Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Dongxu Optoelectronic Technology Co., Ltd.
2014 Annual Report
February 2015
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report I. Important Notice, Table of Contents and Definitions
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
All the directors attended the board meeting for reviewing the Annual Report.
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows: total share of 2,662,080,001 for Base on theCompany‗s total share capital as at
December 31, 2014, the Company would distribute cash dividend to all the shareholders at the rate of CNY 1.00 for every 10 shares (with tax inclusive)，0 bonusshare（s includingtax）and no reserve would be converted into share capital.
Mr.Li Zhaoting, The Company leader, Mr. Li Quannian, Chief financial officer and the Mr..Xie Guozhong, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this annual report.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Table of Contents
2014 Annual Report
I..Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Highlights and Business Highlights
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Internal Control
XI. Financial Report
XII. Documents available for inspection
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Definition
||||
|-|-|-|
|Terms to be defined|Refers to|Definition|
|Company Law|Refers to|Company Law of the People‘s Republic of China|
|Securities Law|Refers to|Securities Law of the People‘s Republic of China|
|Dongxu Gruop|Refers to|Dong Xu Group Co., Ltd.|
|Baoshi Group|Refers to|Shijiazhuang Baoshi Electronics Group Co., Ltd|
|Dongxu Optoelectronic , Company, The|||
||Refers to|Dongxu Optoelectronic Technology Co., Ltd.|
|Conpany|||
|Zhengzhou Xufei|Refers to|Zhengzhou Xufei Optoelectronic Technology Co., Ltd.|
|Dongxu（Yingkou）Optoelectronic|Refers to|Dongxu（Yingkou）Optoelectronic Display Co., Ltd.|
|Sichuan Xuhong Optoelectronic|Refers to|Sichuan Xuhong Optoelectronic Technology Co., Ltd.|
|Shijiazhuang Xuxin|Refers to|Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd.|
|Wuhu Dongxu Optoelectronic|Refers to|Wuhu Dongxu Optoelectronic Technology Co., Ltd.|
|Wuhu Dongxu Equipment|Refers to|Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.|
|Shijiazhuang Dongxu Equipment|Refers to|Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd.|
|BOE|Refers to|BOE Technology Group Co., Ltd.|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Indication of major risks
The company does not exist on the production and operation, financial condition and continued profitability have serious adverse effects on risk factors
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report II. Basic Information of the Company
I. 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|||
||No.9, Huanghe Road, Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei|||
|Registered address||||
||Province|||
|Postal code of the Registered||||
||050035|||
|Address||||
|Office Address|No.5 Court, No.23 A Fuxing Road, Haidian District, Beijing|||
|Postal code of the office||||
||100036|||
|address||||
|Internet Web Site|www.dxoti.com|||
|E-mail|bs@bseg.cn|||

II. Contact person and contact manner
||||
|-|-|-|
||Board secretary|Securities affairs Representative|
||Fu Yinfang|Wang Qingfei|
|Name|||
|||Securities Dept of the Company, No.9, Huanghe Road,|
||No.5 Court, No.23 A Fuxing Road, Haidian||
|Contact address||Shijiazhuang High-tech Industrial Development Area,|
||District, Beijing||
|||Shijiazhuang, Hebei Province|
|Tel|010-68297016|010-68297016 0311-86917775|
|Fax|010-68297016|010-68297016 0311-86917775|
|E-mail|fyfws@126.com|baoshixzb@126.com|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report III. Information disclosure and placed
|||
|-|-|
|Newspapers selected by the Company for information||
||China Securities Daily and Hong Kong Commercial Daily|
|disclosure||
|Internet website designated by CSRC for publishing||
||http://www.cninfo.com.cn|
|the Annual report of the Company||
|The place where the Annual report is prepared and||
||Securities Dept of the Company|
|placed||

IV.Changes in Registration
|||||||
|-|-|-|-|-|-|
||||Number of Business|||
|||Authority Registered|License of|Taxation||
||Date of Registration||||Organization Code|
|||with|Enterprise as Legal|Registration No.:||
||||Person|||
|||No.49, Changan East||||
|Initial registration|December 26, 1992||10439598-3-1|130111104395983|10439598-3|
|||Road, Shijiazhuang||||
|||No.9, Huanghe||||
|||Road, Shijiazhuang||||
|Registration at the||||||
|||High-tech Industrial||||
|end of the reporting|November 28, 2014||130000000001040|130111104395983|10439598-3|
|||Development Area,||||
|period||||||
|||Shijiazhuang, Hebei||||
|||Province||||
|Changes in principal business activities||||||
|||No Change||||
|since listing (if any)||||||
|Changes is the controlling shareholder in||||||
|||No Change||||
|the past (is any)||||||

V. Other Relevant Information
CPAs engaged
|||
|-|-|
|Name of the CPAs|Zhongxingcai Guanghua Ceritified Public Accountants (Special General Partnership)|
|Office address|4/F,Anqiao Business Building , No.77 Guangan Street, Changan District, Shijiazhuang|
|Names of the Certified Public||
||Wang Fengqi, Meng Xiaoguang|
|Accountants as the signatories||

The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
√Applicable□Not applicable
|||||
|-|-|-|-|
|Name|Office address|Representative|Consistent supervision period|
|Guangzhou Securities|19-20/F, Main Tower , Guangzhou|Chen Yan, Li Zhongliu|April 19, 2013-December 31,|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Co., Ltd.|International Finance Center, No.5|2014|
||Zhujiang West Road, Guangzhou||

The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period
□Applicable√ Not applicable
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report III. Summary of Accounting Highlights and Business Highlights I. Summary of accounting /Financial Data
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to change of the accounting policy and correction of accounting errors.
□ Yes√ No
||||||
|-|-|-|-|-|
||||Changed over last year||
||2014|2013||2012|
||||（％）||
|Operating Gross income（RMB）|2,143,398,018.39|931,900,682.99|130.00%|778,935,169.83|
|Net profit attributable to the|880,625,183.53|369,297,308.74|||
|shareholders of the listed company|||138.46%|142,664,558.32|
|（RMB）|||||
|Net profit after deducting of|||||
|non-recurring gain/loss attributable to|||||
||503,125,122.42|256,529,907.56|96.13%|118,253,707.19|
|the shareholders of listed company|||||
|（RMB）|||||
|Cash flow generated by business|-44,057,409.28|-1,837,218,834.91|||
||||97.60%|-466,992,745.86|
|operation, net（RMB）|||||
|Basic earning per share(RMB/Share)|0.33|0.17|94.12%|0.37|
|Diluted gains per|0.33|0.17|||
||||94.12%|0.37|
|share(RMB/Share)(RMB/Share)|||||
|Net asset earning ratio（%）|14.13%|9.43%|4.70%|30.52%|
|||End of|Changed over last year|End of|
||End of 2014||||
|||2013|（％）|2012|
|Gross assets（RMB）|12,468,163,299.77|9,032,978,401.14|38.03%|2,061,707,738.09|
|Shareholders‘ equity attributable to|6,436,732,506.01|5,813,673,715.04|||
|shareholders of the listed company|||10.72%|391,928,777.84|
|（RMB）|||||

II.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
□Applicable□√ Not applicable
N/A
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report III.Items and amount of non-current gains and losses
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|Amount (2014)年|Amount (2013)|Amount (2012)|Notes|
|Non-current asset disposal|-89,370.72||||
|gain/loss(including the write-off part for||6,783,729.96|450.00||
|which assets impairment provision is made)|||||
|Govemment subsidies recognized in|441,054,640.22||||
|currentgain and loss(excluding those closely|||||
|||133,954,541.90|25,198,017.02||
|related to the Company‘s business and|||||
|granted under the state‘s policies)|||||
|Gains due to that the investment costs for|580.38||||
|the Company to obtain subsidiaries,|||||
|associates and joint ventures are lower than|||||
|the enjoyable fair value of the identifiable|||||
|net assets of the investees when making the|||||
|investments|||||
|Reversal of impairment provisions for the|||||
|accounts receivable onwhich impairment||134,137.19|1,922,964.33||
|tests were carried out separately|||||
|Gain/loss on loans obtained by entrusting|9,254,167.07||||
|||9,807,235.52|7,166,668.00||
|others|||||
|Other non-operating income and expenditure|175,950.50||||
|||7,737,795.73|-1,566,913.67||
|beside for the above items|||||
|Less: Influenced amount of income tax|65,281,344.97|33,899,759.46|4,259,621.14||
|Amount of influence of minority interests|7,614,561.37||||
|||11,750,279.66|4,050,713.41||
|（After tax）|||||
|Total|377,500,061.11|112,767,401.18|24,410,851.13|--|

For theCompany‘s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines 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/itesm as defined by the information disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report IV. Report of the Board of Directors
I. General
1. Industry Review
According to the prediction by Display Search, the revenue of global TFT-LCD panel industry will achieve 143.2 billion USD in 2017, taking83.27% of the whole FPD (Flat-panel display) industry. As the glass substrates take10%-20% of the TFT-LCD panel costs , the development of TFT-LCD panel will drive the demands for upstream materials such as glass substrate and color film. According to the prediction stated in the Twelfth Five-year Development Plan of New Material Industry released by the Ministry of Industry and Information Technology, the yearly demand for substrates of flat-panel display glass in our nation will achieve one hundred million square meters by 2015. During the reporting period, the TFT-LCD industry will show great potential benefiting from factors such as the sustainable growth of domestic economy as well as the huge domestic demand and the introduction of a series of policies encouraging the TFT-LCD industry development. As leading enterprises in domestic glass substrate, the company and the trustee companies have completed the production line construction according to the plan, achieved technical breakthrough in yield improvement, succeeded in realizing the volume production of the sixth-generation glass substrates and the under, and initiated the domestication process of glass substrates thoroughly.
2. Company Management Review
The year 2014 is the―breaking-throughyear‖ for the company development. Seizing the opportunity of developing emerging photoelectric display industry in the nation, the company has fully accelerated the construction of LCD glass substrates, vigorously promoted the project construction and productive operation of LCD glass substrates in the company, and industriously expanded the product marketing. During the reporting period, based on the glass substrate industry, the company has taken an active role in demonstrating its dominant position in the material area and carried out attempts in expanding upstream and downstream industry chain and multifaceted industry-university-research researches as well as cooperation, which have jointly upgraded the corporation competitive power in all rounds.
During the reporting period, the board of directors and the management led all the staff to thoroughly apply strategic targets formulated in the company with cooperation, assertiveness, tenacity, innovation and struggle, and realized breakthroughs in equipment, technology and sales of LCD glass substrates. The annual sales revenue of glass substrates in 2014 achieved RMB 338.8252 million and was in a leading position in the domestic industry. The sixth-generation (G6) glass substrate products have already entered into BOE and other customs and gained satisfying economic effectiveness.
The 10 production lines of G6 LCD glass substrates in Wuhu Optoelectronic were sponsored by the funds raised through non-public shares in the company, The company adopted a phased construction, stage production, staging achieve efficiency model. Construction of Wuhu photoelectric 10 G6 LCD glass substrate production line,Up to the end of reporting period, four production lines have been put into production. The workshop of second phase has been completed, equipment installation and debugging in the fifth line of second phase has been finished and met the ignition conditions, and the sixth and eighth lines were in the phase of equipment installation and debugging. In October 2014, Wuhu Optoelectronic was awarded the―High and New Technology EnterpriseCertificate‖ issued jointly by Science and Technology Department of Anhui Province, Finance Department of Anhui Province, National Tax Bureau of Anhui Province and Local Tax Bureau of Anhui Province.
In the reporting period, the trustee companies Zhengzhou Xufei and Shijiazhuang Xuxin have realized flourishing production and sales of G5 glass substrates, and cover glass produced by Sichuan Xuhong realized foreign volume sales. Besides the realization of G5-6 LCD glass substrate coverage, the company also achieved the expansion into cover glass field.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report II. Analysis on principal Business
1.General
The company is primarily engaged in the development of flat panel display glass substrate and equipment, production and sales, production and sales of electronic vacuum glass devices and supporting electronic components, Construction Engineering, the main products for the TFT-LCD glass substrates, glass substrates outfit, A-frame, brick overflow, Construction Engineering etc.
In the reporting period, The sales of TFT-LCD glass substrates produced by the company was RMB 338.8252 million, and the sales of glass substrate equipment and technical services was RMB 1150.1874 million. The operation revenue of the period realized a year-on-year growth of130% while the year-on-year growths of operating costs and net profit were respectively187.82% and138.46%.
Progress of development strategy and operation plans in this period that are disclosed by the company in the previous annual reports.
Nil
Reasons for difference of actual operation performance has20% lower or higher than profit forecast of the Year disclosed
□Applicable√ Not applicable
The main changes in the business model.
□Applicable√ Not applicable
2. Revenue
Notes
The reporting period, the company raised the tender 3 G6 generation TFT-LCD glass substrate production line mass production, the annual sales income of the glass substrate achieved 338.8252 million, and achieve a glass substrate and outfit sales and technical services to keep pace with the growth pattern of revenue, the company actively explore urbanization construction and installation business and other new business to achieve new economic growth point
Is the income from sales in kind greater than the service income?
□Yes√ No
Significant orders in hand
□Applicable√ Not applicable
Significant change in or adjustment of the products or services in the reporting period:
□Applicable√ Not applicable
Main customers
Information of theCompany‘s top 5 customers
|||
|-|-|
|Total sales amount to top 5 customers (RMB)|1,758,344,583.53|
|Proportion of sales to top 5 customers in the annual||
||82.04%|
|sales(%)||

□Applicable√ Not applicable
Information of theCompany‘s top 5 customers
√ Applicable□ Not applicable
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||
|-|-|-|-|
|No|Name|Amount（RMB）|Proportion|
|1|Custormer 1|846,671,023.38|39.50%|
|2|Custormer 2|291,783,468.00|13.61%|
|3|Custormer 3|333,346,326.61|15.55%|
|4|Custormer 4|203,720,045.14|9.50%|
|5|Custormer 5|82,823,720.40|3.86%|
|Total|--|1,758,344,583.53|82.04%|

 Other explanation :
□Applicable√ Not applicable
3..Costs
Classification of sectors
In RMB
||||||||
|-|-|-|-|-|-|-|
|||2014||2013|||
|Classification of|||||Proportion in|Increase/Decrease|
||Items||Proportion in||||
|sectors||Amount||Amount|operation costs|(%)|
||||operation costs||||
||||||(%||
|Whole set of|||||||
|equipment and|||||||
||Operation cost|500,621,985.08|42.44%|346,154,281.43|84.47%|-42.02%|
|Technology|||||||
|serves|||||||
|Glass substrate|Operation cost|151,152,163.60|12.81%|5,313,672.28|1.30%|11.52%|
|Electric vacuum|||||||
|glass devices and|||||||
||Operation cost|9,812,575.72|0.83%|14,816,487.87|3.62%|-2.78%|
|supporting|||||||
|electronic devices|||||||
|Construction|||||||
||Operation cost|501,033,984.81|42.48%|2,509,568.73|0.61%|41.87%|
|Installation|||||||

Classification of products
In RMB
||||||||
|-|-|-|-|-|-|-|
|||2014||2013|||
|Classification|||||||
||||||Proportion in|Increase/Decre|
|of products|Items||Proportion in||||
|||Amount||Amount|operation costs|ase(%)|
||||operation costs||||
||||||(%||
|Whole set of|||||||
|equipment and|||||||
||Operation cost|500,621,985.08|42.44%|346,154,281.43|84.47%|-42.02%|
|Technology|||||||
|serves|||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Glass substrate|Operation cost|151,152,163.60|12.81%|5,313,672.28|1.30%|11.52%|
|Electric vacuum|||||||
|glass devices and|||||||
||Operation cost|9,812,575.72|0.83%|14,816,487.87|3.62%|-2.78%|
|supporting|||||||
|electronic devices|||||||
|Construction|||||||
||Operation cost|501,033,984.81|42.48%|2,509,568.73|0.61%|41.87%|
|Installation|||||||

Notes
Nil
Principal suppliers
|||
|-|-|
|Total sales volume of top 5 clients (RMB)|605,510,612.98|
|Percentage of total sales volume of top 5 clients in total||
||21.35%|
|annual sales volume （%）||

Information about the top 5 suppliers
√Applicable√ Not applicable
|||||
|-|-|-|-|
|No|Name|Amount（RMB）|Proportion(%)|
|1|Supplier 1|246,144,703.15|8.68%|
|2|Suppler 2|104,725,675.21|3.69%|
|3|Supplier 3|111,280,334.23|3.92%|
|4|Supplier 4|71,993,749.42|2.54%|
|5|Supplier 5|71,366,150.97|2.52%|
|Total||605,510,612.98|21.35%|

 Other explanation
□Applicable√ Not applicable
4.Expenses
||||
|-|-|-|
|Items|2014|Increase/Decrease(%)|
|Business taxes and additional|26,343,940.13|127.85%|
|Sale expenses|14,824,906.90|81.52%|
|Administration expenses|210,619,129.62|110.08%|
|Financial expenses|60,438,346.22|1883.80%|

5.R& D Expenses
|||||
|-|-|-|-|
|No|Items|2014|2013|
|1|R& D Expenses|60,153,253.00|42,043,411.04|
|2|Net assets Proportion%|0.93%|0.72%|
|3|Business income proportion %|2.81%|4.51%|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 6.Cash Flow
In RMB
|||||
|-|-|-|-|
||||Increase/Decrease(|
|Items|2014|2013||
||||%)|
|Subtotal of cash inflow received from operation|2,749,909,374.51|751,126,547.25||
||||266.10%|
|activities||||
|Subtotal of cash outflow received from operation|2,793,966,783.79|2,588,345,382.16||
||||7.94%|
|activities||||
|Net cash flow arising from operating activities|-44,057,409.28|-1,837,218,834.91|97.60%|
|Subtotal of cash inflow received from investing|3,500,000.00|4,349,773.95||
||||-19.54%|
|activities||||
|Subtotal of cash outflow for investment activities|1,153,537,978.22|2,254,600,150.18|-48.84%|
|Net cash flow arising from investment activities|-1,150,037,978.22|-2,250,250,376.23|48.89%|
|Subtotal cash inflow received from financing|3,062,442,159.42|8,534,498,025.46||
||||-64.12%|
|activities||||
|Subtotal cash outflow for financing activities|1,327,072,948.70|2,092,787,971.92|-36.59%|
|Net cash flow arising from financing activities|1,735,369,210.72|6,441,710,053.54|-73.06%|
|Net increase in cash and cash equivalents|541,260,170.69|2,354,240,842.40|-77.01%|

