 “Long-term Equity Investment” to conduction the accounting treatment. For the non-package deal, the relevant accounting treatment should be respectively conducted for the individual financial statement and the consolidated financial statements:
For the individual financial statements, the sum of the book value of equity investment from the purchased party held before the purchase date and the new investment cost at the purchase date shall be as the initial investment cost of the investment. For the other comprehensive incomes involved in the equity of the acquiree held before the acquisition date, the investment and the relevant other comprehensive incomes shall be disposed through the accounting treatment on the same basis of the direct disposal of the relevant assets or liabilities by the acquiree (Namely, the rest is transferred into the current investment incomes with the exception of the corresponding shares of changes caused by the net liabilities or the net assets of the defined benefit plans re-measured by the acquiree as per the equity method).
In the consolidated financial statements, the equity of the acquiree held before the acquisition date shall be measured again as per the fair value of the equity on the acquisition date, and the difference between the fair value and the book value is recorded into the current investment income. For the other comprehensive incomes involved in the equity of the acquire held before the acquisition date, the relevant other comprehensive incomes shall be disposed through the accounting treatment on the same basis of the direct disposal of the relevant assets or liabilities by the acquire (Namely, the rest is transferred into the current investment incomes on the acquisition date, with the exception of the corresponding shares of changes caused by the net liabilities or the net assets of the defined benefit plans re-measured by the acquire as per the equity method).
6. Compiling method of consolidated accounting statements
(1) Compiling method of consolidated accounting statements
The company starts to include the actual control right to the net assets and the production and management decisions of the subsidiaries into the combination scope since the date of the actual right acquired, and will stop covering into the combination scope on the date of the actual right lost. For the disposed subsidiaries, the business performance and the cash flow before the disposal date have been properly covered in the consolidated profit statement and the consolidated cash flow statement. For the subsidiaries disposed in the current period, the opening balance of the consolidated balance sheet shall not be adjusted. Meanwhile, for the subsidiaries increased through the business combination under non-common control, the business performance and the cash flow after the acquisition date have been properly included in the consolidated profit statement and the consolidated cash flow statement, and the opening balance and the comparison balance of the consolidated financial statement shall not be adjusted. For the subsidiaries increased through the business combination under common control, the business performance and the cash flow from the beginning of current combination period to the combination date have been properly included in the consolidated profit statement and the consolidated cash flow statement, and the comparison balance of the consolidated financial statement shall be adjusted simultaneously.
When the preparation of the consolidated financial statement, the necessary adjustment shall be made according to the accounting policy of the company and the financial statement of the subsidiaries during the fiscal period if the accounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For the subsidiaries acquired through the business combination under non-common control, the financial statement shall be adjusted on the basis of the fair value of the identifiable net assets on the acquisition date.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 All the major balances, transactions and the unrealized profits of the company shall be offset in the preparation of the consolidated financial statement.
Those not belong to the company in theshareholders’ 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 theshareholders’ 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 theshareholders’ equity shared by the minority shareholders of the company at the beginning of period.
When the control on the original subsidiaries lost due to the disposal of partial equity investment or other reasons, the remaining equity should be measured again according to the fair value on the control lost date. The difference of the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the net assets portion of the original subsidiaries calculated from the purchase date as per the original stock proportion shall be recorded into the current investment income after the control lost. Other comprehensive returns relevant to the original subsidiary shares investment shall be disposed through the accounting treatment on the same basis of the direct disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely, all the rest are transferred into the current investment incomes, with the exception of the changes caused by the net liabilities or the net assets of the defined benefit plans re-measured by the original subsidiaries). Thereafter, the subsequent measurement shall be made for the rest equity according to the relevant provisions of “Accounting Standards for Business Enterprises No. 2– Long-term Equity Investment” or “Accounting Standards for Business Enterprises No. 22– Recognition and Measurement of Financial Instruments”. For the details, please see Notes 3, 13 “Long-term Equity Investment” or Notes 3, 10 “Financial Instruments”.
For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till the control right lost, the company should respectively dispose all the transactions if belong to the package deal. As long as the terms, conditions and economic influence on all the transactions of the disposal of the equity investment in the subsidiary meet one status below, it usually shows that the multiple transactions matters should be conducted the accounting treatment as the package deal:① these transactions are made simultaneously or under the consideration of the influence each other.② these transactions shall be as the whole to achieve one complete business results.③ one transaction occurs depending on the appearance of other one transaction at least.④ one transaction is economic under the consideration with other transactions even if it is not economic when individually considerate. For the non-package deal, each transaction shall be respectively conducted the accounting treatment according to the applicable principles of “Partial Disposal of Long-term Equity Investment in Subsidiary without Control Lost” (please refer to 13, (2)④ in Notes 3,) and “The Control on Original Subsidiary Lost due to Disposal of Part of Equity Investment or Other Reasons” (details please see forepart). For the package deal from the transactions after the disposal of equity investment in the subsidiary till the control right lost, the transactions shall be as one transaction of the disposal of subsidiary and the control lost for the accounting treatment. Therefore, every balance between the net assets proportion of the subsidiary shared relative to the disposal price and the disposal investment before the control right lost, shall be recognized as other comprehensive incomes in the consolidated financial treatment and transferred into the current profits and losses when the control lost.
7.Joint venture arrangements classification and Co-operation accounting treatment
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Joint enterprise arrangement is two or more parties jointly control the enterprise. The company enjoys rights and bears obligations based on joint enterprise arrangement. Joint enterprise arrangement is composed of joint operation and joint enterprises. Joint operation means the company has the right to arrange related assets and related liabilities. Joint enterprises means the company only has the right to arrange the net asset.
The company adopts equity method to calculate investment to joint enterprises by referring to accounting policies stated in "Long-term Stock Ownership for Equity Method Calculation" in Annex V 14 (2).
As one party of joint operation, the company confirms assets and liabilities only held by itself and confirms joint assets and liabilities as proportion of thecompany’s shares; confirm incomes from sales and production in the way of joint operation as proportion of thecompany’s shares; confirm thecompany’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 thePeople’s Bank of China, hereinafter inclusive) on the transaction date is adopted to convert to the amount of functional currency when the foreign currency transaction issued in the company is initially recognized. However, the foreign currency exchanges or the transactions relative to the foreign currency exchanges occurred in the company shall be translated into the amount of functional currency as per the actually adopted exchange rate. (2) Translation Method for Monetary Items of Foreign Currency and Non-monetary Items of Foreign Currency On the balance sheet date, the monetary items of foreign currency are translated as per the shot exchange rate on the balance sheet date, and the foreign exchange conversion gap arising from which shall be recorded into the profits and losses of the current period, except for① the balance of exchange arising from special foreign currency borrowings for the purchase and construction of qualified assets subject to the principle of borrowing costs.② the exchange balance generated from other book balances in the foreign currency monetary items available for sale with the exception of the post-amortization costs shall be recorded into other comprehensive incomes.
The non-monetary items of foreign currency measured at the historical cost shall still be measured by the amount of functional currency translated at the spot exchange rate on the transaction date. The non-monetary items of foreign currency measured at the fair value shall be translated at the spot exchange rate on the fair value
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 recognized date, and the gap of the translated amount of functional currency and the original the amount of functional currency shall be as the fair value variation (change in exchange rate included) to make treatment and recorded into the current profits and losses or recognized as other comprehensive incomes.
(1) Translation Method of Foreign Currency Financial Statement
For the overseas business operation involved in the preparation of the consolidated financial statement, the exchange balance arising from the change in exchange rate for the foreign currency monetary items of the net investment in the overseas business, shall be as “translation reserve of foreign currency statement” and recognized as other comprehensive incomes. The profits and losses of the current disposal period shall be recorded when disposal of the overseas business operations.
The foreign currency financial statement of the overseas business operation shall be translated as RMB statement as per the following methods: the assets and liabilities in the balance sheet shall be translated at a spot exchange rate on the balance sheet date. For theshareholders’ 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 theshareholders’ 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 theshareholders’ 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 theowners’ equity of the overseas business operation of the company, the translation reserves of foreign currency statement belong to theowners’ equity of the parent company related to the overseas business operation which listed in theshareholders’ equity items in the balance sheet, are all recorded into the current disposal profits and losses.
If the held equity proportion of the overseas business operation reduced due to the disposal of partial equity investment or other reasons, but the control on the overseas business operation not lost, the translation reserves of foreign currency statement related to the partial disposal of the overseas business operation shall be belong to the minority equity and not recorded into the current profits and losses. When disposing partial equity of the joint ventures or the cooperative enterprises of the overseas business operations, the translation reserves of foreign currency statement related to the overseas business operations shall be recorded into the current disposal profits and losses as per the disposal proportion of the overseas business operations.
10.Financial instruments
One financial asset or financial liability shall be recognized when the company becomes the party in the financial instrument contract. The financial assets and the financial liabilities are measured at the fair value in the initial recognition. For the financial assets and liabilities that measured at the fair values and the variation included in the current profits and losses, the relative transaction expenses shall be directly recorded into the profits and losses.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 For the financial assets and liabilities of other categories, the expenses related to transactions are recognized as initial amount.
(1) Determination Method for the Fair Value of Financial Assets and Liabilities
The fair value refers to the price that receivable for the sale of one asset or paid for the transfer of one liability in the orderly transactions occurring on the measurement date for the market participants. If there exists the active market for the financial instrument, the company shall recognize the fair value according to the quotation in the active market which refers to the price that easy to periodically acquire from Exchanges, Commission Brokers, Guilds and Pricing Services, and stands for the price of the market transactions actually occurred in the fair dealing. For thereisn’t the active market for the financial instrument, the company shall recognize the fair value with adopting the valuation technique which includes the price used in the market transactions recently conducted by the parities with voluntary trade and under the consideration and acquainting of the situation, the current fair value in reference to other same financial instruments, the discount cash flow method and the option pricing model.
(2) Classification, Recognition and Measurement of Financial Assets
The accounting recognition and de-recognition shall be conducted at the transaction date in the conventional way for the financial assets dealing. The financial assets are divided into the financial assets, the held-to-maturity investment, the loans, the receivables and the sellable financial assets which are measured at their fair values and of which the variation are recorded into the current profits and losses when recognized initially.
① The financial assets measured at the fair value and of which the variation recorded into the current profits and losses
Including the tradable financial assets and the financial assets designated at their fair values and of which the variation is recorded into the current profits and losses.
The tradable financial assets refer to the financial assets meeting any of the following requirements: A. the purpose to acquire the financial assets is for selling in the short-term. B. forming a part of the identifiable combination of financial instruments which are managed in a centralized way and for which there are objective evidences proving that the company may manage the combination by way of short-term profit making in the near feature. C. being a derivative instrument, excluding the designated derivative instruments which are effective hedging instruments, or derivative instruments belong to financial guarantee contracts, and the derivative instruments which are connected with the equity instrument investments for which there is no quotation in the active market and whose fair value cannot be reliably measured, and which shall be settled by the delivery of the equity instruments.
The financial assets meeting any of the following requirements can be designated when they are initially recognized as financial assets measured at their fair values and of which the variation is recorded into the current profits and losses: A. the designation is able to eliminate or obviously reduce the discrepancies in the recognition or measurement of relevant gains or losses arisen from the different basis of measurement of the financial assets. B. the official written documents on risk management or investment strategies of the company have recorded that the combination of the financial assets, or the combination of the financial assets and liabilities will be managed and evaluated on the basis of the fair value and reported to the key management personnel.
The financial assets measured at their fair values and of which the variation is recorded into the current profits and losses shall be made the subsequent measurement as per the fair value, and the gains or losses formed from the variation of the fair value as well as the dividend and interest incomes related to the financial assets shall be recorded into the current profits and losses.
(2)The investments of held-to-maturity
The held-to-maturity investment refers to a non-derivative financial asset with a fixed date of maturity, a fixed or determinable amount of repo price and the company holds for a definite purpose or is able to hold until its
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 maturity.
The held-to-maturity investments shall be made the subsequent measurement on the basis of the actual interest rate and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or amortization shall recorded into the current profits and losses.
The actual interest rate method is the way to calculate the post-amortization costs and the interest incomes or expenditure at each period as per the actual interest rate of the financial assets or liabilities (a group of financial assets or liabilities included). The actual interest rate means that the future cash flow of the financial assets or liabilities within the predicted term of existence or within a shorter applicable term shall be discounted as the rate used for the current book value of the financial assets or liabilities.
When calculating the actual interest rate, the company should consider all the contract terms of the financial assets or liabilities to estimate the future cash flow (without regard to the future credit loss), and take account of all the charges, transaction expenses and discounts or premium belong to the actual interest rate and paid or received between all the parties of the financial assets or liabilities contracts.
(3)Loans and Receivables
The loans and the receivables refer to a non-derivative financial asset without the quotation, a fixed or determinable amount of repo price in the active market. The financial assets divided into loans and receivables of the company shall include the bill receivable, the accounts receivable, the interest receivable, the dividends receivable and other receivables
The loans and the receivables shall be made the subsequent measurement on the basis of the actual interest rate and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or amortization shall recorded into the current profits and losses.
④ The financial assets available for sale
The sellable financial assets refer to the non-derivative financial assets which are designated as sellable when they are initially recognized as well as the financial assets other than the financial assets, the loans, the receivables and the held-to-maturity investments measured at the fair value and of which the variation recorded into the current profits and losses.
The costs of the sellable liability instrument investments at the end of period shall be recognized as per the post-amortization cost method, which is the amount that the accumulated amortization amount, formed after the amortization for the initially recognized amount with the compensated capital deducted plus or minus the difference between the initially recognized amount and the amount at the maturity date with use of the actual interest rate method, with deduction of the impairment losses occurred. The costs of the sellable equity instrument investments at the end of period are the initially acquired costs.
The sellable financial assets shall be conducted the subsequent measurement at the fair value, the balance
The gains or losses arising from the change in the fair value, except that the impairment losses and the exchange balance related to the monetary financial assets of foreign currency and the post-amortization costs are recorded into the current profits and losses, shall be recognized as other comprehensive incomes, transferred out and recorded into the current profits and losses when the de-recognition of the financial assets. However, The equity instrument investment which has no quotation in the active market and whose fair value cannot be reliably measured, and the derivative financial assets which are connected with the equity instrument and required to settle by the delivery of the equity instrument shall be conducted the subsequent measurement by costs.
The interests acquired from the sellable financial assets during the holding period and the cash dividends declared to deliver by the investee shall be recognized as the investment returns.
② The financial assets impairment available for sale
The decline for the fair value of the sellable equity instrument investments can be judged as serious or
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 non-transient depreciation by the relevant comprehensive factors, which shows that the sellable equity instrument investments have the impairment. Of which, the “serious depreciation” refers to the decline range of the fair value accumulatively over20%, and the “non-transient depreciation” is the decline period of the fair value continuously beyond 12 months.
When the sellable financial assets impair, the accumulated losses formed due to the depreciation of the fair value for other comprehensive incomes originally recorded shall be transferred out and recognized as the current profits and losses, and the transferred accumulative losses are the balances of the costs of the assets initially acquired with deduction of the withdrawn capitals, the amortized amount, the current fair value and the impairment losses initially recorded into profits and losses.
After the impairment losses recognized and if there are objective evidences proving that the financial assets values have resumed after the period and have objectively involved in the matters occurred after the losses recognized, the impairment losses originally recognized shall be switched back, the reverse of the impairment losses for the sellable equity instrument investments shall be recognized as other comprehensive incomes and the reverse of the impairment losses for the sellable liability instrument shall be recorded into the current profits and losses.
The equity instrument investment which has no quotation in the active market and whose fair value cannot be reliably measured, or the impairment losses of the derivative financial assets which are connected with the equity instrument and required to settle by the delivery of the equity instrument shall not be reversed.
(3) Recognition criteria and measurement methods of transferred financial assert
For financial asset that satisfies the following criteria, it shall stop recognizing the financial asset: 1) the contract rights to collect the cash flow of the financial assert has been terminated; 2) the financial assert has been transferred with nearly all of the risks and rewards related to the ownership of the financial assert transferred to transferee; 3) the financial assert has been transferred with the control to such financial asserts waived, though this enterprise has not transferred or retained nearly all the risks and rewards related to the ownership of the financial assert.
If this enterprise has neither transferred nor retained almost all the risks and rewards on the asset ownership, it shall, within the extent of its continuous involvement in the transferred financial asset and recognize the relevant liability. The term "continuous involvement in the transferred financial asset" shall refer to the risk level that this enterprise faces resulting from the change of the value of the financial asset.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between the amounts of the book value of the transferred financial asset and the sum of consideration received from the transfer, and the accumulative amount of the changes of the fair value originally recorded in the owner's equities of other comprehensive income, shall be recorded in the profits and losses of the current period.
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the book value of the transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose recognition has not been stopped, be apportioned according to their respective relative fair value, and the difference between the amounts of the following 2 items shall be included into the profits and losses of the current period: 1)sum of consideration the portion whose recognition has been stopped and the accumulative amount changes in fair value originally recordedowner’s equities which is corresponding to stopped, the book value of the portion whose recognition has been stopped; 2) the book value of the portion whose recognition has been stopped.
For the financial asset sold with recourse attached, it is to transfer the financial asset held by endorsement, prior to confirmation that nearly all of the risks and rewards related to the ownership of the financial asset has been transferred to transferee. Where this enterprise has transferred nearly all of the risks and rewards related to the ownership of the financial asset to the transferee, it shall stop recognizing the financial asset. If it retained
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 nearly all of the risks and rewards related to the ownership of the financial asset, it shall not stop recognizing the financial asset. Where this enterprise does not transfer or retain nearly all of the risks and rewards related to the ownership of a financial asset, it shall deal with it according to principles stipulated above.
(4)Classification and Measurement of Financial Liability
Financial liabilities shall be classified into the two categories when they are initially recognized: the financial liabilities which are measured at their fair values and of which the variation is included in the current profits and losses; other financial liabilities. For the financial liabilities which are measured at their fair values and of which the variation is included in the current profits and losses, the related transaction cost shall be included directly in the current profits and losses; for other financial liabilities, the related transaction cost included in the initially recognized amount.
1) The condition for classifying the financial liabilities which are measured at their fair values and of which the variation is included in the current profits and losses
as transactional financial liabilities and the financial liabilities which are measured at their fair values at initial recognition and of which the variation is included in the current profits and losses is the same as these for classifying it as the transaction financial asset and the financial asset which are measured at their fair values and of which the variation is included in the current profits and losses.
This enterprise shall make subsequent measurement on its financial liabilities according to their fair values. The profits and losses, arising from the change in the fair value of the financial asset, and the dividends and interests expenses associated with the financial asset, shall be recorded into the profits and losses of the current period.
2) Other Financial Liability
And are not quoted in an active market, for which there is no quoted price in the active market and whose fair value cannot be reliably measured, this enterprise shall make subsequent measurement according to its cost. For other financial liabilities, this enterprise shall make subsequent measurement on the basis of the post-amortization costs by adopting the actual interest rate method, with profits or losses resulting from stopping recognition or amortization recorded into the profits and losses of the current period.
(5) Termination from Recognition of Financial Liability
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the financial liability be terminated in all or partly. Where this enterprise (debtor) enters into an agreement with a creditor so as to substitute the existing financial liabilities by way of any new financial liability, and if the contractual stipulations regarding the new financial liability is substantially different from that regarding the existing financial liability, it shall terminate the recognition of the existing financial liability, and shall at the same time recognize the new financial liability.
Where the recognition of a financial liability is totally or partially terminated, this enterprise shall include into the profits and losses of the current period the gap between the carrying amount which has been terminated from recognition and the considerations it has paid (including the non-cash assets it has transferred out and the new financial liabilities it has assumed).
(6) Offset of Financial Asset and Financial Liability
Where this enterprise has the legal right to offset its recognized financial asset and financial liability, and it is able to perform this legal right, and if it plans to settle with the net amount of and cash the financial asset and liquidate the financial liability, it shall itemize and show in the balance sheet the amounts after the financial asset and the financial liability offset each other. For any other circumstances, the financial asset and financial liability shall not offset each other, and shall be itemized and shown separately in the balance sheet
(7) Equity Instruments
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 The "equity instruments" refers to the contracts which can prove that this enterprise holds the surplus equities of the assets after the deduction of all the debts. This enterprise deal the equity instruments issued (including refinancing), repurchased, sold or cancelled as changes of equity. It shall not recognize the changes of fair value of equity instruments. The transaction expenses associated with equity transactions shall be deducted from the equity.
This enterprise shall deduct the shareholders' equity for various kinds of distributions (not including stock dividends) to the holders of equity instruments. It shall not recognize the amount of changes in the fair value of equity instruments.
11.Account receivable
（1）Provision for bad debts of account receivable that are individually significant
|||
|-|-|
|The judgment basis for significant single-item amount or|The accounts receivable with single-item amount of RMB 5|
|standard for significant amount|million and above|
||Impairment test shall be separately conducted. If the test proves|
||the occurrence of impairment, impairment loss shall be|
||determined and provision for bad debts shall be made according|
||to the difference between the present value of its future cash flow|
||and its book value. For the accounts receivable whose|
|The method of separate provision for bad debts for the accounts|impairment is not proved by separate test, such accounts|
|receivable with significant single-item amount|receivable, together with those with insignificant single-item|
||amount, are divided into some groups based on similar|
||characteristics of credit risks. For these groups of accounts|
||receivable, provision for bad debts shall be made according to|
||the regulation mentioned in "(2) provision for bad debts shall be|
||made for accounts receivable on group basis".|

(2)The accounts receivable of bad debt provisions made by credit risk Group
|||
|-|-|
|Name|Withdrawing Method|
|Aging Group|Aging Analysis Method|
|Other Group|Other method|

In Group ,Accounts on age basis in theportfolio：
√ Applicable□ Not applicable
||||
|-|-|-|
|Aging|||
||Rate for receivables(%)|Rate for other receivables(%)|
|During the credit period|0.00%|0.00%|
|The credit period within 1 year|5.00%|5.00%|
|1－2 years|10.00%|10.00%|
|2－3 years|30.00%|30.00%|
|3－4 years|50.00%|50.00%|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|4－5 years|70.00%|70.00%|
|Over 5 years|100.00%|100.00%|

 In Group, adopting balance percentage method for bad debtprovision：
□ Applicable√ Not applicable
In Group ,adopting other method for bad debtprovision：
√ Applicable□ Not applicable
||||
|-|-|-|
|Name|Account receivable proportion|Other account receivable proportion|
|Related party group|0.00%|0.00%|

 (3) Accounts receivable that are individually insignificant but with bad debt provision provided on an
individual basis
|||
|-|-|
||The accounts receivable with single-item amount of less than|
|Reason for separate provision for bad debts|RMB 5 million whose risk characteristics can’t be reflected by|
||provision for bad debts on basis of group.|
||Provision for bad debts is made according to the difference|
|Method of provision for bad debts|between the present value of its future cash flow and its book|
||value.|

12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1)Classification of Inventories
This enterprise's inventories is classified as raw materials, works in process, finished products, circulation materials, low-value consumption goods, packing materials, supplies purchasing, engineering construction, development cost,etc.
(2) Obtaining and Measurement of Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be measured by their actual cost when they are obtained. Raw materials, works in process, finished products, etc. shall be measured with the weighted average method when they are being sent out. Low-value consumption goods shall be written off by one-off write-off method when they are withdrawn for use. Circulation packaging materials shall be recorded into cost according to the predicted usage times.
(3) Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period, this enterprise shall make the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss on decline in value of inventories on the ground of each item of inventories. If the factors causing any write-down of the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision for the loss on decline in value of inventories that has been made.
(4) Method for confirming the net realizable value of inventories
The net realizable value of inventories refers to the amount of the estimated selling price, less the estimated costs
of completion, the estimated selling costs and related tax payments.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 (5) Cost of Development
Cost of development includes completed development product, development product under construction, leasing development product and simulated development land.
Completed development product means the estate which has been built and up for sale; Development product under construction means the estate whichhasn’t been built and in the purpose of sale; Leasing development product means the estate which is temporarily leased under business mode for which thecompany’s intents to sell, which the leasing development product amortizes by stages within the estimated available years; Simulated development land means the land which has been purchased and determined to be developed as Sales or Leasing Estate.
13. Long-term Equity Investment
The long-term equity investment in this section refers to the long-term equity investment of this enterprise that is able to control to or does joint control with or significant influences over the invested enterprise. For the long-term equity investment of this enterprise that is not able to control to or does not do joint control with or have significant influences over the invested enterprise, this enterprise shall record it as available-for-sale financial asset or the financial asset measured by its fair value with its changes in fair value recorded into the profits or losses of current period as the changes. For details of its accounting policy, please refer to Note III.9 "Financing Instruments"
The term "joint control" refers to the joint control over an arrangement of this enterprise in accordance with the contracts and agreements, and decisions over relevant activity of such arrangement shall not be unless the assent on sharing the control power. The term "significant influences" refers to this enterprise's power to participate in making decisions on the financial and operating policies of the invested enterprise, but not to control or do joint control together with other parties over the formulation of these policies.
(1)Ascertaining of Investment Cost
For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of the book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment. The difference between the initial cost of the long-term equity investment and the payment in cash, no-cash assets transferred as well as the book value of the debts borne by the merging party shall offset against the capital reverse. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date of merger, regard the share of book value of theowner’s equity of the merged enterprise as the initial cost of the long-term equity investment. The total face value of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of the long-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. For the merger of enterprises under the same control through gaining the shares of the combined enterprise by multiple steps of deals, it shall deal with it in the following two ways depending on that if it belongs to "a package deal": if it belongs to "a package deal", it shall deal with all the deals as one obtaining the control power; if it does not belong to "a package deal", it shall, on the date of merger, regard the share of book value of theowner’s equity of the merged enterprise as the initial cost of the long-term equity investment. The total face value of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of the long-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. The equity investment held by this enterprise before the date of merger shall be accounted for by equity method, or shall be recorded as the other comprehensive income recognized as available-for-sale financial asset and not accounted for.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 For the merger of enterprises not under the same control, it shall, on the date of merger, regard the share of the book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment. The merger costs include the assets paid, liabilities occurred or borne and sum of the fair value of the equity securities issued by the purchaser. For the merger of enterprises not under the same control through gaining the shares of the combined enterprise by multiple steps of deals, it shall deal with it in the following two ways depending on that if it belongs to "a package deal": if it belongs to "a package deal", it shall deal with all the deals as one obtaining the control power; if it does not belong to "a package deal", it shall, on the date of merger, regard the sum of book value of theowner’s original equity of the merged enterprise and the newly increased investment cost as the initial cost of the long-term equity investment. For the shares originally held by this enterprise accounted for by weighted equity method, the relevant other comprehensive income shall not be accounted for temporarily. For the equity investment accounted for as available-for-sale financial asset, the difference of its fair value and its face value and the accumulated changes in its fair value originally recorded as other comprehensive income shall be switched to the profits or losses of the current period.
The audit cost, law service cost, evaluation and consultation fees and agent commissions as well as other related administration costs occurred and borne by the merging or purchasing enterprise for the purpose of merger, shall be recorded into the profits or losses of current period at the time when the costs occurred.
Other equity investments except the long-term equity investment formed by merger of enterprises shall be initially ascertained by their costs which, depending on the different ways in acquiring the long-term equity investments, shall be recognized separately as cash purchasing prices actually paid by this enterprise, fair value of the equity securities issued by this enterprise, agreed value of the investment contracts or agreements, fair value or original book value of the assets obtained by exchange of no-monetary assets, the fair value of the long-term equity investment itself, etc. The relevant expenses, tax payments as well as other necessary expenses directly associated with obtaining the long-term equity investment shall be recorded into the investment costs as well. If this enterprise is able to do joint control or significant influence, which does not constitute control, over the invested entity as a result of additional investment, the long-term equity investment cost shall be the sum of the fair value of the equity investment ascertained in accordance with the Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instrument and the cost of the increased investment.
(2) Subsequent Measurement and Recognition Method
A long-term equity investment of this enterprise that does joint control (not including joint venture) or significant influences over the invested entity shall be measured by employing the equity method. Besides, the cost method is employed in this enterprise's financial reports to measure the long-term equity investment that could form control over the invested entity.
(1)Long-term equity investment measured by employing the cost method
The price of a long-term equity investment measured by employing the cost method shall be included at its initial investment cost. If there are additional investments, the cost of the long-term equity investment shall be adjusted. Except the prices actually paid when obtaining the investment or cash dividends or profits being approved in the consideration but not yet issued, the investment income of the current period shall be recognized in accordance with the cash dividends or profits being approved by the invested entity.
(2)Long-term equity investment measured by employing the equity method
If the initial cost of a long-term equity investment is more than the investing enterprise's attributable share of the fair value of the invested entity's identifiable net assets for the investment, the initial cost of the long-term equity investment may not be adjusted. If the initial cost of a long-term equity investment is less than the investing enterprise's attributable share of the fair value of the invested entity's identifiable net assets for the investment, the difference shall be included in the current profits and losses and the cost of long-term equity investment shall be adjusted simultaneously.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 When employing the equity method, this enterprise shall, in accordance with the attributable share of the net profits or losses of the invested entity, recognize the investment profits or losses and adjust the book value of the long-term equity investment. This enterprise shall, in the light of the profits or cash dividends declared to distribute by the invested entity, calculate the proportion it shall obtain, and shall reduce the book value of the long-term equity investment correspondingly. Where any change is made to the owner's equity other than the net profits and losses of the invested entity, the book value of the long-term equity investment shall be adjusted and included in the capital reserves. This enterprise shall, on the ground of the fair value of all identifiable assets of the invested entity when it obtains the investment, recognize the attributable share of the net profits and losses of the invested entity after it adjusts the net profits of the invested entity. If the accounting policies and accounting periods adopted by the invested entity are different from those adopted by this enterprise, an adjustment shall be made to the financial statements of the invested entity in accordance with the accounting policies and accounting periods of this enterprise and recognize the investment profits or losses and other comprehensive incomes. For the transactions between this enterprise and its joint ventures and associated entities, where the assets invested or sold do not constitute a business, the unrealized internal transaction profits or losses shall be calculated in accordance with proportion shared, with the proportion shared by this enterprise offset and recognize the investment profits or losses based thereof. However, if losses occurred in the internal transaction between the invested entities is the impairment loss of transferred assets, they shall not be offset. When the assets invested by this enterprise to its joint ventures or associated entities constitute a business, and the investing party obtains long-term equity but without control power, the fair value of the invested business shall be recognized as the initial investment cost of the additional long-term equity investment. The total difference between the original investment cost and the book face of the invested business shall be recorded into the profits or losses of the current period. If the assets purchased from the joint ventures or associated entities constitute a business, this enterprise shall account for the business in accordance with this enterprise Accounting Standard No. 20 - Business Combinations, with the total profits or losses associated with the transaction recognized.
The Company bears the net losses of its invested business to the limit of the book value of its long-term equity investment and other long-term equity that in real terms constitutes investment on the business. For additional loss of its invested business, if the Company is obligated to undertake, it shall be recognized as estimated liabilities accordingly and recorded in current investment losses. If the invested business earns profits afterwards, the Company shall reinstate and recognize its share of gains after compensating its unrecognized share of losses.③Purchase of minority interest
While compiling consolidated financial statements, the Company adjusts its capital reserve in terms of the difference between the increase of long-term equity investments due to purchase of minority interest and its share of thesubsidiaries’ net assets since the purchase (or combination) date or dates. If its capital reserve is not sufficient to write down the difference, then the Company adjusts its retained income.
④Disposal of long-term equity investments
In consolidated financial statements, the Company records inshareholders’ equity the difference between partial disposals of its long-term equity investments in its subsidiaries and its share of thesubsidiaries’ net assets if it does not lose control of the subsidiaries; and if such partial disposals result in loss of its control of the subsidiaries, the difference shall be treated in accordance with the accounting policies related and specified in “Compiling Principles for Consolidated Financial Statements”, Note III.6.(2).
For disposals of long-term equity investments under other circumstances, the difference between the book value and the actual received consideration is recorded in current profit and loss.
For the long-term equity investments calculated by equity method, the same method applies to the remaining equity after disposal. Meanwhile, the other comprehensive gains originally recorded inshareholders’ equity is treated pro rata by the same method how the invested businesses handle the accounts while directly disposing the
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 related assets or liabilities. The investor recognizes the ownership interest due to equity changes except net profit and loss, other comprehensive gains and profit distribution, and carries it over pro rata to current profit and loss. For long-term equity investments calculated by costs method, the same method applies to the remaining equity after disposal. Other comprehensive gains calculated and recognized by equity method or recognition and measurement principles for financial instruments before the Company obtains control of the invested businesses are treated on the same basis that the invested businesses directly dispose the related assets or liabilities, and it will be carried over pro rata to current profit and loss; and among the investedbusinesses’ net assets that are calculated and recognized by equity method are all other equity changes than net profit and loss, other comprehensive gains and profit distribution carried over pro rata to current profit and loss.
For disposals of long-term investment equity resulting in loss of control over the invested businesses, when compiling individual financial statements, the Company changes to adopt equity method to calculate the remaining equity that is still sufficient to exert joint control or significant influence, and to make adjustments as since it was acquired; and if the remaining equity is not sufficient, it will be handled in accordance with the relevant recognition and measurement principles for financial instruments and the difference between its fair value and book value will be recorded in current profit and loss since the Company loses control of the invested businesses. For other comprehensive gains recognized by equity method or recognition and measurement principles for financial instruments before the Company obtains control over the invested businesses, the Company adopts the same basis to handle the accounts as the invested businesses directly dispose the related assets or liabilities, and among the investedbusinesses’ net assets that are calculated and recognized by equity method are all other equity changes than net profit and loss, other comprehensive gains and profit distribution carried over pro rata to current profit and loss. For the remaining equity calculated by equity method, other comprehensive gains and other ownership interests will be carried over pro rata while for those treated in accordance with the recognition and measurement principles for financial instruments, other comprehensive gains and other ownership interests will be carrier over entirely.
Under the circumstances that the Company loses joint control over or has no significant influence on the invested businesses due to partial equity disposal, the remaining equity changes to be calculated in accordance with the recognition and measurement principles for financial instruments, and the difference between its fare value on the date that the Company loses the joint control and significant influence and the book value is recorded in current profit and loss. For other comprehensive gains recognized due to calculation of the original equity investments by equity method, the Company adopts the equity method no longer but the same basis to handle the accounts as the invested businesses directly dispose the related assets or liabilities while carrying over to current profit and loss all the ownership interest recognized due to other equity changes than net profit and loss, other comprehensive gains and profit distribution.
If the Company gradually loses control of a subsidiary through multiple transactions, which is a package deal as a whole, then all these transactions will be treated as control losing equity disposal, and before loss of control, the difference between each transaction consideration and the book value of the corresponding long-term equity investment is recognized as other comprehensive gains and in the end, carried over to current profit and loss upon loss of control.
14. Investment real estate
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment real estate refers to the properties held for the purpose of generating rent and/or capital appreciation.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Thecompany’s investment real estate includes the land use right rented and the constructions leased.
The Company makes initial measurement at the costs that the properties is acquired and records as part of the property costs the subsequent expenses that could bring economic benefit inflows and be measured reliably while other subsequent expenses as part of current profit and loss. Such properties are depreciated or amortized in accordance with the relevant regulations for fixed assets or intangible assets.
15. Fixed assets
(1) Recognition criteria of fixed assets1
Fixed assets refer to tangible assets that are held for production, services, leases or operations and the useful life of which are over one accounting year. Fixed assets are recognized if it produces economic benefit inflows and its costs can be measured reliably. The Company makes initial measurements on fixed assets at the costs that they are acquired.
（2）Depreciation method
||||||
|-|-|-|-|-|
|||Estimated useful|||
||||Estimated residual value||
|Type|Detail|||Depreciation rate(%)|
||||rate||
|||Life|||
|||Over the period of title|||
|||(the period specified on|||
|||the real estate title|||
|House and Building|Straight-line method|certificate or land use|5%|3.17%|
|||right certificate) or 30|||
|||years in case of no period|||
|||of title|||
|Machinery equipment-|||||
||Straight-line method|5|5%|19%|
|Kiln|||||
|Machinery equipment-|||||
||Straight-line method|3|95.5%|1.5%|
|Platinum passage|||||
|Machinery equipment-|||||
|Glass flat-panel and other|Straight-line method|15|5%|6.33%|
|equipment|||||
|Machinery equipment-|||||
|Other Production|Straight-line method|10|5%|9.5%|
|equipment|||||
|Transportation|||||
||Straight-line method|5|5%|19%|
|equipment|||||
|Other equipment|Straight-line method|5|5%|19%|

（3）Cognizance evidence and pricing method of financial leasing fixed assets
Fixed assets from finance lease are depreciated during the useful life if it is reasonable to determine that the
ownership could be obtained upon lease expiration; otherwise, the Company chooses the shorter of the lease
period and the remaining useful life to depreciate the assets.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 16.Projects under construction
The costs of construction in progress include all necessary project expenditures, the borrowing expenses that should be capitalized before the works reaches the expected usable status and other relevant expenses.
Construction in progress changes to fixed assets when it reaches the expected usable status.
17. Borrowing expenses
Borrowing expenses include interest, amortization of discount or premium, auxiliary expenses, translation differences arising from borrowings in foreign currency etc. The Company starts to capitalize the borrowing expenses in direct connection to purchase, construction or production of the assets that meet capitalization conditions when there are assets expenditures and borrowing expenses incurred and/or the Company starts all the necessary events to purchase, construct or produce such assets till the assets can be used and sold. Other borrowing expenses are recognized as costs when incurred.
The Company capitalizes the actual interest expense incurred by use of special borrowings, minus the interest income from the remaining borrowing funds in bank or any investment income earned from the interim investment of those borrowings; and for general borrowings, the amount to capitalize is the weighted average of the accumulated assets expenditures in exceed of the special borrowings times the capitalization rate of the used general borrowings, which is determined by the weighted average interest rate of the general borrowings.
During capitalization, all translation differences of special borrowings in foreign currency should be capitalized while those of general borrowings in foreign currency are recorded in current profit and loss.
The assets to capitalize are fixed assets, investment properties, inventories etc., which can be used or sold after a certain period of time to purchase, construct or produce.
The Company stops capitalization of borrowing costs if an abnormal interruption more than 3 consecutive months occurs during purchase, construction or production of the assets that are eligible to capitalization till all those restart.
If general borrowings are used to purchase, construct or produce the capitalization eligible assets, the borrowing cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of the special borrowings times the capitalization rate of the used general borrowings, which is determined by the weighted average interest rate of the general borrowings.
18.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) Valuation method, service life and impairment test
The Company makes initial measurements on intangible assets in terms of the costs and determines the useful life when obtaining the assets. For intangible assets of a limited useful life, from the time the assets are available for use, the Company adopts the amortization method that reflects realization of the expected economic benefits, or the straight-line amortization method if unable reliably to determine how to realize the expected economic benefits; and no amortization are made for intangible assets of an unlimited useful life.
At the end of each year, the Company reviews the useful life and amortization methods of intangible assets of a limited useful life and makes adjustments and accounting treatment if different from the previous estimates. For the intangible assets that are estimated to produce no more economic benefits in the future, the Company records the book value of such assets all in current profit and loss.
2. Accounting Policy of Internal Research and Development Expenditure
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 The expenditures for internal research and development projects of an enterprise shall be classified into research expenditures and development expenditures.
The research expenditures shall be recorded into the profit or loss for the current period.
Development expenses can only be capitalized when the following conditions are satisfied: the technology is feasible for use or sales; there is the intention to use or sell the intangible assets; it can be proven that the product generated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is used internally, it can be proven that it is useful; with necessary technical and financial resources and other resources to complete the development of the intangible assets and the intangible assets can be used or sold; the development expense can be reliably measured. If not, the development expense is accounted into the current gain/loss account. If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study, the project will enter the development stage.
19. Impairment of the long-term assets
On balance sheet dates, the Company determines whether there are impairments occurring to fixed assets, construction in progress, intangible assets of a limited life, investment properties measured in the cost model as well as non-current and non-financial assets like the long-term equity investments on subsidiaries, joint ventures and associated companies. If impaired, the Company estimates the retrievable amount and conducts an impairment test. Impairment tests need to be done on goodwill, intangible assets of an unlimited life and the intangible assets that are not yet to reach the usable status, no matter they are impaired or not.
If the impairment test result shows the retrievable amount lower than the book value, impairment provisions will be set aside and recorded in impairment loss. The retrievable amount is the fair value of the assets minus the disposal expenses or the present value of the estimated future cash flows of the assets, whichever is higher. The fair value of the assets is determined in terms of the price specified in the selling agreement that is fair trade; if no selling agreement but there is an active assets market existing, it is determined in terms of thebuyer’s offer; and if no selling agreement and active assets market, the fair value can be estimated based on the best available information. Disposal expenses include all related legal charges, taxes, delivery fees or the direct expenses incurred to have the assets reach the usable or sellable status. To determine the present value of the estimated future cash flows from the assets, the Company chooses an appropriate discount rate in the light of the continual usage of the assets and the estimated future cash flows occurring upon final disposal. Impairment provisions of the assets are calculated and recognized on the basis of individual assets. If unable to estimate the retrievable amount of individual assets, the Company determines the amount by reference to the asset group that includes the individual assets. Asset groups are the minimum assets combination that independently produces cash inflows. For the goodwill separately listed in financial statements, while an impairment test being conducted, the book value is apportioned to the asset groups or combination of asset groups expected to benefit from the synergy effects arising from business combinations. The Company recognizes impairment losses when the test result shows that the retrievable amount of the asset groups or combination of asset groups is lower than their book values. The impairment loss will be first used to write down the book values of the asset groups or combination of asset groups and then those of other assets pro rata.
Once the aforesaid impairment losses are recognized, they cannot be reinstated in the future.
20.Long-term amortizable expenses
Long-term unamortized expenses are valued at the actual costs and amortized at average in an estimated beneficial period of time. If those cannot benefit the Company in future accounting periods, the remaining will be recorded
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 21. Remuneration
(1) Accounting methods for short-term compensation
Employee remuneration refers to all kinds of rewards or compensations given in return foremployees’ services or employment termination. It includes short-term compensation, post-employment benefits, demission benefits and other long-term employee benefits as well as the benefits the Company provides toemployees’ spouses, children, dependents, deceasedemployees’ family and other beneficiaries.
The Company classifies into short-term compensation the employee remuneration that needs to be paid off entirely in the twelve months following the reporting year the employees have provided their services, which excludes those given for employment termination. Short-term compensation includes payroll, bonus, allowances and subsidies, employee welfare, social security expenses including medical insurance, injury insurance and birth insurance, housing fund, labor union and employee training expenditures, short-term paid leaves, short-term profit share plans, non-monetary benefits and other short-term rewards. It recognizes as liabilities the actual short-term compensation incurred during the accounting period that the employees provide their services and records in current profit and loss or the relevant asset costs. Non-monetary benefits are measured at the fair value.
(2) Accounting methods for post-employment benefits
Post-employment benefits are mainly defined contribution plans, which include basic pension, unemployment insurance etc. The corresponding contributions are recorded in the relevant asset costs or current profit and loss when incurred.
(3) Accounting methods for demission benefits
Demission benefits are the compensations paid to terminate employment before expiration or encourage employees to accept lay-off.
(4) Accounting methods for other long-term employee benefits
Other long-term employee benefits are all other employee compensations than short-term compensation, post-employment benefits and demission benefits. They are long-term paid leaves, long-term benefits for the disabled, long-term profit sharing plans etc.
22. Estimated Liabilities
The Company recognizes as estimated liabilities the obligations that meet the following conditions:
A. Current obligations being undertaken by the Company;
B. Fulfillment of the obligations that lead to cash flow out of the Company;
C. The amount of the obligations that can be measured reliably.
If it is expected that a third party can compensate for all or partial expenditures to pay off the recognized estimated liabilities, the compensation can be recognized separately as assets only when the Company is sure to receive it. The amount to recognize cannot exceed the book value of the recognized liabilities.
23 Share-based Payment
(1) Types of Share-based Payment
It is divided into equity-settled share-based payment and cash-settled share-based payment.
(2) Recognition of EquityInstruments’ Fair Value
For the granted equity instruments that there is an active market for, e.g. options, the Company determines the fair value by reference to the quotation prevailing in the active market. For those that there is no active market for, the options pricing model is adopted to determine the fair value.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 (3) Recognition Basis for Best Estimates on Exercisable Equity Instruments
On each balance sheet date during the vesting period, the Company makes best estimates based on the latest number changes of its employees and adjusts the quantity of estimated exercisable equity. The final quantity of estimated exercisable equity instruments should be consistent with that of the actual ones on vesting dates. 24.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Income, is an enterprise formed in daily activities, will lead to an increase in shareholders' equity, the total inflow of capital has nothing to do with the economic interests of the owner of investment. The company involved in inco me, including revenue from selling goods, income of labor ,transferring assets use right and real estate
development income..
（1）Recognition time for sales of goods
After transferring the significant risks and compensation of the merchandise ownership to the buyer, the Company no longer holds the rights to manage and have control over the merchandise, and recognizes the revenue if the economic benefits arising from the related transactions can flow into the Company and all the costs and revenues related to such product sales can be measured reliably.
(2) Services
Service transaction can be estimated reliably, meaning the following conditions are satisfied: amount of revenue c an be measured reliably; the relevant economic benefits are likely to flow into the enterprise; completion of the tra nsaction can be measured reliably; transactions that have occurred and will occur costs can be reliably measured For the services that start and end during the same accounting year, the revenue shall be recognized upon completion; if the services end in a different accounting year and the service transaction results can be measured reliably, the Company adopts the completion percentage method to recognize the revenue on balance sheet dates; if not measurable reliably, the Company recognizes the revenue at the amount of the service costs that are incurred and can be compensated expectedly; otherwise, the service costs incurred are recognized as current expenses. The Company adopts the following methods to determine the completion progress of service transactions:①measurement of the completed jobs;②the proportion of the completed services to all;③the proportion of the costs incurred to the total.
The company provides services at the balance sheet date, the transaction can not be reliably estimated, it shall be t reated as follows: the costs incurred are expected to be compensated, according to the amount of labor costs that h ave occurred service revenue is recognized, and the same amount knot turn labor costs; the costs incurred are not e xpected to be compensated, labor costs should be recognized in profit or loss has occurred, no service revenue is r ecognized.
Contract or agreement entered into with other companies, including the sale of goods when providing services, the sale of goods and rendering of services can be measured in part to distinguish and separate, should be part of the s ale of goods as sale of goods, the provision of services and as part of the provision of services deal with. Sales of goods and rendering of services can not be distinguished, or can be distinguished but can not be measured separat ely, should be part of the sale of goods and provision of services as part of the total sales of goods.
(3) Use Rights of Assets on Alienation
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Transfer of right to Use Rights of Assets on Alienation consists of interest income, fee income etc.
If the related economic benefits can flow into the Company and the revenue can be measured reliably, the amount of usage revenue will be calculated and determined according to the payment time and terms of the related contract or agreement.
(4) Construction Contracts
A construction contract is a contract for the construction of one or more of the assets in terms of design, technolog y and features, end-use and other closely related and approved.
Construction contracts are divided into fixed price contracts and cost-plus contracts.
A fixed price contract is to determine the price of a construction contract works in accordance with a fixed price o r fixed unit price contract.
Cost-plus contracts, refers to the contract or otherwise agreed cost basis, plus the cost of a fixed fee or a percentag e of the project to determine the price of a construction contract.
At the balance sheet date, shall be multiplied by the total contract revenue before completion less the cumulative a mount of revenue recognized after the accounting period, recognized as the current contract revenue; at the same t ime, according to the contract multiplied by the estimated total cost of completion less accumulated previous acco unting period after the amount recognized as an expense is recognized as current contract costs.
Current period complete a construction contract, the contract shall be in accordance with the actual total income b efore deducting the cumulative amount of revenue recognized after the accounting period, recognized as the curre nt contract revenue; at the same time, according to the contract costs incurred for the deductible costs previously a ccumulated recognized after the accounting period recognized as current contract costs.
If the results cannot be measured reliably but the costs can be retrieved, the revenue will be recognized at the retrievable amount of the actual construction contract costs and the costs treated as expenses when incurred; if not retrievable, the costs will also be treated as expenses and no revenue will be recognized.
（5）Income of Real Estate Development
Thecompany’s real estate development products can confirm the income when meeting the follow conditions: The sales contract has been signed; the down-payment has been charged and the bank mortgage procedure has been completed or has obtained the rights to charge the purchase payment; the main-body of the house has been completed and has passed the acceptance and inspection; the costs of the sales of the item can be measured 25.Governmental subsidy
(1)Basis and accounting methods for assets related government subsidies
Government grants means that the Company obtains monetary or non monetary assets free of charge from the government, excluding the capital invested by the government as an investor who also enjoys the corresponding owner's equity. Government grants consist of the government grants pertinent to assets and the government grants pertinent to income. If the government grant is a monetary asset, it shall be measured according to the amount received or receivable. If the government grant is a non-monetary asset, it shall be measured at fair value; if the fair value cannot be obtained reliably, it shall be measured according to the nominal amount. Government grants measured in nominal terms are directly included in the current profits and losses.
The government grants pertinent to assets are recognized as deferred income and are credited to profit or loss by stages in accordance with a reasonable and systematic method within the useful life of the pertinent assets. If the pertinent assets are sold, transferred, scrapped or destroyed before the end of their useful life, the non-allocated pertinent deferred income balance shall be transferred to the profit or loss of the period of assets disposal, and the recognized government grant needs to be refunded, then it shall write down the carrying amount of the relevant
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 deferred income and the excess part shall be included in the current profit and loss.
(2)Accounting Method
The government grants pertinent to income that are used to compensate the relevant costs or losses of the subsequent period of the enterprise are recognized as deferred income and are credited to the current profit or loss for the period when the relevant costs, expenses or losses are recognized; those government grants used for compensating the related expenses or losses incurred to the enterprise shall be directly included in the current profits and losses.
26.Deferred income tax assets/Deferred income tax liability
The balance between the book value and the tax basis of some items of assets and liabilities, as well as the temporary differences issued as the balance between the book value and the tax basis of the tax basis items that unrecognized as assets and liabilities but can be determined as per the provisions of tax law, which shall be determined as the deferred income tax assets and the deferred income tax liabilities in accordance with the balance sheet debt law.
Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of an asset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductible loss) when it happens, the relevant deferred income tax liabilities shall not be recognized. In addition, as for taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, if the Company could control the reverse time of such differences and such differences cannot be reversed in the foreseeable future, the relevant deferred income tax liabilities also shall not be recognized. Apart from the above-mentioned exceptional cases, the Company recognizes all other deferred income tax liabilities caused by taxable temporary differences.
Deductible temporary differences related to the initial recognition of an asset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductible loss) when it happens, the relevant deferred income tax assets shall not be recognized. In addition, as for deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, if such differences cannot be reversed in the foreseeable future or are not likely to obtain the taxable income to deduct the deductible temporary differences of the taxable income, the relevant deferred income tax liabilities shall not be recognized. Apart from the above-mentioned exceptional cases, the Company recognizes other deferred income tax liabilities caused by deductible temporary differences within the limit of likely obtained taxable income that can be used to deduct the deductible temporary differences of the taxable income.
The corresponding deferred tax assets of deductible loss and tax reduction that can be carried forward during subsequent years shall be recognized within the limit of likely obtained future taxable income that can be used to deduct the deductible loss and tax reduction.
As per the provisions of tax law, the deferred income tax assets and deferred income tax liabilities shall be measured at the applicable tax rates used during the period of expectation recovery of relevant assets or pay-off relevant liabilities at the balance sheet date.
The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in the future to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it is likely to obtain sufficient taxable income.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 27.Operational leasing
（1）Accounting of operational leasing
The Company will transfer substantially all the risks and rewards of ownership of an asset lease is recognized as a finance lease. Other forms of lease besides financial leasing are considered as operating leasing.
Lease payments under an operating lease shall be accounted into the relevant asset cost or current profit or loss over the lease term on a straight-line basis.
(2) Accounting Method for Financing Leases
At the commencement of the lease term, an amount equal to the lower of the fair value of the leased asset and the present value of the minimum lease payments shall be regarded as the recorded value of the leased assets and an amount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leased assets of payables. The balance between the recorded amount of the leased asset and the recorded amount of the payable shall be accounted for as unrecognized finance charge.
28. Other significant accounting policies and estimates
1. Share Repurchase
Share repurchase refers to the behavior of repurchasing a certain sum of Company's outstanding stocks from the stock market by cash and other methods; and the behavior that the incentive objects of restricted stocks fail to submit a written application to the Board in the prescribed period shall be deemed as voluntarily give up the unlocking, the corresponding restricted stocks shall no longer be unlocked and shall be logged out after the repurchase at the awarded price by the Company. If any period fails to meet the unlocking conditions within the unlocking period, the restricted stock with the unlocking application qualification in the current period cannot be unlocked and shall be logged out after the repurchase by the Company.
Upon the legal procedures and reporting approval and through repurchasing theCompany’s stocks, theCompany’s reduction of capital is conducted according to the total nominal value of written-off stocks. The part of price paid to stock repurchase (including transaction expenses) that excesses the total nominal amount shall offset the capital reserve (share premium), earned surplus and undistributed profits in sequence; The part of price paid to stock repurchase (including transaction expenses) that less than the total nominal amount shall increase the capital reserve (share premium).
2.Safety production expenses
The company counts and draws safety production expenses specified in Notification on Printing and Distributing and Administrative Measures on Drawing and UsingEnterprise’s Safety Production Expenses issued by Ministry of Finance and State Administration of Work Safety. Safety production expenses is specialized in improving safe production.
Safety production expense is counted into relatedproduct’s cost or current profit and loss. At the same time, it is also counted into specialized reserve. In case the safety production expense to be delivered is used in expense, we directly consume specialized reserve. In case safety production expense to be delivered belongs to fixed asset and is spent in construction in-process, confirm it as fixed asset when the project is completed safely and is ready to put into use. Meantime, consume specialized reserve as the cost forming into fixed asset and confirm it as equivalent accumulated depreciation.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 29.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable√Not applicable
(2) Change of main accounting estimations
□ Applicable√ Not applicable
30.Other
1. Income tax
Income tax is composed of current income tax and deferred income tax. All taxes and expenses are written in current profit and loss except those for reputation adjustment in enterprise combination or trades directly counted intoshareholder’s equity or some deferred income tax which is counted inshareholder’s equity.
Current income tax is payable tax amount currently calculated as current taxable income. Payable tax amount is calculated by adjusting pre-tax accounting profit specified in related tax laws.
The company confirms deferred income tax by adopting liability method in Balance Sheet based on the temporary difference between book value of asset and liability in Balance Sheet and tax base.
Temporary difference of items of payable taxes are confirmed to be related deferred income tax liabilities, except the temporary difference of payable taxes are made in the following conditions:
A. Initial confirmation of reputation or that of assets or liabilities made in trades with these features: the trade is not enterprise combination and it neither influences accounting profit nor amount of payable tax when it happens.
B. As for temporary difference of items of payable taxes related to investment to subsidiaries, joint enterprises and associated enterprises. The temporary difference return time may be controlled and may not return in foreseeable future.
On the date of balance sheet , the company will calculate deferred income tax assets and deferred income tax liabilities according to applicable tax between expected recovered assets and paid liabilities, and also the company will reflect the income tax influence in ways of expected recovered assets and paid liabilities on the date of balance sheet.
On the date of balance sheet, the company will check the book value of the deferred income tax assets. If it was unlikely to obtain sufficient taxable income taxes to offset benefit of deferred income tax assets, while it was likely to obtain sufficient taxable income, carrying amount of deferred income tax assets shall be written down. VI. Taxation
1.Main categories and rates of taxes
||||
|-|-|-|
|Taxes|Tax references|Applicable tax rates|
||Sales revenue and||
|VAT||3%、6%、11%、17%|
||Technical services revenue||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Urban construction tax|Turnover tax to be paid allowances|7%|
|Enterprises income tax|Taxable income|15%、16.5%、25%|
|Educational surtax|Turnover tax to be paid allowances|3%|
|Local education surcharge|Turnover tax to be paid allowances|2%|

The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
|||
|-|-|
|Name of Taxpayer|Rate of Income Tax|
|Dongxu Optoelectronic Technology Co., Ltd.|15%|
|Wuhu Dongxu Optoelectronic Technology Co., Ltd|15%|
|Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd|15%|
|Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd|15%|
|Zhengzhou Xufei Optoelectronic Technology Co., Ltd.|15%|
|Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd|15%|
|Hebei Xubao Construction Installation Engineering Co., Ltd.|25%|
|Shijiazhuang Baoshi Color Bulb Co., Ltd.|25%|
|Wuhan Dongxu Optoelectronic Technology Co., Ltd.|25%|
|Dongxu Construction Group Co., Ltd.|25%|
|Beijing Xufeng Real Estate Co., Ltd.|25%|
|Dongxu (Kunshan）Display Material Co., Ltd.|25%|
|Beijing Dongxu Investment Developement Co., Ltd.|25%|
|Wuhu Ruiyi Labor Co., Ltd.|25%|
|Jiangsu Jixing New Material Co., Ltd.|15%|
|Beijing Xutan New Material Co., Ltd.|25%|
|Beijing Dongxu Huuaqing Investment Co., Ltd.|25%|
|Jiangsu Dongxu Yitai Intelligent Equipment Co., Ltd.|25%|
|Fuzhou Dongxu Optoelectronic Technology Co., Ltd.|25%|
|Shenzhen Xuhui Investment Holdings Co., Ltd|25%|
|hanghai Tanyuan Huigu New Material Technology Co., Ltd.|15%|
|Fuzhou Dongxu Investment Development Co., Ltd.|25%|
|Fuzhou Xufu Optoelectronic Technology Co., Ltd.|25%|
|Taizhou Xiwang New Energy Technology Co., Ltd.|25%|
|Xiamen Xuqi Investment Management Co., Ltd.|25%|
|Shenzhen Xinyingtong Technology Co., Ltd.|25%|
|Xuyou Electronic Material Technology （Wuxi）Co., Ltd.|25%|
|Fuzhou Xuyou Electronic Material Technology Co., Ltd.|25%|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||
|-|-|
|Sichuan Dongxu Ruiyi Enterprise Management Co., Ltd.|25%|
|Sichuan Dongxu Ruiyi Environment Engineering Co., Ltd.|25%|
|Sichuan Dongxu Ruiyi Survey & Design Co., Ltd.|25%|
|Sichuan Dongxu Ruiyi Trade Co., Ltd.|25%|
|Sichuan Dongxu Prosperity Construction Development Co., Ltd.|25%|
|Shenzhen Xingxinda Technology Co., Ltd.|25%|
|Mingshuo(Beijing)Electronic Technology Co., Ltd.|15%|
|Huzhou Mingshuo Optoelectronic Technology Co., Ltd.|25%|
|Dongxu Xuhua(International) Equipment Co., Ltd.|Not applicable|
|Hunan Dongxu Delai Electronic Technology Co., Ltd.|25%|
|Wuhu Dongxu Weiyu Medical Apparaturs Technology Co., Ltd.|25%|
|Hunan Dongxu Weishi Electronic Technology Co., Ltd.|25%|
|Hunan Dongxu Weigao Medical Apparaturs Technology Co.,||
||25%|
|Ltd.||
|Guangdong Dongxu Weiyu Medical Apparaturs Technology Co.,||
||25%|
|Ltd.||
|Shandong Qihui Medical Technology Co., Ltd|25%|
|Chuanglian Huatai(Hongkong) Co., Ltd.|16.5%|
|Tianlong Huatai Industry(Hongkong) Co., Ltd.|16.5%|
|Taizhou Dongxu Graphene Industry Investment Fund||
||Not applicable|
|Management Center(LP)||

2.Tax Preference
① On September 29, 2015,The Company was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2015.
② On October 21, 2014,Wuhu Dongxu Optoelectronic Technology Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2014.
③ On October 21, 2016,Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.④ On November 21, 2016,Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑤ On August 3, 2015,Zhengzhou Xufei Optoelectronic Technology Co., Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15%
enterprise tax rate applicable for high-tech enterprises for three years since 2015.
⑥ On November 21,2016,Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. was rated as the national
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑦ On November 30, 2016,Jiangsu Jixing New Material Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑧On November 24,2016,Shanghai Tanyuan Huigu New Material Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑨On December 1, 2016, Mingshuo(Beijing)Electronic Technology Co., Ltd. was rated as the national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Cash|425,749.93|187,232.52|
|Bank deposit|22,254,637,844.45|25,349,745,448.62|
|Other|618,495,047.42|706,184,535.72|
|Total|22,873,558,641.80|26,056,117,216.86|

 Other notes
Notes1：The amount of restricted monetary capital of the total monetary capital in the end of the period is RMB 943,221,108.77. Mainly for the draft earnest money and the fixed deposit receipt.
2.Bills receivable
（1）Classification bill receivable
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Bank acceptance|91,708,273.32|50,040,287.95|
|Trade acceptance|3,290,000.00|5,300,000.00|
|Total|94,998,273.32|55,340,287.95|