 Notes to the year-on-year change of the relevant data by over30%
√Applicable□Not applicable
1. Net Cash flows from operating activities Net increase, mainly due to the increase of current period efforts to recover the payment of accounts receivable;
2. Net cash flow from investing activities increased, mainly due to the purchase of fixed assets due to the
reduction of expenditure;
3 Net cash flow from financing activities decreased, mainly due to higher placement of funds in place of last year.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year□Applicable√Not applicable
III. Composition of principal businesses
In RMB
||||||||
|-|-|-|-|-|-|-|
||||||Increase/decrease|Increase/decrease|
|||||Increase/decrease|||
||||||of rincipal|of gross profit|
|||||of reverue in the|||
||Operating||Gross profit||business cost over|rate over the|
|||operating costs||same period of|||
||revenue||rate(%)||the same period|same period of|
|||||the previous|||
||||||of previous year|the previous year|
|||||year(%)|||
||||||(%)|(%)|
|Industry|||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Whole set of|||||||
|equipment and|||||||
||1,150,187,412.86|500,621,985.08|56.47%|38.81%|44.62%|-1.75%|
|Technology|||||||
|serves|||||||
|Glass substrate|338,825,234.76|151,152,163.60|55.39%|6,276.48%|2,744.59%|55.39%|
|Electric vacuum|||||||
|glass devices and|||||||
||11,588,953.38|9,812,575.72|15.33%|-43.76%|-33.77%|-12.76%|
|supporting|||||||
|electronic devices|||||||
|Construction|||||||
||597,786,689.45|501,033,984.81|16.19%|21,568.31%|19,864.94%|7.16%|
|Installation|||||||
|Product|||||||
|Whole set of|||||||
|equipment and|||||||
||1,150,187,412.86|500,621,985.08|56.47%|38.81%|44.62%|-1.75%|
|Technology|||||||
|serves|||||||
|Glass substrate|338,825,234.76|151,152,163.60|55.39%|6,276.48%|2,744.59%|55.39%|
|Electric vacuum|||||||
|glass devices and|||||||
||11,588,953.38|9,812,575.72|15.33%|-43.76%|-33.77%|-12.76%|
|supporting|||||||
|electronic devices|||||||
|Construction|||||||
||597,786,689.45|501,033,984.81|16.19%|21,568.31%|19,864.94%|7.16%|
|Installation|||||||
|Area|||||||
|Domestic|2,063,081,464.94|1,140,563,227.36|44.72%|140.91%|209.93%|-12.31%|
|Hongkong,|||||||
|Macao and|30,708,296.70|17,286,285.00|43.71%||||
|Taiwan|||||||
|Overseas|4,598,528.81|4,771,196.85|-3.75%|396.71%|506.92%|-18.84%|

 Under the circumstance that the statistic specifications for theCompany‘s principal business data experienced adjustment in the reporting period, the principal business data upon adjustment of the statistic specifications at the end of the reporting period in the latest year.
□Applicable√ Not applicable
IV. Analysis on Assets and Liabilities
1.Significant Change in assets
In RMB
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
||End of 2014||End of 2013||||
|||Proportion||Proportion in|Proportion|Notes to the|
||Amount|in the total|Amount|the total|increase/decrease|significant change|
|||assets(%)||assets(%)|||
|Monetary fund|3,196,271,083.93|25.64%|2,586,660,951.04|28.64%|-3.00%||
|Accounts|638,809,800.10||943,285,462.11||||
|||5.12%||10.44%|-5.32%||
|receivable|||||||
|Inventories|512,854,086.79|4.11%|298,619,165.08|3.31%|0.80%||
|Investment based|||12,216,614.26||||
|||||0.14%|-0.14%||
|real estate|||||||
|Fixed assets|1,958,761,855.66|15.71%|141,108,554.36|1.56%|14.15%||
|Construction in|2,045,729,633.22||1,914,118,112.98||||
|||16.41%||21.19%|-4.78%||
|progress|||||||

2.Significant Change in Liabilities
In RMB
||||||||
|-|-|-|-|-|-|-|
||2014||2013||||
||||||Proportion||
|||Proportion||||Notes to the significant|
|||||Proportion in the|increase/dec||
||Amount|in the total|Amount|||change|
|||||total assets (%)|rease(%)||
|||assets (%)|||||
|Short-term|1,288,900,000.00||580,000,000.00||||
|||10.34%||6.42%|3.92%||
|loans|||||||
|Long-term loan|3,572,000,000.00|28.65%|2,300,000,000.00|25.46%|3.19%||

V. Analysis on core Competitiveness
1. Strong independent innovation capability
The company and hosting company has LCD glass substrates with independent intellectual property, PDP glass substrates, high alumina float plate glass and many other technologies, about 400 patents related to glass substrates.
The production andR&D of glass substrates has high technical barriers, has a very high requirement for equipment , technology and other aspects of the recipe. Only relying on independent innovation , in order to truly break the blockade and monopoly of foreign companies. About equipment , the company has integrated sophisticated equipment glass substrate manufacturing capacity for the production of glass substrates; about formulation, the company was the first one to adopt green arsenic formulations , the optical properties of the glass substrate and finished product yield reached international level; about technology , the company mastered the melting , molding , cutting, transport , inspection, packaging film and other key production processes and apply mature in producing glass substrates. The company's powerful innovative R& D strength depend on the team from Taiwan , Korea, Japan and other places more than 300 experts, all have a lot of experience in the production of the material, technology, equipment , quality control and other aspects. Thus the company's technology continues to upgrade. Meanwhile, the company focused on research combining
extensive industry, academia , research cooperation and exchanges with well-known research institutions and professional
institutions , build a country where the LCD glass substrate and a plurality of joint laboratory Provincial Engineering Laboratory
( Research Center ) , and comprehensively promote technological research and innovation . . The company and hosting company has
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report LCD glass substrates with independent intellectual property, PDP glass substrates, high alumina float plate glass and many other technologies, about 400 patents related to glass substrates.
2. Advantage of the country's leading industry position
A subsidiary in Wuhu and Shijiazhuang equipment company was established to strengthen the glass substrate manufacturing system integration capabilities. The company began the construction of 10 line of 6th generation TFT-LCD glass substrate production line, becoming the world's largest glass substrate 6 Line production base. The company has developed into a high-tech enterprise with the LCD glass substrate manufacturing, sales, LCD glass substrate manufacturing equipment, technical services, becoming the domestic industry leader. The company and hosting company have five production bases, covering five generations, six-generation glass substrates and plasma glass substrate, the cover glass and other high-end display glass and the industry competitive advantage was obvious.
In the future, with plans to gradually reach the production and hosting company assets into the glass substrate, the company will further consolidate the leading position of domestic glass substrates and glass substrates among the global forefront of the industry, the industry position advantages was obvious.
3. Flexible and efficient management system
Dongxu Group is the controlling shareholder of the company, it was mainly engaged in the inception of the design, manufacture of Picture Tubes equipment and systems integration in the electronics industry and has accumulated rich experience in management , technical design, technology and has talented team. In 2010, Dongxu Group reorganized Baoshi Group, the management system converted from a state-owned enterprise to the private company. The company accurately judged market and industry development direction, response and grasp the opportunity fast and flexible and make full use of talent, capital and other resources, thus occupying a strategic position. In the consumer electronics industry chain that with rapid develpement and high barrier, the advantages of flexibility and efficiency of the company was obvious .
VI. Analysis on investment Status
1. External Equity investment
（1）External investment
√Applicable□Not applicable
||||
|-|-|-|
|External investment|||
|Investment Amount in 2014(RMB)|Investment Amount in 2013(RMB)|Change rate|
|368,453,728.53|4,371,264,000.00|-91.57%|
|Particulars of investees|||
|Companies|Principal business|Proportion in the investees‘ equity (%)|
||Building Engineering, Hydropower||
||Engineering,Municipal public Engineering,||
||Highway Engineering, Earth and rock ,||
|Sichuan Ruiyi Construction Engineering|||
||anti-corrosion insulation ,Highway and|100.00%|
|Co., Ltd|||
||traffic Engineering, Highway surface||
||project, Highway subgrade Engineering,||
||Electrical equipment installation,||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
||specialized Engineering, Engineering||
||design , Engineering Management and||
||Land Consolidation,etc.||
||Real estate development, property manage||
||ment; engineering consulting; sales of self-||
||developed real estate; rental of office space||
|Beijing Xufeng Real Estate Co., Ltd.||100.00%|
||, commercial space for rent; motor vehicle||
||public parking management services; inves||
||tment, investment management||
||Investment of photoelectric display glass||
||substrate industry, construction and||
|Wuhan Dongxu Optoelectronic|||
||operation and related technology|100.00%|
|Technology Co., Ltd.|||
||development, technology consulting,||
||technology services||
|Dongxu(Kunshan)Display Material Co.,|Sale of optoelectronic mechanical equipme||
|||80.00%|
|Ltd.|nt and Other electronic products,||

2.Application of the Raised capital
√ Applicable□ Not applicable
（1）General application of the raised capital
√ Applicable□ Not applicable
InRMB‘0000
|||
|-|-|
|Total amount of the raised capital|503,880|
|Total raised capital invested in the report period|23,791.98|
|Total accumulative raised capital invested|471,250.59|
|Amount of raised capital of which the purpose was changed in the report period|0|
|Accumulative amount of raised capital of which the purpose has been changed|0|
|Proportion of raised capital of which the purpose has been changed (%)|0.00%|
|Notes to use of raised capital||

（2）Promised projects of raised capital
√ Applicable□ Not applicable
InRMB‘0000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Total|||Accumul|Investme|Date|||Has any|
||Project||Total|Amount||||Benefit|||
|||raised|||ated|nt|when the||Has the|material|
||changed(i||investme|inested in||||realized|||
|Committed investment||capital|||amount|progress|project||predicted|change|
||ncluding||nt after|the||||in the|||
|projects and investment||invested|||invested|ended the|has||result be|taken|
||partial||adjustme|reporting||||reporting|||
|||as|||at the end|reporting|reached||realized|place in|
||change)||nt (1)|period||||period|||
|||commited|||of the|period(%|the|||feasibility|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||reporting|)(3)=(2)(|predicted||||
||||||period(2)|1)|applicabl||||
||||||||e status||||
|Committed investment projects|||||||||||
|Panel display galass|||||||||||
|substrate project of|||||||||||
||||||471,250.5||||||
|Wuhu Dongxu|No|496,106.4|496,106.4|23,791.98||94.99%||32,015.1|No|No|
||||||9||||||
|Optoelectronic|||||||||||
|Technology Co., Ltd.|||||||||||
|Subtotal of promised|||||471,250.5||||||
||--|496,106.4|496,106.4|23,791.98||--|--|32,015.1|--|--|
|investment projects|||||9||||||
|Investment of excessive raised capital|||||||||||
||||||471,250.5||||||
|Total|--|496,106.4|496,106.4|23,791.98||--|--|32,015.1|--|--|
||||||9||||||
|Reason or situation|||||||||||
|thatnot on schedule (on|Not applicable||||||||||
|specific project)|||||||||||
|Notes to major|||||||||||
|changesin project|No||||||||||
|feasibility|||||||||||
|Amount, application|Not applicable||||||||||
|and application|||||||||||
|progress of the|||||||||||
|unbooked proceeds|||||||||||
|About the change of|Not applicable||||||||||
|the implementation site|||||||||||
|of the projects invested|||||||||||
|with the proceeds|||||||||||
|Adjustment of the|Not applicable||||||||||
|implementation way of|||||||||||
|investment funded by|||||||||||
|raised capital|||||||||||
|About the initial|Applicable||||||||||
|investment in the|On April 17, 2013，The 36th Meeting of the sixth Board of Directors of the Company has examinedandapproved the ―Proposal on the Replacement of the Self-funancing Funds pre-put into InvestmentProject with the RAISED Funds‖, and agreed the company to make arrangement for the funds-raising onthe replacement of the pre-investment based on the plan of non-public issuance of stocks, with thepre-invested self-financing funds of RMB 2,077,426,324.50 replaced by the raised funds.||||||||||
|projects planned to be|||||||||||
|invested with the|||||||||||
|proceeds and the|||||||||||
|replacement|||||||||||
|Using the idle proceeds|Applicable||||||||||
|to supplement the|On May 27, 2014, The 11th Meeting of the seventh Board of Directors of the company has examined and||||||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||
|-|-|
|working capital on|approved the ―Proposal on Some Idle Funds-raising Used to replenish the working fund”, and agreed thecompany to use the idle funds-raising of RMB250million (accounting for 5.04% of the actual netfunds-raising) to temporarily replenish the working fund of the company, with the validity not exceeding12 months after the date of examination and approval of the Board of Directors. The company shallpromptly repay into the special account of the funds-raising when the payment replenished for the workingfund comes due.|
|temporary basis||
|Balance of the|Not applicable|
|proceeds in process of||
|project implementation||
|and the cause||
||As of December 31, 2014, the funds raised but have not been used was RMB 253.3267 million, taking|
|About application and|5.03% of the total. The incomplete usage was due to the incomplete project construction and failure of|
|status of the proceeds|partial contract payments in meeting the payment conditions. The residual raised funds will be successively|
|unused|put into the production line project of photoelectric flat-panel glass substrates in Wuhu.|
|Problems existing in||
||The company strictly accordance with "use of funds raised management system" and "raise funds tripartite|
|application of the||
||regulatory agreement" to raise funds and special accounts storage use, and timely, truely, accurately and|
|proceeds and the||
||completely disclosure of the deposit and use of proceeds, there is no violation circumstances.|
|information disclosure||
|or other issues||

(3). Application of raised proceeds
□Applicable√ Not applicable
The company had no application of raised proceeds in the reporting period.
3. Main subsidiaries and stock-jointly company analysis
√ Applicable□ Not applicable
Particulars about the principal subsidiaries and Mutual shareholding companies
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Leading||Total|||Operating||
|Company|Company|Sectors||Registered||Net assets|Tumover||Net Profit|
||||products||assets(RMB|||profit||
|Name|type|engaged in||capital||(RMB)|(RMB)||(RMB)|
||||and services||)|||(RMB)||
|Hebei||||||||||
|Xubao||||||||||
|Constructio||||||||||
||||Constructio|100,000,00|144,119,12|124,987,96|115,111,306|27,248,562.|20,427,966.|
|n|Subsidiary|Engineering||||||||
||||n|0.00|4.09|7.87|.14|13|05|
|Installation||||||||||
|Engineering||||||||||
|Co., Ltd.||||||||||
|Shijiazhuan||||540,681,95|186,183,64|98,148,515.||-1,653,845.|-1,653,845.|
||Subsidiary|Production|Color Bulb||||0.00|||
|g Baoshi||||6.80|9.72|43||36|36|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Color Bulb||||||||||
|Co., Ltd..||||||||||
|Wuhu||||||||||
||||Whole set|||||||
|Dongxu||||||||||
||||of|||||||
|Optoelectro||||||||||
|||Manufactur|equipment|98,000,000.|4,674,125,1|781,720,32|2,252,680,5|1,066,344,2|1,061,061,3|
|nic|Subsidiary|||||||||
|||e|and|00|09.65|7.25|42.60|58.31|87.41|
|Equipment||||||||||
||||Technology|||||||
|Technology||||||||||
||||serves|||||||
|Co., Ltd||||||||||
|Wuhu||||||||||
|Dongxu||||||||||
|Optoelectro||Manufactur|Glass|2,000,000,0|8,878,509,2|5,061,131,4|342,135,21|108,772,63|314,162,19|
||Subsidiary|||||||||
|nic||e|substrate|00.00|67.47|18.16|0.56|9.55|3.80|
|Technology||||||||||
|Co., Ltd.||||||||||
|Wuhan||||||||||
|Dongxu||||||||||
|Optoelectro||Manufactur|Glass|5,000,000.0|15,028,700.|3,439,234.3||||
||Subsidiary||||||0.00|-87,136.98|-184,545.29|
|nic||e|substrate|0|61|9||||
|Technology||||||||||
|Co., Ltd||||||||||
|Sichuan||||||||||
|Ruiyi||||||||||
|||Constructio||||||||
|Constructi|||Constructio|100,000,00|324,279,09|142,683,02|488,585,38|56,254,107.|42,228,717.|
||Subsidiary|n||||||||
|on|||n|0.00|0.22|6.03|3.31|92|12|
|||Installation||||||||
|Engineerin||||||||||
|g Co., Ltd.||||||||||
|Beijing|||Real|||||||
|||Real estate||||||||
|Xufeng|||estatedeve|20,000,000.|19,986,486.|19,986,486.||||
||Subsidiary|Develop|||||0.00|-13,513.17|-13,513.17|
|Real estate|||lopement|00|83|83||||
|||ment||||||||
|Co., Ltd.|||and sales|||||||
||||Sales of opt|||||||
|Dongxu|||oelectronic|||||||
|（Kunshan|||devices and|||||||
|||Manufactur||500,000,00|8,000,000.0|8,000,000.0||||
|）Display|Subsidiary||other electr||||0.00|0.00|0.00|
|||e||0.00|0|0||||
|Material|||onic device|||||||
|Co., Ltd.|||s|||||||

Particulars about the principal subsidiaries and Mutual holding companies
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable□ Not applicable
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||
|-|-|-|-|
|Name|Purpose|Mode|Influence|
|Sichuan Ruiyi ConstructionEngineering Co., Ltd.|Urbanization pioneering business,looking for new profit growth point|Purchase|Increase profit|
|Beijing Xufeng Real Estate Co.,Ltd.|Development and construction of officebuildings and the establishment of the project company|Newly established|Construction period|
|Dongxu (Kunshan )DisplayMaterial Co., Ltd.|Development of color film glass substrates related business, looking for new profit growth point|Newly established|Construction period|

4. Major projects invested by non-raised fund
□Applicable√ Not applicable
The company had no major projects invested by non-raised fund in the reporting period.
VII. Prediction of business performance for January -March 2015.
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
VIII. Special purpose vehicle controlled by the Company
□Applicable√ Not applicable
IX. Prospect for future development of the Company
1. The Development Trend of the Industry
According to the prediction by Display Search, the revenue of global TFT-LCD panel industry will achieve 143.2 billion USD in 2017, taking83.27% of the whole FPD (Flat-panel display) industry. As the glass substrates take10%-20% of the TFT-LCD panel costs and the color films take about20%, the development of TFT-LCD panel will drive the demands for upstream materials such as glass substrate and color film. In addition, the rapid development of mobile terminal devices including PC and smart phone maintains the persistent and remarkable growth of small-and-medium sized panel capacity around the world, which will further stimulate the glass substrate industry at the upper end of the industrial chain and motivate the vigorous growth of demands for G6 line and the under LCD glass substrates.
Benefiting from the technological advance and simplified technology, the production cost of TFT-LCD industry has been constantly and sharply reduced, the whole industry has entered into the period of stable growth and will hold a dominant position in a period of time. The―domestication‖ process of glass substrates in our nation will also enter into the acceleration period. Driven by factors such as sustained and rapid growth of domestic economy and the huge domestic demands, the TFT-LCD industry in the nation demonstrates burgeoning potential for growth. In recent years, the nation has published a series of policies to encourage the
development of TFT-LCD industry and positively push forward the domestication of the industry. Aiming at forging a flagship in
China‘s photoelectric industry, the company is one of the few enterprises mastering LCD glass substrates and the outfit production
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report technology in the globe with an advantageous foundation in the FPD glass substrate industry.
2. Future Development Strategy of the Company
(1)To firm the the leading position in domestic glass substrate industry. The company plans to push forward the production line construction of G6 glass substrates in Wuhu Photoelectricity, inject trustee companies in due time, encourage the production line construction for G8.5 and other advanced generation TFT-LCD glass substrates, and enhance market development, with which the leading position in glass substrate industry can be ensured.
(2)To expand industry chain and strengthen industrial integration and form a photoelectric industry cluster with comprehensive competitiveness. Focusing on the target of―forging a flagship inChina‘s photoelectricindustry‖, the company will energetically develop the synergistic effect of downstream customer base as well as photoelectric display industry chain and keep expanding product structure in the next few years; meanwhile, the company will seek for industrial integration in the fields such as FPD new materials according to the market requirements and form a photoelectric industry cluster with comprehensive competitiveness. 3. Business plan in 2015
(1) The company will steadily push forward 10―FPD glass substrate production line projects in Wuhu Dongxu Optoelectronic Technology Co. Ltd. as well as the construction of G6 glass substrate production line; secondly, the company will actively seek for cooperation based on the market demands, and duly advance the construction of G8.5 and other advanced generation glass substrate production lines; simultaneously, the company will proactively boost the production line construction of―G5 color filter (CF) forTFT-LCD‖ and expand the production distribution of upstream materials for TFT-LCD panels.
(2) On the basis of successful industrialization experience, the company will keep increasingR&D funding, focus on cover glass, advanced generation TFT-LCD glass substrate, glass substrates made of low temperature poly-silicon (LTPS), thin glass substrates as well as high-end equipment R& D and manufacturing technique of advanced generation, maintain the advantages in technical and product innovation, and upgrade the core competitiveness of the company.
(3) The company and the trustees will ceaselessly consolidate their existing market basis , adopt the market strategy of―high quality, low costs and superiorservice‖, and realize the import substitution of glass substrates step by step within the nation. When possessing the advantage of low cost, the company is able to continuously improve the technological level of equipment and products through strengthening technology R& D and quality management, upgrade product performance and quality and perfect the after-sales services.
(4) strengthen talent introduction and training, the use of scientific effective incentive mechanism, the greatest degree of talent to play the enthusiasm, initiative and creativity.
(5) by running the company's internal control system, strengthen internal control and management, to enhance the company's standardized operation and enhance the company's ability to cope with risks.
(6) In other business, the Group's overall advantage to play. Actively expanding urbanization, smart city construction business, enhance the company's profitability.
X. Explanation on “ModifiedAuditor’s Report” from the Board and Supervisory Committee
□Applicable√ Not applicable
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report XI. Comparing with lastyear’s financial report, explain changes in aspect of accounting Policy, accounting estimates and calculation measures
√ Applicable□ Not applicable
Changes in Principal Accounting Policies of the Company within the Current Reporting Period
Seven concrete standards of Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment, Accounting Standards for Business Enterprises No. 9 - Employee Compensation, Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements, Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements, Accounting Standards for Business Enterprises No. 39 - Fair Value Measurement, Accounting Standards for Business Enterprises No. 40 - Arrangements for Joint Venture and Accounting Standards for Business Enterprises No. 41 - Interests Disclosure in Other Entities has successively revised and newly issued the Ministry of Finance from January 26, 2014. In addition, the Ministry of Finance has required all enterprises using the Accounting Standards for Business Enterprises within the enterprise scope to implement the above-mentioned standards from July 1, 2014.
Accounting Standards for Business Enterprises No. 37- Presentation of Financial Instruments was revised by the Ministry of Finance in June, 2014 and shall be used as the basis to present the financial instruments in the financial reporting for enterprises who implement Accounting Standards for Business Enterprises in and after 2014.
Decision on Modification of Accounting Standards for Business Enterprises-Basic Standard was issued by the Ministry of Finance in July 23, 2014 and shall be implemented from the date of promulgation.
Ⅰ. Accounting Policies Adopted by the Company before This Change
Before this change, the Company implemented the Accounting Standards for Business Enterprises-Basic Standard issued by the Ministry of Finance in February 15, 2006, 38 specific accounting standards, the application guide of accounting standards for business enterprises, interpretation and announcement of accounting standards for business enterprises as well as other relevant provisions.
Ⅱ. Accounting Policies Adopted by the Company after This Change
According to the provisions of the Ministry of Finance, the Company would implement the newly revised and issued accounting standards for business enterprises; as for parts not covered in this standard revision, the Company would still implement the Accounting Standards for Business Enterprises-Basic Standard issued by the Ministry of Finance in February 15, 2006, 38 specific accounting standards, the application guide of accounting standards for business enterprises, interpretation and announcement of accounting standards for business enterprises as well as other relevant provisions.
(1) Influences on the Company of This Accounting Policy Change
① Relevant Information on the Implementation of Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment
According to the provisions of Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment, as for the holding long-term equity investments with no controlling, co-controlling and significant influences and whose fair value cannot be reliably measured, the Company shall account them as available-for-sale financial assets, not as the long-term equity investments, and adjust them through the retroactive adjustment approach. The implementation of above-mentioned standards shall not have any influence on theCompany‘s financial statements of 2013 and 2014.
②Relevant Information on the Implementation of Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements
According to the provisions of Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements, the Company modifies the presentation of financial statement, which comprises the following two types of presentations of other comprehensive profitable projects in the profit statement: 1. other comprehensive profitable projects that shall be re-classified into the profit or loss in the latter accounting period when the prescribed conditions are met; 2. other comprehensive profitable projects
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report that shall not be re-classified into the profit or loss in the latter accounting period; The implementation of this standard shall not have any influence on theCompany‘s financial statements of 2013 and 2014.
③ As for business and items related to employee compensation, presentation of financial instruments, fair value measurement, arrangement for joint venture and equity in other entities, the implementation of this standard shall not have any influence on theCompany‘s financial statements of 2013 and 2014.
XII. Particular about major accounting errors correction that needs retroactive re-statement in reporting period
□Applicable√ Not applicable
No particular about major accounting errors correction that needs retroactive re-statement for the Company in the reporting. XIII. Compare with lastyear’s financial report; explain changes in consolidationstatement’s scope
√ Applicable□ Not applicable
1. The Enterprise Consolidation Not under the Common Control
The Enterprise Consolidation Not under the Common Control Occurred in the Current Year
InRMB‘0000
|||||||||
|-|-|-|-|-|-|-|-|
|Name of Acquiree|Time-point ofObtainedEquity|ObtainedCost ofEquity|Ratio ofObtainedEquity(100%)|Method ofObtainedEquity|PurchasingDate|DeterminationBasis on thePurchasingDate|Income ofAcquire fromthePurchasingDate to theEnd of thePeriod|
|Sichuan RuiyiConstructionEngineering Co., Ltd|2014.06|2,0.5137million|100.00|Cash|2014.06||48,858.54|

2. Consolidation Scope of Other Reasons
Upon the approval of Proposal on Investment and Establishment of Beijing Xufeng Real Estate Co., Ltd by the 7th session of the 21th Board Meeting, the Company is agreed to establish the wholly-owned subsidiary Beijing Xufeng Real Estate Co., Ltd.
Upon the approval of Proposal on Investment and Establishment of Holding Subsidiary with KETD State Development and Investment Holding Co., Ltd by the 7th session of the 25th Board Meeting, , the Company is agreed to establish the holding subsidiary Dongxu (Kunshan) Display Material Co., Ltd.
Sichuan Ruiyi Construction Engineering Co., Ltd, the wholly-owned subsidiary, invested to establish the sub-subsidiary Wuhu Ruiyi
Labor Co., Ltd in July, 2014 with investment amount of RMB 20 million and investment ratio of100.00%.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report XIV. Profit and dividend distribution
Formulation, implementation and adjustment of profit Distribution Policy Espencially cash Dividend policy during the reporting period.
√ Applicable□ Not applicable
According to regulations released by China Securities Regulatory Commission (CSRC) including Related Matters on Further Implementation of the Cash Dividends of Listed Companies as well as The No.3 Regulatory Guidelines for Listed Companies - Cash Dividends of Listed Companies and related documents such as articles of incorporation, The Next Three-year Plan on Company Shareholder Returns (2012-2014) was reviewed the revised on the 27th meeting of the Seventh Board of Directors in the company and a new version of The Next Three-year Plan on Company Shareholder Returns (2015-2017) was formulated based on the reality, which aims to further strengthen the cash dividends transparency of the company, perfect the dividend decisions and supervisory mechanism, maintain the continuity and stability of profit distribution policy and contribute to stable return anticipations for investors.
|||
|-|-|
|Special cash dividend policy description||
|Whether meets the requirements of the provisions of the articles||
||Yes|
|of association or shareholders' meeting resolutions:||
|Whether dividends standard and proportion are clear|Yes|
|Whether decision making and supervision mechanism for profit||
||Yes|
|distribution are completed||
|Whether independent directors perform their duties responsibly||
||Yes|
|and play its due role:||
|Whether the Minority shareholders have adequate opportunity to||
|express their views and aspirations and Their legitimate rights|Yes|
|and interests have been fully protected||
|Whether the Cash dividend policy to adjust or change the||
||Yes|
|conditions and procedures are compliant and transparent||

The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into share capital in the past three years(with the reporting period inclusive):
As undistributed profit of the company by the end-of-period has been negative, the Company's profit distribution plan in 2012: No profit distribution and no capitalization The Company planed that no to distribute cash dividend, bonus shares and there was no turning of capital reserve into share capital.
For the year 2013, according to the Articles of Association and related regulations, combined with the actual situation of the company, the company intended to implement the following distribution of profits and capital reserve plan: As the company had accumulated losses, there would be no cash dividends during the year; on the base of December 31, 2013 ,903 million shares of the total share capital, the company would distribute20 shares to all the shareholders for every 10 shares, for a total distribution of1806million shares. The total share capital of the Company will be increased to 2709 million shares after capitalization.
In 2014, the company total share capital of 2,662,080,001 shares on December 31, 2014 as base to undistributed profits to all shareholders for every 10 shares of cash dividends 1.0 yuan (including tax).
Dividend distribution of the latest three years
In RMB
|||||||
|-|-|-|-|-|-|
|Year|Cash dividend|Net profit|Ratio in net profit|Amount of cash|Proportion of cash|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||
|-|-|-|-|-|-|
||(Including Tax)|attributable to the|attributable to the|dividends from cash|dividends from cash|
|||over of the parent|parent company in|offer to repurchase|offer to repurchase|
|||company in the|the consolidated|shares of the funds|shares of the funds|
|||consolidated|financial statements|||
|||financial statements||||
|2014|266,208,000.10|880,625,183.53|30.23%|0.00|0.00%|
|2013|0.00|369,297,308.74|0.00%|0.00|0.00%|
|2012|0.00|142,664,558.32|0.00%|0.00|0.00%|

 In the reporting period, both theCompany‘s profit and the parentcompany‘s retained earnings were positive however not cash dividend distribution proposal has been put forward.
□Applicable√ Not applicable
XV. Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable□ Not applicable
|||
|-|-|
|Bonus shares for every ten shares(Shares)|0|
|Cash dividend for everty ten shares (Yuan)(Tax-included)|1.00|
|Distribute additional (shares)for 10 shares|0|
|A total number of shares as the distribution basis(shares)|2,662,080,001|
|Total cash dividend (Yuan)(Tax-included)|266,208,000.10|
|Profit dividend (Yuan)|348,329,886.80|
|Proportion of cash dividend in the distributable profit (%)|100.00%|
|Cash dividend distribution policy||
|Details of profit distribution or reserve capitalization plan||

XVI. Social responsibility
√ Applicable□ Not applicable
1.The company constantly improve the governance structure, strict management, there is no security breaches, related party's illegal occupation of funds, insider trading and other investors, creditors, and other damage of Stakeholder behavior.
2.Company operates in accordance with law, cooperate well with upstream and downstream customers to establish a harmonious and win-win relations.
3. The company strictly obey the "Labor Contract Law" requirements, and signlabor contracts with employees and pay social insurance for them in accordance with relevant state regulations, respect the rights of employees.
Whether the listed company and its subsidiaries belong to the heavy polluting industries regulated by the state environmental protection department.
□ Yes√ No□ Not applicable
Whether the listed company and its subsidiary exist the major social security issues.
□ Yes√ No□ Not applicable
Whether has been punished during the report period.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report□ Yes√ No□ Not applicable
XVII.Statement of such activities as reception, research, communication, interview in the reporting period√Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
||||Types of||Discussion topics and provision|
|Reception time|Reception place|Way of reception||Visitors received||
||||visitors||of materials|
||||||1.The company raised|
||||||investment project progress;|
|||Onsite|Organizati||2.6-generation line client|
|January 6, 2014|The Company|investigation|on|Fortune SG Fund,Boshi Fund|situation; 3.The company main|
||||||business in 2014; 4. The|
||||||company's technology R&D|
||||||situation.|
|||||Guangfa Securities,||
|||||New China Asset,CCB|1.The company raised|
|||||Principal Asset , HFT|investment project progress;2.|
|||Onsite|Organizati|||
|January 17,||||Investment , Huaxia Fund,|2014 equity investment projects|
||The Company|investigation|on|||
|2014||||ICBC Ruixin , Manulife Teda|planned production line|
|||||Fund, Huashang Fund,|operation; 3. The company main|
|||||Invesco Great Wall and|business in 2014.|
|||||Dacheng Fund.||
|||||Gangfa securities,King Tower||
|||||Asset, Guosen Securities,||
|||||Guojin Fund, Yinmin Fund,||
|||Onsite|Organizati|CITICPE, Yinhua Fund,|1. 6 Line production company|
|May 12, 2014|The Company|investigation|on|Sunshine Insurance ,KCI|operations;2.6-generation line|
|||||Securities, Huaxia Fund,|sales and market conditions.|
|||||Zhongjin Company, Union||
|||||Asset, Efund,Uon Fund and||
|||||Changsheng Fund.||
||||||1.The company 6 Line|
|||||Cathay Securities Co., Ltd.,||
||||||production operations and sales;|
|||||Qunyi Securities Investment||
||||||2, Hosting company operations|
|||||trust Co., Ltd., Taixin||
||||||and sales situation; 3, Hosting|
|||Onsite|Organizati|Securities Investment Trust||
||||||companies and foreign|
|June 18, 2014|The Company|investigation|on|Co., Ltd., Tongyi Securities||
||||||companies and glass|
|||||Investment Trust Co.,||
||||||manufacturers comparative|
|||||Ltd.,and Mega International||
||||||advantages; 4. The company|
|||||Securities Investment Trust||
||||||2013 annual and 2014 first|
|||||Co., Ltd.||
||||||quarter results introduction.|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|||||||1. Company 6 Line production|
|||||||operations and marketing|
|||||||expansion situation; 2.hosting|
||||||Huaxia Fund, Tianhong Fund,||
|||Onsite||Organizati||company operations; 3.Hosting|
|October 28,|||||Huashang Fund,China Life||
||The Company|investigation||on||company investment|
|2014|||||insurance asset and Xinhua||
|||||||arrangements; 4. The current|
||||||Assets||
|||||||B-share repurchase progress; 5.|
|||||||The company equip business|
|||||||development situation.|
|January 1, 2014|||||||
|||||||Production and operation|
|to December 31,|The Company|By phone||Individual|Individual||
|||||||imformation of the company|
|2014|||||||
|Reception times|||5||||
|Reception agency amount|||33||||
|Reception the individuals amount|||||||
|Reception the other|||0||||
|Whether to disclose, reveal or disclose non-public|||||||
||||No||||
|material information|||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report V. Important Events
I. Major lawsuits and Arbitration affairs
□Applicable√ Not applicable
In the reporting year, the Company had never been involved in any material lawsuit or arbitration.
II.Query form media
□Applicable√ Not applicable
In the reporting year, the Company had no query from media
III. Non-operational fund occupation from controlling shareholders and its related party
□Applicable√ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period period.
IV. Bankruptcy reorganization
□Applicable√ Not applicable
No bankruptcy reorganization for the Company in reporting period
V. Assets transaction
1. Purchase of assets
√Applicable□ Not applicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Ratio of|||||
|||||||||Relation|||
|||||||the Net|||||
|||||||||with|||
||||||Influence|Income|||||
|Counter-pa||||||||Counter-pa|||
||Acquired|Transactio||Impact on|on the|Caused by|||||
|rty or|||||||Connected|rty|Date of||
||or|n Price (10|Progress|Company's|Profit and|the Asset||||Disclosure|
|Ultimate|||||||Transactio|（applicab|Disclosure||
||Purchased|thousand|(Note 2)|Business|Loss of the|Contributi||||Index|
|Controllin|||||||n|le to|(Note 5)||
||Assets|yuan)||(Note 3)|Company|ng to the|||||
|g Party||||||||associated|||
||||||(Note 4)|Listed|||||
|||||||||business|||
|||||||Company|||||
|||||||||situation)|||
|||||||in Total|||||
||Total||Total|||||Counter-pa||Announce|
|Dongxu|equity of||assets right|||||rty: the|April 29,|ment No.:|
|||2,051.37|||||Yes||||
|Group|Sichuan||Transfer|||||dominant|2014|2014-031 ,|
||Ruiyi|||||||stockholde||http://ww|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Constructi|r Dongxu|w.cninfo.c|
|on|Group Co.,|om.cn|
|Engineerin|Ltd.||
|g Co., Ltd|||