（2）Bills transferred to accounts receivable because drawer of the Bills fails to execute the contract or agreement, and undue Bills endorsed to other parties at the end of the period.
In RMB
||||
|-|-|-|
|Items|End of the period amounts derecognizing|End of the period amount unterminated|
|Bank acceptance|99,462,400.00||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||
|-|-|
|Trade acceptance|59,710,478.59|
|Total|159,172,878.59|

3. Account receivable
(1)Classification account receivables.
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year- begin|||||
||Book Balance||Bad debt provisionProportioAmountn(%)|||Book Balance||Bad debt provision|||
|Classification|||||Book||||||
|||Proportio|||||Proportio||Proportion(|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n(%)|||||n(%)||%)||
|Receivables subject||||0.93%|||||||
|||||||1,674,2|||||
|to provision for bad|2,363,80||21,892,9||2,341,912|||21,491,16||1,652,714,6|
|||99.97%||||05,803.|100.00%||1.28%||
|debts on credit risk|5,007.31||77.99||,029.32|||2.65||40.77|
|||||||42|||||
|characteristics basis|||||||||||
|Receivables that are|||||||||||
|individually|||||||||||
||746,626.||746,626.||||||||
|insignificant but with||0.03%|||||||||
|provision for bad|84||84||||||||
|debts made on an|||||||||||
|individual basis|||||||||||
|||||0.96%|2,341,912,029.32|1,674,2||||1,652,714,640.77|
||2,364,55||22,639,6|||||21,491,16|||
|||100.00%||||05,803.|100.00%||1.28%||
||1,634.15||04.83|||||2.65|||
|Total||||||42|||||

Receivable accounts with large amount individually and bad debt provisions were provided
□ Applicable√ Not applicable
Account receivable on which bad debt provisions are provided on age basis in the group
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Balance in year-end|||
|Aging||||
||Receivable accounts|Bad debt provision|Proportion|
|Subitem within 1 year||||
|Within credit period|1,897,527,356.92|||
|Within 1 year after credit period|304,454,799.49|15,222,739.94|5.00%|
|Subtotal within 1 year|2,201,982,156.41|15,222,739.94|0.69%|
|1-2 years|20,054,690.29|2,006,069.03|10.00%|
|2-3 years|11,519,231.55|3,455,169.46|30.00%|
|Over 3 years|2,153,404.39|1,208,999.56||
|3-4 years|1,888,809.68|944,404.85|50.00%|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
|Over 5 years|264,594.71|264,594.71|100.00%|
|Total|2,235,709,482.64|21,892,977.99|0.98%|

Notes：
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable√ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision
|||
|-|-|
|Group Name|Closing balance|
|Related party group|128,095,524.67|

（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 4,964,564.17;The amount of the reversed or collected part during the reporting period was of RMB4,223,221.57.
Where the current bad debts back or recover significant amounts:
In RMB
||||
|-|-|-|
|Name|Back or withdraw money|Method|

（3）The ending balance of account receivables owed by the imputation of the top five parties
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is RMB507,068,428.48, which accounts for21.44% of the total receivables. The total amount of closing balance for corresponding accrued bad-debt provision is RMB792,218.65.
4. Payment in advance
（1）Payment in advance:
In RMB
||||||
|-|-|-|-|-|
||Amount in year-end||Amount in year- begin||
|Aging|||||
||Amount|Proportion(%)|Amount|Proportion(%)|
|Within 1 year|1,530,035,703.49|84.97%|776,749,368.51|90.06%|
|1-2 years|211,566,799.70|11.75%|57,435,800.50|6.66%|
|2-3 years|34,077,114.54|1.89%|28,247,726.09|3.28%|
|Over 3 years|24,992,534.87|1.39%|||
|Total|1,800,672,152.60|--|862,432,895.10|--|

Notes：
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
As of June 30,2017,The total prepayment amount of top five closing balances collected by the objects of
prepayment in the current reporting period is RMB1,135,009,252.91, which accounts for63.03% of the total
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 closing prepayment balance.
Othernotes：
Compared with prepaid account at the beginning, increase in prepaid account at the end of this year was caused by advanced-materialprepayment’s increase.
5.Interest receivable
（1）Classification Interest receivable
In RMB
||||
|-|-|-|
|Items|Amount in year-end|Amount in year-begin|
|Fixed deposit|16,239,166.23||
|Total|16,239,166.23||

6. Other accounts receivable
(1) Other accounts receivable disclosed by Classification
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year- begin|||||
||Book Balance||Bad debt provision|||Book Balance||Bad debt provision|||
|Classification|||||Book||||||
|||Proportio||Proportion(%)|||Proportio||Proportion(|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n(%)|||||n(%)||%)||
|Other receivables|||||||||||
|subject to provision|||||||||||
||1,030,08||1,775,56||1,028,308|188,125||2,053,982||186,071,08|
|for bad debts on||100.00%||0.17%|||100.00%||1.09%||
||4,273.89||4.35||,709.54|,067.48||.24||5.24|
|credit risk|||||||||||
|characteristics basis|||||||||||
||1,030,08||1,775,56||1,028,308,709.54|188,125||2,053,982||186,071,085.24|
|Total||100.00%||0.17%|||100.00%||1.09%||
||4,273.89||4.35|||,067.48||.24|||

 Receivable accounts with large amount individually and bad debt provisions were provided
□Applicable√Not applicable
Account receivable on which bad debt provisions are provided on age basis in the group
√ Applicable□ not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Account receivable|Bad debt provision|Rate of alloance(%)|
|Subitem within 1 year||||
|Within credit period|1,342,173.52||0.00%|
|Within 1 year after credit period|2,146,378.10|107,318.90|5.00%|
|Subtotal within 1 year|3,488,551.62|107,318.90|3.00%|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
|1-2 years|1,155,138.40|115,513.84|10.00%|
|2-3 years|130,129.79|39,038.94|30.00%|
|3-4 years|8,497.64|4,248.82|50.00%|
|Over 5 years|1,509,443.85|1,509,443.85|100.00%|
|Total|6,291,761.30|1,775,564.35|28.22%|

 Notes of the basis of recognizing the group:
Other receivable account in Group on which bad debt provisions were provided on percentagebasis：
□Applicable√Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in theportfolio：
□Applicable√Not applicable
（2）Other account receivable classified by account nature
In RMB
||||
|-|-|-|
|Nature|Closing book value|Opening book value|
|Related party exchange|||
|Current account|55,797,728.61|7,072,359.41|
|Deposit|13,671,610.51|72,905,814.34|
|Personal official borrowing|20,914,377.23|9,218,737.75|
|Persona Returnable Insuranc|6,327,909.07|18,908,561.60|
|e Deposit|898,830,410.30|1,577,343.37|
|Export tax refunds|28,250,476.87|75,152,190.18|
|Total|1,023,792,512.59|188,125,067.48|

（3）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
|||||||
|-|-|-|-|-|-|
||||||The closing balance|
|||Amount in||||
|Name|Nature||Aging|Proportion|of bad debts|
|||year-end||||
|Beijing culture||||||
|Silicon Valley Asset|Deposit|370,000,000.00|Within 1 year|35.92%||
|Operation Co., Ltd.||||||
|Beijing Hua Xi||||||
|travel culture|Deposit|230,000,000.00|Within 1 year|22.33%||
|industry Co.||||||
|Chengdu rural||||||
|property rights|Deposit|80,000,000.00|Within 1 year|7.77%||
|exchange Co., Ltd.||||||
|Shanghai Huimao|Deposit|50,000,000.00|Within 1 year|4.85%||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Management Co.,|||||
|Ltd.|||||
|Xian Runyin|||||
|Finance leasing Co.,|Deposit|23,000,000.00|Within 1 year|2.23%|
|Ltd.|||||
|Total|--|753,000,000.00|--|73.10%|

7．Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
（1）Inventory types
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|||||||
|||Provision for bad|||Provision for bad||
||Book Balance||Book value|Book Balance||Book value|
|||debts|||debts||
|Raw materials|1,859,267,689.87|2,130,151.05|1,857,137,538.82|898,356,338.67|1,993,847.52|896,362,491.15|
|Processing|||||||
||109,104,315.18||109,104,315.18|75,349,308.19||75,349,308.19|
|products|||||||
|Stock goods|350,584,459.75|69,316.24|350,515,143.51|267,103,365.46||267,103,365.46|
|Construction cont|||||||
|ract has been com|||||||
||214,516,430.63||214,516,430.63|368,022,163.44||368,022,163.44|
|pleted unsettled a|||||||
|ssets|||||||
|Development cost|1,139,225,487.35||1,139,225,487.35|1,082,130,108.03||1,082,130,108.03|
|Goods in transit|453,818.61||453,818.61||||
|Total|3,673,152,201.39|2,199,467.29|3,670,952,734.10|2,690,961,283.79|1,993,847.52|2,688,967,436.27|

 Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
(2) Inventory depreciation reserve
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning|Increase|Decrease|Year-end balance|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||balance|Accrual|Other|Switch back|Other||
|Raw materials|1,993,847.52|136,303.53||||2,130,151.05|
|Stock goods||69,316.24||||69,316.24|
|Total|1,993,847.52|205,619.77||||2,199,467.29|

Notes1：basis of provision for inventory revaluation reserve was cost and net realizable value, and reason of inventory revaluation reserve provision was that final realizable net value was lower than cost.
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
A.The development cost details
|||||||
|-|-|-|-|-|-|
|No|Name|（Planned）Starttime|Expected first batchcompletion time|Estimated totalinvestment|Year-beginningbalance|
|01|DongxuInternationalCenter|2015-12-29|2017-12-31|2.2 billion|1,082,130,108.03|

B. Capitalization of project interest
||||
|-|-|-|
|Name|Interest amount of interest incurrent period|Interest capitalizationaccumulated amount|
|Dongxu International Center||94,597,013.19|

(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
|||
|-|-|
|Items|Amount|
|Accumulated Incurred Cost|2,091,078,268.52|
|Accumulated Confirmed Gross Profit|393,675,037.02|
|Settlement Amount|2,270,236,874.91|
|Unliquidated Completed Assets Formed in the Construction||
||214,516,430.63|
|Contract||

8. Other current assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|USD exchange|58,000,000.00|58,000,000.00|
|Prepaid or pending certified taxes|1,066,314,218.42|1,124,023,317.38|
|Short-term Financing|1,500,000,000.00|2,021,430,000.00|
|Total|2,624,314,218.42|3,203,453,317.38|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Other notes:
Notes：The decrease in other current assets at the end of the period was mainly due to the decrease in short-term financial management.
9. Available-for-sale financial assets
(1) Available-for-sale financial assets
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Items||Provision for|||Provision for||
||Book balance||Book value|Book balance||Book value|
|||impairment|||impairment||

(2) Available-for-sale financial assets measured by cost at the period-end
No
10. Long-term equity investment
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease|||||||||
|||||||||||Closing|
|||||Adjustme|||||||
||||||||Withdraw|||balance|
|||||nt of||Declarati|||||
||Opening|Add|||Other||n||Closing|of|
|Investees|||||||||||
|||||other||on of cash|||||
||balance|investmen|||equity||impairme|Other|balance|impairme|
|||||comprehe||dividends|||||
|||t|||changes||nt|||nt|
|||||nsive||or profit|||||
||||||||provision|||provision|
|||||income|||||||
|I. Joint ventures|||||||||||
|II. Associated enterprises|||||||||||
|Zhongda|||||||||||
|Chengxin|||||||||||
|International|72,354,80||171,370.9||||||72,526,17||
|Commercial|3.70||6||||||4.66||
|Factoring|||||||||||
|Co., Ltd.|||||||||||
|Tunghsu|||||||||||
|Group||400,000,0|-15,702,5||||||384,297,4||
|Finance Co.,||00.00|80.22||||||19.78||
|Ltd.|||||||||||
|Dongxu||20,800,00|||||||20,824,71||
||||24,716.43||||||||
|(Deyang)||0.00|||||||6.43||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Graphene|||||
|Industry|||||
|Developmen|||||
|t Fund|||||
|Partnership|||||
|(LP)|||||
||72,354,80|420,800,0|-15,506,4|477,648,3|
|Subtotal|||||
||3.70|00.00|92.83|10.87|
||72,354,80|420,800,0|-15,506,4|477,648,3|
|Total|||||
||3.70|00.00|92.83|10.87|

Other notes:
Note: The deadline for the investee has not been audited.
11. Fixed assets
(1) List of fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|||Machinery||||
|Items|House, building||Transportations|Other equipment|Total|
|||eqiupment||||
|I. Original price||||||
|1. Balance at||||||
||1,226,566,989.39|8,768,047,126.90|43,197,759.54|58,817,344.45|10,096,629,220.28|
|period-beginning||||||
|2.Increase in the||||||
||167,291,490.29|268,536,975.56|3,079,970.82|3,469,290.13|442,377,726.80|
|current period||||||
|(1) Purchase||62,688,587.96|3,079,970.82|3,333,626.06|69,102,184.84|
|（2）Inventory\Fixed||||||
|assets\ Transferred||||||
||167,291,490.29|205,848,387.60|||373,139,877.89|
|from construction in||||||
|progress||||||
|(3)Increased of||||||
|||||135,664.07|135,664.07|
|Enterprise||||||
|Combination||||||
|3.Decreased amount||||||
||||787,832.00|91,549.87|879,381.87|
|of the period||||||
|（1）Disposal|||787,832.00|91,549.87|879,381.87|
|4. Balance at|1,393,858,479.68|9,036,584,102.46|45,489,898.36|62,195,084.71|10,538,127,565.21|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|period-end||||||
|II. Accumulated||||||
|depreciation||||||
|1.Opening balance|236,064,086.50|856,391,505.22|25,311,875.86|26,484,237.39|1,144,251,704.97|
|2.Increased amount||||||
||16,809,605.02|301,663,230.38|3,020,809.02|4,629,983.26|326,123,627.68|
|of the period||||||
|(1) Withdrawal|16,809,605.02|301,663,230.38|3,020,809.02|4,550,880.76|326,044,525.18|
|(2)Increased of||||||
|Enterprise||||79,102.50|79,102.50|
|Combination||||||
|3.Decrease in the||||||
||||712,609.21|60,697.73|773,306.94|
|reporting period||||||
|（1）Disposal|||712,609.21|60,697.73|773,306.94|
|4.Closing balance|252,873,691.52|1,158,054,735.60|27,620,075.67|31,053,522.92|1,469,602,025.71|
|III. Impairment||||||
|provision||||||
|1.Opening balance||36,444.84|||36,444.84|
|2.Increase in the||||||
|reporting period||||||
|（1）Withdrawal||||||
|3.Decrease in||||||
|the reporting period||||||
|（1）Disposal||||||
|4. Closing balance||36,444.84|||36,444.84|
|IV. Book value||||||
|1.Book value of the||||||
||1,140,984,788.16|7,878,492,922.02|17,869,822.69|31,141,561.79|9,068,489,094.66|
|period-end||||||
|2.Book value of the||||||
||990,502,902.89|7,911,619,176.84|17,885,883.68|32,333,107.06|8,952,341,070.47|
|period-begin||||||

(2) Details of fixed assets failed to accomplish certification of property
In RMB
||||
|-|-|-|
|Items|Book value|Reason|
|108# Gas station|185,203.53|Processing|
|109#Oxygen gasification station|363,180.76|Processing|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Main entrance Guard room|155,598.44|Processing|
|Bathroom|79,845.61|Processing|
|East entrance Guard room|85,167.80|Processing|
|Compressed air station, circulating water|||
||799,359.47|Processing|
|pump house, refrigeration station|||
|Dangerous goods warehouse|347,448.54|Processing|
|Wastewater treatment plant|822,944.36|Processing|
|Broken glass warehouse|2,593,172.40|Processing|
|Substation|340,535.78|Processing|
|Boiler room|4,424,742.33|Processing|
|Rear engineering workshop(101)|45,425,185.54|Processing|
|Auxiliary building (102)|4,145,856.57|Processing|
|Comprehensive power station（I）(103)|4,584,314.54|Processing|
|Water Station (104)|5,995,777.21|Processing|
|Guard Room (105)|422,219.31|Processing|

Other notes
Notes 1: The main reason for the increase in fixed assets at the end of the period is the reversal of the glass substrate production line.
12. Project under construction
(1)Project under construction
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|Book balance|Provision for|Book value|Book balance|Provision for|Book value|
|||devaluation|||devaluation||
|Wuhu LCD glass|||||||
|substrate|||||||
||1,854,902,937.28||1,854,902,937.28|1,676,291,711.39||1,676,291,711.39|
|production line|||||||
|project|||||||
|Wuhan LCD|||||||
|glass substrate|||||||
||14,645,209.52|14,645,209.52||14,645,209.52|14,645,209.52||
|production line|||||||
|project|||||||
|Kunshan Color|||||||
||159,319,216.99||159,319,216.99|60,284,978.33||60,284,978.33|
|film project|||||||
|Sapphire crystal|276,923.08||276,923.08|205,128.21||205,128.21|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|sultivation andprocessing ofproduction lineequipment|||||||
|Project ofProduction Linefor the8.5th-generationGlass glasssubstrate|||||||
||19,227,737.81||19,227,737.81|35,847,492.91||35,847,492.91|
|Polarized|423,426,356.48||423,426,356.48||||
|Total|2,471,798,381.16|14,645,209.52|2,457,153,171.64|1,787,274,520.36|14,645,209.5|2 1,772,629,310.84|

 (2) Changes of significant construction in progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Includin|||
|||||||||||g:|||
|||||Transferr|||||||Capitaliz||
||||||||||Capitaliz|capitaliz||Source|
|Name of||Openingbalance||ed to|Other|End|Proporti|Project|||ation of||
||Budget||Increase||||||ation of|ation of||of|
|project||||fixed|decrease|balance|on %|process|||interest||
||||||||||interest|interest||funding|
|||||assets|||||||rate (%)||
|||||||||||this|||
|||||||||||period|||
|Xinyingt|||||||||||||
|ong|||58,541,1|58,541,1|||||||||
||1,175.16||||||100.00%|100.00%||||Other|
|Jingji|||38.40|38.40|||||||||
|Office|||||||||||||
|Wuhan|||||||||||||
|LCD|||||||||||||
|glass|||||||||||||
||757,652.|1,676,29|178,611,|||1,854,90|||643,201,|55,936,0||Raise|
|substrate|||||||91.28%|91.28%|||31.32%||
||00|1,711.39|225.89|||2,937.28|||595.57|59.10||funds|
|producti|||||||||||||
|on line|||||||||||||
|project|||||||||||||
|Kunshan|||||||||||||
|Color|311,550.|60,284,9|99,034,2|||159,319,||||||Raise|
||||||||9.61%|9.61%|||||
|film|00|78.33|38.66|||216.99||||||funds|
|project|||||||||||||
|Sapphire|||||||||||||
|crystal||205,128.21|2,061,40|1,989,61||276,923.|||||||
||5,906.40||||||95.12%|95.12%||||Other|
|sultivatio|||8.62|3.75||08|||||||
|n and|||||||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|processi|||||||||||
|ng of|||||||||||
|producti|||||||||||
|on line|||||||||||
|equipme|||||||||||
|nt|||||||||||
|Project|||||||||||
|of|||||||||||
|Producti|||||||||||
|on Line|||||||||||
|for the|612,694.|35,847,4|116,381,|133,001,|19,227,7|||||Raise|
|||||||3.49%|3.49%||||
|8.5th-ge|00|92.91|472.61|227.71|37.81|||||funds|
|neration|||||||||||
|Glass|||||||||||
|glass|||||||||||
|substrate|||||||||||
|Fuzhou|||||||||||
|Xu Fu|||||||||||
|8.5|||||||||||
||82,306.0||176,368,|176,368,||||||Raise|
|generatio|||||||||||
||0||200.05|200.05||||||funds|
|ns of|||||||||||
|industria|||||||||||
|l lines|||||||||||
|Phase 1|||||||||||
|project|220,000.||423,426,||423,426,|||||Raise|
|||||||28.60%|28.6%||||
|of Asahi|00||356.48||356.48|||||funds|
|polarizer|||||||||||
||||3,239,69|3,239,69|||||||
|Other||||||||||Other|
||||7.98|7.98|||||||
||1,991,28|1,772,62|1,057,66|373,139,|2,457,15|||643,201,|55,936,0||
|Total||||||--|--|||--|
||3.56|9,310.84|3,738.69|877.89|3,171.64|||595.57|59.10||

（3）Provision for impairment of construction projects
In RMB
||||
|-|-|-|
|Items|Amount|Reason|
|Wuhu LCD glass substrate production line|||
|project|||

Other notes
Note 1: Subsidiary Wuhan Dongxu Optoelectronic Technology Co. Ltd stopped its on-construction projects at the
end of 2014. The produced fee was upfront cost rather than physical assets which has no disposal value.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 According to book value and recoverable value, cash flow will not be produced in the future, Therefore, the subsidiary of Wuhan Dongxu Optoelectronic Technology Co., Ltd. 2016 shareholders' meeting resolution of the full amount of impairment provision.
13. Engineering Material
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Special Equipment||263,312.81|
|Special material||41,155.24|
|Total||304,468.05|

 14. Intangible assets
（1）Information
|||||||
|-|-|-|-|-|-|
||||Non patent|||
|Items|Land use right|Patent right||Patent technology|Total|
||||technology|||
|I. Original price||||||
|1. Balance at||||||
||567,156,948.81|1,677,806.92|47,023,137.22|22,120,666.71|637,978,559.66|
|period-beginning||||||
|2.Increase in the||||||
|||99,976.23||1,040,000.00|1,139,976.23|
|current period||||||
|(1) Purchase||99,976.23||1,040,000.00|1,139,976.23|
|(2)Internal||||||
|Development||||||
|(3)Increased of||||||
|Enterprise||||||
|Combination||||||
|3.Decreased amount||||||
|of the period||||||
|（1）Disposal||||||
|4. Balance at||||||
||567,156,948.81|1,777,783.15|47,023,137.22|23,160,666.71|639,118,535.89|
|period-end||||||
|II.Accumulated||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|amortization||||||
|1. Balance at||||||
||43,923,262.93|632,128.66|13,540,982.34|1,687,640.05|59,784,013.98|
|period-beginning||||||
|2. Increase in the||||||
||5,677,279.46|96,989.24|2,265,509.52|718,638.54|8,758,416.76|
|current period||||||
|(1) Withdrawal|5,677,279.46|96,989.24|2,265,509.52|718,638.54|8,758,416.76|
|3.Decreased amount||||||
|of the period||||||
|（1）Disposal||||||
|4. Balance at||||||
||49,600,542.39|729,117.90|15,806,491.86|2,406,278.59|68,542,430.74|
|period-end||||||
|III. Impairment||||||
|provision||||||
|1. Balance at||||||
|period-beginning||||||
|2. Increase in the||||||
|current period||||||
|(1) Withdrawal||||||
|3.Decreased amount||||||
|of the period||||||
|（1）Disposal||||||
|4. Balance at||||||
|period-end||||||
|4. Book value||||||
|1.Book value at||||||
||517,556,406.42|1,048,665.25|31,216,645.36|20,754,388.12|570,576,105.15|
|period -end||||||
|2.Book value at||||||
||523,233,685.88|1,045,678.26|33,482,154.88|20,433,026.66|578,194,545.68|
|period-beginning||||||

The intangible assets by the end of the formation of the company's internal R& D accounted of the proportion of the balance of intangible assets.
⑵Details of Land use right failed to accomplish certification of property
In RMB
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Items|Book value|Reason|
|Land use right|55,668,374.98|Processing|

15. Development expenditure
In RMB
||||||
|-|-|-|-|-|
||Beginning|||Ending|
|Items||Increase In the period|Decrease in period||
||balance|||balance|
|A kind of|||||
|graphene-based|||||
|water-based|||||
|anti-corrosion|||||
|coating and its|||||
|ancillary||1,941,747.58||1,941,747.58|
|products which|||||
|can be used in|||||
|the field of|||||
|heavy|||||
|preserving|||||

16. Goodwill
(1) Original book value of goodwill
In RMB
||||||
|-|-|-|-|-|
|Name of the|||||
|investees or the|||||
||Opening balance|Increase|Decrease|Closing balance|
|events formed|||||
|goodwill|||||
|Shanghai|||||
|Tanyuan Huigu|||||
||33,935,384.57|||33,935,384.57|
|New Meterial|||||
|Co., Ltd.|||||
|Mingshuo|||||
|(Beijng)|||||
|Electronic||33,319,677.71||33,319,677.71|
|Technology Co.,|||||
|Ltd.|||||
|Chuanglian|||||
|Huatai(Hongkong||722,450.89||722,450.89|
|) Co., Ltd.|||||
|Total|33,935,384.57|34,042,128.60||67,977,513.17|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 17.Long-term amortization expenses
In RMB
|||||||
|-|-|-|-|-|-|
||Balance in|Increase at this|Amortization at|||
|Items||||Decrease|Balance in year-end|
||year-begin|period|this period|||
|Building renovation|11,756,506.76|2,641,353.65|3,852,355.75||10,545,504.66|
|NEG Technology||||||
|||6,167,700.00|205,590.00||5,962,110.00|
|Use fee||||||
|Total|11,756,506.76|8,809,053.65|4,057,945.75||16,507,614.66|

 18. Deferred income tax assets and deferred income tax liability
(1) Details of the un-recognized deferred income tax assets
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Items|Temporarily Deductable|Deferred Income Tax|Temporarily Deductable|Deferred Income Tax|
||or Taxable Difference|Assets|or Taxable Difference|Assets|
|Assets devaluation|||||
||28,658,373.79|5,713,064.67|24,724,135.41|5,154,470.27|
|provision|||||
|Not realized the internal|||||
||1,901,559,690.60|286,978,331.46|1,949,789,000.92|294,212,728.05|
|profit|||||
|Deductible loss|||22,417,562.27|3,362,634.34|
|Deferred income|||||
||62,948,666.55|9,442,299.98|65,420,100.08|9,813,015.00|
|difference|||||
|Impairment of assets|||||
|under the control of|||||
||79,173.07|11,875.96|84,351.33|12,652.70|
|enterprises under the|||||
|same control|||||
|Total|1,993,245,904.01|302,145,572.07|2,062,435,150.01|312,555,500.36|

（2）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Items|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|liabilities|difference|liabilities|
|Value added evaluation|||||
|of enterprise merger|2,676,351.13|401,452.67|2,755,051.93|413,257.79|
|under the same control|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Total|2,676,351.13|401,452.67|2,755,051.93|413,257.79|

（3）Deferred income tax assets and liabilities are presented as net amount after neutralization
In RMB
||||||
|-|-|-|-|-|
||||Deferred Income Tax|Temporarily Deductable|
||Deferred Income Tax|Temporarily Deductable|||
||||Assets or Liabilities at|or Taxable Difference at|
|Items|Assets or Liabilities at|or Taxable Difference at|||
||||the Beginning of Report|the Beginning of Report|
||the End of Report Period|the End of Report Period|||
||||Period|Period|
|Deferred income tax||302,145,572.07||312,555,500.36|
|assets|||||
|Deferred income tax||401,452.67||413,257.79|
|liabilities|||||

(4)Details of income tax assets not recognized
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Deductible losses|328,343,011.44|57,681,700.17|
|Bad debt provision|86,413.68|814,857.00|
|Impairment of fixed assets|36,444.84|36,444.84|
|Provision for impairment of construction|||
||14,645,209.52|14,645,209.52|
|projects|||
|Inventory falling price reserves|69,316.24||
|Total|343,180,395.72|73,178,211.53|

 (5) The un-recognized deductible losses of deferred income tax assets will due in the following years:
In RMB
|||||
|-|-|-|-|
|Year|End of term|Beginning of term|Remark|
|2017|856,290.76|856,290.76||
|2018|15,649.80|15,649.80||
|2019|4,010,267.09|944,397.82||
|2020|3,995,431.56|4,898,217.97||
|2021|50,803,937.37|50,967,143.82||
|2022|268,661,434.86|||
|Total|328,343,011.44|57,681,700.17|--|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 19.Other non-current assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Prepaid engineering equipment|238,462,370.83|387,151,100.41|
|Prepaid Investment|31,800,000.00||
|Total|270,262,370.83|387,151,100.41|

 Other notes
The main reason for the decrease of other non-current assets at the end of the period is the equipment received in the current period.
20. Short-term loan
（1）Categories of short-term loans
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Pledge loan|637,338,652.73|443,307,086.78|
|Mortgage loan|118,497,469.58|172,315,413.35|
|Guarantee loan|3,518,677,440.00|4,325,193,700.00|
|Total|4,474,513,562.31|4,940,816,200.13|