2. Sale of assets
□ Applicable√ Not applicable
There is no sale of assets in the Company during the reporting period
3. Business combination
√Applicable□ Not applicable
Deliberated and approved on the 10th meeting of the Seventh Board of Directors and the 1st extraordinary shareholders meeting in 2014, it was agreed in About the Equity Acquisition of the Subsidiary of the Controlling Shareholder Dongxu Group that100% equity of Sichuan Ruiyi Construction Engineering Co., Ltd., which was the wholly-owned subsidiary of the controlling shareholder Dongxu Group, would be acquired at a bargain price of 20.5137 million yuan based on the net assets audit and evaluation. The share acquisition and related work would be finished before June, 2014.
VI. Implementation and its influence of equity incentive plan
√Applicable□ Not applicable
On August 19, 2014, the draft of the restricted stock incentive plan was deliberated and approved on the 15th meeting of the Seventh Board of Directors in the company:
The incentive form adopted in this incentive plan was restricted stock, whose source was Dongxu Optoelectronic Class A shares issued targeted to incentive objects by the group; the planned grant number was no more than 3.42 million accumulatively, taking0.13% of the total share capital issued by Dongxu Optoelectronic within which 3.08 million shares granted initially taking90.06% of total shares granted in this incentive plan; reserved shares were 0.34 million, taking9.94% of total shares granted in this incentive plan.
The grant price for each share under the stock standard of incentive objects granted initially was 3.88 yuan, which was50% of the average price for Dongxu Optoelectronic A shares 20 trading days before the plan notice: 7.75 yuan. When being granted the restricted stock, the incentive objects should pay for stock subscription according to the grant price. The grant price for reserved restricted stock should be confirmed according to the50% of the average price for Dongxu Optoelectronic A shares 20 trading days before the notice published on board meeting granting the shares. The period since the 12th month of restricted share grant by Dongxu Optoelectronic to incentive objects was recognized as lock-up period, within which the restricted shares granted to incentive objects were locked up and could not be transferred in any form.
On September 11, 2014, this plan was recorded by CSRC without objection. In On Confirming Related Matters on the Initial Grant of Restricted Stock Incentive Plan of the company, which was deliberated and approved on October 21, 2014 on the 21st meeting of the Seventh Board of Directors, October 22, 2014 was selected as the grant date and 3.08 million shares of restricted stock were granted to 41 incentive objects at the grant price of 3.88 yuan per share.
On October 27, 2014, Zhongxingcai Guanghua Accounting Firms Co., Ltd.(Special General Partnership) presented No. 05002
Capital Verification Report of Zhongxingcai Guanghua Audit (2014) stating that after the completion of this restricted stock grant,
the sum of shares issued by the company increased to 2,712,080,000 from 2,709,000,000 and caused the shareholding ratio change of
the controlling shareholder. Before the grant, the controlling shareholder Dongxu Group directly held14.4% of the shares and
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report indirectly held12.27% through Shijiazhuang Baoshi Electronics Group Co., Ltd.; thus, Dongxu Group held26.67% of the company shares in total directly and indirectly. After the grant, Dongxu Group held26.64% of the company shares in total directly and indirectly. This grant would not cause changes of the controlling shareholder. The listing date of this stock grant was November 5, 2014.
Content Indexing: on
http://www.cninfo.com.cn from August 19, 2014, September 11, September 15, October 22 and November 4 related announcement. VII. Material related transactions
1. Related transactions in connection with daily operation
√Applicable□ Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Amount|Proportio|||||
|||||Principle||||||||
||||Descripti|||of the|n in the|||||
|||||of pricing|Price of|||||||
|||Type of|on of|||related|amount of|||||
|Related|Relations|||of the|related|||Mode of|Market|Disclosur|Disclosur|
|||related|related|||transactio|the|||||
|parties|hip|||related|transactio|||settlement|price|e date|e index|
|||parties|transactio|||n|similar|||||
|||||transactio|ns|||||||
||||ns|||(RMB‘00|transactio|||||
|||||n||||||||
|||||||00)|n (%)|||||
||Controlle|||||||||||
|||Commodi||||||||||
|Shijiazhu|d by the|||||||||||
|||ty||||||||||
|ang|same|||Reference||||||||
|||purchased||||||||||
|Baoshi|parent||Energy|price||245.06||Currency||||
|||/labor||||||||||
|Group|company|||setting||||||||
|||service||||||||||
|Co., Ltd.|Actual|||||||||||
|||received||||||||||
||Controller|||||||||||
|Zhengzho|Controlle|||||||||||
|||Commodi||||||||||
|u Xufei|d by the|||||||||||
|||ty||||||||||
|Optoelect|same|||Reference||||||||
|||purchased|Checking|||||||||
|ronic|parent|||price||726.5||Currency||||
|||/labor|machine|||||||||
|Technolo|company|||setting||||||||
|||service||||||||||
|gy Co.,|Actual|||||||||||
|||received||||||||||
|Ltd.|Controller|||||||||||
|Chengdu|Controlle|||||||||||
|||Commodi||||||||||
|Dongxu|d by the|||||||||||
|||ty||||||||||
|Energy|same||Energy|Reference||||||||
|||purchased||||||||||
|Saving|parent||saving|price||9.34||Currency||||
|||/labor||||||||||
|Technol|company||lamp|setting||||||||
|||service||||||||||
|ogy Co.,|Actual|||||||||||
|||received||||||||||
|Ltd.|Controller|||||||||||
|Shijiazhu|Controlle|Commodi||Reference||||||||
||||Windows|||||||||
|ang|d by the|ty||price||105||Currency||||
||||and doors|||||||||
|Baoshi|same|purchased||setting||||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Zhonghe|parent|/labor|||||
|Steel|company|service|||||
|Plastic|Actual|received|||||
|Shape|Controller||||||
|Co., Ltd.|||||||
||Controlle||||||
|Shijiazhu||Commodi|||||
||d by the||||||
|ang Bofa||ty|||||
||same|||Reference|||
|Mechanic||purchased|Machined||||
||parent|||price|111.21|Currency|
|al||/labor|part||||
||company|||setting|||
|Equipmen||service|||||
||Actual||||||
|t Co., Ltd.||received|||||
||Controller||||||
|Shijiazhu|||||||
|ang||Commodi|||||
|Xuling||ty|||||
|||||Reference|||
|Electronic||purchased|Spare||||
|||||price|25.59|Currency|
|s||/labor|parts||||
|||||setting|||
|Technolo||service|||||
|gy Co.,||received|||||
|Ltd.|||||||
|Shijiazhu|||||||
|ang||Commodi|||||
|Xuling||ty|||||
|||||Reference|||
|Electronic||purchased|Superviso||||
|||||price|363.65|Currency|
|s||/labor|ry system||||
|||||setting|||
|Technolo||service|||||
|gy Co.,||received|||||
|Ltd.|||||||
|||Commodi|||||
||Controllin|ty|||||
|||||Reference|||
|Dongxu|g|purchased|Processin||||
|||||price|357.31|Currency|
|Group|sharehold|/labor|g charges||||
|||||setting|||
||er|service|||||
|||received|||||
|||||R & D|||
||Controlle||Equipmen|Costs+Pr|||
|Dongxu(|||||||
||d by the|Sales|t for|oduction|||
|Yingkou)|||||||
||same|Goods/La|High-end|line|||
|Optoelect|||||||
||parent|bor|display|material|636.08|Currency|
|ronic|||||||
||company|service|productio|cost+Prod|||
|Display|||||||
||Actual|received|n line|uction|||
|Co., Ltd.|||||||
||Controller|||line|||
|||||integratio|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|||||n|||
|||||cost+Man|||
|||||agement|||
|||||Cost and|||
|||||sales|||
|||||costs+Rea|||
|||||sonable|||
|||||profit|||
|||||R & D|||
|||||Costs+Pr|||
|||||oduction|||
|||||line|||
|||||material|||
|Zhengzho|Controlle||Equipmen|cost+Prod|||
|u Xufei|d by the|Sales|t for|uction|||
|Optoelect|same|Goods/La|High-end|line|||
|ronic|parent|bor|display|integratio|4,020.53|Currency|
|Technolo|company|service|productio|n|||
|gy Co.,|Actual|received|n line|cost+Man|||
|Ltd.|Controller|||agement|||
|||||Cost and|||
|||||sales|||
|||||costs+Rea|||
|||||sonable|||
|||||profit|||
|||||R & D|||
|||||Costs+Pr|||
|||||oduction|||
|||||line|||
|||||material|||
|Shijiazhu|||||||
||Controlle||Equipmen|cost+Prod|||
|ang|||||||
||d by the|Sales|t for|uction|||
|Xuxin|||||||
||same|Goods/La|High-end|line|||
|Optoelect|||||||
||parent|bor|display|integratio|84,667.1|Currency|
|ronic|||||||
||company|service|productio|n|||
|Technolo|||||||
||Actual|received|n line|cost+Man|||
|gy Co.,|||||||
||Controller|||agement|||
|Ltd.|||||||
|||||Cost and|||
|||||sales|||
|||||costs+Rea|||
|||||sonable|||
|||||profit|||
|Zhengzho|Controlle|Sales|Broken|Reference|58.81|Currency|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|u Xufei|d by the|Goods/La|glass|price|||
|Optoelect|same|bor||setting|||
|ronic|parent|service|||||
|Technolo|company|received|||||
|gy Co.,|Actual||||||
|Ltd.|Controller||||||
|Zhengzho|Controlle||||||
|u Xufei|d by the|Sales|||||
|Optoelect|same|Goods/La||Reference|||
|ronic|parent|bor|A-frame|price|292.31|Currency|
|Technolo|company|service||setting|||
|gy Co.,|Actual|received|||||
|Ltd.|Controller||||||
||Controlle||||||
|Shijiazhu|||||||
||d by the|Sales|||||
|ang|||||||
||same|Goods/La||Reference|||
|Baoshi|||||||
||parent|bor|Lead tube|price|352.16|Currency|
|Electronic|||||||
||company|service||setting|||
|s Group|||||||
||Actual|received|||||
|Co., Ltd.|||||||
||Controller||||||
||Controlle||||||
|Shijiazhu|||||||
||d by the|Sales|||||
|ang Bofa|||||||
||same|Goods/La||Reference|||
|Mechanic|||||||
||parent|bor|A-frame|price|885.43|Currency|
|al|||||||
||company|service||setting|||
|Equipmen|||||||
||Actual|received|||||
|t Co., Ltd.|||||||
||Controller||||||
|Hebei|||||||
||Controlle||||||
|Baoshi|||||||
||d by the|Sales|||||
|Energy|||Construct||||
||same|Goods/La||Reference|||
|Saving|||ion||||
||parent|bor||price|7.43|Currency|
|Lighting|||Installatio||||
||company|service||setting|||
|Technolo|||n||||
||Actual|received|||||
|gy Co.,|||||||
||Controller||||||
|Ltd.|||||||
|Shijiazhu|||||||
||Controlle||||||
|ang|||||||
||d by the|Sales|||||
|Xuxin|||Fill in the||||
||same|Goods/La||Reference|||
|Optoelect|||furnace of||||
||parent|bor||price|82.05|Currency|
|ronic|||glass raw||||
||company|service||setting|||
|Technolo|||materials||||
||Actual|received|||||
|gy Co.,|||||||
||Controller||||||
|Ltd.|||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Controlle|||||||||||
|Shijiazhu|d by the|Sales||||||||||
|ang|same|Goods/La||Reference||||||||
||||Hydrogen|||||||||
|Baodong|parent|bor||price||25.99||Currency||||
||||gas|||||||||
|Electrinic|company|service||setting||||||||
|Co.,Ltd|Actual|received||||||||||
||Controller|||||||||||
|Chengdu||||||||||||
|||Sales||||||||||
|Taiyesi|||Equipmen|||||||||
|||Goods/La||Reference||||||||
|Techno|||t and|||||||||
|||bor||price||4,579.26||Currency||||
|logy|||Technolo|||||||||
|||service||setting||||||||
|Co.,|||gy|||||||||
|||received||||||||||
|Ltd.||||||||||||
|||Sales||||||||||
||Controllin||Construct|||||||||
|||Goods/La||Reference||||||||
|Dongxu|g||ion|||||||||
|||bor||price||5,655.03||Currency||||
|Group|sharehold||Installatio|||||||||
|||service||setting||||||||
||er||n|||||||||
|||received||||||||||
|Chengdu||||||||||||
|Zhong||Sales||||||||||
||GeneralM|||||||||||
|Optoelec||Goods/La||Reference||||||||
||anager:||Glass|||||||||
|tronic||bor||price||140.19||Currency||||
||Li||Substrate|||||||||
|Technol||service||setting||||||||
||Zhaoting|||||||||||
|ogy Co.,||received||||||||||
|Ltd.||||||||||||
|Hejing||||||||||||
|Xushuang||Sales||||||||||
||||Construct|||||||||
|Solar||Goods/La||Reference||||||||
||||ion|||||||||
|Energy||bor||price||3,471.12||Currency||||
||||Installatio|||||||||
|Technolo||service||setting||||||||
||||n|||||||||
|gy Co.,||received||||||||||
|Ltd.||||||||||||
|Ningxia||||||||||||
|Xuning||Sales||||||||||
||||Construct|||||||||
|New||Goods/La||Reference||||||||
||||ion|||||||||
|Energy||bor||price||5,850.56||Currency||||
||||Installatio|||||||||
|Technol||service||setting||||||||
||||n|||||||||
|ogy Co.,||received||||||||||
|Ltd.||||||||||||
|||||||112,667.7||||||
|Total||||--|--||--|--|--|--|--|
|||||||1||||||
|Necessity and sustainable of related||||Related party transactions matched the company's current reality, is based on the||||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||
|-|-|
|transaction as well as reasons of related|production and management of company needs, conducive to the use of the advantages|
|transaction with related parties(not with|of the company resources, cost savings, improve efficiency.|
|other marketing dealers)||
||The Company has operations, assets, personnel, financial, institutional independence,|
|Influence on independence of listed|have an independent capacity to implement business, product production and sales to|
|company from related transaction|be independent, related party transactions do not affect the independence of the|
||company.|
||Because the reason for changes in industry trends and the company's development|
|Dependence on related parties by Company|history, the company and the Shijiazhuang Baoshi Electronics Group Co., Ltd..,|
|as well as relevant solutions(If applicable)|Dongxu Group have connected transactions, with the upgrading of the company's|
||business, the associated transaction may be gradually reduced or terminated.|

2. Related transactions by assets acquisition and sold
√Applicable□ Not applicable
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Principle|Amount|Appraise|||||||
||||Descripti|of|of the|d value|The fair||Related|Transacti|||
|||||||||Transfer|||||
|||Type of|on of|pricing|related|of the|market||transacti|on gains|||
|Related|Relations|||||||price|||Disclosu|Disclosu|
|||related|related|of the|transacti|transferr|value||on|/Losses|||
|parties|hip|||||||（RMB‘|||re date|re index|
|||parties|transacti|related|on|ed assets|（RMB‘||settleme|（RMB‘|||
|||||||||0000）|||||
||||ons|transacti|(RMB‘0|（RMB‘|0000）||nt|0000）|||
|||||on|000)|0000）|||||||
||||Sichuan||||||||||
|||||||||||||www.cni|
||||Ruiyi Co||||||||||
|||||||||||||nfo.com.|
||Controlli||nstructio||||||||||
|||Share||||||||||cn|
|Dongxu|ng||n Engine|Assessed|||||||April 29,||
|||acquisiti|||2,049.58|2,051.37|2,051.43|2,051.37|Bank|-0.06||Announc|
|Group|sharehol||ering Co.|value|||||||2014||
|||on||||||||||ement|
||der||, Ltd. 10||||||||||
|||||||||||||No.:201|
||||0% equit||||||||||
|||||||||||||4-031|
||||y||||||||||