Notes：
1. There is no mature but unredeemed short-term borrowing in the company during the accounting period. 2. The increase of short-term borrowings at the end compared to the beginning is mainly due to the production, business operation and property investment, which jointly cause borrowing increase.
3. the final mortgage was RMB118,497,469.58:
Thereinto, the collateral for the borrow money of RMB 25,000,000.00 is the house property of Jiangsu Jixing New Materials Co., Ltd with the House property number of YangFangzi No.81800980-81800982 and the land of No. 10483, No.10484 and No. 10486 of YangGuoYong; the collateral for the borrow money of RMB 19,000,000.00 is the land of No. 10485-2011 of YangGuoYong and the land of No. 10487-2011 of YangGuoYong; the subsidiary-Shenzhen Xinyingtong Technology Co. Ltd has a mortgage loan of RMB 74,497,469.58; thereinto: the RMB 15,000,000.00 loan was provided a joint and several liability guarantee by Zeng Jiankai and Zhong Yuhua and was provided the mortgage-backed guarantee by Liu Jun, Zhong Yuhua and Zhang Lixia with the mortgage of lands of No. 50000671902, No. 3000415955 and No. 5000615797 of Shen Real-estate Zi; the RMB 38,000,000.00 loan was provided a joint and several liability guarantee by Zeng Jianyi and was provided the mortgage-backed guarantee by Zhao Baomei using the House property of certificate of property No. 3000492775 of No.6 buliding of Xiangmi Lake First Ecology as the mortgage; the RMB 21,497,469.58 loan was provided the mortgage-backed guarantee by using the cash deposit of RMB 21,430,000.00 as the mortgage.
4. Guarantee loan was RMB3,518,677,440.00：
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Whereby,Li Zhaoting offered RMB 58,000,000.00 joint liability guarantee to Zhengzhou Xufei Optoelectronic Technology Co., Ltd., Tunghsu Group Co., Ltd and Li Zhaoting offered RMB 350,677,440.00 joint liability guarantee to Zhengzhou Xufei Optoelectronic Technology Co., Ltd.,Tunghsu Group , The Company and Li Zhaoting offered RMB 50,000,000.00 joint liability guarantee to Zhengzhou Xufei Optoelectronic Technology Co., Ltd.,Tunghsu Group offered RMB500,000,000.00 joint liability guarantee to The Company,Li Zhaoting offered RMB400,000,000.00 joint liability guarantee to The Company, Tunghsu Group and Li Zhaoting offered RMB700,000,000.00 joint liability guarantee to The Company, Tunghsu Group, Li Zhaoting and Li Qing ffered RMB860,000,000.00 joint liability guarantee to The Company. The company offered RMB 105,000,000.00 guarantee to subsidiary -- Wuhu Dongxu Optoelectronic Technology Co., Ltd., Tunghsu Group offered RMB 105,000,000.00 joint liability guarantee to Wuhu Dongxu Optoelectronic Technology Co., Ltd ., Tunghsu Group offered RMB 50,000,000.00 joint liability guarantee to Wuhu Dongxu Optoelectronic Technology Co., Ltd .,The Company and Li Zhaoting offered RMB 250,000,000.00 guarantee to subsidiary -- Wuhu Dongxu Optoelectronic Technology Co., Ltd.,Li Zhaoting offered RMB 100,000,000.00 joint liability guarantee to Wuhu Dongxu Optoelectronic Technology Co., Ltd .,The Company offered RMB 95,000,000.00 Joint liability guarantee to subsidiary- Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.
5. The amount of loan with a pledge of collateral at the end of the period was RMB 637,338,652.73: thereinto, the RMB 28,683,304.13 was provided a pledge guarantee by Shenzhen Xinyingtong Technology Co., Ltd by using certificate of time deposit; the RMB 125,326,400.00 loan with a pledge of collateral was provided a pledge guarantee by Shenzhen Xinyingtong Technology Co. Ltd by using the deposit of USD 18,481,500.00 as a pledge; the object of pledge for the RMB 483,328,948.60 was the other monetary funds deposited in the special account for deposit.
(2) Situation of Overdue Outstanding Short-Term Borrowing
Final overdue outstanding short-term borrowing was zero, and situation of important overdue outstanding short-term borrowing was as follows:
In RMB
||||||
|-|-|-|-|-|
|Unit|Closing balance|Interest rate|Time|Overdue interest rate|

 Othernotes：
21. Note payable
In RMB
||||
|-|-|-|
|Type|Closing balance|Opening balance|
|Commercial acceptance||159,820,750.00|
|Bank acceptance|219,260,464.01|233,315,926.05|
|Total|219,260,464.01|393,136,676.05|

 Amount due in next fiscal period is RMB 0.00.
22.Account payable
（1）Account payable
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Engineering fund|216,639,043.03|266,567,513.92|
|Material fund|978,299,169.90|849,166,049.63|
|Transportation expenses|2,118,059.68|1,263,084.00|
|Other|21,102,746.79|48,421,844.18|
|Total|1,218,159,019.40|1,165,418,491.73|

（2）Significant accounts payable that aged over one year
In RMB
||||
|-|-|-|
|||The reason for not repaid or carried forwar|
|Items|Balance in year-end||
|||d|
|||Not reached the agreed payment terms and|
|Beijing Guoshun Investment Co., Ltd.|41,088,123.25||
|||deadlines|
|Ningxia Tianshun Electric Power||Not reached the agreed payment terms and|
||31,115,140.33||
|Engineering Co., Ltd.||deadlines|
|Dingzhou Jiaping Construction||Not reached the agreed payment terms and|
||24,969,982.50||
|Engineering Co., Ltd.||deadlines|
|Qinghai Construction Engineering Co.,||Not reached the agreed payment terms and|
||14,643,907.65||
|Ltd.||deadlines|
|Total|111,817,153.73|--|

Othernotes：The increase of the accounts payable of the period are mainly due to the increase of material payment payable and freight payable.
23.Advance account
（1）Advance account
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Goods|85,689,449.05|173,306,846.80|
|Engineering fund|423,224,878.72|9,243,589.58|
|House selling|231,527,625.00|231,527,625.00|
|Other|2,000,000.00||
|Total|742,441,952.77|414,078,061.38|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 24. Employee compensation payable
(1)Classification of employee compensation payable
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase at this period|Decrease at this period|Balance in year-end|
|I.|||||
||42,104,784.31|228,011,761.01|224,571,685.19|45,544,860.13|
|Short-term remuneration|||||
|II.|||||
|Post-employment benefit|||||
||746,607.99|18,690,851.71|19,144,604.99|292,854.71|
|s - defined contribution p|||||
|lans|||||
|Total|42,851,392.30|246,702,612.72|243,716,290.18|45,837,714.84|

（2）Short-term remuneration
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase at this period|Decrease at this period|Balance in year-end|
|1.Wages, bonuses|||||
||18,652,928.59|188,383,769.02|186,779,978.50|20,256,719.11|
|allowances and subsidies|||||
|2.Employee welfare||13,616,866.62|13,616,866.62||
|3. Social insurance|||||
||408,535.42|10,324,945.78|10,570,430.36|163,050.84|
|premiums|||||
|Including：Medical|||||
||366,897.76|9,336,391.63|9,665,771.88|37,517.51|
|insurance|||||
|Work injury ,insurance|12,214.89|553,461.58|554,313.56|11,362.91|
|Maternity insurance|29,422.77|435,092.57|350,344.92|114,170.42|
|4. Public reserves for|||||
||375,641.47|8,674,426.92|8,893,160.35|156,908.04|
|housing|||||
|5.Union funds and staff|||||
||22,667,582.74|5,999,838.28|3,864,900.11|24,802,520.91|
|education fee|||||
|7. Short term profit|||||
||96.09|1,011,914.39|846,349.25|165,661.23|
|sharing plan|||||
|Total|42,104,784.31|228,011,761.01|224,571,685.19|45,544,860.13|

（3）Defined contribution plans listed
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase at this period|Decrease at this period|Balance in year-end|
|1. Basic old-age|||||
||715,861.56|17,837,865.92|18,301,663.76|252,063.72|
|insurance premiums|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|2.Unemployment|||||
||30,746.43|852,985.79|842,941.23|40,790.99|
|insurance|||||
|Total|746,607.99|18,690,851.71|19,144,604.99|292,854.71|

 Other notes:
Note：Employee benefits payable has no arrears of wages.
25. Taxes payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|VAT|42,572,313.79|83,366,319.90|
|Enterprise Income tax|55,477,471.01|97,859,353.22|
|Individual income tax|20,316,022.94|22,560,220.31|
|City Construction tax|3,048,648.21|3,774,222.43|
|Business Tax|3,789,219.75|3,789,219.75|
|House property tax|6,970,326.94|6,187,382.79|
|Land use tax|945,440.24|746,349.07|
|Educational surtax|2,100,924.84|2,619,192.11|
|Stamp Tax|159,412.38|544,438.49|
|Other|1,185,449.42|2,863,832.64|
|Total|136,565,229.52|224,310,530.71|

 26. Interest payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Interest on long-term borrowings payable|28,839,315.61|3,602,056.66|
|Enterprise bond interest|148,052,010.66|66,833,709.29|
|Interest on short-term borrowings|1,932,556.70|2,133,954.29|
|Total|178,823,882.97|81,610,513.91|

 Particulars of significant overdue unpaid interest:
In RMB
||||
|-|-|-|
|Name|Overdue amount|Overdue reason|

27. Dividends payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Common stock dividend|62,702,011.96|30,000,000.00|
|Total|62,702,011.96|30,000,000.00|

 Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
28. Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current account|37,631,454.33|27,062,361.47|
|Deposit|7,330,341.69|17,201,477.44|
|Individual official borrowing|350,363.60|106,501.37|
|Government Subsidy|15,000,000.00|15,000,000.00|
|Deposit|5,937,709.42|1,533,593.97|
|Social security withholding|2,108,864.35|352,709.67|
|Engineering fund||1,553,725.90|
|Equipment fund|12,291,891.45|6,065,857.97|
|Material fund|||
|Petty cash|3,148,000.00|484,092.66|
|Equity section|22,594,191.20|22,594,191.20|
|Restricted stock repurchase obligations|4,422,320.00|4,422,320.00|
|Other|19,347,025.90|18,616,305.15|
|Total|130,162,161.94|114,993,136.80|

 In RMB 29.Non-current liabilities due within 1 year
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Long-term loans due 1 year|2,618,261,390.49|1,049,874,000.00|
|Long-term payable due 1 year|423,174,302.28|525,979,430.08|
|Deferred income due within one year|41,697,397.97|42,736,082.34|
|Total|3,083,133,090.74|1,618,589,512.42|

 Othernotes：
Note 1: compared with the beginning of the period, non-current liabilities due within one year was increased
at the end of the period because of the increased maturity of loans and financing lease.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 30.Other current liabilities
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|USD exchange|67,744,000.00|69,370,000.00|
|For resale tax|27,991,818.64|16,165,473.05|
|Total|95,735,818.64|85,535,473.05|

 Increase or decrease in short-term bondspayable：
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Premium|||
||||||Amount||||This||
|||||||||and||Balance|
|||Issuing||Issuing|in||||period for||
|Name|Par value||Term|||This issue|Interest|discount||in|
|||date||amount|year-beg||||repaymen||
|||||||||amortizati||year-end|
||||||in||||t||
|||||||||on|||

Othernotes：
Notes：In 1993,the Group signed the agreement on exchange of US dollars which agreed returning 10,000,000 US dollars to the Exchange Unit and repossess the RMB 58,000,000 exchanged in November 1998, As of June 30, 2017, the Group still consults with the Exchange Unit on the returning of the exchange.
31. Long-term loan
(1) Category of long-term loan
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Mortgage loans|3,263,703,213.74|4,758,433,000.00|
|Guarantee loans|4,985,499,999.98|2,487,600,000.00|
|Credit loans|200,000,000.00|400,000,000.00|
|Less ：Long-term loan due 1 year|-2,618,261,390.49|-1,049,874,000.00|
|Total|5,830,941,823.23|6,596,159,000.00|

Notes：
Notes1：At the end of the period, the Company has no long-term borrowings that have not yet been repaid. Note 2: The mortgage of RMB 3,263,703,213.74 is both the mortgage loan and the guarantee loan, reclassified into the non-current liabilities due within one year RMB 673,028,057.13.
(1) Among the loan of RMB 408,000,000.00, due within one year is RMB 136,000,000.00, the collateral and guarantor of the loan: a. Wuhu Dongxu Optoelectronic Technology Co. Ltd mortgages 202 acres of state-owned
land use rights and the factory after the completion of the project, and two precious metal platinum channels to
provide the collateral; b. the loan guarantor is Wuhu Construction Investment Co., Ltd.
(2) Among the loan of RMB 1,640,000,000.00, due within one year is RMB 327,500,000.00, the collateral
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 and guarantor of the loan: a. Wuhu Dongxu Optoelectronic Technology Co. Ltd mortgages 8 precious metal platinum channel assets to provide the collateral; b. Dongxu Optoelectronic Technology Co., Ltd. provide full joint liability guarantee for its subsidiary Wuhu Dongxu Optoelectronic Technology Co., Ltd.
(3) Among the loan of RMB 450,000,000.00, due within one year is RMB 80,000,000.00, the collateral and guarantor of the loan: a. Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. mortgages the Wukai (construction) state-owned 2013 No. 020, Wukai (construction) state-owned 2013 No. 021, Wukai (construction) state-owned 2014 No. 008 land use rights and the fixed assets after the completion of the project; b. Dongxu optoelectronic Technology Co., Ltd. provide full joint liability guarantee for its subsidiary Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.
（4）Among the loan of RMB709,195,200.00元, Non-current Liability due within one year is RMB 123,548,800.00, the collateral and guarantor: a. the guarantor is Henan Energy and Chemical Industry Group Co., Ltd., Dongxu Gruop, and Henan Energy and Chemical Industry Group Co., Ltd. provides the joint liability guarantee for the loan principal equivalent to RMB 200 million under the project and its interest, penalty interest, compound interest, compensation, liquidated damages, compensation for damage and the cost of debt to the lender; the guarantor Tunghsu Group provides the joint liability guarantee for the loan principal equivalent to RMB 450 million under the project and its interest, penalty interest, compound interest, compensation, liquidated damages, compensation for damage and the cost of debt to the lender. On the ground buildings, machinery and equipment (including 4 Precious Metals Platinum channel) collateral valuation value of RMB1,055,713,019.27.
（5）For the RMB 56,508,013.74 loan, of which the non-current liabilities due within one year are RMB 5,979,257.13, and such loan with a pledge of collateral not only is the collateral loan but also is the guarantee loan, which was provided a joint and several liability guarantee by Zneg Jiankai and his spouse Zhong Yuhua and was a collateral loan that was provided a collateral of house by Shenzhen Xinyingtong Technology Co. Ltd.
Note 3: Among the credit loan of RMB 200,000,000.00, due within one year is RMB 200,000,000.00. Note 4:Among the guarantee loan of RMB 4,985,499,999.98, due within one year is RMB 1,745,233,333.36, of which: TUNGHSU GROUP, Li Zhaoting, Li Qing provide the joint liability guarantee for theCompany’s loan of RMB 2,487,500,000.00, TUNGHSU GROUP and Li Zhaoting provides the joint liability guarantee for theCompany’s loan of RMB 600,000,000.00; TUNGHSU GROUP provides the joint liability guarantee for theCompany’s loan of RMB498,000,000.00; TUNGHSU GROUP , Dongxu Optoelectronic Investment Co., Ltd.and Li Zhaoting provides the joint liability guarantee for theCompany’s loan of RMB 400,000,000.00;Li Zhaoting provides the joint liability guarantee for theCompany’s loan of RMB 124,999,999.98.
Among the loan of RMB 695,000,000.00, due within one year is RMB 170,000,000.00, and the loan is both the mortgage loan and the guarantee loan: the guarantor Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. mortgages the assets owned by itself according to the law and formed by this project, including land use rights, factories and other buildings, machinery and equipment (including three precious metal platinum channels) to provide the collateral; b. TUNGHSU GROUP and Li Zhaoting and Li Qing provide the guarantee. TUNGHSU GROUP and Li Zhaoting provides the joint liability guarantee for Fuzhou Dongxu Optoelectronic Technology Co.,Ltd’s loan of RMB 100,000,000.00; Nippon Electric Co., Ltd. provides the joint liability guarantee for Fuzhou Dongxu Optoelectronic Technology Co.,Ltd’s loan of RMB 80,000,000.00.
Notes 5.Rate of annual long-term borrowing is generally ranged from4.90% to9.00%.
Othernotes：
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 32. Bonds payable
(1) Bonds payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|15 Dongxu Bonds|992,015,480.73|990,780,313.28|
|Mid-term Note I|2,981,029,962.31|2,976,537,353.65|
|Mid-term Note II|1,687,512,093.46|1,686,594,827.80|
|Total|5,660,557,536.50|5,653,912,494.73|

 (2) Changes on bonds payable (not including other financial instrument classified as preferred stock and
perpetual capital securities of financial liabilities)
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|15||||||||||
||1,000,000|||1,000,000|990,780,3|30,000,00|1,235,167|60,000,00|992,015,4|
|Dongxu||2015.5.19|5 Years|||||||
||,000.00|||,000.00|13.28|0.00|.45|0.00|80.73|
|Bonds||||||||||
|Mid-term|3,000,000|2016.11.1||3,000,000|2,976,537|91,025,64|4,492,608||2,981,029|
||||5 years|||||||
|Note I|,000.00|7||,000.00|,353.65|3.83|.66||,962.31|
|Mid-term|1,700,000|2016.12.0||1,700,000|1,686,594|20,192,65|917,265.6||1,687,512|
||||5 Years|||||||
|Note II|,000.00|2||,000.00|,827.80|7.54|6||,093.46|
|||||5,700,000|5,653,912|141,218,3|6,645,041|60,000,00|5,660,557|
|Total|--|--|--|||||||
|||||,000.00|,494.73|01.37|.77|0.00|,536.50|

（3）Other financial instruments that are classified as financial liabilities
The issuance of preferred stock and other financial instruments such as perpetual debt
Note: on September 8, 2016, the 8th board of directors meeting of the company examined and approved thecompany’s application for registration of the medium-term notes issued no more than RMB 4.7 billion. The accepting institution was National Association of Financial Market Institutional Investors. On September 26, 2016, the extraordinary shareholders' general meeting adopted the bill on the registration and issuance of medium-term notes.
RMB 4.7 billion medium-term notes was divided into 2 phases in 2016. Among them: total amount of the first phase of the medium-term notes varieties (3+ 2) and five-year notes was RMB 3 billion. Total amount of the second phase of the medium-term notes varieties (3+ 2) and five-year notes was RMB 1.7 billion.
Table of changes in financial instruments such as preferred stock and perpetual debt
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|External|Balance in year-begin||Increase at this period||Decrease at this period||Balance in year-end||
|financial|||||||||
||Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|instruments|||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 33. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Long-term payable|2,025,481,796.75|2,335,133,534.47|
|Less：Unconfirmed financing costs|-235,782,017.61|-294,845,535.72|
|Less：Port due Within 1 year|-423,174,302.28|-525,979,430.08|
|Total|1,366,525,476.86|1,514,308,568.67|

 Othernotes：
Detail：
Name of lessor Initial amount Increase in the Repayment amount Closing balance period
Wuxi Finance Leasing Co., Ltd. 206,000,000.00 206,000,000.00
Beijing Cultural Technology Finance 278,478,157.00 55,695,631.40 222,782,525.60 Leasing Co., Ltd.
Beijing Guozi Finance Leasing Co., 259,979,122.62 28,886,569.18 231,092,553.44 Ltd.
Haitong Hengxin International 402,769,234.00 57,538,462.00 345,230,772.00 Leasing Co., Ltd.
Ligen Finance Leasing(Shanghai) Co., 90,749,640.25 18,149,928.04 72,599,712.21 Ltd.
Jiangsu Runxing Finance Leasing Co., 240,000,000.00 8,000,000.00 232,000,000.00 ltd.
||||
|-|-|-|
|Hebei Finance Leasing Co., Ltd.|60,755,349.99|15,542,800.00|

 Lujin Shenhua Finance Leasing 171,417,988.80 17,141,798.88 154,276,189.92（Shanghai） Co., Ltd.
Xian Runyin Finance Leasing Co., 624,984,041.81 13,624,722.22 611,359,319.59 Ltd.
Dongyin Finance leasing 110,928,174.00 110,928,174.00 (Tianjing)Co., Ltd.
Total 2,335,133,534.47 110,928,174.00
420,579,911.72
2,025,481,796.75 Notes Tunghsu Group Co., Ltd, Li Zhaoting and Li Qing offered a guarantee of melts rent at RMB 1,001,584,005.42. 34.Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Balance in|Increase at this|Decrease at this|Balance in year-end|Reason|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
||year-begin|period|period|||
|Govemment Subsidy|373,714,638.12||391,273.75|373,323,364.37||
|Less ：Government||||||
|subsidies due within|-26,809,305.17|-13,399,652.78|-13,404,652.59|-26,804,305.36||
|one year||||||
|Not realized after||||||
||49,971,106.49||6,596,345.48|43,374,761.01||
|sale rental return||||||
|Less：Unrealized||||||
|customer service due||||||
||-15,926,777.17|-6,929,704.03|-7,963,388.59|-14,893,092.61||
|within 1 year rent to||||||
|profit or loss||||||
|Total|380,949,662.27|-20,329,356.81|-14,380,421.95|375,000,727.41|--|

Details of government subsidies
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount||||
||Beginning of|New subsidy in|transferred to|||Asset-related or|
|Items||||Other changes|End of term||
||term|current period|non-operational|||income-related|
||||income||||
|Grant of|||||||
|Government|27,683,400.00||1,122,300.00||26,561,100.00|Related to assets|
|Infrastructure|||||||
|Grant of Industry|||||||
|Revitalizatio n|||||||
|and Technology|2,877,777.88||116,666.64||2,761,111.24|Related to assets|
|Reconstructio n|||||||
|Project|||||||
|Grant of|||||||
|Glass-tube|||||||
|Secondary|5,000.00||5,000.00|||Related to assets|
|Environment al|||||||
|Protection|||||||
|Technical|||||||
||2,933,333.31||133,333.33||2,799,999.98|Related to assets|
|reconstructi on|||||||
|Grant of Glass|||||||
||11,000,000.00||500,000.00||10,500,000.00|Related to assets|
|Substrate Project|||||||
|Industry|||||||
|Development|5,133,333.31||233,333.33||4,899,999.98|Related to assets|
|Fund|||||||
|Project finance|||||||
||344,666.69||15,666.67||329,000.02|Related to assets|
|discount|||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Grant of Industry|||||
|Revitalizatio n|||||
|and Technology|78,184,000.02|3,257,666.67|74,926,333.35|Related to assets|
|Reconstructio n|||||
|Project|||||
|2013 Provincial|||||
|strategic|||||
|emerging|||||
||4,583,333.35|166,666.67|4,416,666.68|Related to assets|
|industries of|||||
|special grant|||||
|funds|||||
|Technology|||||
|reconstructi on|30,978,333.32|1,078,000.00|29,900,333.32|Related to assets|
|Special funds|||||
|Investment and|||||
|Subsidies of|||||
|“Double Hundred|||||
|Plan” Project|||||
||1,983,333.33|100,000.02|1,883,333.31|Related to assets|
|granted by the|||||
|People's|||||
|Government of|||||
|Henan Province|||||
|TFT glass|||||
|substrate|||||
||99,166.67|4,999.98|94,166.69|Related to assets|
|technology R& D|||||
|fund|||||
|TFT glass|||||
|substrate project|6,611,111.10|333,333.36|6,277,777.74|Related to assets|
|Subsidy|||||
|Investment and|||||
|Subsidies within|||||
|Budget for|||||
|Technological|||||
|Transformation|||||
|Project by|||||
|National|9,255,555.57|466,666.68|8,788,888.89|Related to assets|
|Development and|||||
|Reform|||||
|Commission and|||||
|the Ministry of|||||
|Industry and|||||
|Information|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Technology|||||
|TFT glass|||||
|substrate project|13,222,222.23|666,666.66|12,555,555.57|Related to assets|
|Subsidy|||||
|Subsidy Major|||||
|Scientific and|||||
|Technical|||||
|Projects by|661,111.10|33,333.36|627,777.74|Related to assets|
|Finance Bureau|||||
|of Zhengzhou|||||
|City|||||
|Financial|||||
|Supports for|||||
|National Key|||||
|Industry and|||||
|Technical|||||
||9,255,555.57|466,666.68|8,788,888.89|Related to assets|
|Transformation|||||
|on Projects|||||
|Granted by the|||||
|Municipal|||||
|Finance Bureau|||||
|Financial|||||
|Supports for|||||
|Industrial|||||
|Development|||||
|Granted by the|||||
|Finance Bureau|4,627,777.77|233,333.34|4,394,444.43|Related to assets|
|of the Economic|||||
|and|||||
|Technological l|||||
|Development|||||
|Zone|||||
|Funds for|||||
|Independent|||||
|Innovation of|||||
||3,966,666.67|199,999.98|3,766,666.69|Related to assets|
|Provincially|||||
|Supported|||||
|Enterprises|||||
|Supporting Funds|||||
|on Finance|1,322,222.23|66,666.66|1,255,555.57|Related to assets|
|Discounts|||||
|Funds for|991,666.67|49,999.98|941,666.69|Related to assets|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Education,|||||
|Science and|||||
|Culture Granted|||||
|by the Finance|||||
|Bureau|||||
|Supporting Funds|||||
|for Industrial|||||
|Structure|||||
|-adjusting|1,928,888.88|93,333.36|1,835,555.52|Related to assets|
|Projects Granted|||||
|by the Regional|||||
|Finance Bureau|||||
|Industry discount|||||
||1,111,111.10|53,333.34|1,057,777.76|Related to assets|
|and expenses|||||
|Financial|||||
||3,527,777.86|166,666.68|3,361,111.18|Related to assets|
|discount|||||
|Industrial|||||
|restructuring|||||
||3,813,333.33|160,000.02|3,653,333.31|Related to assets|
|project financial|||||
|funds|||||
|Special Funds for|||||
|High-end|||||
|Information|||||
|Industry Chain|||||
|Granted by the|||||
|Finance Bureau|4,194,444.45|166,666.68|4,027,777.77|Related to assets|
|of the Economic|||||
|and|||||
|Technological l|||||
|Development|||||
|Zone|||||
|2015 project|||||
|equipment|||||
||32,273,366.64|1,145,800.03|31,127,566.61|Related to assets|
|investment|||||
|subsidies|||||
|Zhengzhou City F|||||
|inance Bureau in|||||
|2011 and 2012 ha|||||
|s been the accepta|2,585,555.55|86,666.64|2,498,888.91|Related to assets|
|nce of the provinc|||||
|ial industrial struc|||||
|ture adjustment pr|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|oject the second b||||||
|atch of funds||||||
|Strategic||||||
|emerging||||||
|industry|27,500,000.00||1,000,000.00|26,500,000.00|Related to assets|
|Development||||||
|project funds||||||
|High-tech Zone||||||
|appropriated|6,293,333.33||213,333.33|6,080,000.00|Related to assets|
|substrate project||||||
|The production||||||
|line of incentive|20,748,842.77||753,471.70|19,995,371.07|Related to assets|
|funds||||||
|Special funds for||||||
|2015 scientific||||||
|and technological|7,028,417.42||301,701.96|6,726,715.46|Related to assets|
|achievements||||||
|transform project||||||
|G8.5tft-lcd glass||||||
|substrate||||||
|manufacturing||||||
|precision||||||
||45,000,000.00|||45,000,000.00|Related to assets|
|intelligent digital||||||
|workshop||||||
|construction||||||
|project||||||
|Green key||||||
|technology||||||
|||12,000,000.00||12,000,000.00|Related to assets|
|reform of glass||||||
|substrate（1200）||||||
|Intelligent||||||
|manufacturing||||||
|pilot||||||
|||1,000,000.00||1,000,000.00|Related to assets|
|demonstration||||||
|project grant||||||
|（100）||||||
|Research funding||||||
||1,590,000.00|||1,590,000.00|Related to income|
|159||||||
|Special funds for||||||
|scientific research|400,000.00|||400,000.00|Related to income|
|40||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|Total|373,714,638.12|13,000,000.00|13,391,273.75|373,323,364.37|--|

 35.Other Non-current liabilities
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|CDB financing|500,000,000.00|500,000,000.00|
|Total|500,000,000.00|500,000,000.00|

 Othernotes：
Notes：According to the investment contract signed by Dongxu Optoelectronic Technology Co., Ltd, Wuhu Dongxu Photoelectric Technology Co., Ltd., Fuzhou Dongxu Investment Development Co., Ltd and China Development Fund Co., Ltd, China Development Fund Co., Ltd increased the capital of RMB 500,000,000.00 to Fuzhou Dongxu Investment Development Co., Ltd, annually enjoying a fix rate of return. After the project is completed, Dongxu Optoelectronic Technology Co., Ltd shall make the installment redemption to the stake held by China Development Fund Co., Ltd.
36.Stock capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase/decrease this time (+ , - )||||||
||Balance||||||Balance|
|||Issuing of new||Transferred||||
||Year-beginning||Bonus shares||Other|Subtotal|year-end|
|||share||from reserves||||
|Total of capital|4,939,928,983.00||||||4,939,928,983.00|
|shares||||||||

 37. Capital reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in current|Decrease in current|Year-end balance|
|Share premium|15,175,688,435.63|796,800.00|250,586.82|15,176,234,648.81|
|Other|31,522,375.26|||31,522,375.26|
|Total|15,207,210,810.89|796,800.00|250,586.82|15,207,757,024.07|

 Other notes, including changes and reason of change:
Notes :Equity incentive amortization expenses RMB796,800.00 should be added to the capital reserves. In current period, capital of subsidiary company Fuzhou Dongxu Optoelectronic Technology Co., Ltd was increased, thus resulting capital reserves decrease RMB 250,586.82.
38.Treasury stock
In RMB
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
||||Decrease in the current||
|Items|Year-beginning balance|Increase in the current||Year-end balance|
||||period||
|The obligation to|||||
|repurchase equity|4,422,320.00|||4,422,320.00|
|incentive|||||
|Total|4,422,320.00|||4,422,320.00|

 39. Other comprehensive income
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Amount of current period||||||
||||Less ：|||||
|||Amount for|Previously rec||After - tax a|After - tax a||
||Year-beginni||||||Year-end|
|Items||the period|ognized in pro|Less：|ttributable t|ttributable t||
||ng balance||||||balance|
||||fit or loss in ot|||||
|||before inco||Income tax|o the parent|o minority s||
||||her comprehen|||||
|||me tax|||company|hareholders||
||||sive income|||||
|II.Other comprehensive income to besubsequently reclassified into profitloss|||||||-1,368.93|
|||-1,368.93|||-1,368.93|||
|Balance form the translation offoreign currency financial statements|||||||-1,368.93|
|||-1,368.93|||-1,368.93|||
|Total of Other comprehensiveincome|||||||-1,368.93|
|||-1,368.93|||-1,368.93|0.00||

40. Special reserves
In RMB
||||||
|-|-|-|-|-|
||||Decrease in the current||
|Items|Year-beginning balance|Increase in the current||Year-end balance|
||||period||
|Safety production cost||5,289,190.20|5,289,190.20||

41. Surplus reserve
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Statutory surplus reserve|188,044,070.48|188,044,070.48|
|Total|188,044,070.48|188,044,070.48|

 42. Retained profits
In RMB
||||
|-|-|-|
||Amount of current period|Amount of previous period|
|Items|||
|Before adjustments: Retained profits in last periodend|||
||1,885,538,821.49|969,380,500.97|
|After adjustments: Retained profits at the periodbeginning|1,885,538,821.49||
|||969,380,500.97|
|Add：Net profit belonging to the owner of theparent company|||
||635,855,750.37|1,239,928,899.40|
|Less：Statutory surplus reserve||55,320,542.06|
|Dividend of common stock payable|345,795,028.81|268,450,036.82|
|Retained profits at the period end|2,175,599,543.05|1,885,538,821.49|

 As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 . (4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
43. Business income, Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Main business|4,632,685,829.16|3,337,781,315.84|2,872,447,933.52|1,935,634,364.40|
|Other business|8,599,698.75|1,093,834.06|9,611,220.89|2,675,279.25|
|Total|4,641,285,527.91|3,338,875,149.90|2,882,059,154.41|1,938,309,643.65|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 44. Business tax and subjoin
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Urban construction tax|15,013,280.82|11,474,361.56|
|Education surcharge|10,904,037.45|8,203,130.71|
|Property tax|4,756,218.45||
|Land use tax|8,002,134.32||
|vehicle and vessel usage tax|8,618.64||
|Stamp tax|5,606,307.49||
|Business tax||761,365.31|
|Other|874,497.35|2,870.30|
|Total|45,165,094.52|20,441,727.88|

 Other notes:
Note: According to CK (2016) NO. 22 notice "On printing and Distributing Value-Added tax Accounting Regulations" issued by the Ministry of Finance, after comprehensive regulations for business tax paid VAT, business tax and additional course changed name to "tax and additional" course. The course accounts consumption tax of business activities, urban maintenance and construction tax, resource tax, educational expenses additional and the property tax, land-using tax, vehicle-using taxes, stamp duty and other relevant taxes. The "business tax and additional" column in the income statement should be changed to "tax and additional” column. Thecompany’s property tax, land-using tax, vehicle-using taxes, stamp duty and other relevant taxes should be listed in the management fees. And also be listed in this course since May 1, 2016.
45.Sales expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage and welfare insurance|7,294,517.68|8,043,637.06|
|Shipment|15,328,447.68|10,518,390.78|
|Travel|943,021.18|1,564,588.04|
|Business expenses|1,092,211.73|889,762.89|
|Consumables and repairs|44,401.46|35,298.52|
|Office fee|63,078.18|693,969.53|
|Depreciation|242,381.24|115,233.72|
|Advertising|847,755.97|9,039,375.46|
|Other|3,228,420.03|677,460.56|
|Total|29,084,235.15|31,577,716.56|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 46. Administrative expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage and additional cost|68,826,404.16|68,805,600.28|
|Business expenses|1,322,409.53|1,479,520.63|
|Labor protect fee|1,207,592.76|3,529,985.13|
|Office fees|4,267,054.65|20,578,493.71|
|Travel fees|2,219,022.10|3,054,740.65|
|Publicize Fees|2,197,489.82|1,393,515.31|
|Miscellaneous charges|1,218,777.26|319,840.58|
|Tax||14,572,906.28|
|Depreciation accumulative|26,238,710.55|23,481,335.52|
|Low value consumables and repair costs|917,518.47|1,090,291.06|
|Research expenses|53,235,234.93|45,720,772.21|
|Consultation fees|10,915,428.13|12,360,432.61|
|Rental fees|8,040,238.09|19,769,433.60|
|Communication fees|124,253.08|625,548.95|
|Transportation feed|125,702.79|2,920,583.91|
|Equity incentive cost|796,800.00|1,992,000.00|
|Other|12,062,518.64|15,011,264.42|
|Total|193,715,154.96|236,706,264.85|

 47. Financial expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest expenses|519,566,583.75|193,938,482.48|
|Less：Interest income|193,951,294.79|83,547,417.93|
|Net interest expenses|325,615,288.96|110,391,064.55|
|Exchange gains and losses|-12,688,695.73|-18,221,357.21|
|Financial institution|1,926,814.75|649,340.38|
|Bill discount rate||1,519,815.05|
|Other|7,500.50|100,529.84|
|Financing fee|3,093,312.92||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Total|317,954,221.40|94,439,392.61|

 48. Asset impairment loss
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|1. Bad debt loss|2,618.25|3,554,932.15|
|II.Losses for falling price of inventory|205,619.77||
|Total|208,238.02|3,554,932.15|

 49.Investment income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Long-term equity investment income by equity|||
||-15,506,492.83|81,758.31|
|method|||
|Financing|22,183,417.04||
|Total|6,676,924.21|81,758.31|

 50.Other income
In RMB
||||
|-|-|-|
|Source|Amount of current period|Amount of previous period|
|Tax returns|86,680,000.00||

51. Non-operating income
In RMB
|||||
|-|-|-|-|
||||The amount of non-operating|
|Items|Amount of current period|Amount of previous period||
||||gains & losses|
|Govemment Subsidy|65,632,104.25|103,218,866.64|65,632,104.25|
|Other|437,783.27|290,413.04|437,783.27|
|Total|66,069,887.52|103,509,279.68|66,069,887.52|

 Government subsidy reckoned into current gains/losses
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Issuing||Whether the|Whether|Amount of|Amount of|Assets-relate|
|Items|Issuing body||Nature||||||
|||Reason||impact of|special|||d/income|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||subsidies on|subsidies|current|previous|-related|
|||||the current|||||
|||||||period|period||
|||||profit and|||||
|||||loss|||||
||||Grants||||||
||||obtained due||||||
||||to the country||||||
||||encourage||||||
||||and support||||||
||Yangzhong||specific||||||
|Talent project||||||||Related to|
||Finance|Subsidy|industries|Yes|No|600,000.00|240,000.00||
|funds||||||||income|
||Bureau||(Obtained in||||||
||||accordance||||||
||||with the||||||
||||national||||||
||||policies and||||||
||||regulations)||||||
||||Grants||||||
||||obtained due||||||
||||to research||||||
||||and||||||
||Yangzhong||||||||
|Innovation|||development,|||||Related to|
||Technology|Award||Yes|No||10,000.00||
|fund|||technical|||||income|
||Bureau||||||||
||||renovation||||||
||||and||||||
||||transformatio||||||
||||n, etc||||||
||||Grants||||||
||||obtained due||||||
||||to research||||||
||Yangzhong||||||||
||||and||||||
|Equipment|Developme||||||||
||||development,|||||Related to|
|investment|nt and|Award||Yes|No|109,100.00|298,200.00||
||||technical|||||income|
|fund|Reform||||||||
||||renovation||||||
||Commission||||||||
||||and||||||
||||transformatio||||||
||||n, etc||||||
||||Grants||||||
||||obtained due||||||
||Yangzhong||||||||
|Technology|||to research|||||Related to|
||Technology|Award||Yes|No|20,000.00|9,000.00||
|Patent fund|||and|||||income|
||Bureau||||||||
||||development,||||||
||||technical||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||
|-|-|-|-|-|-|-|-|
||||renovation|||||
||||and|||||
||||transformatio|||||
||||n, etc|||||
||||Grants|||||
||||obtained due|||||
||||to research|||||
||||and|||||
|Technology|Yangzhong|||||||
||||development,||||Related to|
|Innovation|Technology|Award||Yes|No|15,000.00||
||||technical||||income|
|Award.|Bureau|||||||
||||renovation|||||
||||and|||||
||||transformatio|||||
||||n, etc|||||
||||Grants|||||
||||obtained due|||||
||||to the country|||||
|Provincial||||||||
||||encourage|||||
|Industry and||||||||
||||and support|||||
|information||||||||
||Yangzhong||specific|||||
|industry|||||||Related to|
||Finance|Subsidy|industries|Yes|No|||
|transformatio|||||||income|
||Bureau||(Obtained in|||||
|n and||||||||
||||accordance|||||
|upgrading of||||||||
||||with the|||||
|special funds||||||||
||||national|||||
||||policies and|||||
||||regulations)|||||
||||Grants|||||
||||obtained due|||||
||||to research|||||
|Provincial||||||||
||||and|||||
|Science and|Yangzhong|||||||
||||development,||||Related to|
|technology|Technology|Award||Yes|No|||
||||technical||||income|
|awards in|Bureau|||||||
||||renovation|||||
|2015||||||||
||||and|||||
||||transformatio|||||
||||n, etc|||||
||||Grants|||||
|Labor and||||||||
||Yangzhong||obtained due|||||
|employment||||||||
||Social||to the country||||Related to|
|management||Award||Yes|No|||
||Security||encourage||||income|
|center steady||||||||
||Bureau||and support|||||
|post subsidies||||||||
||||specific|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||industries||||
||||(Obtained in||||
||||accordance||||
||||with the||||
||||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
||||to research||||
||||and||||
|The fourth|Yangzhong||||||
||||development,|||Related to|
|batch of grant|Technology|Subsidy||Yes|No||
||||technical|||income|
|funds|Bureau||||||
||||renovation||||
||||and||||
||||transformatio||||
||||n, etc||||
||||Grants||||
||||obtained due||||
||||to research||||
||||and||||
||Yangzhong||||||
||||development,|||Related to|
|Patent fund|Technology|Subsidy||Yes|No||
||||technical|||income|
||Bureau||||||
||||renovation||||
||||and||||
||||transformatio||||
||||n, etc||||
||||Grants||||
||||obtained due||||
||||to the country||||
||||encourage||||
||||and support||||
|16 provincial|||||||
||Yangzhong||specific||||
|special funds||||||Related to|
||Finance|Award|industries|Yes|No||
|for business||||||income|
||Bureau||(Obtained in||||
|development|||||||
||||accordance||||
||||with the||||
||||national||||
||||policies and||||
||||regulations)||||
|16 national|Yangzhong||Grants||||
|||||||Related to|
|special fund|Finance|Award|obtained due|Yes|No||
|||||||income|
|for foreign|Bureau||to the country||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|trade and|||encourage||||
|economic|||and support||||
|development|||specific||||
||||industries||||
||||(Obtained in||||
||||accordance||||
||||with the||||
||||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
||||to research||||
||||and||||
||Yangzhong||||||
|Patent|||development,|||Related to|
||Technology|Subsidy||Yes|No||
|funding|||technical|||income|
||Bureau||||||
||||renovation||||
||||and||||
||||transformatio||||
||||n, etc||||
||||Grants||||
||||obtained due||||
||||to research||||
|16 years of|||and||||
||Yangzhong||||||
|special funds|||development,|||Related to|
||Technology|Subsidy||Yes|No||
|for research|||technical|||income|
||Bureau||||||
|cooperation|||renovation||||
||||and||||
||||transformatio||||
||||n, etc||||
||||Grants||||
||||obtained due||||
|The second|||||||
||||to||||
|batch of|||||||
||||conforming||||
|patent|||||||
||||to the local||||
|applications|Zhengzhou||||||
||||supporting|||Related to|
|for funding|Technolog y|Subsidy||Yes|No||
||||policies such|||income|
|by the|Bureau||||||
||||as local||||
|opening of|||||||
||||government’s||||
|the CMC in|||||||
||||investment||||
|2015|||||||
||||attraction||||
||||policy||||
|Zhengzhou|Zhenzhou|Subsidy|Grants|Yes|No|Related to|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|City Finance|Finance||obtained due|||income|
|Bureau|Bureau||to||||
|students|||conforming||||
|apply for|||to the local||||
|subsidies|||supporting||||
||||policies such||||
||||as local||||
||||government’s||||
||||investment||||
||||attraction||||
||||policy||||
||||Grants||||
||||obtained due||||
|Zhengzhou|||||||
||||to||||
|City Social|||||||
||||conforming||||
|Security|||||||
||Zhengzhou||to the local||||
|Bureau in the|||||||
||Social||supporting|||Related to|
|fifth||Subsidy||Yes|No||
||security||policies such|||income|
|installment of|||||||
||Bureau||as local||||
|unemployme|||||||
||||government’s||||
|nt insurance|||||||
||||investment||||
|in 2015|||||||
||||attraction||||
||||policy||||
||||Grants||||
||||obtained due||||
|Zhengzhou|||to||||
|City|||conforming||||
|Economic|||to the local||||
||Zhengzhou||||||
|Development|||supporting|||Related to|
||Technology y|Subsidy||Yes|No||
|Zone in 2016|||policies such|||income|
||Bureau||||||
|the second|||as local||||
|batch of|||government’s||||
|patent funds|||investment||||
||||attraction||||
||||policy||||
|Zhengzhou|||Grants||||
|City Science|||obtained due||||
|and|||to||||
||Zhengzhou||||||
|Technology|||conforming|||Related to|
||Technology y|Subsidy||Yes|No||
|Bureau,|||to the local|||income|
||Bureau||||||
|Finance|||supporting||||
|Bureau 2016|||policies such||||
|the first batch|||as local||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|of large-scale|||government’s||||
|scientific|||investment||||
|equipment|||attraction||||
|and facilities|||policy||||
|to share|||||||
|subsidies|||||||
||||Grants||||
||||obtained due||||
||||to||||
|Zhengzhou|||conforming||||
|City Bureau|||to the local||||
||Zhengzhou||||||
|of Finance|||supporting|||Related to|
||Finance|Subsidy||Yes|No||
|cited the|||policies such|||income|
||Bureau||||||
|project|||as local||||
|funding|||government’s||||
||||investment||||
||||attraction||||
||||policy||||
||||Grants||||
||||obtained due||||
|Zhengzhou|||||||
||||to||||
|City Social|||||||
||||conforming||||
|Security|||||||
||Zhengzhou||to the local||||
|Bureau in|||||||
||Social||supporting|||Related to|
|December||Subsidy||Yes|No||
||security||policies such|||income|
|2016 work|||||||
||Bureau||as local||||
|injury|||||||
||||government’s||||
|prevention|||||||
||||investment||||
|fee|||||||
||||attraction||||
||||policy||||
||||Grants||||
||||obtained due||||
|Zhengzhou|||||||
||||to||||
|City Bureau|||||||
||||conforming||||
|of Commerce|||||||
||||to the local||||
|in 2015|Zhengzhou||||||
||||supporting|||Related to|
|Zhengzhou|Commercial|Award||Yes|No||
||||policies such|||income|
|City, opening|al Bureau||||||
||||as local||||
|up special|||||||
||||government’s||||
|funds|||||||
||||investment||||
|(national p|||||||
||||attraction||||
||||policy||||
|Zhengzhou|Zhengzhou|Subsidy|Grants|Yes|No|Related to|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||
|-|-|-|-|-|-|-|-|
|Economic|Technology y||obtained due||||income|
|and|Bureau||to|||||
|Technologica|||conforming|||||
|l|||to the local|||||
|Development|||supporting|||||
|Zone Finance|||policies such|||||
|Bureau 2016|||as local|||||
|annual R & D|||government’s|||||
|costs ladder|||investment|||||
|subsidy|||attraction|||||
||||policy|||||
||||Grants|||||
|Zhengzhou|||obtained due|||||
|City, Human|||to|||||
|Resources|Zhengzhou||conforming|||||
|and Social|human||to the local|||||
|Security|resources and||supporting||||Related to|
|||Award||Yes|No|||
|Department|social||policies such||||income|
|of college|security||as local|||||
|graduates|department||government’s|||||
|employment|||investment|||||
|awards|||attraction|||||
||||policy|||||
|Received the|||Grants|||||
|quality of the|||obtained due|||||
|opening|Zhengzhou||to|||||
|district|economic and||conforming|||||
|quality|Technologica||to the local|||||
|promotion|l||supporting||||Related to|
|||Award||Yes|No|200,000.00||
|district|Development||policies such||||income|
|leading group|Zone quality||as local|||||
|office,|leading group||government’s|||||
|director of|office||investment|||||
|quality award|||attraction|||||
|2016|||policy|||||
|Received the|||Grants|||||
|Zhengzhou|||obtained due|||||
|Finance|||to|||||
||Zhengzhou|||||||
|Bureau,|||conforming||||Related to|
||Finance|Subsidy||Yes|No|492,000.00||
|social|||to the local||||income|
||Bureau|||||||
|security fund,|||supporting|||||
|college|||policies such|||||
|graduates|||as local|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|employment|||government’s||||||
|trainee|||investment||||||
|subsidies|||attraction||||||
||||policy||||||
||||Grants||||||
|To receive|||||||||
||||obtained due||||||
|foreign|||||||||
||||to||||||
|intellectual|Henan||||||||
||||conforming||||||
|resources|Provincial||||||||
||||to the local||||||
|from|Department||||||||
||||supporting|||||Related to|
|Zhengzhou|of human|Subsidy||Yes|No|50,000.00|||
||||policies such|||||income|
|human|resources and||||||||
||||as local||||||
|resources and|social||||||||
||||government’s||||||
|Social|security||||||||
||||investment||||||
|Security|||||||||
||||attraction||||||
|Bureau|||||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to the country||||||
||||encourage||||||
|Human|||and support||||||
|Resources|||specific||||||
||Province|||||||Related to|
|Office||Subsidy|industries|No|No||||
||Finance Dept|||||||income|
|funding for|||(Obtained in||||||
|funding|||accordance||||||
||||with the||||||
||||national||||||
||||policies and||||||
||||regulations)||||||
||||Grants||||||
||||obtained due||||||
||||to the country||||||
||||encourage||||||
||||and support||||||
|Central|||||||||
||||specific||||||
|innovation|Wuhu|||||||Related to|
|||Award|industries|Yes|No|100,000.00|||
|team support|Finance|||||||income|
||||(Obtained in||||||
|fund|||||||||
||||accordance||||||
||||with the||||||
||||national||||||
||||policies and||||||
||||regulations)||||||
|Wuhu social|Wuhu human|Subsidy|Grants|Yes|No||108,000.00|Related to|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||
|-|-|-|-|-|-|-|-|
|security|resources||obtained due||||income|
|center steady|service center||to the country|||||
|hillock|||encourage|||||
|subsidy|||and support|||||
||||specific|||||
||||industries|||||
||||(Obtained in|||||
||||accordance|||||
||||with the|||||
||||national|||||
||||policies and|||||
||||regulations)|||||
||||Grants|||||
||Economic|||||||
||||obtained due|||||
||and Trade|||||||
||||to research|||||
||Development|||||||
||||and|||||
|R & D|Bureau of|||||||
||||development,||||Related to|
|equipment|Wuhu|Subsidy||Yes|No|519,000.00||
||||technical||||income|
|grants|economic and|||||||
||||renovation|||||
||Technology|||||||
||||and|||||
||Development|||||||
||||transformatio|||||
||Zone|||||||
||||n, etc|||||
||||Grants|||||
||||obtained due|||||
||Economic|||||||
||||to|||||
||and Trade|||||||
||||conforming|||||
||Development|||||||
|Disposable|||to the local|||||
||Bureau of|||||||
|Industrial|||supporting||||Related to|
||Wuhu|Award||Yes|No|||
|Development|||policies such||||income|
||economic and|||||||
|Award Fund|||as local|||||
||Technology|||||||
||||government’s|||||
||Development|||||||
||||investment|||||
||Zone|||||||
||||attraction|||||
||||policy|||||
||||Grants|||||
||||obtained due|||||
||||to the country|||||
|Innovative|||encourage|||||
||Wuhu||||||Related to|
|construction||Subsidy|and support|Yes|No|||
||Finance||||||income|
|special funds|||specific|||||
||||industries|||||
||||(Obtained in|||||
||||accordance|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||with the||||
||||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
||||to the country||||
||||encourage||||
|Wuhu science|||and support||||
|and|Wuhu||specific||||
|||||||Related to|
|Technology|Technology|Award|industries|Yes|No||
|||||||income|
|Award in|Bureau||(Obtained in||||
|2015|||accordance||||
||||with the||||
||||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
||||to the country||||
||Economic||encourage||||
||and Trade||and support||||
|Private|||||||
||Development||specific||||
|enterprises||||||Related to|
||Bureau of|Award|industries|Yes|No||
|hundred||||||income|
||Wuhu||(Obtained in||||
|special funds|||||||
||economic and||accordance||||
||Technology||with the||||
||||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
||||to the country||||
||||encourage||||
||||and support||||
|Wuhu science|||||||
||Wuhu||specific||||
|and||||||Related to|
||Technology|Award|industries|Yes|No||
|Technology||||||income|
||Bureau||(Obtained in||||
|Award 2016|||||||
||||accordance||||
||||with the||||
||||national||||
||||policies and||||
||||regulations)||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||Grants||||
||||obtained due||||
||Economic||to the country||||
||and Trade||encourage||||
|Economic|Development||and support||||
|and Trade|Bureau of||specific||||
|||||||Related to|
|Development|Wuhu|Award|industries|Yes|No||
|||||||income|
|Council|economic and||(Obtained in||||
|Award|Technology||accordance||||
||Development||with the||||
||Zone||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
|Wuhu|||||||
||||to the country||||
|Municipal|||||||
||||encourage||||
|Administratio|||||||
||Wuhu||and support||||
|n of work|||||||
||Municipal||specific||||
|safety to pay||||||Related to|
||Administr|Award|industries|Yes|No||
|for the||||||income|
||ation of work||(Obtained in||||
|demonstratio|||||||
||safety||accordance||||
|n of|||||||
||||with the||||
|occupational|||||||
||||national||||
|health|||||||
||||policies and||||
||||regulations)||||
|Wuhu|||||||
||||Grants||||
|economic and|Economic||||||
||||obtained due||||
|Technologica|and Trade||||||
||||to research||||
|l|Development||||||
||||and||||
|Development|Bureau of||||||
||||development,|||Related to|
|Zone|Wuhu|Subsidy||Yes|No||
||||technical|||income|
|Economic|economic and||||||
||||renovation||||
|and Trade|Technology||||||
||||and||||
|Development|Development||||||
||||transformatio||||
|Bureau R &|Zone||||||
||||n, etc||||
|D funding|||||||
||||Grants||||
|Wuhu social|||obtained due||||
||Wuhu social||||||
|insurance|||to the country|||Related to|
||insurance|Subsidy||Yes|No||
|center post|||encourage|||income|
||center||||||
|subsidies|||and support||||
||||specific||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||industries||||
||||(Obtained in||||
||||accordance||||
||||with the||||
||||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
||Economic||to the country||||
||and Trade||encourage||||
||Development||and support||||
|Provincial|Bureau of||specific||||
|||||||Related to|
|innovation|Wuhu|Award|industries|Yes|No||
|||||||income|
|pilot Award|economic and||(Obtained in||||
||Technology||accordance||||
||Development||with the||||
||Zone||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
||||to the country||||
||||encourage||||
||||and support||||
|Patent|||specific||||
||Finance|||||Related to|
|financial||Award|industries|Yes|No||
||Bureau|||||income|
|reward|||(Obtained in||||
||||accordance||||
||||with the||||
||||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
||||to the country||||
|Financial|||||||
||||encourage||||
|incentives for|Finance||and support|||Related to|
|||Award||Yes|No||
|high-tech|Bureau||specific|||income|
|products|||industries||||
||||(Obtained in||||
||||accordance||||
||||with the||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
||||to the country||||
|15 Wuhu|||||||
||||encourage||||
|provincial|||||||
||||and support||||
|treasury|||||||
||||specific||||
|payment|Finance|||||Related to|
|||Subsidy|industries|Yes|No||
|center|Bureau|||||income|
||||(Obtained in||||
|provincial|||||||
||||accordance||||
|foreign trade|||||||
||||with the||||
|policy|||||||
||||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
||||to the country||||
||||encourage||||
|Wuhu social|||and support||||
|security|Wuhu social||specific||||
|||||||Related to|
|center steady|insurance|Subsidy|industries|Yes|No||
|||||||income|
|hillock|center||(Obtained in||||
|subsidy|||accordance||||
||||with the||||
||||national||||
||||policies and||||
||||regulations)||||
||||Grants||||
||||obtained due||||
|Development|Economic||||||
||||to||||
|Zone|and Trade||||||
||||conforming||||
|Economic|Development||||||
||||to the local||||
|and Trade|Bureau of||||||
||||supporting|||Related to|
|Development|Wuhu|Award||Yes|No||
||||policies such|||income|
|Bureau|economic and||||||
||||as local||||
|(2012-2015)|Technology||||||
||||government’s||||
|Land use tax|Development||||||
||||investment||||
|incentives|Zone||||||
||||attraction||||
||||policy||||
|Technology|Wuhu||Grants|||Related to|
|||Subsidy||Yes|No||
|project|Technology||obtained due|||income|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||
|-|-|-|-|-|-|-|-|
|funds|Bureau||to|||||
||||conforming|||||
||||to the local|||||
||||supporting|||||
||||policies such|||||
||||as local|||||
||||government’s|||||
||||investment|||||
||||attraction|||||
||||policy|||||
||||Grants|||||
||||obtained due|||||
||||to research|||||
||Bengbu Inst||and|||||
|National key||||||||
||of glass||development,||||Related to|
|R & D||Subsidy||Yes|No|||
||technology||technical||||income|
|program||||||||
||design||renovation|||||
||||and|||||
||||transformatio|||||
||||n, etc|||||
||||Grants|||||
|Suqian||||||||
||||obtained due|||||
|Economic||||||||
||Suqian||to|||||
|and||||||||
||economic and||conforming|||||
|Technologica||||||||
||Technology||to the local|||||
|l||||||||
||Development||supporting||||Related to|
|Development||Award||Yes|No|20,000.00||
||Zone||policies such||||income|
|Zone 2015||||||||
||Administr||as local|||||
|Industrial||||||||
||ation||government’s|||||
|Development||||||||
||Committee||investment|||||
|Guided Fund||||||||
||||attraction|||||
|Award||||||||
||||policy|||||
||||Grants|||||
||State||obtained due|||||
||Administr||to the country|||||
|15 years of|ation of||encourage|||||
|software|Taxation of||and support|||||
||||||||Related to|
|products after|Shijiazhuang|Subsidy|specific|Yes|No|||
||||||||income|
|the first tax|hi tech||industries|||||
|return|Industrial||(Obtained in|||||
||Development||accordance|||||
||Zone||with the|||||
||||national|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
||||policies and||||||
||||regulations)||||||
||||Grants||||||
||||obtained due||||||
||Anhui||to||||||
||Jiangbei||conforming||||||
||Industrial||to the local||||||
||Concentrat||supporting||||90,342,000.0|Related to|
|Tax Returns?||Subsidy||Yes|No||||
||ion Zone||policies such||||0|income|
||Administr||as local||||||
||ation||government’s||||||
||Committe e||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
|Suqian|||||||||
||||to||||||
|Economic|||||||||
||||conforming||||||
|Development|||||||||
||||to the local||||||
|Zone Finance|||||||||
||Finance||supporting|||||Related to|
|Bureau||Subsidy||Yes|No|230,000.00|||
||Bureau||policies such|||||income|
|personnel|||||||||
||||as local||||||
|introduction|||||||||
||||government’s||||||
|of special|||||||||
||||investment||||||
|funds|||||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
||||conforming||||||
||Jiangsu||||||||
||||to the local||||||
|Awards for|Taizhou New||||||||
||||supporting|||36,497,930.5||Related to|
|science and|Enerty|Award||Yes|No||||
||||policies such|||0||income|
|technology|Administrativ||||||||
||||as local||||||
||e Committee||||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
|2015|||||||||
||Yangzhong||obtained due||||||
|achievements||||||||Related to|
||Technology|Subsidy|to the country|Yes|No|301,701.96|||
|transformatio||||||||assets|
||Bureau||encourage||||||
|n Fund|||||||||
||||and support||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
||||specific||||||
||||industries||||||
||||(Obtained in||||||
||||accordance||||||
||||with the||||||
||||national||||||
||||policies and||||||
||||regulations)||||||
||||Grants||||||
||||obtained due||||||
||||to research||||||
|Grant of|Shiijiazhu||||||||
||||and||||||
|Glass-tube|ang||||||||
||||development,|||||Related to|
|Secondary|Municipal|Subsidy||Yes|No|5,000.00|5,000.00||
||||technical|||||assets|
|Environment|Finance||||||||
||||renovation||||||
|al Protection|Bureau||||||||
||||and||||||
||||transformatio||||||
||||n, etc||||||
||||Grants||||||
|Investment|||obtained due||||||
|and Subsidies|||to||||||
|of “Double|||conforming||||||
|Hundred|Henan Office||to the local||||||
|Plan” Project|of industry||supporting|||||Related to|
|||Subsidy||Yes|No|100,000.02|100,000.02||
|granted by|and||policies such|||||assets|
|the People's|information||as local||||||
|Government|||government’s||||||
|of Henan|||investment||||||
|Province|||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to research||||||
|TFT glass|Zhengzho u||and||||||
|substrate|Science &||development,|||||Related to|
|||Subsidy||Yes|No|4,999.98|4,999.98||
|technology|Technology||technical|||||assets|
|R& D fund|Bureau||renovation||||||
||||and||||||
||||transformatio||||||
||||n, etc||||||
|TFT glass|Zhengzho u||Grants||||||
|||||||||Related to|
|substrate|Municipal|Subsidy|obtained due|Yes|No|333,333.36|333,333.36||
|||||||||assets|
|project|Finance||to||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|Subsidy|Bureau||conforming||||||
||||to the local||||||
||||supporting||||||
||||policies such||||||
||||as local||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
|Investment|||||||||
|and Subsidies|||||||||
|within|||Grants||||||
|Budget for|||obtained due||||||
|Technologica|||to the country||||||
|l|||encourage||||||
|Transformati|||and support||||||
||National||||||||
|on Project by|||specific||||||
||Development|||||||Related to|
|National||Subsidy|industries|Yes|No|466,666.68|466,666.68||
||& Reform|||||||assets|
|Development|||(Obtained in||||||
||Commission||||||||
|and Reform|||accordance||||||
|Commission|||with the||||||
|and the|||national||||||
|Ministry of|||policies and||||||
|Industry and|||regulations)||||||
|Information|||||||||
|Technology|||||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
||||conforming||||||
|TFT glass|Zhengzhou||to the local||||||
|substrate|Municipal||supporting|||||Related to|
|||Subsidy||Yes|No|666,666.66|666,666.66||
|project|Finance||policies such|||||assets|
|Subsidy|Bureau||as local||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
|Special|||Grants||||||
|Funds for|Zhengzho u||obtained due||||||
|||||||||Related to|
|Major|Technology|Subsidy|to|Yes|No|33,333.36|33,333.36||
|||||||||assets|
|Scientific and|Bureau||conforming||||||
|Technical|||to the local||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|Projects by|||supporting||||||
|Finance|||policies such||||||
|Bureau of|||as local||||||
|Zhengzhou|||government’s||||||
|City|||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
|Financial|||||||||
||||obtained due||||||
|Supports for|||||||||
||||to||||||
|National Key|Zhengzho u||||||||
||||conforming||||||
|Industry and|Economic||||||||
||||to the local||||||
|Technical|and||||||||
||||supporting|||||Related to|
|Transformati|Technology|Subsidy||Yes|No|466,666.68|466,666.68||
||||policies such|||||assets|
|on Projects|Development||||||||
||||as local||||||
|Granted by|Zone Finance||||||||
||||government’s||||||
|the Municipal|Bureau||||||||
||||investment||||||
|Finance|||||||||
||||attraction||||||
|Bureau|||||||||
||||policy||||||
|Financial|||||||||
||||Grants||||||
|Supports for|||||||||
||||obtained due||||||
|Industrial|||||||||
||||to||||||
|Development|||||||||
||||conforming||||||
|Granted by|||||||||
||Zhengzhou||to the local||||||
|the Finance|||||||||
||Municipal||supporting|||||Related to|
|Bureau of the||Subsidy||Yes|No|233,333.34|233,333.34||
||Finance||policies such|||||assets|
|Economic|||||||||
||Bureau||as local||||||
|and|||||||||
||||government’s||||||
|Technologica|||||||||
||||investment||||||
|l|||||||||
||||attraction||||||
|Development|||||||||
||||policy||||||
|Zone|||||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
|Funds for|||||||||
||||conforming||||||
|Independent|Henan||||||||
||||to the local||||||
|Innovation of|provincial|||||||Related to|
|||Subsidy|supporting|Yes|No|199,999.98|199,999.98||
|Provincially|finance|||||||assets|
||||policies such||||||
|Supported|department||||||||
||||as local||||||
|Enterprises|||||||||
||||government’s||||||
||||investment||||||
||||attraction||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
||||conforming||||||
|Supporting|Henan||to the local||||||
|Funds on|provincial||supporting|||||Related to|
|||Subsidy||Yes|No|66,666.66|66,666.66||
|Finance|finance||policies such|||||assets|
|Discounts|department||as local||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
|Funds for|||||||||
||||conforming||||||
|Education,|||||||||
||Zhengzho u||to the local||||||
|Science and|||||||||
||Municipal||supporting|||||Related to|
|Culture||Subsidy||Yes|No|49,999.98|49,999.98||
||Finance||policies such|||||assets|
|Granted by|||||||||
||Bureau||as local||||||
|the Finance|||||||||
||||government’s||||||
|Bureau|||||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
|Supporting|||obtained due||||||
|Funds for|||to||||||
||Zhengzho u||||||||
|Industrial|||conforming||||||
||Economic||||||||
|Structure|||to the local||||||
||and||||||||
|-adjusting|||supporting|||||Related to|
||Technology|Subsidy||Yes|No|93,333.36|93,333.36||
|Projects|||policies such|||||assets|
||Development||||||||
|Granted by|||as local||||||
||Zone Finance||||||||
|the Regional|||government’s||||||
||Bureau||||||||
|Finance|||investment||||||
|Bureau|||attraction||||||
||||policy||||||
||||Grants||||||
||Zhengzhou||obtained due||||||
|Industry|||||||||
||Municipal||to|||||Related to|
|discount and||Subsidy||Yes|No|53,333.34|53,333.34||
||Finance||conforming|||||assets|
|expenses|||||||||
||Bureau||to the local||||||
||||supporting||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
||||policies such||||||
||||as local||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
||||conforming||||||
||Henan||to the local||||||
|Financial|provincial||supporting|||||Related to|
|||Subsidy||Yes|No|166,666.68|166,666.68||
|discount|finance||policies such|||||assets|
||department||as local||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
||Zhengzhou||||||||
||||conforming||||||
|Industrial|Economic||||||||
||||to the local||||||
|restructuring|and||||||||
||||supporting|||||Related to|
|project|Technology|Subsidy||Yes|No|160,000.02|160,000.02||
||||policies such|||||assets|
|financial|Development||||||||
||||as local||||||
|funds|Zone Finance||||||||
||||government’s||||||
||Bureau||||||||
||||investment||||||
||||attraction||||||
||||policy||||||
|Special|||||||||
||||Grants||||||
|Funds for|||||||||
||||obtained due||||||
|High-end|||||||||
||||to||||||
|Information|||||||||
||||conforming||||||
|Industry|||||||||
||Henan Office||to the local||||||
|Chain|||||||||
||of industry||supporting|||||Related to|
|Granted by||Subsidy||Yes|No|166,666.68|166,666.68||
||and||policies such|||||assets|
|thFinance|||||||||
||information||as local||||||
|Bureau of the|||||||||
||||government’s||||||
|Economic|||||||||
||||investment||||||
|and|||||||||
||||attraction||||||
|Technologica|||||||||
||||policy||||||
|l Develop|||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Grants||||||
||||obtained due||||||
||||to||||||
||Zhengzho u||conforming||||||
|2015 project|Municipal||to the local||||||
|equipment|Commission||supporting|||||Related to|
|||Subsidy||Yes|No|1,145,800.02|954,833.35||
|investment|of industry||policies such|||||assets|
|subsidies|and||as local||||||
||information||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
|Zhengzhou|||||||||
|City Finance|||Grants||||||
|Bureau in|||obtained due||||||
||Henan||||||||
|2011 and|||to||||||
||Provincial||||||||
|2012 has|||conforming||||||
||Department||||||||
|been the|||to the local||||||
||of Finance||||||||
|acceptance of|||supporting|||||Related to|
||and|Subsidy||Yes|No|86,666.64|||
|the provincial|||policies such|||||assets|
||Zhengzhou||||||||
|industrial|||as local||||||
||Municipal||||||||
|structure|||government’s||||||
||Bureau of||||||||
|adjustment|||investment||||||
||Finance||||||||
|project the|||attraction||||||
|second batch|||policy||||||
|of funds|||||||||
||||Grants||||||
||||obtained due||||||
||||to research||||||
||Shijiazhuang||||||||
||||and||||||
|Technical|Municipal||||||||
||||development,|||||Related to|
|reconstructio|Development|Subsidy||No|No|133,333.34|133,333.34||
||||technical|||||assets|
|n|and Reform||||||||
||||renovation||||||
||Commission||||||||
||||and||||||
||||transformatio||||||
||||n, etc||||||
||||Grants||||||
||Shijiazhuang||obtained due||||||
|Grant of|||||||||
||high-tech||to||||||
|Glass||||||||Related to|
||Administr|Subsidy|conforming|No|No|500,000.00|500,000.00||
|Substrate||||||||assets|
||ative||to the local||||||
|Project|||||||||
||Committe e||supporting||||||
||||policies such||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
||||as local||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
||||conforming||||||
||Shijiazhua ng||to the local||||||
|Industrial|||||||||
||high-tech||supporting|||||Related to|
|Development||Subsidy||No|No|233,333.34|233,333.34||
||Administrativ||policies such|||||assets|
|Fund|||||||||
||e Committee||as local||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to research||||||
||||and||||||
|Project|Shijiazhuang||||||||
||||development,|||||Related to|
|finance|Finance|Subsidy||No|No|15,666.66|15,666.66||
||||technical|||||assets|
|discount|Bureau||||||||
||||renovation||||||
||||and||||||
||||transformatio||||||
||||n, etc||||||
||||Grants||||||
||||obtained due||||||
||||to the country||||||
||||encourage||||||
|Industrial|||||||||
||||and support||||||
|revitalization|||||||||
||Shijiazhuang||specific||||||
|and||||||||Related to|
||Finance|Subsidy|industries|No|No|3,257,666.66|3,257,666.66||
|technological||||||||assets|
||Bureau||(Obtained in||||||
|transformatio|||||||||
||||accordance||||||
|n project|||||||||
||||with the||||||
||||national||||||
||||policies and||||||
||||regulations)||||||
|2013|Shijiazhuang||Grants||||||
|||||||||Related to|
|Production|Municipal|Subsidy|obtained due|No|No|166,666.66|166,666.66||
|||||||||assets|
|line|Development||to||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|technology|and deform||conforming||||||
|research and|Commission||to the local||||||
|development|||supporting||||||
|granted funds|||policies such||||||
||||as local||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to research||||||
|Technology|||and||||||
||Shiijiazhuang||||||||
|reconstructio|||development,|||||Related to|
||Finance|Subsidy||No|No|1,078,000.00|411,333.34||
|n Special|||technical|||||assets|
||Bureau||||||||
|funds|||renovation||||||
||||and||||||
||||transformatio||||||
||||n, etc||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
||||conforming||||||
|Strategic|Shijiazhuang||||||||
||||to the local||||||
|emerging|Municipal||||||||
||||supporting|||||Related to|
|industries of|Development|Subsidy||No|No|1,000,000.00|1,000,000.00||
||||policies such|||||assets|
|special grant|and deform||||||||
||||as local||||||
|funds|Commission||||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to the country||||||
||||encourage||||||
||||and support||||||
|Glass|Shijiazhuang||||||||
|||||||||Related to|
||||specific||||||
|substrate|Finance|Subsidy||No|No|213,333.34|||
||||industries|||||assets|
|project grants|Bureau||||||||
||||(Obtained in||||||
||||accordance||||||
||||with the||||||
||||national||||||
||||policies and||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
||||regulations)||||||
||||Grants||||||
||||obtained due||||||
||||to||||||
||||conforming||||||
||Shijiazhuang||to the local||||||
|Product line|high-tech||supporting|||||Related to|
|||Award||No|No|753,471.70|||
|grants|Administrativ||policies such|||||assets|
||e Committee||as local||||||
||||government’s||||||
||||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||Wuhu||to||||||
||Economic||conforming||||||
||and Technolo||to the local||||||
|Grant of|||||||||
||gical||supporting|||||Related to|
|Government||||Yes|No|1,122,300.00|1,122,300.00||
||Development||policies such|||||assets|
|Infrastructure|||||||||
||Z one||as local||||||
||Finance||government’s||||||
||Bureau||investment||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to the country||||||
|Grant of|||encourage||||||
|Industry|||and support||||||
||Wuhu||||||||
|Revitalizatio|||specific||||||
||Development|||||||Related to|
|n and|||industries|Yes|No|116,666.64|116,666.64||
||& Reform|||||||assets|
|Technology|||(Obtained in||||||
||Commission||||||||
|Reconstructio|||accordance||||||
|n Project|||with the||||||
||||national||||||
||||policies and||||||
||||regulations)||||||
|Wuhu|Economic||Grants||||||
|economic and|and Trade||obtained due||||||
|||||||||Related to|
|Technologica|Development|Award|to the country|Yes|No|114,800.00|||
|||||||||income|
|l|Bureau||encourage||||||
|Development|||and support||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|Zone|||specific||||||
|Economic|||industries||||||
|and Trade|||(Obtained in||||||
|Development|||accordance||||||
|Bureau|||with the||||||
|export|||national||||||
|incremental|||policies and||||||
|Award|||regulations)||||||
||||Grants||||||
||||obtained due||||||
|Economic|||||||||
||||to||||||
|and Trade|||||||||
||||conforming||||||
|Development|Economic||||||||
||||to the local||||||
|Bureau of the|and Trade||||||||
||||supporting|||13,312,000.0||Related to|
|Development|Development|Award||Yes|No||||
||||policies such|||0||income|
|Zone|Bureau||||||||
||||as local||||||
|(2012-2016)|||||||||
||||government’s||||||
|income tax|||||||||
||||investment||||||
|rebate|||||||||
||||attraction||||||
||||policy||||||
||||Grants||||||
||||obtained due||||||
||||to the country||||||
|The center of|||||||||
||||encourage||||||
|the Party|||||||||
||||and support||||||
|Organization|||||||||
||||specific||||||
|Department|Finance|||||||Related to|
|||Subsidy|industries|Yes|No|500,000.00|||
|allocation of|Bureau|||||||income|
||||(Obtained in||||||
|the third|||||||||
||||accordance||||||
|batch of|||||||||
||||with the||||||
|funding|||||||||
||||national||||||
||||policies and||||||
||||regulations)||||||
|||||||65,632,104.2|102,724,666.||
|Total|--|--|--|--|--|||--|
|||||||4|77||