3. Enterprise merger
□Applicable√ Not applicable
No enterprise merger for the Company in reporting period .
4. Credits and liabilities with related parties
√Applicable□ Not applicable
Did there exist any non-operational related rights of credit and liabilities
□ Yes√ No
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report There is no any credit and liability with related parties of the Company of the reporting period.
5. Other significant related-party transactions
□ Applicable√ Not applicable
The Company was not Other significant related-party transactions during the reporting period.
VIII. Important contracts and implementation
1. Custody, contacting and leases
（1）Custody
√Applicable□ Not applicable
Description of custodies
During the reporting period, the Company continued entrusted with the management of Dongxu( Yingkou) Optoelectronic Display Co., Ltd., Sichuan Xuhong Optoelectronic Technology Co., Ltd., Dongxu Optoelectronic Investment Co., Ltd., holding Zhengzhou Xufei Optoelectrionic Technology Co., Ltd., Shijiazhuang Baoshi Electrinic Group Co., Ltd., Shijiazhuang Xuxin Optoelectronic Technology Co.,Ltd. stake and management rights.
The 22th meeting of seventh Board of Directors approved the company entrusted the operation management of related party Chengdu Taiyisi Technology Co., Ltd. in order to solve the competition between them in LED equipment manufacturing industry. Principal Equity Management fees paid by the company was annual RMB 500,000 each item; annual management fee was 1 million yuan each item+ incentive management fees.
Projects that have brought about gains/losses to the company taking over10% of theCompany‘s total profit in the reporting period.
□Applicable√ Not applicable
N/A
(2) Contract
□ Applicable√ Not applicable
There was no any contract of the Company in the reporting period.
(3) Lease
□ Applicable√ Not applicable
There was not involved in ant lease of the Company in the reporting period.
2.Guarantees
√Applicable□ Not applicable
InRMB‘0000 External Guarantee (Exclude controlled subsidiaries)
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||||Guarante|
||Relevant|||||||e|
||||Date of||||||
||disclosure||||||Complete|for|
||||happening|Actual|||||
|Name of the|date/No. of|Amount of|||Guarantee|Guarantee|implemen|associate|
||||(Date of|mount of|||||
|Company|the|Guarantee|||type|term|tation|d|
||||signing|guarantee|||||
||guaranteed||||||or not|parties|
||||agreement)||||||
||amount|||||||(Yes or|
|||||||||no)|
|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)|
|Zhengzhou Xufei|||||||||
||||||The joint||||
|Optoelectronic|April 28,||||||||
|||150,000||50,000|liability||No|No|
|Equipment|2014||||||||
||||||guaranty||||
|Technology Co., Ltd.|||||||||
|||||Total of actual guarantee|||||
|Total of guarantee for subsidiaries|||||||||
|||150,000||for subsidiaries in the||50,000|||
|approved in the Period (B1)|||||||||
|||||Period (B2)|||||
|||||Total of actual guarantee|||||
|Total of guarantee for subsidiaries|||||||||
|||370,000||for subsidiaries at||270,000|||
|approved at Period-end (B3)|||||||||
|||||Period-end (B4)|||||
|Total of Company’s guarantee（namely total of the large two aforementioned）|||||||||
|Total of guarantee in the Period||||Total of actual guarantee in|||||
|||150,000||||50,000|||
|(A1+B1)||||the Period (A2+B2)|||||
|Total of guarantee at||||Total of actual guarantee|||||
|||370,000||||270,000|||
|Period-end(A3+B3)||||atPeriod-end (A4+B4)|||||
|The proportion of the total amount of actually guarantee in the||||41.95%|||||
|net assets of the Company(that is A4+B4)|||||||||
|Including|||||||||

Description of the guarantee with complex method
(1) Guarantees provided by the company
□ Applicable√ Not applicable
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report There was not involved in any Guarantees provided by the company in the reporting period.
3. Other significant contracts
□ Applicable√ Not applicable
There was no other significant contract of the Company in the reporting period.
4. Other significant transactions
□ Applicable√ Not applicable
There was no other significant transaction of the Company in the reporting period.
IX. Implementation of commitments
1.Commitments made by the Company or shareholders holding over5% of theCompany’s shares in the reporting period or such commitments carried down into the reporting period
√Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
||Commitment||Time of making|Peiod of||
|Commitment||Contents|||Fulfillment|
||maker||commitment|commitment||
|||If listed companies plans to sell||||
|||tradable stocks through the bid||||
|||trading system of Shenzhen Stock||||
|||Exchange and sell greater than 5%||||
|||of shares within six months after the||||
||Shijiazhuang|first sales, will disclose the contents||||
|Commitment on share||||Long-term|Under|
||Baoshi Electronics|specified by the Form Guide to|March 29, 2007|||
|reform||||effective|Fulfillment|
||Group Co., Ltd|Prompt Announcement of||||
|||Removing Restriction on Sales of||||
|||Non-tradable Stocks of Listed||||
|||Companies through the prompt||||
|||announcement of disclosing sales of||||
|||listed companies.||||
|Commitment in the||||||
|acquisition report or the||||||
|report on equity changes||||||
|Commitment made upon||||||
|the assets replacement||||||
|||1.From the date of commitment||||
||Dongxu Group,|||||
|Commitments made upon||letter issued, except the managed|December 22,|Long-term|Under|
||Shijiazhuang|||||
|issuance||hosting company for Dongxue|2011|effective|Fulfillment|
||Baoshi Electronics|||||
|||Optoelectronic , this company and||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||
|-|-|
|Group Co., Ltd.|majority-owned subsidiaries do not|
||in any way, directly or indirectly|
||engaged in business and Dongxue|
||Optoelectronic and its subsidiaries|
||are the same, or similar, future|
||Dongxue Optoelectronic shares and|
||its subsidiaries are not engaged in|
||the same or similar businesses.|
||2.The company assurances against|
||the use of precious stones share any|
||act prejudicial to the control|
||relationship of Dongxu|
||Optoelectronic interests and its|
||wholly-owned subsidiaries, holding,|
||or causing Dongxue Optoelectronic|
||shares and its wholly-owned|
||subsidiaries, holding form business|
||competition decisions. 3. The|
||company will not directly invest,|
||purchase and Dongxu|
||Optoelectronic identical or similar|
||business enterprises and projects.|
||4.If the assets owned by the Dongxu|
||Optoelectronic . compete with , the|
||company will adopt effective|
||measures and give up the same|
||business. 5. If the company has|
||horizontal competition with Dongxu|
||Optoelectronic and lead to lose to it,|
||the company will bear all the|
||responsibilities.|
||6. Before December 31, 2015, by|
||way of designated placement, the|
||company will transfer all the shares|
||that Dongxu Optoelectronic|
||Investment, entrusted to Zhengzhou|
||Xufei company and all the shares|
||that are entrusted to Baoshi Group,|
||to Dongxu Optoelectronics; Before|
||December 31, 2016, by way of|
||designated placement, the company|
||will transfer all the shares that|
||Dongxu Group entrusted to Dongxu|
||Yingkou and Sichuan Xuhong to|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||
|-|-|-|-|-|-|
|||Dongxu Optoelectronics. Within the||||
|||time limit mentioned above, if there||||
|||were the external factors such as a||||
|||depression of industry as a whole,||||
|||or the changes in regulatory||||
|||requirements, which lead to the||||
|||result that the shares of hosting||||
|||company can not meet the||||
|||requirements of capital investment,||||
|||Li Zhaoting, the actual controller,||||
|||Dongxu Optoelectronic Investment ,||||
|||Dongxu Group and Baoshi Group as||||
|||well as the company will actively||||
|||negotiate with related parties,||||
|||continue to entrust the above||||
|||mentioned shares and the power of||||
|||management to Dongxu||||
|||Optoelectronics. Within the period||||
|||when the company is still the||||
|||controlling shareholder of Dongxu||||
|||Optoelectronics, the commitments||||
|||are in effect.||||
|||Dongxu Group Co., Ltd. subscribed||||
|||for 25.01% of the shares privately||||
||Dongxu Group|issued by the Company and|||Under|
||||April 18, 2013|April 18, 2016||
||Co., Ltd.|promised that the period of sale|||Fulfillment|
|||restriction of such shares was 36||||
|||months from the first day of listing.||||
||Huarong|||||
||Secruities Co.,|||||
||Ltd., Yimin Fund|Promised that the period of sale||||
||Management Co.,|restriction of such shares was 12|||Performance|
||||April 18, 2013|April 17, 2014||
||Ltd., Minsheng|months from the first day of listing.|||Finshed|
||Jiayin Fund|||||
||Management ,|||||
||Co., Ltd.|||||
|||If Dongxu Group loses the case in||||
|||which U.S. Conning sued Dongxu||||
|||Group in respect of infringement||||
|Other commitments made|||September 20,|Long-term|Under|
||Dongxu Group,|upon business secrets according to||||
|to minority shareholders|||2012|effective|Fulfillment|
|||the final judgment of China's court||||
|||and economic losses are thus||||
|||incurred to the production and||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||
|-|-|-|-|-|
||operation of panel display glass||||
||substrate by the Company and its||||
||subsidiaries, our company will||||
||compensate the Company and its||||
||subsidiaries for the economic losses||||
||thus incurred. After the non-public||||
||issue of controlling shareholders||||
||Dongxu Group is committed to||||
||compensate the economic losses of||||
||Baoshi group and its subsidiaries||||
||If Dongxu Group loses the case in||||
||which U.S. Conning sued Dongxu||||
||Group in respect of infringement||||
||upon business secrets according to||||
||the final judgment of China's court||||
||and economic losses are thus||||
||incurred to the production and||||
|Shijiazhuang|operation of panel display glass||||
||||Long-term|Under|
|Baoshi Electronics|substrate by the Company and its|October 10,2012|||
||||effective|Fulfillment|
|Group Co., Ltd|subsidiaries, our company will||||
||compensate the Company and its||||
||subsidiaries for the economic losses||||
||thus incurred. After the non-public||||
||issue of controlling shareholders||||
||Dongxu Group is committed to||||
||compensate the economic losses of||||
||Baoshi group and its subsidiaries||||
||On September 18, 2006, the||||
||Company provided guarantee,||||
||together with Baoshi Group Co.,||||
||Ltd., for the application of||||
||Shijiazhuang Construction|||Has signed|
||Investment Co., Ltd. for loan of|||an agreement|
||RMB 70 million) with some land|||with|
|Shijiazhuang|and houses (with appraised value of|||creditors,|
||||Long-term||
|Baoshi Electronics|RMB 30.3018 million) (The valid|March 28, 2009||agreed to lift|
||||effective||
|Group Co., Ltd|guarantee value for the Company is|||the obligation|
||RMB 18.80 million). The guarantee|||secured of|
||period is one year. The type of|||the company|
||guarantee is mortgage guarantee. At||||
||present, the valid term of this||||
||guarantee has expired. The||||
||controlling shareholder has made||||
||corresponding commitment in||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|||respect of the loss that may be|
|||incurred by this guarantee. On|
|||October 15, 2012,|
|||Shijiazhuang Baoshi Electronics|
|||Group Co., Ltd. made the following|
|||notes to this commitment: "The|
|||mode of commitment fulfilled by|
|||Baoshi Group: Where the Dongxu|
|||Optoelectronic is liable to make|
|||compensation for this.|
|Executed timely or not?|Yes||

2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the forecast period, the company has assets or projects meet the original profit forecast made and the reasons explained
□ Applicable√ Not applicable
X. Engagement/Disengagement of CPAs
CPAs currently engaged
|||
|-|-|
||Zhongxingcai Guanghua Ceritified Public Accountants (Special GeneralPartnership)|
|Name of the domestic CPAs||
|Remuneration for domestic accounting firm||
||40|
|(RMB‘0000)||
|Continuous life of auditing service for domestic||
||3|
|accounting firm||
|Name of domestic CPA|Wang Fengqi, Meng Xiaoguang|

Has the CPAs been changed in the current period
□ Yes√ No
CPAs firm for the internal control audit
□ applicable√ Not applicable
XI. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the QualifiedAuditor’s Report Issued by the CPAs.
□ applicable√ Not applicable
XII. Punishment and Rectification
□ Applicable√ Not applicable
N/A
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report XIII. Situation of being confronted of suspension or termination of listing upon disclosure of the Annual report
□ Applicable√ Not applicable
XIV. Notes to other significant Events
□ Applicable√ Not applicable
N/A
XV. Significant events of subsidiaries
√Applicable□ Not applicable
Refer to http://www.cninfo.com.cn
Announcement No.:2014-010 disclosed on February 15,2014；
Announcement No.:2014-045 disclosed on July 11,2014；
Announcement No.:2014-081 disclosed on October 22,2014；
Announcement No.:2014-094 disclosed on November 25,2014；
Announcement No.:2014-099 disclosed on December 2,2014；
Announcement No.:2014-104 disclosed on December 23,2014；
Announcement No.:2014-107 disclosed on December 31, 2014.
XVI.Issuing of Company Bonds
□ Applicable√ Not applicable
√Applicable□ Not applicable
On the 21st meeting of the Seventh Board of Directors and the 3rd extraordinary shareholders meeting in 2014, proposals including About the Company in Line With the Issuance Conditions of Company Bonds and Regarding to the Issuance of Company Bonds were deliberated and approved. The company planed to issue publicly company bonds with total principal valuing no more than one billion yuan. After being approved, the company bonds of this period would be issued all at once or in installment in online and offline forms. After the deduction of issuing fees, the funds raised from this issuance were planed to be used in compensating the company liquidity.
During the 4th Prvisional Meeting of the Seventh Board of Directors and the 4th Provisional Shareholders Meeting in 2013, it has been examined and approved the―Proposal on Issuance of Bonds of the Company”, in which, the company intends to publicly issue the bonds with the denomination amount of less than RMB1 billion yuan in domestic China. On March 7, 2014, China Securities Regulatory Commission examined the company's bond application in the 31st committee meeting, according to the examination results of the meeting, the application was not approved.
On the 21st meeting of the Seventh Board of Directors and the 3rd extraordinary shareholders meeting in 2014, proposals including About the Company in Line With the Issuance Conditions of Company Bonds and Regarding to the Issuance of Company Bonds were deliberated and approved. The company planed to issue publicly company bonds with total principal valuing no more than one billion yuan. After being approved, the company bonds of this period would be issued all at once or in installment in online and offline forms. After the deduction of issuing fees, the funds raised from this issuance were planed to be used in compensating the company liquidity.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report On December 19, 2014, the company submitted the Application for Company Bonds Issuance to CSRC. On January 21, 2015, the company received Feedback Notice of Administrative Licensing Project issued by CSRC. At present, the company is actively preparing the replying materials.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report VI. Change of share capital and shareholding of Principal
Shareholders
I.Changes in share capital
In Shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase/decrease（+，-）|||||After the Change||
||Amount|Proportion|||Capitalizat|||||
||||Share|Bonus|ion of||||Proportio|
||||||common|Other|Subtotal|Quantity||
||||allotment|shares|||||n|
||||||reserve|||||
||||||fund|||||
|1.Shares with conditional|520,181,1||||260,220,5|-390,070,8|-126,770,2|393,410,8||
|||57.61%|3,080,000||||||14.78%|
|subscription|15||||86|22|36|79||
||520,181,1||||260,220,5|-390,070,8|-126,770,2|393,410,8||
|3.Other domestic shares||57.61%|3,080,000||||||14.78%|
||15||||86|22|36|79||
|Incl：Domestic legal|520,172,0||||260,206,0|-390,069,0|-129,863,0|390,309,0||
|||57.60%|||||||14.66%|
|person shares|00||||00|00|00|00||
|Domestic Natural Person||||||||||
||9,115|0.00%|3,080,000||14,586|-1,822|3,092,764|3,101,879|0.12%|
|shares||||||||||
|II.Shares with|382,818,8||||1,545,779,|340,070,8|1,885,850,|2,268,669||
|||42.39%|||||||85.22%|
|unconditional subscription|85||||414|23|237|,122||
||282,818,8||||1,345,779,|390,070,8|1,735,850,|2,018,669||
|1.Common shares in RMB||31.32%|||||||75.83%|
||85||||414|22|236|,121||
|2.Foreign shares in|100,000,0||||200,000,0|-49,999,99|150,000,0|250,000,0||
|||11.07%|||||||9.39%|
|domestic market|00||||00|9|01|01||
||903,000,0||||1,806,000,|-49,999,99|1,759,080,|2,662,080||
|III. Total of capital shares||100.00%|3,080,000||||||100.00%|
||00||||000|9|001|,001||

Reasons for share changed
√ Applicable□ Not applicable
1. On the annual shareholders' meeting in 2013, Annual Plan of Capital Reserves Transferring into Share Capital in 2013 was deliberated and approved, in which it was stated that taking the general capital of the company 903,000,000 shares as the base number, the 10 shares of all shareholders would increase to 20 shares through capital reserves. After this transfer, the general capital increased to 2,709,000,000 and the ex-dividend date was May 28, 2014.
2. Based on the incentive plan deliberated and approved on the 2nd extraordinary shareholders meeting in 2014 and the decisions
made on the 21st meeting of the Seventh Board of Directors, 3.08 million shares of Class A would be granted to incentive objects on
October 22, 2014, and the listing date of granted shares was November 5, 2014. After the grant, the general capital of the company
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report increased to 2,712,080,000 shares.
3. On the 2nd extraordinary shareholders meeting in 2014, Plan on Repurchasing Partial Domestic Listed Foreign Shares (B shares) was deliberated and approved. As November 14, 2014, the number of repurchased B shares by the company was 49,999,999, taking16.67% of thecompany‘s total number of B shares. After the repurchase, he general capital of the company turned to 2,662,080,001. Approval of Change of Shares
√ Applicable□ Not applicable
1. Annual Plan of Capital Reserves Transferring into Share Capital in 2013 was deliberated and approved respectively on April 27, 2014 on the 10th meeting of the Seventh Board of Directors and on May 19, 2014 on the annual shareholders' meeting in 2013. 2. On August 18, 2014, the Draft of Restricted Stock Incentive Plan of Dongxu Photoelectric was deliberated and approved on the 15th meeting of the Seventh Board of Directors in the company. On September 11, CSRC confirmed and recorded the submitted incentive draft. On September 30,, the above-mentioned draft was approved successfully on the 2nd extraordinary shareholders meeting in 2014. On October 21, related mattes on the initial grant were confirmed on the 21st meeting of the Seventh Board of Directors.
3. Plan on Repurchasing Partial Domestic Listed Foreign Shares (B shares) was deliberated and approved respectively on September 12, 2014 on the 18th meeting of the Seventh Board of Directors and on the 2nd extraordinary shareholders meeting in 2014 on September 30.
Transfer of Change of shares
□Applicable√Not applicable
Influence from the shareholding movements upon such financial indicators as eamings per share, net asset per share of the lastest year and the latest accounting period
√Applicable□Not applicable
||||||
|-|-|-|-|-|
|Indexes|2014||2013||
||New calculation|Original calculation|New calculation|Original calculation|
|Basic earning per share|0.33|0.98|0.17|0.51|
|Diluted gains per share(|0.33|0.98|0.17|0.51|
|Net assets attributableto Per share of theCommon shareholders|2.38|7.13|2.15|6.44|

Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□Applicable√Not applicable
2. Change of shares with limited sales condition
√ Applicable□ Not applicable
In shares
||||||||
|-|-|-|-|-|-|-|
||||Number of||||
|||Number of||Restricted Shares||Date of|
|Shareholder|Initial Restricted||Increased||Reason for||
|||Unrestricted||in the End of the||Restriction|
|Name|Shares||Restricted Shares||Restricted Shares||
|||Shares This Term||Term||Removal|
||||This Term||||
|Dongxu Group|130,031,000|0|260,062,000|390,093,000|Participation in th|April 19, 2016|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
||||||e company's 2013||
||||||non-public offeri||
||||||ng||
|Guangfa Fund|||||||
|Company－|||||||
|Agricultural Bank|||||Participation in th||
|of China－SDIC|||||e company's 2013||
||41,279,000|41,279,000|0|0||April 25, 2014|
|Tust Golden|||||non-public offeri||
|Eagle No.109|||||ng||
|Collective Fund|||||||
|trust plan|||||||
|Dacheng Fund－|||||||
|Agricultural Bank|||||||
||||||Participation in th||
|of China－SDIC|||||||
||||||e company's 2013||
|Tust Golden|41,279,000|41,279,000|0|0||April 25, 2014|
||||||non-public offeri||
|Eagle No.109|||||||
||||||ng||
|Collective Fund|||||||
|trust plan|||||||
|Huarong Secrities|||||||
|－ICBC－|||||||
|Huarong Fixed|||||Participation in th||
|Growth No. 1|||||e company's 2013||
||123,839,000|123,839,000|0|0||April 25, 2014|
|Limited-amount|||||non-public offeri||
|Specific Asset|||||ng||
|Management|||||||
|Program|||||||
|Huitianfu Fund－|||||||
|Agricultural Bank|||||||
||||||Participation in th||
|of China－SDIC|||||||
||||||e company's 2013||
|Tust Golden|41,279,000|41,279,000|0|0||April 25, 2014|
||||||non-public offeri||
|Eagle No.108|||||||
||||||ng||
|Collective Fund|||||||
|trust plan|||||||
|Minsheng Jiayin|||||||
|Fund Company－|||||||
|Minsheng－|||||Participation in th||
|Pingan Trust－|||||e company's 2013||
||52,634,000|52,634,000|0|0||April 25, 2014|
|Pingan Wealth|||||non-public offeri||
|Huitai No.11|||||ng||
|Collective fund|||||||
|trust plan|||||||
|Yinmin Fund|||||Participation in th||
||58,700,000|58,700,000|0|0||April 25, 2014|
|Company－|||||e company's 2013||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Minsheng－|||||non-public offeri||
|Yinmin Fund|||||ng||
|Non-Public|||||||
|Issuing Assets|||||||
|Management Plan|||||||
|International|||||||
|Finance －ICBC|||||||
||||||Participation in th||
|－Zhongjin|||||||
||||||e company's 2013||
|Increase No.1|30,959,000|30,959,000|0|0||April 25, 2014|
||||||non-public offeri||
|Collective|||||||
||||||ng||
|Assets|||||||
|Management plan|||||||
|Executives|||||Executives|September 24,|
||9,115|1,822|14,586|21,879|||
|lock-up shares|||||shareholding|2014|
|Restricted shares|||||||
||||||Restricted shares||
|of institutions|||||||
||172,000|100,000|144,000|216,000|before initial|May 27, 2014|
|before initial|||||||
||||||issuance||
|issuance|||||||
|Restricted shares|||||||
||||||Stock ownership||
|o stock ownership|0|3,080,000|3,080,000|3,080,000||-|
||||||incentive||
|incentive|||||||
|Total|520,181,115|393,150,822|260,220,586|393,410,879|--|--|

 II. Issuing and listing
1. At the end of the reporting period of nearly three years in the previous securities issue
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|Description of|||||||
||||||Quantity||
|stock and its||Issuing price(Or||||Expiration date of|
||Issuing date||Issuing quantity|Listing date|approved for||
|Derivative||interest rate)||||transaction|
||||||listing||
|securities|||||||
|Common stock|||||||
|Non-public|||||||
||April 3, 2013|9.69 yuan/shares|520,000,000|April 18, 2013|389,969,000||
|issuance A shares|||||||
|Non-public||||November 5,|||
||October 22, 2014|3.88 yuan/shares|3,080,000||0||
|issuance A shares||||2014|||
|Convertible Corporate Bonds, Detachable Convertible Bond and Corporate Bonds|||||||
|Stock options|||||||

Statement of security issuing in latest three years
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report N/A
2.Change of asset and liability structure caused by change of total capital shares and structure
√ Applicable□ Not applicable
Impact of capitalization, incentive, repurchase
3.About the existingemployees’ shares
□Applicable√Not applicable
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||172,663(including|||||181,055(including|||The total number of||||
|||||Total shareholders at||||||||||
|||160,455|||||168,473|||preferred shareholde||||
|||||the end of the 5th day||||||||||
|Total shareholder at||shareholders holding|||||shareholders holding|||rs voting rights resto||||
|||||from the date of||||||||0||
|period-end||A shares and12,208|||||A shares and|||red at period-end||||
|||||disclosing the annual||||||||||
|||shareholders holding|||||12,582shareholders|||(if any)(See Notes||||
|||||report||||||||||
|||B shares）|||||holding B shares）|||8)||||
|Shareholding of shareholders holding more than 5% shares||||||||||||||
||||||Number|||Amount|||Number os share pledged/frozen|||
||||Proportio|||Changes|||Amount of|||||
||||||of shares|||of||||||
||Nuture of||n of|||in|||un-restrict|||||
|Shareholders|||||held at|||restricted||||||
||shareholder||shares|||reporting|||ed shares||State of share||Amount|
||||||period|||shares||||||
||||held（%）|||period|||held|||||
||||||-end|||held||||||
|Dongxu GroupCo., Ltd.|Domestic Non-State-owned legalperson||14.65%||390,093,000|||390,093,000|0|||||
||||||||||||Pledge||381,663,000|
|ShijiazhuangBaoshi ElectronicGroup Co., Ltd.|Domestic Non-State-owned legalperson||12.49%||332,380,950|||0|332,380,950|||||
||||||||||||Pledge||267,420,148|
|Huarong Secrities－ICBC－Huarong FixedGrowth No. 1Limited-amountSpecific AssetManagementProgram|Other||12.02%||319,894,205|||0|319,894,205|||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|Yao Yanbin|Domestic naturalperson|0.49%|13,000,004||0|13,000,004|||
|Wang Wenxue|Domestic naturalperson|0.44%|11,715,000||0|11,715,000|||
|Jingshun GreatWall Fund－CCB－China Life－China life commissioned Great Wall Jingshun fund company managedstock combination of assets.|Other|0.36%|9,658,800||0|9,658,800|||
|Agricultural Bankof China －Jingshun Great Wall Domestic Demand Growth No.II Securities Investment Fund|Other|0.35%|9,372,300||0|9,372,300|||
|Agricultural Bankof China －Jingshun Great Wall Domestic Demand Growth open-end securities investment funds|Other|0.29%|7,677,964||0|7,677,964|||
|MerchantsSecurities(HK)Co., Ltd.|State-owned legalperson|0.27%|7,185,680||0|7,185,680|||
|BeijingZhongdianGuohua Industry& Trade Co., Ltd.|Domestic Non-State-owned legalperson|0.27%|7,091,000||0|7,091,000|||
|||Among the top ten shareholders , Dongxu Group and Baoshi Group have relationship and|||||||
|Notes to the related relationship|||||||||
|||constitute persons taking concerted action. The company does not know whether there is|||||||
|between the top ten shareholders or|||||||||
|||relationship between other 8 shareholders or whether they are persons taking concerted|||||||
|their concerted action|||||||||
|||action defined in Administrative Measures Relating to Acquisitions of Listed Companies.|||||||
|Shareholding of top 10 shareholders of unrestricted shares|||||||||
||||||||Share type||
|||||Quantity of unrestricted shares held|||||
|Name of the shareholder|||||||||
|||||at the end of the reporting period|||Share type|Quantity|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||
|-|-|-|-|
||(Note 4)|||
|Shijiazhuang Baoshi Electronic Group Co., Ltd.|332,380,950|RMB Common||
||||332,380,950|
|||shares||
|Huarong Secrities－ICBC－Huarong Fixed GrowthNo. 1 Limited-amount Specific Asset ManagementProgram|319,894,205|||
|||RMB Common||
||||319,894,205|
|||shares||
|Yao Yanbin|13,000,004|RMB Common||
||||13,000,004|
|||shares||
|Wang Wenxue|11,715,000|RMB Common||
||||11,715,000|
|||shares||
|Jingshun Great wall Fund－CCB－China Life－China life commissioned Great Wall Jingshun fund company managed stock combination of assets.|9,658,800|||
|||RMB Common||
||||9,658,800|
|||shares||
|Agricultural Bank of China－ingshun Great Wall Domestic Demand Growth No. II Securities Investment Fund|9,372,300|||
|||RMB Common||
||||9,372,300|
|||shares||
|Agricultural Bank of China－Jingshun Great Wall Domestic Demand Growth open-end securities investment funds|7,677,964|||
|||RMB Common||
||||7,677,964|
|||shares||
|Merchants Securities (HK)Co., Ltd.|7,185,680|Foreign shares||
|||placed in||
||||7,185,680|
|||domestic||
|||exchange||
|Beijing Zhongdian Guohua Industry & Trade Co., Ltd.|7,091,000|RMB Common||
||||7,091,000|
|||shares||
|National Social Security Fund portfolio 401|6,399,978|RMB Common||
||||6,399,978|
|||shares||
||Among the shareholders, Dongxu Group and Baoshi Group have|||
|Explanation on associated relationship or consistent||||
||relationship with each other. The Company does not know whether|||
|action among the top 10 shareholders of non-restricted||||
||there is relationship between top 10 unknown ordinary shareholders and|||
|negotiable shares and that between the top 10||||
||top 10 unlimited ordinary shareholders, does not know whether they are|||
|shareholders of non-restricted negotiable shares and top||||
||persons taking concerted action defined in Administrative Measures|||
|10 shareholders||||
||Relating to Acquisitions of Listed Companies.|||
||Shijiazhuang Baoshi Electronics Group Co., Ltd. hols 28,856,500|||
||company shares through margin trading and securities, taking 1.08% of|||
|The Shareholders situation of the top 10 common||||
||the general capital; natural person shareholders Yao Yanbin and Wang|||
|shareholders involved in margin business(if any)(See||||
||Wenxue hold 4,000,004 shares and 11,701,700 shares respectively through|||
|Notes 8)||||
||margin trading and securities, taking 0.15% and 0.44% of the general|||
||capital respectively.|||

Did any shareholder of the Company carry out an agreed buy-back in the reorting period?
□ Yes√ No
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report N/A
2.Controlling shareholder
Legal person
||||||||||
|-|-|-|-|-|-|-|-|-|
|||LegLaelg al|||||||
|Name of the Controllishareholder|||Date of|||||PPrirnincicpipala lb buusisninesess s|
||ng|sreenptraetsiveen/tLateiavde|Date o|f|gOanrigzaantiiozant icoond ec ode|RReeggiisstteerreedd CCaappiittaall|||
||repre||incorporatiincorporat|Orion||||acatcitvivitiiteise s|
|||e/Lr eader|on||||||
||||||||The company has used||
||||||||its own funds for the||
||||||||investment in projects,||
||||||||the research and||
||||||||development of the||
||||November 5,||||||
|Dongxu Group|Li Zhaoting||||768130363|5,000,000,000|machinery and||
||||2004||||||
||||||||electronic products, the||
||||||||production and process||
||||||||establishment of various||
||||||||non-standard equipment||
||||||||and parts, etc.||
||Dongxu Group is a large high-tech enterprise group integrating optoelectronic display, photovoltaic,||||||||
||energy conservation illumination, green building materials, equipment manufacture and other industry||||||||
||group. According to the development ideas of ―Bigger and Stronger for National Technology Industry‖,||||||||
||Dongxu Group has vigorously promoted the industrialization of scientific and technological||||||||
|Future Strategy|achievements, implemented the strategic layout of industry scale with optoelectronic display and||||||||
||photovoltaic oriented, successfully built eleven large industrial bases all over the country, stimulated the||||||||
||relevant domestic industries upgrading and gradually grown into a domestic flagship enterprise of||||||||
||electronic glass manufacturing.||||||||
|Operating results,|||||||||
|financial position, cash|As of September 30, 2014, The total assets ,Net assets and Business income of Dongxu Group were||||||||
|flow and future|respectively RMB 27631.6183 million , RMB 10307.2874 million and RMB 3486.2199 million||||||||
|development strategy|||||||||
|The equity of the|||||||||
|controlling shareholder|||||||||
|in other domestic and|||||||||
||Nil||||||||
|foreign listed companies|||||||||
|held or partly held by it|||||||||
|in the report period|||||||||

Change of the actual controller in the reporting period
□Applicable√Not applicable
N/A
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report3．Information about the controlling shareholder of the Company
Natural person
||||
|-|-|-|
|||Whether to obtain the right of abode in other countries|
|Name|Nationality||
|||or regions|
|Li Zhaoting|Chinese|No|
||Before 2011, He served as director of Hebei Dongxu investment Group Co., Ltd，He||
||now serves as board chairman of Wuhu Dongxu Opetoelectronic Technology Co.,||
||Ltd., Wuhu Dongxu Opetoelectronic Equipment Technology Co., Ltd., Shijiazhuang||
||Dongxu Optoelectronic Equipment Technology Co., Ltd., Beijing Dongxu||
||Investment Development Co., Ltd. and Wuhan Dongxu Opetoelectronic Technology||
||Co., Ltd. and concurrent as board chairman of Dongxu Group , Baoshi Group,||
||Dongxu Optoelectronic Investment Co., Ltd., Sichuan Xuhong Optoelectronic||
||Technology Co., Ltd., Mudanjiang Xuyang Solar Energy Technology Co., Ltd.,||
|Position and Work Experience in the past five|Jinzhou Xulong Solar Energy Technology Co., Ltd., Tongliao Xutong Solar Energy||
|years|Technology Co., Ltd., Dongxu (yingkou) Optoelectronic Display Co., Ltd.,||
||Chengdu Xuhuang Solar Energy Technology Co., Ltd., Chengdu Taiyisi Solar||
||Energy Technology Co., Ltd.,Zhengzhou Xufei Optoelectronic Technology Co., Ltd.||
||Shijiazhuang Xuling Electronics technology Co., Ltd and Shijiazhuang Baoshi||
||Xuming Tube Co., Ltd., He served as Director of Hebei Xubao Construction||
||installation Engineering Co., Ltd.and Shijiazhuang Xuxin Optoelectronic||
||Technology , General manager of China Optoelectronic Technology Co., Ltd. ,He||
||served as Vice board chairman and General Manager of Chengdu China||
||Optoelectronic Technology Co., Ltd.||
|The situation of the listed company in and out|||
||N/A||
|of China used to control over the past 10 years|||