52.Non-Operation expense
In RMB
|||||
|-|-|-|-|
||Amount of current period|Amount of previous period|The amount of non-operating|
|Items||||
||||gains & lossed|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
|Total of Non-current assets|30,537.14|4,430.74||
||||30,537.14|
|Disposition||||
|Including：Disposal of fixed||||
||30,537.14|4,430.74|30,537.14|
|assets||||
|Other|47,405.21|8,058.60|47,405.21|
|Late fee|372,229.08||372,229.08|
|Total|450,171.43|12,489.34||

53. Income tax expense
(1) Lists of income tax expense
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Income tax at current period|168,815,696.55|96,541,646.19|
|Deferred income tax|10,614,974.68|-6,258,044.68|
|Total|179,430,671.23|90,283,601.51|

（2）Accounting profit and income tax expense adjustment process
In RMB
|||
|-|-|
|Items|Amount of current period|
|Total profit|875,260,074.26|
|Income tax expense at statutory / applicable tax rates|131,289,011.14|
|Effect of different tax rates applicable to subsidiaries|5,128,640.60|
|Income tax adjustments on prior periods|-455,067.73|
|Effect of non-taxable income|3,468,853.45|
|Affect the use of deferred tax assets early unconfirmed||
||-299,981.46|
|deductible losses||
|The current period does not affect the deferred tax assets||
||40,299,215.23|
|recognized deductible temporary differences or deductible loss||
|Income tax expense|179,430,671.23|

 54. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest income|46,287,121.18|834,422.60|
|Government subsidy|151,920,830.50|37,959,400.00|
|Deposits income|7,195,087.47|87,399,022.47|
|Fine income||149,451.17|
|Current account income||3,450,177.56|
|Other|3,992.00|30,339,364.32|
|Petty cash|||
|Total|205,407,031.15|160,131,838.12|

（2）Other cash paid related to operating activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Consultation Services fee|11,033,384.47|32,247,294.56|
|Business expenses|2,414,621.26|2,127,609.09|
|Current account|18,284,472.99|91,000,000.00|
|Labour insurance expenses|1,467,300.61|1,782,256.94|
|Advertising expenses|3,035,900.89|9,282,425.84|
|Water and electricity expense|8,040,238.09|18,775,746.81|
|Travel expenses|3,162,043.28|4,427,379.48|
|Petty cash|1,202,892.54|549,954.75|
|Office expenses|19,931,417.84|16,145,841.08|
|Deposit|703,722,436.70|2,900,000.00|
|Meeting expenses|664,731.28|82,754.80|
|Communication fees|181,311.02|625,548.95|
|Transportation Fees|1,500,571.81|10,179,140.76|
|R &D|23,904,716.85|12,716,824.11|
|Auto Fees|1,742,196.91|136,936.54|
|Other|7,810,897.42|9,266,581.65|
|Total|808,099,133.96|212,246,295.36|

（3）Other Cash received related to investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Investment||6,120,000.00|
|The post-money balance of the cash and|||
|cash equivalents of Jiangsu Jixing’s|||
|acquisition date which deducted the|||
|currency paid for the acquisition.|||
|Total|190,962.49|6,120,000.00|

（4）Other Cash payable related to investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Investment|||
|Total|50,000,000.00||

（5）Other Cash received related to Financing activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest income|131,901,557.06|82,859,831.69|
|Finance lease|103,800,000.00|1,237,280,000.00|
|Bill finance||58,549,109.63|
|CDB financing||500,000,000.00|
|Total|235,701,557.06|1,878,688,941.32|

（6）Other Cash payable related to Financing activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Bank charges|1,926,814.75|702,462.93|
|cash deposit|953,930.20||
|Bill financing||77,900,000.00|
|Finance lease|419,037,111.72|16,160,141.67|
|Financing service|1,130,000.00||
|Total|449,714,523.33|94,762,604.60|

 55. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 In RMB
||||
|-|-|-|
|Supplement Information|Amount of current period|Amount of previous period|
|I. Adjusting net profit to cash flow from|||
||--|--|
|operating activities|||
|Net profit|695,829,403.03|570,324,423.85|
|Add: Impairment loss provision of assets|||
||208,238.02|3,554,932.15|
|Depreciation of fixed assets, oil and gas|||
||326,123,627.68|228,573,241.42|
|assets and consumable biological assets|||
|Amortization of intangible assets|8,758,416.76|7,533,311.24|
|Amortization of long-term deferred expenses|4,057,945.75|3,393,264.63|
|Loss on disposals of fixed assets, intangible|||
|assets and other long-term assets ("-" for|30,537.14|4,430.74|
|gains)|||
|Financial expenses|364,241,342.58|104,180,049.74|
|Investment loss|-6,676,924.21|-81,758.31|
|Decrease of deferred income tax assets|10,409,928.29|-6,258,044.68|
|Deferred tax liabilities increase|-11,805.12||
|Decrease of inventory|-981,985,297.83|-41,358,720.57|
|Decease of operating receivables|-2,509,332,255.72|-548,903,925.81|
|Increased of operating Payable|673,985,156.66|960,147,738.54|
|Net cash flows arising from operating|-1,414,361,686.97|1,281,108,942.94|
|activities|||
|2.Significant investment and financing|||
||--|--|
|activities that without cash flows:|||
|Fixed assets acquired under finance leases|110,928,174.00|1,652,037,077.85|
|3．Changes Balance of cash and cash|||
||--|--|
|equivalents|||
|Ending balance of cash|21,925,674,899.39|15,739,687,032.14|
|Less: Beginning balance of cash|25,037,335,091.60|11,964,769,404.73|
|Net increase of cash and cash equivalents|-3,111,660,192.21|3,774,917,627.41|

 (2) Net Cash paid of obtaining the subsidiary
In RMB
||
|-|
|Amount|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||
|-|-|
|Cash or Cash Equivalent of Enterprise consolidation that Occurred||
||57,243,065.638,000,000.00|
|in the Current Period Paid in the Current Period||
|Including：|--|
|Mingshuo(Beijing)Electronic Technology Co., Ltd.|57,142,857.00|
|Chuanglian Huatai（Hongkong）Co., Ltd.||
|Dongxu(xuhua) International equipment co. LTD|100,208.63|
|Less：Cash or Cash Equivalent Owned by Subsidiary on the||
||54,547,033.56|
|Purchasing Date||
|Including：|--|
|Ming shuo(Beijing) electronics Technology Co., Ltd.|54,255,862.44|
|Chuang lian hua tai(hongkong) Co., Ltd.|108,530.20|
|Dongxu(xuhua) International equipment co. LTD|182,640.92|
|Including：|--|
|Received Net Cash Paid by Subsidiary|2,696,032.07|

（3）Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-Beginning|
|I. cash|21,925,674,899.39|25,037,335,091.60|
|Including: value-cash|425,749.93|187,232.52|
|Bank deposit on demand|21,914,145,210.81|25,009,252,814.98|
|Other monetary funds on demand|11,103,938.65|27,895,044.10|
|III. Balance of cash and cash equivalents at|21,925,674,899.39|25,037,335,091.60|
|the period end|||

56. The assets with the ownership or use right restricted
In RMB
||||
|-|-|-|
|Items|Book value in year-end|Reason|
|Monetary funds|943,221,108.77|Pledge of collateral|
|Fixed assets|7,559,438,628.83|Pledge loans|
|Intangible assets|248,103,470.07|Pledge loans|
|Real estate investment|58,974,678.04|Pledge loans|
|Construction in process|751,214,924.79|Pledge loans|
|Total|9,560,952,810.50|--|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 57. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||Closing foreign currency||Closing convert to RMB|
|Items||Exchange rate||
||balance||balance|
|Including：USD|2,906,419.39|6.7744|19,689,247.52|
|Euro|135,576.50|7.7496|1,050,663.64|
|HKD|4,697.04|0.8679|4,076.56|
|JPY|4,110,917,807.00|0.0605|248,710,527.32|
|GBP|2,277.81|8.8144|20,077.53|
|Including：USD|18,210,668.16|6.7744|123,366,350.38|
|JPY|1,705,632,320.16|0.0605|103,190,755.37|
|Account receivable||||
|Including：USD|10,593,354.68|6.7744|71,763,621.94|
|Short-term loan||||
|Including：USD|22,023,777.99|6.7744|149,197,881.62|

 VIII.Changes of consolidation scope
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Income of|Net Profit of|
|||||||Determinatio|Acquire|Acquire from|
||||Ratio of||||||
||Time-point of|Obtained||Method of||n Basis on|from the|the|
|Name of|||Obtained||Purchasing||||
||Obtained|Cost of||Obtained||the|Purchasing|Purchasing|
|Acquiree|||Equity||Date||||
||Equity|Equity||Equity||Purchasing|Date to the|Date to the|
||||(100%)||||||
|||||||Date|End of the|End of the|
||||||||Period|Period|
|Mingshuo(Beijing)ElectronicTechnologyCo., Ltd.|||||May 31,2017|Acquired thecontrol rightand thebusinessregistrationhas been|94,042.74|-375,927.67|
|||57,142,857.0|||||||
||May 31,2017||36.36%|Purchase|||||
|||0|||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||changed.|||
|ChuanglianHuatai（Hongkong）Co., Ltd.|||||January1,2017|Acquired thecontrol right|386,643,953.88|5,185,962.98|
||January||||||||
||||100.00%|Purchase|||||
||1,2017||||||||
|TianlongHuataiIndustry(Hongkong) Co.,Ltd.|||||January1,2017|Acquired thecontrol right|||
||January||||||||
||||100.00%|Purchase|||||
||1,2017||||||||
|Dongxu(Xuhua)InternationalEquipmentCo., Ltd.|||||January1,2017|Acquired thecontrol right||-320,045.40|
||January||||||||
|||100,208.63|55.00%|Purchase|||||
||1,2017||||||||

(2) Consolidation Cost and Goodwill
In RMB
|||||
|-|-|-|-|
||Mingshuo(Beijing)Electronic|Chuanglian Huatai（Hongkong）|Dongxu(Xuhua) International|
|Combined cost||||
||Technology Co., Ltd.|Co., Ltd|Equitment Co., Ltd.|
|--Cash|57,142,857.00||100,208.63|
|Total Consolidation cost|57,142,857.00||100,208.63|
|Less：Reduction: Obtained||||
|Definable Net Assets Fair|23,823,179.29|-722,450.89|100,208.63|
|Proportion||||
|Goodwill/ The Consolidation||||
|Cost is Less Than the Obtained||||
||33,319,677.71|722,450.89||
|Definable Net Assets Fair||||
|Proportion||||

(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
||||||||
|-|-|-|-|-|-|-|
||Mingshuo(Beijing)Electronic||Chuanglian Huatai（Hongkong）Co.,||Dongxu(Xuhua) International||
||Technology Co., Ltd.||Ltd||Equitment Co., Ltd.||
||Fair value on|Book value on|Fair value on|Book value on|Fair value on|Book value on|
||purchase date|purchase date|purchase date|purchase date|purchase date|purchase date|
|Monetary fund|54,255,862.44|54,255,862.44|108,530.20|108,530.20|182,640.92|182,640.92|
|Account|||||||
||3,237,093.72|3,237,093.72|33,330,248.60|33,330,248.60|||
|receivable|||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|Inventories|3,410,416.00|3,410,416.00|||||
|Fixed assets|1,760,577.41|1,760,577.41|||||
|Prepayments|337,280.70|337,280.70|||||
|Other receivable|6,017,888.47|6,017,888.47|||4,294.43|4,294.43|
|Long-term equity|||||||
||3,855,435.58|3,855,435.58|||||
|Investment|||||||
|Long-term|||||||
|Deferred|11,000.00|11,000.00|||||
|expenses|||||||
|Deferred Income|||||||
||16,381.78|16,381.78|||||
|tax assets|||||||
|Other non-current|||||||
||2,200.00|2,200.00|||||
|assets|||||||
|Borrowing|||33,328,948.60|33,328,948.60|||
|Account payable|2,337,681.38|2,337,681.38|690,688.59|690,688.59|||
|Advance|||||||
||202,015.40|202,015.40|||||
|Payments|||||||
|Employees’ wage|||||||
||332,415.27|332,415.27|||||
|payable|||||||
|Tax payable|59,542.45|59,542.45|||||
|Other account|||||||
||2,647,520.16|2,647,520.16|141,592.50|141,592.50|4,737.84|4,737.84|
|payable|||||||
|Other current|||||||
||1,811,333.04|1,811,333.04|||||
|liabilities|||||||
|Net assets|65,513,628.40|65,513,628.40|-722,450.89|-722,450.89|182,197.51|182,197.51|
|Less：Minority|||||||
|shareholders|41,690,449.11|41,690,449.11|||81,988.88|81,988.88|
|equity|||||||
|Acquire net assets|23,823,179.29|23,823,179.29|-722,450.89|-722,450.89|100,208.63|100,208.63|