Change of the actual controller in the reporting period
□Applicable√Not applicable
N/A
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report□Applicable√Not applicable
4.Other corporate shareholder holding over10% of theCompany’s shares
√ Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||Legal|||||
|||Date of||||
||represent||||Principal businesses or|
|Corporate shareholder||incorporati|Organization code|Registered capital||
||actives/Leade||||management activities|
|||on||||
||r|||||
||||||Production and sale of|
||||||electronic gun,|
||||||high-efficiency and|
||||||energy-saving|
||||||fluorescent tube,|
||||||electrodeless lamp,|
||||||LED and solar lighting|
|Shijiazhuang Baoshi||May 31,|||system; standard hotels|
||Li Qing||10441204-2|RMB 850 million||
|Electronics Group Co., Ltd||2001|||and dinner service|
||||||(operated by branches|
||||||only); apartment and|
||||||facility lease;|
||||||self-running or agent|
||||||imports and exports of|
||||||commodities and|
||||||technology.|
||||||Securities brokers; secu|
||||||rities investment consul|
||||||ting; financial advisors|
||||||and securities trading, s|
||||||ecurities investment act|
||||||ivities; securities under|
|Huarong Secrities－ICBC－|||||writing and sponsorship|
|Huarong Fixed Growth No. 1|Zhu|September||RMB 3755.136772|; securities proprietary|
||||71093501-1|||
|Limited-amount Specific|Xianzhong|7, 2007||million|business, securities asse|
|Asset Management Program|||||t management; margin;|
||||||consignment of financia|
||||||l products business; pub|
||||||lic offering of investme|
||||||nt fund management bu|
||||||siness (valid until Nove|
||||||mber 19, 2016)|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report IV. Particulars on shareholding increase scheme during the reporting period proposed or implemented by the shareholders and act-in-concert persons
□ Applicable√ Not applicable
Within the scope known to the Company, there was no any shareholding increase scheme during the reporting period proposed or implemented by the shareholders and act-in-concert persons.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report VII. Situation of the Preferred Shares
□ Applicable√ Not Applicable
N/A.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report VIII. Information about Directors, Supervisors and Senior Executives I. Change in shares held by directors, supervisors and senior executives
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Number of|Volume of||Number of|
||||||||||Volume of||
||||||||shares|shares||shares held|
||||||||||shares sold||
||||||Starting|Expiry|acquired at|acquired||at end of|
|||Office|||||||during the||
|Name|Positions||Sex|Age|date of|date of|end of the|during the||the|
|||status|||||||reporting||
||||||tenure|tenure|reporting|reporting||reporting|
||||||||||period(sha||
||||||||period(sha|period||period(sha|
||||||||||res)||
||||||||res)|(shares)||res)|
|Li|Board||||July 29,||||||
|||In office|Male|49|||0|0|0|0|
|Zhaoting|chairman||||2013||||||
||||||July 29,||||||
|Zhou Bo|Director|In office|Male|49|||9,724|119,448|0|129,172|
||||||2013||||||
||Director,||||||||||
|Fu|||||July 29,||||||
||Board|In office|Female|47|||0|150,000|0|150,000|
|Yingfang|||||2013||||||
||secretary||||||||||
||||||July 29,||||||
|Niu Jianlin|Director|In office|Male|50|||0|150,000|0|150,000|
||||||2013||||||
||Independe||||July 29,||||||
|Mu Tiehu||In office|Male|47|||0|0|0|0|
||nt director||||2013||||||
|Zhang|Independe||||July 29,||||||
|||In office|Male|53|||0|0|0|0|
|Shuangcai|nt director||||2013||||||
||Independe||||May 19,||||||
|Lu Guihua||In office|Male|46|||0|0|0|0|
||nt director||||2014||||||
||Chairman||||||||||
||of the||||||||||
|Guo|||||July 29,||||||
||supervisor|In office|Male|50|||0|0|0|0|
|Zhisheng|||||2013||||||
||y||||||||||
||committee||||||||||
|Wang|||||July 29,||||||
||Supervisor|In office|Male|50|||0|0|0|0|
|Jianqiang|||||2013||||||
|Xie|||||||||||
||||||July 29,||||||
|Mengxion|Supervisor|In office|Male|58|||0|0|0|0|
||||||2013||||||
|g|||||||||||
|Xie Juwen|Supervisor|In office|Male|37|October||0|0|0|0|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||15, 2014||||||
|Wan|||||October||||||
||Supervisor|In office|Female|29|||0|0|0|0|
|Huanhuan|||||15, 2014||||||
|Shi|General||||July 29,||||||
|||In office|Male|48|||0|200,000|0|200,000|
|Zhiqiang|Manager||||2013||||||
||Deputy||||||||||
||||||July 29,||||||
|Liu Wentai|General|In office|Male|45|||0|150,000|0|150,000|
||||||2013||||||
||Manager||||||||||
||Deputy||||||||||
|Hou|||||July 29,||||||
||General|In office|Male|48|||0|150,000|0|150,000|
|Jianwei|||||2013||||||
||Manager||||||||||
|Li|Financial||||July 29,||||||
|||In office|Male|40|||0|150,000|0|150,000|
|Quannian|Manager||||2013||||||
||||||July 29,|October|||||
|Jia Qinjun|Supervisor|Dimission|Male|57|||0|0|0|0|
||||||2013|14, 2014|||||
||||||July 29,|October|||||
|Liu Li|Supervisor|Dimission|Female|52|||0|0|0|0|
||||||2013|15, 2014|||||
|Zhang|Independe||||July 29,|May 19,|||||
|||Dimission|Male|68|||0|0|0|0|
|Qunsheng|nt director||||2013|2014|||||
||Deputy||||||||||
|Wang|||||July 29,|October|||||
||General|Dimission|Male|52|||0|0|0|0|
|Xiaohu|||||2013|15, 2014|||||
||Manager||||||||||
|Total|--|--|--|--|--|--|9,724|1,069,448|0|1,079,172|

 II.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
1. Li Zhaoting,Nationality : Chinese, born in1965，Bachelor degree,Senior Engineer, graduated from the Department of Mechanical Engineering, Bachelor of Engineering, Hebei University of Technology. He served as Assistant General Manager, deputy general manager of Shijiazhuang City Diesel Engine Factory and director of Hebei Dongxu investment Group Co., Ltd, He served as director of Hebei Dongxu investment Group Co.,Ltd，He now serves as board chairman of Wuhu Dongxu Opetoelectronic Technology Co., Ltd., Wuhu Dongxu Opetoelectronic Equipment Technology Co., Ltd., Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd., Beijing Dongxu Investment Development Co., Ltd. and Wuhan Dongxu Opetoelectronic Technology Co., Ltd. and concurrent as board chairman of Dongxu Group , Baoshi Group, Dongxu Optoelectronic Investment Co., Ltd., Sichuan Xuhong Optoelectronic Technology Co., Ltd., Mudanjiang Xuyang Solar Energy Technology Co., Ltd., Jinzhou Xulong Solar Energy Technology Co., Ltd., Tongliao Xutong Solar Energy Technology Co., Ltd., Dongxu (yingkou) Optoelectronic Display Co., Ltd., Chengdu Xuhuang Solar Energy Technology Co., Ltd., Chengdu Taiyisi Solar Energy Technology Co., Ltd.,Zhengzhou Xufei Optoelectronic Technology Co., Ltd. Shijiazhuang Xuling Electronics technology Co., Ltd and Shijiazhuang Baoshi Xuming Tube
Co., Ltd., He served as Director of Hebei Xubao Construction installation Engineering Co., Ltd.and Shijiazhuang Xuxin
Optoelectronic Technology , General manager of China Optoelectronic Technology Co., Ltd. ,He served as Vice board chairman and
General Manager of Chengdu China Optoelectronic Technology Co., Ltd. He is the representative of 12th National People's Congress,
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report member of the standing committee of Hebei Province Youth Federation,, executive director of young entrepreneurs Hebei Province; used to win the honorary title of "2012 China Top Ten Innovative Person of the Year", "Outstanding Private Entrepreneur in Hebei Province", "outstanding young entrepreneurs in Shijiazhuang , "" 2013 year of the most respected leaders of listed companies". 2. Zhou Bo: Nationality: Chinese,born in 1965, Bachelor degree, Senior Engineer , He served as Director of Workshop and Director Manufacture Dept. of Shijiazhuang Baoshi Electronic Group Co., Ltd., Deputy General Manager of Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd., General Manager of Shijiazhuang Baoshi Electronic Group Co., Ltd., He now serves as Director of the Company and Shijiazhuang Baoshi Electronic Group Co., Ltd. and concurrently served as Board chairman of Chengdu Dongxu Energy saving Technology Co., Ltd., Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd, Shijiazhuang Baodong Electronic Co., Ltd., Hebei Energy saving Lighting Technology Co., Ltd. and Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd.
3. Niu Jianlin, Chinese Nationality, born in 1964, He graduated from the Hebei Institute of Chemical Technology of Inorganic, senior engineer. He served as the Manager of Manufacturing Dept. and Quality Control Dept. of Baoshi Group, General Manager Assistant and Deputy General Manager of Baoshi Electric Pin Co., Ltd., general manager of Xulong Solar Energy Technology Co., Ltd.. He now serves as the directorr of the Company
4. Fu Yinfang: Nationality:Chinese，born in 1967, Bachelor degree , She served as legal adviser, deputy director of Party office Deputy General Manager and Board secretary and Minister of Law and Securities Dept. of Baoshi Group. She now serves as Director and board secretary of the Company, Director of Baoshi Group.
5.Mr. Lu Guihua, male, born in May 1968, Dr. Accounting, Applied Economics postdoctoral, Central University of Finance and Eco nomics Professor of Accounting, Master Instructor, Chinese Certified Public Accountant. Former Tianjin University associate profes sor, associate professor at the Central University of Finance and professor at the Central University of Finance and Economics, maste r's and doctoral tutor.
6.Mr. Mu Tiehu, Chinese Nationality, born in 1967, graduated from Peking University, bachelor's degree in law, have a lawyer qualification, Mr. Mu Tiehu worked as discipline cadres in the 2th prison in Hebei Province from 1990 to 1992 , from 1992 to 1996 worked in Hebei Province Department of Justice office, from 1996 to 2003 worked in Hebei Economic and Trade Law Firm, Hebei Weizheng Law Firm, Beijing Tian Qin law firm; from 2003, he has been working in Beijing Hylands Law firm, now is the partner lawyer. Currently he serves as independent director of Dalian East New Energy Development Co., Ltd. and Hubei Kangxin New Material Technology Co., Ltd..
7.Mr. Zhang Shuangcai, Chinese Nationality, born in 1961, PhD in Management, Business Administration postdoctoral, Democratic National Construction Association. He serves as Associate Dean School of Management, Hebei University business professor, World Economic doctoral tutor, accounting, business management professional master tutor. He used to be Baoding CPPCC Standing Committee, representative of 11th People's Congress of Hebei Province. Now he is the representative of 12th People's Congress of Hebei Province, Executive director of the Institute of Hebei Province in budget management, deputy director of the private Center for Economic Research of Hebei Province, Accounting association executive director, executive director of Private Entrepreneur Association of Hebei Province, director of the Private Economic and Financial Committee of Hebei Province, committee member of National Central Economic Committee, independent director of Lekai film Co., Ltd. ,Boshen tools Co., Ltd. and Tianwei Baobian Electrical Co., Ltd..
8.Mr. Guo Zhisheng, Chinese Nationality, born in 1964, Bachelor's degree, graduated from Zhengzhou Textile Institute Mechatronics, He used to serve as scheduling officer in Production Management Dept. of Ancai Group, Minister of Logistics Management Dept., Minister of Purchasing Dept., Minister of warehousing Dept. of Ancai High-tech. He now serves as Chairman of the supervisory committee of Tianwei Baobian Electrical Co., Ltd.
9.Mr. Wangjianqiang, Chinese Nationality, born in 1964, University degree, graduated from Hebei University of Technology mechanical engineering, used to work in Shijiazhuang Baoshi Electronic Group Co., Ltd., now serves as supervisor of the Company. 10. Mr. Xie Mengxiong, Chinese Nationality, born in 1957, Master of Economics. He used to be teacher in Shijiazhuang Power Technology school, vice minister in Shijiazhuang Municipal Discipline Inspection Work Committee, deputy party secretary of Shijiazhuang Baoshi Electronic Group Co., Ltd.. He used to be the Chairman of the Supervisory Board of the Sixth Company, now
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report serves as supervisor of the Company.
11.Mr. Xie Juwen, Chinese nationality, born in June 1977, Master's degree, specializing in project management, Beijing Polytechnic University, a former Beiren group R& D engineers, project managers, the group of Beiren folding machine project director, Project Manager and supervisor of integrated office.
12.Ms. Wan Huanhuan, Chinese nationality, born in July 1985, bachelor degree, Chongqing Technology and Business University acc ounting profession, a former iron Information Group Limited audit manager; Jiangsu Huaxing Accounting Company business manag er; Shenzhen Jun Zhiyuan Accounting Company business commissioner. The Audit Manager
supervisor in Audit Supervision Department .
13.Shi Zhiqiang , Nationality :Chinese , Bachelor degree, born in 1966, Graduated from the Department of Chemical Engineering, Bachelor of Engineering, Dalian University of Technology, He served as Minister of Manufacturing Dept. in Baoshi Electric Glass Co., Ltd., factory manager in Shijiazhuang Baoshi Electronic Group Co., Ltd. glass tube factory, assistant general manager, deputy general manager of Shijiazhuang Baoshi Electronic Group Co., Ltd.. He now serves as General Manager of the company and General Manager of Wuhu Dongxu Optoelectronic Technology Co., Ltd.
14.Mr. Liu Wentai, Chinese Nationality, born in 1969, graduated from Qingdao Institute of Chemical Machinery Chemical bachelor degree, used to be a technician in Shijiazhuang Dongfeng Plastic Plant, production scheduling; technician, workshop equipment director in Shijiazhuang Baoshi Electronic Group Co., Ltd., Branch Head in Shijiazhuang Baoshi Electric Pin Co., Ltd., Institute Director of Dongxu LCD glass Group Research Institute, General Manager of thermal Engineering Division, vice president and chief procurement officer in Dongxu LCD glass Group Co., Ltd.. He is the Deputy general manager of the company. He now serves as Deputy General Manger of the Company.
15.Mr. Hou Jianwei, Chinese Nationality, born in 1966, graduated from Northwest Institute of Light Industry, college educated, used to work as the head and production manager, technical supervisor, workshop leader and branch secretary of Ancai Color Picture Tubes factory, Ancai plant1&2, the Assistant General Manager, Deputy General Manager, party members of Chengdu Ancai Group electronic Glass Co., Ltd., deputy director, director of four colored glass Ancai Factory, director of Ancai-color liquid crystal display device, Ltd., director of Ancai-color liquid crystal display device company, director and Party branch secretaryof Ancai Tech Caibo 3th factory, deputy commander of Ancai Gaoke photovoltaic glass project, director of PV glass Factory, Vice President and Chief Technology Officer of Dongxu Group. He currently serves as Deputy general manager of the company.
16.Mr. Li Quannian, Chinese Nationality, born in 1974, Master and Doctor degree of Science School of Economics and Management in Beijing Jiaotong University, Bachelor of Economics and Management College of Gansu University of Economics. He used to be Deputy Chief Accountant in China Asset Management Company, Chief Financial Officer of Subsidiary of China Dongfanghong Satellite Corp., Deputy General Manager and General Manager of Finance Department of the parent company. He now serves as Chief Financial Officer of the Company.
Office taking in shareholder companies
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||||Does he /she|
||||Sharing||receive|
|Names of the||||Expiry date||
|||Titles engaged in the|date of||remuneration|
|persons in|Names of the shareholders|||of office||
|||shareholders|office||or allowance|
|office||||term||
||||term||from the|
||||||shareholder|
|Li Zhaoting|Dongxu Group|Board chairman|||Yes|
|Zhou Bo|Baoshi Group|Director|||No|
|Wang|Dongxu Group|Vice President|||Yes|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||
|-|
|Jianqiang|

Offices taken in other organizations
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||||Whether receiving|
||||Office term|Office term||
|Name|Name of other units|Position|||remuneration from|
||||start from|ended||
||||||other units or not|
||Chengdu Dongxu Energy Saving|Board||||
|Zhou Bo|||||No|
||Technology Co., Ltd.|chairman||||
||Shijiazhuang Baoshi Electronic Vacuum|||||
|Zhou Bo||Director|||No|
||Glass Co., Ltd.|||||
|||Board||||
|Zhou Bo|Shijiazhuang Baodong Electronic Co., Ltd.||||No|
|||chairman||||
||Hebei Baoshi Energy Saving Lighting|Board||||
|Zhou Bo|||||No|
||Technology Co., Ltd.|chairman||||
||Shijiazhuang Baoshi Zhonghe Steel Plastic|Board||||
|Zhou Bo|||||No|
||Shape Co., Ltd|chairman||||
|Mu Tiehu|Beijing Hylands Law firm|Lawyer|||Yes|
||Dalian Yishida New Energy Development|Independent||||
|Mu Tiehu|||||Yes|
||Co., Ltd.|Director||||
||Hubei Kangxin New Material Technology|Independent||||
|Mu Tiehu|||||Yes|
||Co., Ltd.|Director||||
|||Vice||||
|Zhang||||||
||Hebei University School of Management|president,|||Yes|
|Shuangcai||||||
|||Professor||||
|Zhang||Independent||||
||Lekai Film Co., Ltd.||||Yes|
|Shuangcai||Director||||
|Zhang||Independent||||
||Boshen Tools Co., Ltd.||||Yes|
|Shuangcai||Director||||
|Zhang||Independent||||
||Tianwei Baobian Electrical Co., Ltd.||||Yes|
|Shuangcai||Director||||
||Tongliao Xutong Solar energy Technology|General||||
|Xie Mengxiong|||||Yes|
||Co., Ltd.|Manager||||
||About the information of Li Zhaoting please refer to VI (III) the Information about the change of shares and|||||
||Shareholders, shareholders and actual controlling shareholder, information about the controlling shareholder of the|||||
|Notes||||||
||Company.|||||

III. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors , supervisors and senior
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report executives
Post skill wage system applied to the directors, supervisors and senior executives of the Company. Their remuneration is determined according to the wage management system of the Company. The remuneration of independent directors is determined by shareholders' general meeting.
Remuneration to directors, supervisors and senior executives in the reporting period
InRMB‘0000
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Remuneration|
||||||Total|Total|actually|
||||||remuneration|remuneration|receives at the|
|Name|Positions|Sex|Age|Office status||||
||||||received from|received from|end of the|
||||||the Company|the shareholder|reporting|
||||||||period|
||Board|||||||
|Li Zhaoting||Male|49|In Office||58|58|
||chairman|||||||
|Zhou Bo|Director|Male|49|In Office|12.4||12.4|
||Director,|||||||
|Fu Yingfang||Female|47|In Office|27.8||27.8|
||Board secretary|||||||
|Niu Jianlin|Director|Male|50|In Office|30||30|
||Independent|||||||
|Mu Tiehu||Male|47|In Office|5|0|5|
||Director|||||||
|Zhang|Independent|||||||
|||Male|53|In Office|5|0|5|
|Shuangcai|Director|||||||
||Independent|||||||
|Lu Guihua||Male|46|In Office|3.1|0|3.1|
||Director|||||||
||Chairman of|||||||
|Guo Zhisheng|the supervisory|Male|50|In Office||31|31|
||committee|||||||
|Wang||||||||
||Supervisor|Male|50|In Office||36.9|36.9|
|Jianqiang||||||||
|Xie Mengxiong|Supervisor|Male|58|In Office||23.6|23.6|
|Xie Juwen|Supervisor|Male|37|In Office|12.4||12.4|
|Wan Huanhuan|Supervisor|Female|29|In Office|10.3||10.3|
||General|||||||
|Shi Zhiqiang||Male|48|In Office|32.57||32.57|
||Manager|||||||
||Deputy|||||||
|Liu Wentai|General|Male|45|In Office|29.4||29.4|
||Manager|||||||
|Hou Jianwei|Deputy|Male|48|In Office|26.2||26.2|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
||General|||||||
||Manager|||||||
|Li Quannian|CFO|Male|40|In Office|34.9||34.9|
|Jia Qinjun|Supervisor|Male|57|Dimission|2.1||2.1|
|Liu Li|Supervisor|Female|52|Dimission|5.1||5.1|
|Zhang|Independent|||||||
|||Male|68|Dimission|1.9|0|1.9|
|Qunsheng|Director|||||||
||Deputy|||||||
|Wang Xiaohu|General|Male|52|Dimission|4||4|
||Manager|||||||
|Total|--|--|--|--|242.17|149.5|391.67|