 2.Other reasons for the merger scope change
Other causes of the consolidation scope changes (e.g., the new subsidiary, liquidation subsidiary, etc.) and its related conditions:
On April 26, 2017, Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. and Changsha Shunyan Management Firm (limited partnership) and Liu Xuehua jointly set up Hunan Dongxu Wei Sheng Intelligent Technology Co., Ltd,with the registered capital of RMB 50 million, of which Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd subscribed RMB 25.5 million , Changsha Shunyan Administration Enterprise (LP)
Subscribed RMB 17 million and Liu Xuehua subscribed RMB 7.5 million, and the paid-up capital was RMB 50
million;
On April 26, 2017, the subsidiary-Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd and Liu
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Haijun and Liao Shaoye jointly set up Hunan Dongxu Deilai Electronic Technology Co., Ltd, With the Registered capital of RMB 50 million, of which Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.subscribed RMB 25.5 million, Liu Haijun Subscribed RMB 17 million and Liao Shaoye subscribed RMB 7.5 million, and the paid-up capital was RMB 36.8883815 million;
On April 18, 2017, the subsidiary- Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd, Changsha Wenchao Administration Enterprise (LP) and Ning Yongchao jointly set up Wuhu Dongxu Weiyu Medical apparatus Technology Co., ltd,the Registered capital of RMB 100 million, of which Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd subscribed RMB 51 million, Changsha Wenchao Administration Enterprise (LP) subscribed RMB 34 million and Ning Yongchao subscribed RMB 15 million, and the paid-up capital was RMB 100 million;
On April 26, 2017, Wuhu Dongxu Weiyu Medical apparatus Technology Co., ltd sep up wholl owned subsidiary Hunan Dongxu Weigao Medical apparatus Technology Co., ltd, The Registered capital of RMB 20 million, and the paid-up capital was RMB 20 million.
, Optoelectronic Equipment Technology Co., Ltd and Liu Haijun and Liao Shaoye jointly set up Hunan Dongxu Deilai Electronic Technology Co., Ltd;
On May 8, 2017, the subsidiary-Shenzhen Xuhui Investment Holding Co., Ltd. and Taizhou Dongxu Graphene Industry Investment Fund Management Center (limited partnership) acquired Mingshuo (Beijing) Electronic Technology Co., Ltd and part of the equity of its wholly-owned subsidiary-Huzhou Mingshuo Optoelectronics Technology Co., Ltd. with the registered capital of Ming Shuo (Beijing) Electronic Technology Co., Ltd was RMB 78.571429, and the paid-up capital was RMB 44.255429. Thereinto, Shenzhen Xu Hui Investment Holdings Co.,Ltd contributed funds of RMB 28.571429,Taizhou Dongxu Graphene Industry Investment Fund Management Center (limited partnership) contributed funds of 11.5 million, Qian Xinming contributed funds of RMB 3.85 million, Jin Xiuzhen contributed funds of RMB 2.04435 million, Chen Wei contributed funds of RMB 7.5922 million, Wang Yingchao contributed funds of RMB 2.86055 million, Beijing Heyiyou Investment Partnership contributed funds of RMB 10.89935 million , Jiang Wei contributed funds of RMB 1.43605 million, Li Honglei contributed funds of RMB 5.63255 million and Zhu Lei contributed fund of 4.18495 million.
On June 6, 2017, Wuhu Dongxu Weiyu Medical apparatus Technology Co., ltd, set up a wholly-owned subsidiary-Shandong Qi Hui Medical apparatus Technology Co., ltd, with the registered capital of RMB 20 million and the paid-up capital of RMB 5 million.
On June 29, 2017, Wuhu Dongxu Weiyu Medical apparatus Technology Co., ltd, set up a wholly-owned subsidiary-Guangdong Dongxu Weiyu Medical apparatus Technology Co., ltd, with the registered capital of RMB 20 million and the paid-up capital of RMB 0.00.
On April 13, 2017, the subsidiary-Dongxu Construction Group Co., Ltd acquired100.00% stake of Hebei Xubao Construction and Installation Co., Ltd-which is a wholly-owned subsidiary of the company, thus Hebei Xubao Construction and Installation Co., Ltd has become the sub-subsidiary of the company.
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
||||||||
|-|-|-|-|-|-|-|
|Name of|Main Places of|Registration|Nature of|Shareholding Ratio (%)||Obtaining|
|Subsidiary|Operation|Place|Business|direct|indirect|Method|
|Shijiazhuang||9 Huanghe Road,|||||
||Shijiazhuang||Manufacturing|81.26%||Establish|
|Colour Bulb Co.,||Shijiazhuang|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|Ltd.||High-tech||||
|||Industrial||||
|||Development||||
|||Area,||||
|||Shijiazhuang,||||
|||Hebei Province||||
|||Room 302, A floo||||
|Wuhu Dongxu||||||
|||r,||||
|Optoelectronic||||||
|||Management Co||||
|Equipment|Wuhu||Manufacturing|95.00%|Establish|
|||mmittee of Jiangb||||
|Technology Co.,||||||
|||ei Industry Zone,||||
|Ltd.||||||
|||Anhui Prov||||
|||No.36, Daowei 2||||
|||Road, Wanchun||||
|Wuhu Dongxu||||||
|||Street , Wuhu||||
|Optoelectronic||||||
||Wuhu|Economy|Manufacturing|100.00%|Establish|
|Technology Co.,||||||
|||Technology||||
|Ltd.||||||
|||Development||||
|||Zone||||
|||1/F, No.2||||
|||Business tower,||||
|||Huazhong||||
|Wuhan Dongxu||||||
|||Shuguang||||
|Optoelectronic||||||
||Wuhan|Software park,|Manufacturing|62.50%|Establish|
|Technology Co.,||||||
|||No.1Guanshan||||
|Ltd.||||||
|||Road,Donghu||||
|||Development||||
|||Zone, Wuhan||||
|||Building 15, No.||||
|||21, Ring Road 18||||
|Dongxu||||||
|||1 West Third Sect|Construction &||Non control|
|Construction|Sichuan|||100.00%||
|||ion,Jinniu District|installation||combination|
|Group Co., Ltd.||||||
|||, Chengdu||||
|||Room C17,||||
|||Building 1,||||
|Beijing Xufeng||No.10, Xinghuo||||
||||Real estate|||
|Real Estate Co.,|Beijing|Road,||100.00%|Establish|
||||Development|||
|Ltd.||Technology City,||||
|||Fengtai District,||||
|||Beijing||||
|Dongxu||Room 1517,||||
||Kunshan||Manufacturing|80.00%|Establish|
|（Kunshan）||Building 1||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|Display Material||(International||||
|Co., Ltd.||Building), No.||||
|||167, Qianjin||||
|||Middle Road,||||
|||Suzhou City,||||
|||Jiangsu Province||||
|||66,No 3||||
|Zhengzhou Xufei||Jingnan Road,||||
|Optoelectronic||Econornic &|||Non control|
||Zhengzhou||Manufacturing|100.00%||
|Technology Co.,||Technology|||combination|
|Ltd.||Development||||
|||Zone, Zhengzhou||||
|||No.69,Tianshan||||
|Shijiazhuang||||||
|||Street,||||
|Xuxin||||||
|||High-tech|||Non control|
|Optoelectronic|Shijiazhuang||Manufacturing|100.00%||
|||Area,|||combination|
|Technology||||||
|||Shijiazhuang,||||
|Co.,Ltd.||||||
|||Hebei||||
|||N0.1198, 689||||
|Beijing Xutan||Builing, No.5,||||
|New Material||Zhongguan|Technology|||
||Beijing|||70.00%|Establish|
|Technology Co.,||Village South|Service|||
|Ltd.||Street, Haiding||||
|||District, Beijing||||
|||New Material||||
|Jiangsu Jixing||||||
|||Industry Zone,|||Non control|
|New Material|Jiangsu||Manufacturing|50.50%||
|||Youfang Town,|||combination|
|Co., Ltd.||||||
|||Yangzhong City||||
|||1201-E18(Area)1||||
|||2/F,No.1, 6-3||||
|Beijing Dongxu||||||
|||Building,||||
|Huaqing|||Investment|||
||Beijng|Autornobile||70.00%|Establish|
|Investment Co.,|||Management|||
|||Museum East||||
|Ltd.||||||
|||Road, Fengtai||||
|||District, Beijing||||
|||(072) Room||||
|||109,Supervision||||
|Fuzhou Dongxu||||||
|||Building,||||
|Optoelectronic||||||
||Fuzhou|Processing trade|Manufacturing|100.00%|Establish|
|Technology Co.,||||||
|||Free zone,||||
|Ltd.||||||
|||Fuzhou,||||
|||Fujian.(No.9,||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|||Xinjiang Road,||||
|||Xincuo Town,||||
|||Fuqing City)||||
|||9 Huanghe Road,||||
|Shijiazhuang||Shijiazhuang||||
|Dongxu||High-tech||||
|Optoelectronic||Industrial||||
||Shijiazhuang||Manufacturing|95.00%|Establish|
|Equipment||Development||||
|Technology Co.,||Area,||||
|Ltd.||Shijiazhuang,||||
|||Hebei Province||||
|||Room 267, 2/F,||||
|||No. 2 ,Building,||||
|Beijing Dongxu||||||
|||No.9 Haiying||||
|Investment||||||
||Beijing|Road,|Investment|100.00%|Establish|
|Development Co.,||||||
|||Technology City,||||
|Ltd.||||||
|||Fengtai District,||||
|||Beijing.||||
|||9 Huanghe Road,||||
|||Shijiazhuang||||
|Hebei Xubao||||||
|||High-tech||||
|Construction||||||
|||Industrial|Onstruction &|||
|Installation|Shijiazhuang|||100.00%|Establish|
|||Development|installation|||
|Engineering Co.,||||||
|||Area,||||
|Ltd.||||||
|||Shijiazhuang,||||
|||Hebei Province||||
|||Room 311-D, B||||
|||Building,||||
|||Jiangbei||||
|||Industrial||||
|Wuhu Ruiyi||||||
||Anhui|Concentration|Labor dispatch|100.00%|Establish|
|Service Co., Ltd.||||||
|||Zone||||
|||Administrative||||
|||Committee,||||
|||Anhui||||
|||Room 2369,||||
|||No.888, CBD,||||
|Jiangsu Dongxu||||||
|||Renmin Road,||||
|Yitai Intelligent||||||
||Suqian|Economic|Manufacturing|100.00%|Establish|
|Equipment Co.,||||||
|||Technology||||
|Ltd.||||||
|||Development||||
|||Zone, Suqian||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|||Room 02,|||||
|||2/F,No.3|||||
|Shanghai||Building,|||||
|Tanyuan Huigu||No.28,,|||||
|||||||Non control|
|New Material|Shanghai|Jiangcchuan|Manufacturing|50.50%|||
|||||||combination|
|Technology Co.,||East Road,|||||
|Ltd.||Minhang|||||
|||District ,Shang|||||
|||hai|||||
|||Room 201, A|||||
|||unit, No.1|||||
|Shenzhen Xuhui||Qianwan Road,|||||
|Investment Co.,|Shenzhen|Qianhai|Investnebt|100.00%||Establish|
|Ltd.||Shengang|||||
|||Cioeration Area,|||||
|||Shenzhen.|||||
|||297, Room|||||
|Fuzhou Xufu||109,Supervision|||||
|Optoelectronic||Building,|||||
||Fuzhou||Manufacturing|16.67%|83.33%|Establish|
|Technology Co.,||Processing trade|||||
|Ltd.||Free zone,|||||
|||Fuzhou, Fujian|||||
|||230, Room|||||
|Fuzhou Dongxu||109,Supervision|||||
|Investment||Building,|||||
||Fuzhou||Investment||100.00%|Establish|
|Development||Processing trade|||||
|Co., Ltd.||Free zone,|||||
|||Fuzhou, Fujian|||||
|Dongxu Taizhou||Room 205, 2/F, 7|||||
|Graphene||Building ,|||||
|Industry||No.818 ,|||||
||||Investment||||
|Investment Fund|Taizhou|Longfeng Road,||25.00%||Establish|
||||Management||||
|Management||New Energy|||||
|Center (limited||Industry Zone ,|||||
|partnership)||Taizhou|||||
|||A, C Building,|||||
|Taizhou Xiwang|||||||
|||No.29-1 Shiji|||||
|New Enerty|||||||
||Taizhou|Road, Jiulong|Manufacturing||100.00%|Establish|
|Technology Co.,|||||||
|||Town, Hailing|||||
|Ltd.|||||||
|||District , Taizhou|||||
|Xiamen Xuqi||D,3 unit, D|Investment||||
||Xiamen||||100.00%|Establish|
|Investment||Building, Xiamen|Management||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|Management Co.,||Internationa|||||
|Ltd.||Shipping Center,|||||
|||No.97 Xiangyu|||||
|||Road, Fujian)|||||
|||free trade zone|||||
|||(FTZ) in Xiamen|||||
|||area, China|||||
|||No.1509, A unit,|||||
|Shenzhen||Spacefight|||||
|Xinyingtong||Building Shennan||||Non control|
||Shenzhen||Supply chain||70.00%||
|Technology Co.,||Road, Futian||||combination|
|Ltd.||District ,Shenzhe|||||
|||n.|||||
|Xuyou Electronic|||||||
|Material||No. 61 Xinmei|||||
|Technology|Wuxi|Road, Xinwu|Manufacturing|51.00%||Establish|
|(Wuxi) Co.,||District, Wuxi|||||
|Ltd.|||||||
|||1/F,|||||
|||TechnologyInn|||||
|||ovation|||||
|||Center ,|||||
|Fuzhou Xuyou|||||||
|||Rongqiao|||||
|Electronic|||||||
|||Enconomic &|||||
|Material|Fuzhou||Manufacturing||100.00%|Establish|
|||Technology|||||
|Technology Co.,|||||||
|||Development|||||
|Ltd.|||||||
|||Zone, No.36|||||
|||Xihuan North|||||
|||Road, Shizhu|||||
|||Street, Fuqing|||||
|||Room 605,|||||
|Sichuan||Machinery|||||
|DongxuRuiyi||Building, No.14|Envinonment||||
||Chengdu||||100.00%|Establish|
|Environment||First Huan Road,|control||||
|Co., Ltd.||Jinjiang District|||||
|||Chendu|||||
|||Room 606|||||
|Sichuan Dongxu||Machinery|||||
|Ruiyi Survey||Building, No.14|Construction &||||
||Chengdu||||100.00%|Establish|
|and Design Co.||First Huan Road,|installation||||
|Ltd.||Jinjiang District|||||
|||Chendu|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|||Room 607||||
|||Machinery||||
|Sichuan||||||
|||Building, No.14||||
|DongxuRuiyi|Chengdu||rade|100.00%|Establish|
|||First Huan Road,||||
|Trade Co., Ltd.||||||
|||Jinjiang District||||
|||Chendu||||
|||Room 608||||
|Sichuan Dongxu||Machinery||||
||||Technology|||
|Ruiyi Enterprise||Building, No.14||||
||Chengdu||consultation|100.00%|Establish|
|Management||First Huan Road,||||
||||Service|||
|Co., Ltd.||Jinjiang District||||
|||Chendu||||
|||No.846.Tianfu||||
|Sichuan Dongxu||||||
|||South Road||||
|Proserity||||||
|||Huayang Street,|Construction|||
|Construction|Chengdu|||70.00%|Establish|
|||Tianfu District,|Installation|||
|Development||||||
|||Chengdu,||||
|Co., Ltd.||||||
|||Sichuan||||
|||Room 201, A||||
|||Building, No.||||
|Shenzhen||||||
|||Qianhai Bay 1||||
|Xngxinda|||||Non control|
||Shenzhen|Road,|Supply chain|100.00%||
|Technology Co.,|||||combination|
|||Shenzhen-Hongk||||
|Ltd.||||||
|||ang Cooperation||||
|||Area, Shenzhen||||
|||Romm||||
|Chuanglian||C,21/F.,Central||||
|Huatai||88,88 Des Vorux|||Non control|
||Hongkong||Supply chain|100.00%||
|（Hongkong）||Road|||combination|
|Co., Ltd.||Central,Hong||||
|||Kong||||
|||Romm||||
|Tianlong Huatai||C,21/F.,Central||||
|Industry||88,88 Des Vorux|||Non control|
||Hongkong||Supply chain|100.00%||
|（Hongkong）||Road|||combination|
|Co., Ltd.||Central,Hong||||
|||Kong||||
|Dongxu（Xuhua）||||||
|International||Zeil 79, Frankfurt|||Non control|
||Germany||Supply chain|100.00%||
|Equipment Co.,||am Main|||combination|
|Ltd.||||||
|Hunan Dongxu|Changsha|201-2,2 Building|Supply chain|100.00%|Establish|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|Weisheng||g, No.1 Tongxin||||
|intelligent||Road,||||
|technology Co.,||Wangcheng||||
|Ltd.||Economic||||
|||Development||||
|||Zone, Changsha.||||
|||01-2,2 Building||||
|||g, No.1 Tongxin||||
|Hunan Dongxu||||||
|||Road,||||
|Delai Electronic||||||
||Changsha|Wangcheng|Supply chain|100.00%|Establish|
|Technology Co.,||||||
|||Economic||||
|Ltd.||||||
|||Development||||
|||Zone, Changsha.||||
|||Room 307-1, B||||
|Wuhu Dongxu||Building, CMC||||
|Weiyu Medical||of Jiangbei||||
|Instrument|Wuhu|Industrial||100.00%|Establish|
|Technology Co.,||Concentration||||
|Ltd.||Area, Wuhu,||||
|||Anhui||||
|||Room 1313, 13/F,||||
|||4 Building, 2||||
|Hunan Dongxu||District, Jinqiao||||
|Weigao Medical||Market, Purui||||
|Instrument|Changsha|west Road,|Supply chain|100.00%|Establish|
|Technology Co.,||Wangcheng||||
|Ltd.||Economic||||
|||Development||||
|||Zone, Changsha.||||
|||Room B288,||||
|||2/F,Beijing||||
|Mingshuo||||||
|||Chenmao||||
|(Beijing)||||||
|||Hongxiang|||Non control|
|Electronic|Beijing||Manufacturing|51.00%||
|||Hotel, No.15|||combination|
|Technology Co.,||||||
|||Longxiang||||
|Ltd.||||||
|||Road, Haidian||||
|||District, Beijing||||
|Huzhou||||||
|||No.800,||||
|Mingshuo||||||
|||Rujiadian Road,|||Non control|
|Optoelectronic|Huzhou||Manufacturing|100.00%||
|||Lianshi Town,|||combination|
|Technology Co.,||||||
|||Huzhou||||
|Ltd.||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|||Room 902, 9/F,||||
|||International||||
|Shangdong||||||
|||Wealth Center,||||
|QihuiMedical||||||
||Jinan|No.156, Jingqi|Supply chain|100.00%|Establish|
|Technology Co.,||||||
|||Road, Shizhong||||
|Ltd.||||||
|||District, Jinan,||||
|||Shandong||||
|||Room B, 104||||
|||Unit,||||
|||No.Building,||||
|Guangdong||Tianfu||||
|Dongxu Weiyu||Technology||||
|Medical|Foshan|Center, Xianan|Supply chain|100.00%|Establish|
|Instrument Co.,||Ershang Yuanxi||||
|Ltd.||Industry Area,||||
|||Guicheng Street,||||
|||Nanhai District,||||
|||Foshan||||

Notes: holding proportion in subsidiary different from voting proportion:
Other notes:
According to the signed agreement, Taizhou Dongxu Graphene Industry Investment Fund Management Center (limited partnership) sets up the investment decision committee as the highest decision-making organ, which is responsible for making decisions on project investment, disinvestment and other matters. The investment decision committee is made up of five committee members. Wherein, the general partner Beijing Dongxu Huaqing Investment Co., Ltd. appoints 2 members, the limited partner Dongxu Photo-electricity Technology Co., Ltd. appoints 1 member and the other 2 members are appointed through social recruiting. The limited partner Taizhou Jintaiyang Energy Co., Ltd.doesn’t appoint members. And the chairman of committee shall be assumed by the representative of general partner. The decisions will be valid with the consent of the majority of committee members (4 votes and above), and the chairman of investment committee has the one-vote veto. As the executive partner, the general partner Beijing Dongxu Huaqing Investment Co., ltd. assumes unlimited, joint liabilities for the limitedpartnership’s debts. As the posterity limited partner, Dongxu Photo-electricity Technology Co., Ltd. bears responsibilities for the limitedpartnership’s debts with its subscribed investment. And Taizhou Jintaiyang Energy Co., Ltd., as the priority limited partner, assumes responsibilities for the limitedpartnership’s debts with its subscribed investment.
(2) Significant not wholly owned subsidiary
In RMB
||||||
|-|-|-|-|-|
|||Profit or Loss Owned by|Dividends Distributed to||
||Shareholding Ratio of|||Equity Balance of the|
|||the Minority|the Minority||
|Name of Subsidiary|Minority Shareholders|||Minority Shareholders in|
|||Shareholders in the|Shareholders in the||
||(%)|||the End of the Period|
|||Current Period|Current Period||
|Wuhu Dongxu|||||
|Optoelectronic|5.00%|40,110,808.85|30,000,000.00|241,895,271.51|
|Equipment Technology|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
|Co., Ltd.||||
|Jiangsu Jixing New||||
||49.50%|10,035,755.51|236,242,378.74|
|Material Co., Ltd.||||
|Xuyou Electronic||||
|Material Technology|49.00%|2,876,620.75|359,413,409.33|
|（Wuxi ）Co., Ltd.||||
|Shanghai Tanyuan Huigu||||
|New Material|49.50%|10,269,237.44|51,709,582.00|
|Technology Co., Ltd.||||
|Dongxu（Kunshan）||||
|Display Material Co.,|20.00%|-72,066.10|99,643,579.92|
|Ltd.||||

(3) The main financial information of significant not wholly owned subsidiary
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Year-end balance||||||Year-beginning balance||||||
|||Non||Current|Non|||Non||Current|Non||
|Name|Current||Total|||Total|Current||Total|||Total|
|||current||Liabilitie|current|||current||Liabilitie|current||
||assets||assets|||liabilities|assets||assets|||liabilities|
|||assets||s|liabilities|||assets||s|liabilities||
|Wuhu|||||||||||||
|Dongxu|||||||||||||
|Optoelec|||||||||||||
|tronic|||||||||||||
||8,643,58|301,147,|8,944,73|5,697,30|420,528,|6,117,83|8,143,19|239,681,|8,382,87|5,986,43|410,000,|6,396,43|
|Equipme|||||||||||||
||6,658.24|237.44|3,895.68|5,794.96|756.61|4,551.57|7,927.02|494.27|9,421.29|3,459.96|000.00|3,459.96|
|nt|||||||||||||
|Technolo|||||||||||||
|gy Co.,|||||||||||||
|Ltd.|||||||||||||
|Jiangsu|||||||||||||
|Jixing|||||||||||||
||289,579,|330,237,|619,817,|136,468,|6,091,55|142,560,|267,316,|347,522,|614,839,|151,462,|6,393,25|157,856,|
|New|||||||||||||
||766.77|596.66|363.43|478.93|3.72|032.65|881.20|378.96|260.16|927.25|5.68|182.93|
|Material|||||||||||||
|Co., Ltd.|||||||||||||
|Xuyou|||||||||||||
|Electroni|||||||||||||
|c|||||||||||||
||318,428,|425,590,|744,019,|4,098,59||4,098,59|715,998,|19,476,2|735,474,|1,449,98||1,449,98|
|Material|||||0.00||||||||
||029.81|986.80|016.61|5.53||5.53|252.12|29.51|481.63|3.38||3.38|
|Technolo|||||||||||||
|gy|||||||||||||
|（Wuxi|||||||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|）Co.,|||||||||||||
|Ltd.|||||||||||||
|Shanghai|||||||||||||
|Tanyua|||||||||||||
|n Huigu|||||||||||||
|New|||||||||||||
|Materia|27,880,6|78,920,0|106,800,|1,935,48|401,452.|2,336,93|23,077,9|76,269,8|99,347,7|15,216,6|413,257.|15,629,9|
|l|95.96|39.01|734.97|0.27|67|2.94|26.17|55.09|81.26|55.67|79|13.46|
|Technol|||||||||||||
|ogy|||||||||||||
|Co.,|||||||||||||
|Ltd.|||||||||||||
|Dongxu|||||||||||||
|（Kunsh|||||||||||||
|an）|264,352,|261,676|, 526,028,|27,810,9||27,810,9|380,566,|153,271,|533,837,|35,259,3||35,259,3|
||||||0.00||||||0.00||
|Display|678.60|154.09|832.69|33.07||33.07|410.60|205.53|616.13|86.00||86.00|
|Material|||||||||||||
|Co., Ltd.|||||||||||||

In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of current period||||Amount of previous period||||
|||||Cash flows||||Cash flows|
||||Total||||Total||
|Name|Business|||from|Business|||from|
|||Net profit|Comprehensi|||Net profit|Comprehensi||
||income|||operating|income|||operating|
||||ve income||||ve income||
|||||activities||||activities|
|Wuhu|||||||||
|Dongxu|||||||||
|Optoelectroni|2,830,168,46|755,485,990.|755,484,621.|-701,105,382.|1,423,880,48|479,358,368.|479,358,368.|1,081,984,21|
|c Equipment|6.16|77|84|38|4.78|65|65|2.37|
|Technology|||||||||
|Co., Ltd.|||||||||
|Jiangsu|||||||||
|Jixing New|223,319,885.|20,274,253.5|20,274,253.5||223,976,847.|16,278,201.0|16,278,201.0||
|||||2,406,278.55||||6,352,806.87|
|Material Co.,|36|5|5||42|3|3||
|Ltd.|||||||||
|Xuyou|||||||||
|Electronic|||||||||
|Material||||-1,414,361,68|||||
|||5,895,922.83|5,895,922.83||||||
|Technology||||7.00|||||
|（Wuxi ）|||||||||
|Co., Ltd.|||||||||
|Shanghai|||||||||
||194,829.10|20,745,934.2|20,745,934.2|-6,548,738.14|6,157.72|-1,106,271.37|-1,106,271.37|-816,509.12|
|Tanyuan|||||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||
|-|-|-|-|-|-|-|-|
|Huigu New||3|3|||||
|Material||||||||
|Technology||||||||
|Co., Ltd.||||||||
|Dongxu||||||||
|（Kunshan）||||||||
|||||337,152,293.||||
|Display|0.00|-360,330.51|-360,330.51||-1,811,972.93|-1,811,972.93|-7,143,942.55|
|||||10||||
|Material Co.,||||||||
|Ltd.||||||||

2. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
||||||||
|-|-|-|-|-|-|-|
|||||Proportion||Accounting|
|||||||treatment of the|
||Main operating|||||investment of|
|Name||Registration place|Business nature||||
||place|||Directly|Indirectly|joint venture or|
|||||||associated|
|||||||enterprise|
|||2814-2816,|||||
|||Office Building|||||
|||(A),Letai Center,|||||
|Tunghsu Group||No.39.||||Equity method|
||Hebei||Finance services|40.00%|||
|Finance Co., Ltd.||Zhongshan East||||accounting|
|||Road,|||||
|||Shijiazhuang,|||||
|||Hebei|||||

(2) Main financial information of significant associated enterprise
In RMB
||||
|-|-|-|
||Closing balance/This period|Opening balance/Last period|
|Current assets|4,222,854,038.02||
|Non-current assets|4,951,451,490.74||
|Total of assets|9,174,305,528.76||
|Current liabilities|8,213,561,979.32||
|Total liabilities|8,213,561,979.32||
|Attributable to shareholders of the parent|||
||960,743,549.44||
|company|||
|Share of net assets calculated by stake|384,297,419.78||
|Book value of equity investment in|384,297,419.78||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||
|-|-|
|associates||
|Business income|75,053,678.73|
|Net profit|-39,256,450.56|
|Total comprehensive income|-39,256,450.56|

（3）Summary financial information of insignificant joint venture or associated enterprise
In RMB
||||
|-|-|-|
||Closing balance/This period|Opening balance/Last period|
|Joint venture:|--|--|
|Total investment book value|93,350,891.09|72,354,803.70|
|The total number of shares in each of the|||
||--|--|
|following shares|||
|--Net|196,087.39|81,758.31|
|-- Total comprehensive income|196,087.39|81,758.31|
|Associated enterprise：|93,350,891.09|72,354,803.70|
|The total number of shares in each of the|||
||--|--|
|following shares|||

X. The risk related financial instruments
The Company faces a variety of financial risks in the course of operation: credit risk, market risk and liquidity risk. The Business Management Department of the Company management is fully responsible for the determination of risk management objectives and policies, and assumes the ultimate responsibility for the risk management objectives and policies. The Business Management Department of the Company reviews the effectiveness of the performed programs as well as the rationality of risk management objectives and policies through monthly work statement submitted by the Functional Department.
The objective of theCompany’s engagement in risk management is to obtain a proper balance between the risks and benefits, reduce therisks’ negative impact on the Company's operating performance to the lowest level and maximize the interests of shareholders and other equity investors. Based on the risk management objectives, the basic strategy of the Company's risk management is to identify and analyze the risks faced by the Company, establish appropriate baseline of risk tolerance, conduct risk management as well as timely and reliably supervise various risks to control the risks within a limited range.
1. Credit Risk
Credit risk refers to the financial loss risk of the other Party if one Party of financial instruments fails to perform its obligations. The Company mainly faces customer credit risk caused by the credit sale. The Company would make an evaluation on newcustomers’ credit risk before signing new contracts, which includes external credit rating and bank reference letter (when available) under certain circumstances. The Company sets quota on credit sale for each customer and such quota is the maximum amount without additional approvals.
The company ensures that the company's overall credit risk is within a manageable range through quarterly audits of existing
customer credit ratings and monthly audits of accounts receivable aging analysis. In monitoring the customer's credit risk, according
to the customer's credit characteristics of its grouping. Customers who are rated as "high risk" will be placed on the restricted
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 customer list and the company will be able to credit it in the next period, subject to additional approval, otherwise it must be required to pay the corresponding payment in advance.
2. Market Risk
The market risk of financial instruments refers to the risk that the fair value or future cash flow of the financial instruments would fluctuate due to the market price changes, which includes interest rate risk ,foreign exchange risk and other price risks.
(1) Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flow of the financial instruments would fluctuate due to the market price changes. The interest rate risk faced by the Company mainly comes from short-term bank loans. The Company meets various short-term financing needs through establishing good bank-enterprise relationship as well as reasonably designing credit line, credit type and credit term to guarantee the sufficient bank credit line. In addition, the Company also reasonably reduces the fluctuation risk of interest rate by shortening the term of single loan and performing specially agreed prepayment term.
(2) Foreign Exchange Risk
Foreign exchange risk refers to the risk that the fair value or future cash flow of the financial instruments would fluctuate due to the market price changes. The Company would match the foreign currency incomes and expenses as far as possible to reduce the foreign exchange risk. On account of the small proportion of foreign financial assets and liabilities in the total assets,there’s no forward foreign exchange contract or currency swap contract signed by the Company in 2016 and January–June 2017.
The foreign exchange risk faced by the Company mainly comes from the financial assets and financial liabilities priced by US dollar, Yen and Euro. The exchanged RMB amounts of foreign financial assets and foreign financial liabilities are presented as below:
||||
|-|-|-|
|Items|2017.06.30|Exchange rate|
||balance of foreign currency||
|Monetary fund|||
|Including：USD|2,906,419.39|6.7744|
|Euro|135,576.50|7.7496|
|HKD|4,697.04|0.8679|
|JPY|4,110,917,807.00|0.0605|
|GBP|2,277.81|8.8144|
|Account receivable|||
|Including：USD|18,210,668.16|6.7744|
|JPY|1,705,632,320.16|0.0605|
|Account payable|||
|Including: JPY|||
|USD|10,593,354.68|6.7744|
|Euro|||
|Long-term loans|||
|Including：USD|||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||
|-|-|-|
|Short-term loan|||
|Including：USD|22,023,777.99|6.7744|

XI. Related party and related party transactions
1. Parent company information of the enterprise
|||||||
|-|-|-|-|-|-|
|||||The parent company|The parent company|
||||Registered|||
|Name|Registered address|Nature||of the Company's|of the Company’s|
||||capital|||
|||||shareholding ratio|vote ratio|
||No.369, Zhujiang|Investment ,||||
|Tunghsu Group|Road, High-tech|production and R &|RMB16.8. billion|11.32%|18.14%|
||zone, Shijiazhuang|D, etc.||||

2. Subsidiaries of the Company
See details to Notes VII, Situation of the enterprise subsidiaries refer to the Notes.
3.Other Related parties information of the enterprise
|||
|-|-|
|Other Related parties name|Relation of other Related parties with the company|
|Dongxu Technology Group Co., Ltd.|The shareholders of the company|
|Dongxu Optoelectronic Investment Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd.|Controlled by the same actual controller|
|Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Baoshi Xuming Tube Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Baodong Electronic Co.,Ltd.|Controlled by the same actual controller|
|Hebei Baoshi Lighting Co., Ltd.|Controlled by the same actual controller|
|Dongxu（Yingkou）Optoelectronic Display Co., Ltd.|Controlled by the same actual controller|
|Jinhou Xulong Solar energy Technology Co., Ltd.|Controlled by the same actual controller|
|Sichuan Xuhong Optoelectrnic Technology Co., Ltd|Controlled by the same actual controller|
|Shijiazhuang Bofa Mechanical Equipment Co., Ltd.|Controlled by the same actual controller|
|Hebei Decoration Printing Machine Co., Ltd.|Controlled by the same actual controller|
|Chengdu Zhong Optoelectronic Technology Co., Ltd.|General Manager: Li Zhaotin|
|Chengdu Dongxu Intelligent Technology Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Xuling Electronic Technology Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Baoshi Electronic Group Co., Ltd.|Controlled by the same actual controller|
|Chengdu Taiyisi Technology Co., Ltd.|Controlled by the same actual controller|
|Tibet Financial Leasing Co., Ltd.|Controlled by the same actual controller|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||
|-|-|
|Li Qing|The spouse of the actual controller|

4. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount of current|Amount of previous|||
||Content of related|||Over the trading limit||
|Related parties|||||Amount of last period|
||transaction|period|period|or not?||
|Baoshi Group|Energy||||574,553.06|
|Baoshi Group|Security fees|360,500.00|||1,500,000.00|
|Chengdu Dongxu||||||
|Energy Saving||||||
||ESL|1,326,857.00|||1,787.18|
|Technology Co.,||||||
|Ltd.||||||
|Shijiazhuang||||||
|Baoshi Zhonghe||||||
||Door||||259,246.66|
|Steel Plastic Shape||||||
|Co., Ltd.||||||
|Shijiazhuang Bofa||||||
||Machining part|||||
|Mechanical|||||18,568,179.46|
||and A frame|||||
|Equipment Co., Ltd.||||||
|Sichuan Southwest||||||
|Mechanery Industry|House lease|62,400.00|60,000.00|||
|Group Co., Ltd.||||||
|Total||1,749,757.00|60,000.00||20,903,766.36|

 Related transactions on sale goods and receiving services
In RMB
|||||
|-|-|-|-|
|Related parties|Content of related transaction|Amount of current period|Amount of previous period|
|Chengdu Zhong Optoelectronic||||
||Semi-manufacture||3,106,153.76|
|Technology Co., Ltd.||||
|Chengdu Zhong Optoelectronic||||
||Traction roll project|504,871.80|188,888.89|
|Technology Co., Ltd.||||
|Yinchuan Fengxxiang Street||||
|Comprehensive Contruction|Construction installation|97,789,036.93||
|Management Co., Ltd.||||
|Yixian Xuhuayuan Park|Construction installation|7,783,800.00||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
|Construction Development Co.,||||
|Ltd.||||
|Guangdong Huakai Real Estate||||
||Construction installation|7,565,972.68||
|Development Co., Ltd.||||
|Dongxu Technology Group||||
||Graphene（Battery）|2,735.05||
|Co.,Ltd.||||
|Shijiazhuang Bofa Mechanical||||
||A frame|2,533,760.68||
|Equipment Co., Ltd||||
|Dongxu（Yingkou）||||
|Optoelectronic Display Co.,|Semi-manufacture|12,049,825.21||
|Ltd.||||
|Dongxu（Yingkou）||||
|Optoelectronic Display Co.,|A frame|3,076,923.08||
|Ltd.||||
|Total||131,306,925.43|3,295,042.65|

（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertake
In RMB
||||||
|-|-|-|-|-|
|Name of Clients/Contractee|Name ofTrustee/Contractee|Type of EntrustingAsset/Contracting Asset|Starting Dateof Entrusting/Contracting|ExpirationDate ofEntrusting/Contracting|
|Tunghsu Group, Yingkou CoastalDevelopment Construction Co.,Ltd.Minmetals (Yingkou) Industrial ParkDevelopment Co., Ltd.|DongxuOptoelectronicTechnologyCo., Ltd.|Management Right ofDongxu(Yingkou)Optoelectroric DisplayCo., Ltd.|January 2012|Notes 1|
|Tunghsu Group, Mianyang Investment CityDevelopment (Group ) Co., Ltd., SichuanChanghong Electric Co., Ltd.||Management Right ofSichuan XuhongOptoelectronicTechnology Co., Ltd.|March 2012|Notes 2|
|Total|||||

 Description of custodies
During the reporting period, the Company continued entrusted with the management of Dongxu( Yingkou)
Optoelectronic Display Co., Ltd. and Sichuan Xuhong Optoelectronic Technology Co., Ltd.
In December 2011, Tunghsu Group signed the Equity Trusteeship Agreement with the Company , of which
60% share rights of Dongxu (Yingkou) Optoelectronic Display Co., Ltd.,51% share rights of Sichuan Xuhong
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 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. Notes1：Trusteeship costs include basic management fees and incentive management fees(0.5 million/years), including basic management fee of 1 million per year, incentive management fees per year managed company with net operating profit after tax of5%calculation（Base incentive management fees deduct prior years'losses） Notes 2: Trusteeship costs include basic management fees and incentive management fees(0.5 million/years), including basic management fee of 1 million per year, incentive management fees per year managed company with net operating profit after tax of5% calculation.
Notes 3:On April 20, 2016, Dong Xu (Yingkou) Optoelectronic Display Co.,Ltd, upon the approval by generalshareholders’ meeting, amended the Article of Association, thus the stake of Dong Xu (Yingkou) Optoelectronic Display Co.,Ltd held by Dong Xu Group was changed to47.8% from60%.
Notes4. On April 1, 2016, Sichuan Xu Hong 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 Xu Hong Optoelectronic Technology Co. Ltd held by Dong Xu Group was changed to86.64% from51%.
Lists of entrust/contractee
In RMB
||||||||
|-|-|-|-|-|-|-|
|Name of the|Name of the|||||Clarge|
|entruster/contract|entrustee/|Type|Initial date|Due date|Pricing basis|recognized in the|
|ee|contractor|||||reporting period|

 Notes
（3）Related guarantee condition
The Company as a guarantor
||||||
|-|-|-|-|-|
|||||Execution accomplished|
|Secured party|Guarantee amount|Start date|End date||
|||||or not|

The Company was secured party
In RMB
||||||
|-|-|-|-|-|
|Guarantor|Guarantee Amount|Starting date|Stop date|If completed or not|
|Tunghsu Group , Li|||||
||200,000,000.00|November 4,2016|November 3,2017|No|
|Zhaoting|||||
|Li Zhaoting|200,000,000.00|August 30,2016|August 30,2017|No|
|Li Zhaoting|200,000,000.00|October 19,2016|October 19,2017|No|
|Tunghsu Group , Li|||||
||200,000,000.00|November 4,2016|November 4,2017|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||360,000,000.00|December 29,2016|December 29,2017|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||200,000,000.00|September 30,2016|September 29,2017|No|
|Zhaoting, Li Qing|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Tunghsu Group , Li|||||
||200,000,000.00|November 4,2016|November 4,2017|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group|200,000,000.00|November 3,2016|November 3,2017|No|
|Tunghsu Group|200,000,000.00|September 28,2016|September 27,2017|No|
|Tunghsu Group|50,000,000.00|November 23,2016|November 23,2017|No|
|Li Zhaoting|40,000,000.00|December 29,2016|December 29,2017|No|
|Li Zhaoting|60,000,000.00|May 17,2016|May 17,2017|Yes|
|Li Zhaoting|60,000,000.00|December 6,2016|December 6,2017|No|
|Tunghsu Group|50,000,000.00|December 29,2016|December 29,2017|No|
|Li Qing, Li Zhaoting|50,000,000.00|November 29,2016|November 29,2017|No|
|Tunghsu Group , Li|||||
||20,000,000.00|August 10,2016|August 9,2017|No|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||30,000,000.00|September 29,2016|August 9,2017|No|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||50,000,000.00|October 13,2016|August 8,2017|No|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||693,700.00|September 26,2016|August 9,2017|No|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||100,000,000.00|December 23,2016|December 23,2018|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||200,000,000.00|December 27,2016|December 27,2018|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||200,000,000.00|December 29,2016|December 29,2018|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||387,700,000.00|April 29,2016|April 29,2018|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||599,800,000.00|June 7,2016|June 7,2019|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||100,000,000.00|May 17,2016|May 17,2018|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group|100,000,000.00|May 20,2016|May 20,2018|No|
|Tunghsu Group|81,500,000.00|May 25,2016|May 26,2018|No|
|Tunghsu Group|18,500,000.00|June 13,2016|June 13,2018|No|
|Tunghsu Group, Dongxu|||||
|Optoelectronic|||||
||400,000,000.00|November 30,2016|November 30,2019|No|
|Investment Co., Ltd.,|||||
|Li Zhaoting|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Tunghsu Group|200,000,000.00|December 15,2016|December 15,2018|No|
|Tunghsu Group|100,000,000.00|August 5,2016|August 3,2018|No|
|Tunghsu Group, Li|||||
||150,000,000.00|May 2,2013|April 11,2022|No|
|Zhaoting, Li Qing.|||||
|Tunghsu Group, Li|||||
||100,000,000.00|September 26,2013|April 11,2022|No|
|Zhaoting, Li Qing.|||||
|Tunghsu Group, Li|||||
||300,000,000.00|April 1,2014|April 11,2022|No|
|Zhaoting, Li Qing.|||||
|Tunghsu Group, Li|||||
||150,000,000.00|April 10,2015|April 12,2022|No|
|Zhaoting, Li Qing.|||||
|Tunghsu Group, Li|||||
|Zhaoting, Li Qing, and|||||
|Li Zhaoting holds 10%|||||
|of the shares of Dongxu|||||
|Technology Group,|150,000,000.00|May 19,2016|May 18,2018|No|
|Tunghsu Group holds|||||
|90% of the shares of|||||
|Dongxu Technology|||||
|Group,|||||
|Tunghsu Group, Li|||||
|Zhaoting, Li Qing, and|||||
|Li Zhaoting holds 10%|||||
|of the shares of Dongxu|||||
|Technology Group,|150,000,000.00|May 26,2016|May 25,2018|No|
|Tunghsu Group holds|||||
|90% of the shares of|||||
|Dongxu Technology|||||
|Group,|||||
|Tunghsu Group, Li|||||
|Zhaoting, Li Qing, and|||||
|Li Zhaoting holds 10%|||||
|of the shares of Dongxu|||||
|Technology Group,|159,000,049.50|June 8,2016|April 7,2018|No|
|Tunghsu Group holds|||||
|90% of the shares of|||||
|Dongxu Technology|||||
|Group,|||||
|Tunghsu Group, Li|||||
|Zhaoting, Li Qing, and|||||
||40,999,950.50|June 21,2016|April 20,2018|No|
|Li Zhaoting holds 10%|||||
|of the shares of Dongxu|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Technology Group,|||||
|Tunghsu Group holds|||||
|90% of the shares of|||||
|Dongxu Technology|||||
|Group,|||||
|Tunghsu Group , Li|||||
||100,000,000.00|March 3,2017|March 2,2019|No|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||204,000,000.00|March 29,2017|September 28,2018|No|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||100,000,000.00|March 31,2017|March 30,2018|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||300,000,000.00|June 2,2017|June 2,2019|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||200,000,000.00|May 15,2017|May 15,2019|No|
|Zhaoting, Li Qing|||||
|Li Zhaoting|108,333,333.32|January 6,2017|January 6,2019|No|
|Li Zhaoting|16,666,666.66|January 17,2017|January 6,2019|No|
|Tunghsu Group , Li|||||
||199,000,000.00|February 24,2017|August 23,2018|No|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||97,000,000.00|March 29,2017|September 28,2018|No|
|Zhaoting|||||
|Tunghsu Group , Li|||||
||200,000,000.00|June 28,2017|June 27,2018|No|
|Zhaoting|||||
|Tunghsu Group|50,000,000.00|June 30,2017|June 29,2018|No|
|Tunghsu Group , Li|||||
||45,000,000.00|January 3,2017|December 28,2017|No|
|Zhaoting|||||
|Tunghsu Group|100,000,000.00|June 19,2017|April 4,2018|No|
|Tunghsu Group , Li|||||
||100,000,000.00|March 25,2016|February 28,2017|Yes|
|Zhaoting|||||
|Tunghsu Group|200,000,000.00|January 15,2016|January 15,2017|Yes|
|Li Zhaoting|400,000,000.00|April 15,2016|April 14,2017|Yes|
|Tunghsu Group|200,000,000.00|June 3,2016|June 3,2017|Yes|
|Tunghsu Group , Li|||||
||100,000,000.00|April 14,2016|April 13,2017|Yes|
|Zhaoting, Li Qing|||||
|Tunghsu Group , Li|||||
||42,500,000.00|April 15,2016|April 17,2017|Yes|
|Zhaoting|||||
|Tunghsu Group|60,000,000.00|June 30,2016|June 29,2017|Yes|
|Tunghsu Group|100,000,000.00|March 25,2016|March 25,2017|Yes|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Tunghsu Group|30,000,000.00|March 31,2016|March 30,2017|Yes|
|Tunghsu Group|45,000,000.00|January 27,2016|January 27,2017|Yes|
|Tunghsu Group|45,000,000.00|February 29,2016|February 28,2017|Yes|
|Tunghsu Group|15,000,000.00|April 1,2016|March 31,2017|Yes|
|Tunghsu Group|450,000,000.00|January 28,2013|January 27,2021|No|
|Tunghsu Group, Li|||||
||90,000,000.00|April 12,2013|April 11,2022|No|
|Zhaoting, Li Qing|||||
|Tunghsu Group, Li|||||
||200,000,000.00|||Yes|
|Zhaoting, Li Qing|||||
|Tunghsu Group, Li||||No|
||228,046,429.92||||
|Zhaoting|||||
|Tunghsu Group|254,117,655.73|||No|
|Tunghsu Group, Li||||No|
||85,000,000.00||||
|Zhaoting|||||
|Tunghsu Group, Li||||No|
||150,000,000.00||||
|Zhaoting|||||
|Tunghsu Group, Li||||No|
||84,419,919.77||||
|Zhaoting|||||
|Tunghsu Group, Li||||No|
||200,000,000.00||||
|Zhaoting|||||

Notes
(4) Rewards for the key management personnel
In RMB
||||
|-|-|-|
||Amount of current period|Amount of previous period|
|Items|||
|Rewards for the key management|||
||289.98|247.91|
|personnel|||

5.Payables and receivables of the related party
（1）Receivable
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount at year end||Amount at year beginning||
|Name|Related party|||||
|||Balance of Book|Bad debt Provision|Balance of Book|Bad debt Provision|
||Dongxu|||||
|Account receivable|（Yingkou ）|14,128,295.50||||
||Optoelectronic|||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
||Display Co., Ltd.|||
||Hebei Baoshi|||
||Energy saving|||
|Account receivable||10,000.00|10,000.00|
||lighting technology|||
||Co., Ltd.|||
||Sichuan Xuhong|||
|Account receivable|Optoelectronic|1,925,162.08|5,458,541.80|
||Technology Co., Ltd|||
||Yinchuan Fengxiang|||
||Street|||
||Comprehensive|||
|Account receivable||103,801,081.48||
||Construction|||
||Management Co.,|||
||Ltd.|||
||Chengdu Dongxu|||
|Prepayments|Intelligent|166,857.00||
||Technology Co., Ltd.|||
||Hebei Baoshi|||
||Energy saving|||
|Prepayments||60,000.00|60,000.00|
||lighting technology|||
||Co., Ltd.|||
||Hebei Decoration|||
|Prepayments|Printing Machinery|835,680.87|835,680.87|
||Co., Ltd.|||
||Shijiazhuang Baoshi|||
|Prepayments|Electronic vacuum|420,000.00||
||Glass Co., Ltd.|||
||Shijiazhuang Baoshi|||
|Prepayments||270,279.00|620,279.00|
||Group|||
||Chengdu Zhong|||
|Bill receivable|Optoelectronic||710,000.00|
||Technology Co., Ltd|||
|Other non-current||||
||Tunghsu Group|132,132,857.44|132,132,857.44|
|assets||||

（2）Payables
In RMB
|||||
|-|-|-|-|
|Name|Related party|Book balance at year end|Book balanc at year beginning|
|Account payable|Shijiazhuang Bofa Mechanical|8,747.20|8,959,301.52|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
||Equipment Co., Ltd.|||
||Shijiazhuang XumingTube Co.,|||
|Account payable|||14,948.00|
||Ltd.|||
||Shijiazhuang Baoshi Electronic|||
|Account payable|||4,354,418.46|
||vacuum Glass Co., Ltd.|||
||Shijiazhuang Baoshi|||
|Account payable|Large-diameter plastic tube Co.,|533,942.80|533,942.80|
||ltd|||
||Shijiazhuang Baoshi|||
|Account payable|Zhonghe Steel Plastic Shape|240,296.40|441,578.40|
||Co., Ltd.|||
||Shijiazhuang Xuling Electronic|||
|Account payable||1,320,164.09|1,320,164.09|
||Technology Co., Ltd.|||
|Account payable|Shijiazhuang Baoshi Group||514,401.13|
||Chengdu Dongxu Intelligent|||
|Account payable||1,253,553.92||
||Technology Co., Ltd.|||
|Advance revenue|Tunghsu Group|66,261,470.09|69,676,000.00|
||Chengdu Zhong Optoelectronic|||
|Advance revenue||724,355.00|207,291.65|
||Technology Co., Ltd|||
||Jinzhou Xulong New Material|||
|Other payable|||1,500,000.00|
||Technology Co., Ltd.|||
|Other payable|Shijiazhuang Baoshi Group|12,024,173.50|10,455,242.86|
|Other payable|Tunghsu Group|13,951,402.32|13,873,229.83|
||Shijiazhuang Baoshi Electronic|||
|Other payable|||264,000.00|
||vacuum Glass Co., Ltd.|||
||Sichuan Xuhong Optoelectronic|||
|Other payable|||872,857.78|
||Technology Co., Ltd.|||
||Shijiazhuang XumingTube Co.,|||
|Other payable||97,031.00|97,031.00|
||Ltd.|||

XII. Stock payment
1. The Stock payment overall situation
□ Applicable√Not applicable
2. The Stock payment settled by equity
√ Applicable□Not applicable
In RMB
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||
|-|-|
|The determined methods of the fair value of the equity instruments|The 20 trading days prior to the announcement of the stock|
|granted to date|incentive plan average stock trading company|
||《Unlock the first phase of the company restricted stock|
|Determine the number of vested equity instruments||
||incentive plan period can unlock the object list》|
|This estimate and it is estimated that there are significant||
||Nil|
|differences of the previous period||
|Equity-settled share-based payment included in the total amount of||
||11,419,300.00|
|capital reserves||
|This period of equity-settled share-based payment confirmation||
||796,800.00|
|total costs||

XIII. Commitments
1. Significant commitments
Significant commitments at balance sheet date
As of June 30, 2017, there was no significant commitment or contingency in the Group.
2. Contingency
(1) Significant contingency at balance sheet date
Nil
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
XIV. Enents after balance sheet date
1.Notes of ohter significant events
On July 3, 2017, Wuhu Dongxu Weiyu Medical Devices Technology Co., Ltd set up a wholly-owned
subsidiary-Anhui Weiwang Medical Devices Technology Co., Ltd.,with the Registered capital Of RMB 20 million and the paid-up capital of RMB 0.00.
On July 5, 2017, Wuhu Dongxu Weiyu Medical Devices Technology Co., Ltd set up a wholly-owned
subsidiary-Liaoning Dongxu Weiyu Medical Devices Technology Co., Ltd., with ther registered capital of RMB 20 million and the paid-up capital of RMB 0.00.
On July 12,2017, Wuhu Dongxu Weiyu Medical Devices Technology Co., Ltd set up a wholly-owned
subsidiary-Guangxi Dongxu Weigao Medical Devices Technology Co., Ltd., with ther registered capital of RMB 20 million and the paid-up capital of RMB 0.00.
On July 19,2017, Zhengzhou Xufei Optoelectronic Technology Co., Ltd.acquired100% stake of Suzhou Tengda Phonology Technology Co., Ltd. with ther registered capital of RMB 24 million and the paid-up capital of RMB 24 million .
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 XIV. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification accojunt receivables.
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year-beginning|||||
||Book Balance||Bad debt provisionAmount Proportion(%)|||Book Balance||Bad debt provision|||
|Classification|||||Book||||||
|||||||||||Book value|
||Amount|Proportio|Amount|||Amount|Proportio|Amount|Proportion(||
||||||value||||||
|||n(%)|||||n(%)||%)||
|Account receivables|15,279,102.26|||4.71%|||||||
|provided bad debt|||719,428.||14,559,67|20,464,||567,495.2||19,896,753.|
|||100.00%|||||100.00%||2.77%||
|provision in credit|||91||3.35|248.49||3||26|
|risk groups|||||||||||
||15,279,102.26||719,428.|4.71%|14,559,673.35|20,464,||567,495.2||19,896,753.26|
|Total||100.00%|||||100.00%||2.77%||
||||91|||248.49||3|||

 Accounts receivable of individual significance and subject to individual impairment assessment.
□Applicable√ Not applicable
Account receivable on which bad debt provisions are provided on age basis in the group
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Year-end balance|||
|Aging||||
||Account receivable|Bad debt provision|Proportion|
|Sub item within 1 year||||
|3-4 years|909,668.39|454,834.20|50.00%|
|Over 5 years|264,594.71|264,594.71|100.00%|
|Total|1,174,263.10|719,428.91|61.27%|

Notes：
Receivable account in Group on which bad debt provisions were provided on percentagebasis：
√Applicable□ Not applicable
Receivable account in Group on which bad debt provisions were provided on otherbasis：
|||||
|-|-|-|-|
||Year-end balance|||
|Aging||||
||Account receivable|Bad debt provision|Proportion|
|Related party combination|14,104,839.16|||
|Total|14,104,839.16|||

(2) Top five of account receivable of closing balance collected by arrears party
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 The total receivable amount of top five closing balances collected by the debtors in the current reporting period is RMB 13,846,839.16 , which accounts for90.63% of the total other receivables. The total amount of balances in the end of the period for corresponding accrued bad-debt provision is RMB 0.00.
2.Other receivable
（1）Classification of Other receivable
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year-beginng|||||
||Book Balance||Bad debt provisionAmount Proportion(%)|||Book Balance||Bad debt provision|||
|Classification|||||Book||||||
||Amount|Proportio|Amount|||Amount|Proportio|Amount|Proportion(|Book value|
||||||value||||||
|||n(%)|||||n(%)||%)||
|Other account|7,813,099,223.07|||0.02%|||||||
|||||||4,927,3|||||
|receivables provided|||1,466,58||7,811,632|||1,967,568||4,925,419,4|
|||100.00%||||87,025.|100.00%||0.04%||
|bad debt provision in|||0.49||,642.58|||.56||56.78|
|||||||34|||||
|credit risk groups|||||||||||
||7,813,099,223.07|||0.02%|7,811,632,642.58|4,927,3||||4,925,419,456.78|
||||1,466,58|||||1,967,568|||
|Total||100.00%||||87,025.|100.00%||0.04%||
||||0.49|||||.56|||
|||||||34|||||

Other Receivable accounts on which bad debt provisions are provided by other ways in theportfolio：
□Applicable√Not applicable
Other receivable accounts in Group on which bad debt provisions were provided on age analyzebasis：
√ Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
||Amount in year-end|||
|Aging||||
||Other receivable|Bad debt provision|Withdrawal proportion|
|Sub item within 1 year||||
|Credit period|830,521.97|||
|Subtotal within 1 year|39.90|2.00|5.00%|
|1-2 years|2,605.70|260.57|10.00%|
|2-3 years|130,129.79|39,038.93|30.00%|
|3-4 years|8,497.64|4,248.82|50.00%|
|Over 5 years|1,423,030.17|1,423,030.17|100.00%|
|Total|2,392,397.27|1,466,580.49|61.30%|

Notes：
Other receivable account in Group on which bad debt provisions were provided on percentagebasis：
√Applicable□Not applicable
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||
|-|-|
|Name|Closing balance|
|Related party transaction|7,049,173,656.75|
|Deposit|760,643,666.66|
|Personal loans|284,950.89|
|Personal insurance and provident fund|457,898.51|
|Export rebate|146,652.99|
|Total|7,810,706,825.80|

Other Receivable accounts on which bad debt provisions are provided by other ways in theportfolio：
□Applicable√Not applicable
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB 0.00; recovery or payback for bad debts Amount is RMB 5 00,988.07.
Where the current bad debts back or recover significant amounts:
In RMB
||||
|-|-|-|
|Name|Amount|Method|

（3）Other account receivable classified by account nature
In RMB
||||
|-|-|-|
|Nature|Closing book value|Opening book value|
|Deposit|760,643,666.66|5,853,833.34|
|Personal loans|284,950.89|179,023.27|
|Related party transaction|7,049,173,656.75|4,918,192,744.41|
|Current fund|1,635,319.74||
|Personal insurance and provident fund|457,898.51|21,023.59|
|Export rebate|146,652.99||
|Other|757,077.53|3,140,400.73|
|Total|7,813,099,223.07|4,927,387,025.34|

 (4) The top five other account receivable classified by debtor at period end
In RMB
|||||||
|-|-|-|-|-|-|
||||||Closing balance of|
|Name|Nature|Closing balance|Aging|Proportion %||
||||||bad debt prof=vision|
|Beijing Xufeng||||||
||Current account|2,200,142,347.30|Credit period|28.16%||
|Property Co., Ltd.||||||
|Wuhu Dongxu|Current account|1,677,351,260.33|Credit period|21.47%||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Optoelectronic|||||
|Equipment|||||
|Technology Co., Ltd.|||||
|Wuhu Dongxu|||||
|Optoelectronic|Current account|1,104,687,825.99|Credit period|14.14%|
|Technology Co., Ltd.|||||
|Zhengzhou Xufei|||||
|Optoelectronic|Current account|1,407,336,950.00|Credit period|18.01%|
|Technology Co., Ltd.|||||
|Dongxu Construction|||||
||Current account|318,069,264.18|Credit period|4.07%|
|Group Co., Ltd.|||||
|Total|--|6,707,587,647.80|--|85.85%|

3.Long-term equity investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items||Bad debt|||Bad debt||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Investment to the|15,377,709,832.6||14,999,537,182.7|11,679,609,832.6||11,301,437,182.7|
|||378,172,649.84|||378,172,649.84||
|subsidiary|3||9|3||9|
|Investment to|||||||
|joint ventures and|||||||
||476,647,120.67||476,647,120.67|72,354,803.70||72,354,803.70|
|associated|||||||
|enterprises|||||||
||15,854,356,953.3||15,476,184,303.46|11,751,964,636.3||11,373,791,986.49|
|Total||378,172,649.84|||378,172,649.84||
||0|||3|||

（1）Investment to the subsidiary
In RMB
||||||||
|-|-|-|-|-|-|-|
||||||Withdrawn||
|||||||Closing balance|
||||||impairment||
|Name|Opening balance|Increase|Decrease|Closing balance||of impairment|
||||||provision in the||
|||||||provision|
||||||reporting period||
|Shijiazhuang|||||||
|Baoshi Color Bulb|439,341,956.80|||439,341,956.80|||
|Co., Ltd.|||||||
|Hebei Xubao|||||||
||100,000,000.00||100,000,000.00||||
|Construction|||||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||
|-|-|-|-|
|Engineering||||
|Installation Co.,||||
|Ltd.||||
|Wuhu Dongxu||||
|Optoelectronic||||
|Equipment|93,100,000.00||93,100,000.00|
|Technology Co.,||||
|Ltd.||||
|Wuhu Dongxu||||
|Optoelectronic||||
||4,711,064,000.00||4,711,064,000.00|
|Technology Co.,||||
|Ltd.||||
|Dongxu||||
|Construction|1,000,453,728.53|2,000,000,000.00|3,000,453,728.53|
|Group Co., Ltd.||||
|Wuhan Dongxu||||
|Optoelectronic||||
||3,125,000.00||3,125,000.00|
|Technology Co.,||||
|Ltd.||||
|Beijing Xufeng||||
|Real Estate Co.,|470,000,000.00||470,000,000.00|
|Ltd.||||
|Dongxu||||
|（Kunshan）||||
||400,000,000.00||400,000,000.00|
|Display Material||||
|Co., Ltd.||||
|Jiangsu Jixing||||
|New Material Co.,|167,345,300.00||167,345,300.00|
|Ltd.||||
|Beijing Xutan||||
|New Material||||
||10,500,000.00||10,500,000.00|
|Technology Co.,||||
|Ltd.||||
|Beijing Dongxu||||
|Huaqing||||
||3,500,000.00||3,500,000.00|
|Investment Co.,||||
|Ltd.||||
|Shijiazhuang||||
|Xuxin||||
||1,966,568,609.92||1,966,568,609.92|
|Optoelectronic||||
|Technology Co.,||||

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|Ltd.||||||
|Zhengzhou Xufei||||||
|Optoelectronic||||||
||1,791,853,741.58|||1,791,853,741.58||
|Technology Co.,||||||
|Ltd.||||||
|Fuzhou Dongxu||||||
|Optoelectronic||||||
||10,000,000.00|1,735,000,000.00||1,745,000,000.00||
|Technology Co.,||||||
|Ltd.||||||
|Shanghai Tanyuan||||||
|Huigu New||||||
|Material|73,454,500.00|||73,454,500.00||
|Technology Co.,||||||
|Ltd.||||||
|Fuzhou Xufu||||||
|Optoelectronic||||||
||10,900,000.00|13,100,000.00||24,000,000.00||
|Technology Co.,||||||
|Ltd.||||||
|Shenzhen Xuhui||||||
|Investment|20,000,000.00|50,000,000.00||70,000,000.00||
|Holding Co., Ltd.||||||
|Taizhou Dongxug||||||
|Graphene Industry||||||
|Investment Fund||||||
||25,000,000.00|||25,000,000.00||
|Management||||||
|Center（Limited||||||
|Partnership）||||||
|Xuyou Electronic||||||
|Materal||||||
||383,402,995.80|||383,402,995.80||
|Technology||||||
|（Wuxi）Co., Ltd.||||||
|Less：||||||
|Long-terminvestm||||||
||378,172,649.84||||378,172,649.84|
|ent depreciation||||||
|reserves||||||
||11,679,609,832.63|||15,377,709,832.63|378,172,649.84|
|Total||3,798,100,000.00|100,000,000.00|||

（2）Investment to joint ventures and associated enterprises
In RMB
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase /decrease in reporting period||||||||||
||||||||||||Closing|
||||||Adjustme|||||||
|||||||||Withdraw|||balance|
||||Decrease|Gain/loss|nt of||Declarati|||||
||Opening|Add||||Other||n||Closing|of|
|Name||||||||||||
||||d|of|other||on of cash|||||
||balance|investmen||||equity||impairme|Other|balance|impairme|
||||investmen|Investme|comprehe||dividends|||||
|||t||||changes||nt|||nt|
||||t|nt|nsive||or profit|||||
|||||||||provision|||provision|
||||||income|||||||
|I. Joint ventures||||||||||||
|II. Associated enterprises||||||||||||
|Zhongda||||||||||||
|Chengxin||||||||||||
|Internatio||||||||||||
|nal|72,354,80|||171,370.9||||||72,526,17||
|Commerc|3.70|||6||||||4.66||
|ial||||||||||||
|Factoring||||||||||||
|Co., Ltd.||||||||||||
|Tunghsu||||||||||||
|Group||400,000,0||-15,702,5||||||384,297,4||
|Finance||00.00||80.22||||||19.78||
|Co., Ltd.||||||||||||
|Dongxu(De||||||||||||
|yang)Grap||||||||||||
|hene||||||||||||
|||19,800,00||||||||19,823,52||
|Developme||||23,526.23||||||||
|||0.00||||||||6.23||
|nt Fund||||||||||||
|Partnership||||||||||||
|（LP）||||||||||||
||72,354,803.70|419,800,0||-15,507,6||||||476,647,120.67||
|Total||||||||||||
|||00.00||83.03||||||||

4.Business income and Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Main business|11,006,532.52|6,941,391.49|369,700,169.65|236,073,823.43|
|Other business|27,591,148.66|21,150,871.79|14,147,651.79|67,061.63|
|Total|38,597,681.18|28,092,263.28|383,847,821.44|236,140,885.06|

Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 5. Investment income
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Income from long-term equity investment|||
||-15,507,683.03|81,758.31|
|measured by adopting the Equity method|||
|Other investment income|22,183,417.04||
|Total|6,675,734.01|81,758.31|

 XVI. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Amount|Notes|
|Gains/Losses on the disposal of non-current|||
||-30,537.14||
|assets|||
|Government grants recognized in the current|||
|period, except for those acquired in the|||
|ordinary course of business or granted at|65,632,104.25||
|certain quotas or amounts according to the|||
|country’s unified standards|||
|Gain/loss on loans obtained by entrusting|||
||4,137,082.94||
|others|||
|Other non-operating income and expenditure|||
||18,148.98||
|beside for the above items|||
|Other profit and loss items that meet the|||
||22,183,417.04||
|definition of non-recurring profit and loss|||
|Less: Influenced amount of income tax|15,552,946.64||
|Amount of influence of minority interests|522,067.47||
|Total|75,865,201.96|--|

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
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 2 Return on net assets and earnings per share
|||||
|-|-|-|-|
|||Earnings per share||
|Profit of the report period|Return on net assets . Weighted（%）|||
|||Basic earnings per share|Diluted gains per share|
|Net profit attributable to the||0.13|0.13|
|Common stock shareholders of|2.84%|||
|Company.||||
|Net profit attributable to the||||
|Common stock shareholders of||||
||2.50%|0.11|0.11|
|Company after deducting of||||
|non-recurring gain/loss.||||

3. Differences between accounting data under domestic and overseas accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
□Applicable√Not applicable
XI. Documents available for inspection
1.The original semi-annual report bearing the signature of the Chairman of the Board of Directors of the Company;
2.The text of the financial report bearing the seal and signature of the person in charge of the Company, financial controller and the person in charge of accounting organ
3.Original audit report seal with accounting firms and signature and seal from CPA;
4. Originals of all documents and manuscripts of public Notices of the Company Disclosed in public in the newspapers as designated by China Securities Regulatory Commission.
【Notes】This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall prevail.
Dongxu Optoelectronic Technology Co., Ltd.
Chairman: Li Zhaoting
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017 Issue day approved by the Board ofDirectors：August , 2017