 Incentive equity to directors, supervisors or/and senior executives in the reporting period
√Applicable□Not applicable
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Exercise||Number of||||
||||||||Number of|||
|||Number of|Number of|Price of|Market|Restricted|||Number of|
||||||||Restricted|Grant Price||
|||Vesting|Vested|Vested|Price in the|Shares at|||Restricted|
||||||||Shares|of||
|||Shares|Shares|Shares|End of|the|||Shares in|
|Name|Position||||||Granted|Restricted||
|||Within|Within|Within|Reporting|Beginning|||the End of|
||||||||Within|Shares||
|||Reporting|Reporting|Reporting|Period|of|||Reporting|
||||||||Reporting|(yuan/share)||
|||Period|Period|Period|(yuan/share)|Reporting|||Period|
||||||||Period|||
|||||(yuan/share)||Period||||
|Zhou Bo|Director|0|0||7.67|0|100,000|3.88|100,000|
||Director,|||||||||
|Fu Yingfang|Board|0|0||7.67|0|150,000|3.88|150,000|
||secretary|||||||||
|Niu Jianlin|Director|0|0||7.67|0|150,000|3.88|150,000|
|Shi|General|||||||||
|||0|0||7.67|0|200,000|3.88|200,000|
|Zhiqiang|Manager|||||||||
||Deputy|||||||||
|Liu Wentai|General|0|0||7.67|0|150,000|3.88|150,000|
||Manager|||||||||
||Deputy|||||||||
|Hou||||||||||
||General|0|0||7.67|0|150,000|3.88|150,000|
|Jianwei||||||||||
||Manager|||||||||
|Li||||||||||
||CFO|0|0||7.67|0|150,000|3.88|150,000|
|Quannian||||||||||
|Total|--|0|0|--|--|0|1,050,000|--|1,050,000|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report IV. Chage of Directors, Supervisors and senior Executives
||||||
|-|-|-|-|-|
|Names|Titles|Types|Date|Causes|
|Zhang Qunsheng|Independent Director|Dimission|May 19, 2014|Dimission|
|Jia Qinjun|Supervisor|Dimission|October 15, 2014|Dimission|
|Liu Li|Supervisor|Dimission|October 15, 2014|Dimission|
|Wang Xiaohu|Deputy General Manager|Dismissal|October 15, 2014|Job Change|

V. Change of the Core Team of Technology of Key technical personnel (Other than director, supervisor or senior executive) in the Reporting Period
There is no change of the Core Team of Technology of Key technical personnel (Other than director, supervisor or senior
executive)in the Reporting Period
VI. Particulars about employees.
The company provide a stable and competitive salary, salary of employees consists of post salary and performance pay. In 2014 the company continued to improve the wages of employees, fully mobilizing the enthusiasm and innovation of the employees and constantly improve customer satisfaction and loyalty. The company carry out the staff training, build a comprehensive training system, including the new staff orientation training, current staff business training and further training, can fully mobilize staff and active learning. Meanwhile, the company constantly carry out core training for the outstanding employees step by step as planned in order to cultivate backbone and reserve personnel. The company implemented the labor contract system, in accordance with the provisions of the "Labor Contract Law" and the relevant laws and regulations, strict implementation of national employment system, labor protection system, the social security system and medical insurance system, the company retired worker costs assumed by social pooling costs instead of the company.
As of December 31, 2014, the Company(including subsidiary) has 2943 staff members in total.
|||||||
|-|-|-|-|-|-|
|Particulars about|Number of|Proportion（%）|Particulars about|Number of|Proportion|
||Persons||education|Persons|（%）|
|employees.||||||
|Production|1265|42.98|Postgraduate or above|162|5.50|
|Sales|246|8.36|Universities|1034|35.13|
|Technical|910|30.92|Colleges|945|32.11|
|Financial|73|2.48|Technical secondary school|207|7.03|
|Administrative|449|15.26|Mid-schoool or below|595|20.22|
|Total|2943|100.00|Total|2943|100.00|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report IX. Administrative structure
I. General situation
The company has strictly abided by the laws and regulations of―CorporateLaw‖,‖SecuritiesLaw‖,‖Fundamental Norms for Enterprise InternalControl‖ and its supporting guidelines,―Stock Listed Rules in Shenzhen Stock Exchange― and―Standard Operation Guideline in Main Board of Listed Company of Shenzhen StockExchange‖, and the requirements of regular documents, actively strengthened the implementation and effective operation for the internal control system of the company, continuously improved thecompany‗s standard operation, improved the corporate governance structure and established the perfect internal control system.
According to the regular documents on the governance of listed companies of China Securities Regulatory Commission, the company has set up a complete, independent, standardized organization, and all the shareholders meeting, the Board of Directors, the Supervisor Committee and the management have assumed their duties to coordinately work and effectively check each other. Moreover, the shareholders meeting isthe authority of the company, while the Board of Directors is responsible for the shareholders meeting, the Supervisor Committee is responsible forall the shareholders, the independent directors safeguards the interests of medium and small shareholders and the management is responsible for the Board of Directors. All the directors, supervisors, senior executives and the controlling company and its functional departments shall perform their responsibilities and follow the principle of separation for incompatible duties to separate and get balance of rights and duties.
In accordance with the requirements of standard governance of listed companies and on the basis of the―Articles ofAssociation‖, the company has perfected various systems covering the whole process of financial management, operation management, administrative management and other operations, ensured all the work of the company with regulations to follow, and standardized the operation management of the company. It includes―Procedure Rules ofShareholders‖,―Procedure Rules of the Board ofDirectors‖,
―Procedure Rules of SupervisoryCommittee‖,―Work System of InformationDisclosure‖,―Affiliated System of Affiliated
Transactions‖,―Management System of Funds-raisingUse‖,―Detailed Rules for Implementation of Committee under the Board ofDirectors‖,―Report System of Internal MajorMatters‖,―Responsibility Claim System on Significant Error in Information Disclosure of AnnualReport‖,―Registration and Management System on Learner of InsiderInformation‖,―External Information Users ManagementSystem‖, etc.. During the report period, the company has revised―Management System of Funds-raisingUse‖, further complemented and perfected the management system of internal control and guaranteed the normal operation of the company on the basis of the original system.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC,
□ Yes√ No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC.
Implementation of the Campaign of Corporate Governance and Preparation and Implementation of the
Registration Management System for insiders
The company has formulated―Registration and Management System on Learner of InsiderInformation‖ and―Management System of External Information Report andUsers‖ according to the relevant provisions. All directors, supervisors, senior executives and other learners can control and minimize thecompany‗s information learning scope as per the provisions before the information is not publicly disclosed yet, and the learners shall strictly perform the record procedure as per the provisions of systems. During the report period, the companyhasn‗t found the insider transactions using the inside information, the trading securities prices manipulated by cooperating with others, or other insider transactions.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report II. Annual General Meeting and ExtraordinaryShareholders’ Meetings in the Reporting Period
1.Annual General Meeting
|||||||
|-|-|-|-|-|-|
|||||Disclosure||
|Sessions|Meeting Date|Description of proposals|Resolution||Disclosure index|
|||||date||
|||1. The Work Report of the Board of Directors for||||
|||2013;2. The Work Report of the supervisory||||
|||Committee for 2013; 3.Annual Report for 2013||||
|||and its summary; 4. The proposal Concerning||||
|||Final Financial Report for 2013;5. Plan of the||||
|||Company on Profit Distribution and Capital|||Announcement|
|||Reserves Transferring into Share Capital in 2013;|||No:2014-036,|
|||6. The Proposal for Retaining Certified Public|||China Securities|
|2013||||||
|||Accountants in 2014；7.|||Daily, Hong|
|Shareholder||||May 20,||
||May 19, 2014|Announcement of the estimated amount of daily|Adoption||Kong|
|s‘ general||||2014||
|||related transactions in 2014；8. Proposal on|||Commercial|
|meeting||||||
|||Change of Independent Directors;|||Daily and|
|||9. Proposal on Authoring Board of Directors to|||www.cninfo.com.|
|||Handle Capital Reserves Transferring into Share|||cn|
|||Capital and related registration as well as Articles||||
|||of Association Amendment;||||
|||10. About the Equity Acquisition of the||||
|||Subsidiary of the Controlling Shareholder||||
|||Dongxu Group;||||

2.ExtraordinaryShareholders’ Meetings
|||||||
|-|-|-|-|-|-|
|Sessions|Meeting Date|Description of proposals|Resolution|Disclosure date|Disclosure index|
|||1. Proposal on Adjusting||||
|||Daily Related Transactions|||Announcement|
|The first||in 2013;2. Proposal on|||No:2014-025, China|
|provisional||Offering Bank Loans|||Securities Daily,|
|shareholders‘|April 27, 2014|Guarantee for|Adoption|April 28, 2014|Hong Kong|
|General meeting||Wholly-owned Subsidiary|||Commercial Daily|
|in 2014||Wuhu Dongxu|||and|
|||Optoelectronic Equipment|||www.cninfo.com.cn|
|||Technology Co. Ltd.||||
|The second||1.Proposal on|||Announcement|
|provisional||Repurchasing Partial|||No:2014-069, China|
|shareholders‘|September 30,2014|Domestic Listed Foreign|Adoption|October 8,2014|Securities Daily,|
|General meeting||Shares (B shares); 2.|||Hong Kong|
|in 2014||Proposal on Applying to|||Commercial Daily|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||
|-|-|-|-|-|-|
|||the Stockholders' Meeting|||and|
|||for the Authorization of|||www.cninfo.com.cn|
|||Board of Directors in||||
|||Handling the Matters||||
|||Relating to Repurchase of||||
|||Partial Domestic Listed||||
|||Foreign Shares (B shares);||||
|||3. Proposal on Draft of||||
|||Restricted Stock Incentive||||
|||Plan of Dongxu||||
|||Optoelectronic Technology||||
|||Co., Ltd. and Abstract; 4.||||
|||Proposal on Applying to||||
|||the Stockholders' Meeting||||
|||for the Authorization of||||
|||Board of Directors in||||
|||Handling the Matters||||
|||Relating to Restricted||||
|||Stock Incentive Plan; 5.||||
|||Proposal on Assessment||||
|||and Management Methods||||
|||Concerning Restricted||||
|||Stock Incentive Plan of||||
|||Dongxu Optoelectronic||||
|||Technology Co., Ltd.||||
|||1. About the Company in||||
|||Line With the Issuance||||
|||Conditions of Company||||
|||Bonds; 2. Regarding to the||||
||||||Announcement|
|||Issuance of Company||||
|The third|||||No:2014-089, China|
|||Bonds; 3. Proposal on||||
|provisional|||||Securities Daily,|
|||Applying to the||November 7,||
|shareholders‘|November 6, 2014||Adoption||Hong Kong|
|||Stockholders' Meeting for||2014||
|General meeting|||||Commercial Daily|
|||the Full Authorization of||||
|in 2014|||||and|
|||Board of Directors in||||
||||||www.cninfo.com.cn|
|||Handling the Matters||||
|||Relating to the Company||||
|||Bonds Issuance and||||
|||Listing.||||

3. Preferred stockholders restored voting rights to request to convene ProvisionalShareholders’ Meeting.
□Applicable√Not applicable
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report III. Duty performance of independent Directors
1. Attendance of Board Meetings and General Meetings
||||||||
|-|-|-|-|-|-|-|
|Independent Directors‘ Attendance at Board Meetings|||||||
||Number of|||||Failure to|
||||Number of||||
||Board meetings|||Number of||personally attend|
|Independent||Number of spot|meetings||Number of||
||necessary to be|||attendances by||board meetings|
|Directors||attendances|attended by||absence||
||attended in the|||representative||successively|
||||Communication||||
||reporting period|||||twice (Yes/No)|
|Mu Tiehu|17|17|0|0|0|No|
|Zhang Shuangcai|17|16|1|0|0|No|
|Lu Guihua|15|15|0|0|0|No|
|Zhang Qunsheng|2|2|0|0|0|No|
|Number of general meetings attended|||||||
|by independent directors as non-voting||4|||||
|delegates|||||||

Notes to failure to personally attend Board Meetings Successively Twice
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes√No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independentdirector‘s advice to the Company been accepted
√Yes□No
Explanation on acceptance of or failure to accept an independentdirector‘s advice to the Company.
During the report period, the independent directors of the company has strictly followed the relevant laws and regulations of―Governance Rules of ListedCompanies‖,―Stock Listed Rules in Shenzhen StockExchange‖ and―Guidance Suggestion on the Establishment of Independent Directors System by the ListedCompany‖, and the provisions of―Articles ofAssociation‖ to attend the Board of Directors and Shareholders of the company, conscientiously perform their duties, express the constructive comments or suggestions for the development decisions of the company, review the major matters, such as the affiliated transactions, the appointment of senior executives, use of funds-raising and external guarantee, and issue the opinions of the independent directors,
which has effectively ensured the impartiality and objectivity of decision-making of the Board of Directors, maintained the whole
interests of the company and the legitimate rights of miedium and small shareholders, and played a positive role in thecompany‗s
standard operation and healthy development.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report IV. Duty Performance of Special Committees under the Board of Directors in the Reporting period
1.Performance of duties of the Nomination Committee
In 2014, The Nomination Committee of the Board of Directors earnestly performs their duties, and reviews and make recommendations on thecompany‘s general manager ,Deputy general manager, Board secretary and CFO candidates as per the provisions of―Implementation Rules of Nomination Committee of the Board ofDirectors‖.
2.Performance of Remuneration and Appraisal Committee
In 2014, Remuneration and Appraisal Committee under the Board of Directors have conscientiously performed their duties, and conducted the review and provide the suggestions on the subsidy of the independent directors of the company according to the provisions of―Detailed Rules for Implementation of Remuneration and Appraisal Committee under the Board ofDirectors‖. 3. Performance of Audit Committee
In 2014, Audit Committee under the Board of Directors has conscientiously performed the duties, conducted the duty of care, actively performs all kinds of works according to the relevant provisions of―Detailed Rules for Implementation of Audit Committee under the Board ofDirectors‖ and―Articles ofAssociation‖, and mainly made communication, control and review on the annual audits of the company.
Audit Committee and the certified accountants have made fully communication on the audit plans, business engagement letters, risks and control matters. The Audit Committee has reviewed the audit opinions and the financial accounting statements issued by the certified accountants, and supervised the certified accountants to submit the audit report within the appointment time. At the same time, the Audit Committee believes that the certified accountants have strictly followed the provisions of the independent audit rules from CPAs to perform the audit work, the audit time is enough, the audit personnel is allocated reasonably, the certificated
competence is qualified, and the financial accounting statements audited by the certified accountants shall reflect the true, accurate and complete financial condition.
V. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting period
□Yes√No
The supervisory Committee has no objection against any matters under supervision in the reporting period VI. Independence and Completeness in business, personnel , assets, organization and finance
The controlling shareholder of the company has the standard behavior andhasn‗t directly or indirectly interfered the decision-making and operations of the company beyond theshareholders‗ meeting. The company and the controlling shareholder have performed―FiveIndependence‖ on the aspects of personnel, assets, finance, organization and business, and the Board of Directors, Supervisor Committee and the internal organization can operate independently.
VII. Horizontal Competitions
√ Applicable□ Not applicable
Zhengzhou Xufei Company, controlled by Dongxu Optoelectronic Investment Co., Ltd. which is indirect shareholder of the company, Sichuang Xuhong Company and Dongxu (Yingkou) Company, held by the controlling shareholder of Baoshi Group, and Shijiazhuang Xuxin Company, all are engaged in the business of the flat panel display glass substrate, which from the competition with the project of―Production Line of Generation 6 LCD GlassSubstrate‖ invested by the non-public issuance funds-raising stocks.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report The related party Chengdu Taiyisi Technology Co., Ltd. and the company has competition in LCD equipment manufacturing industry. During the reporting period, these five companies have signed with the company on "trust management agreement" to entrust unified management to the company.
VIII. Assessment and incentive Mechanism for Senior executives
The company attaches great importance to the performance evaluation of the work of the Seniorexecutives，in order to gradually improve the evaluation and incentives system.set up Remuneration and Appraisal Committee under the Board of Directors and conducted the review and assessment for the senior executive. The remuneration of the senior executive is depended on the assessment. So, the company has built the scientific and effective incentive mechanism.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report X. Internal Control
I. Internal control Construction
The company obey the provisions of "basic norms of internal control" and supporting guidelines, combined with the actual situation of the external environment changes and the company's current operations, established a more robust internal control system in all important aspects. The company will continuously improve the company's internal control system to improve the efficiency and effectiveness of internal controls to ensure legal compliance management, and promote the company's stable, sustained and healthy development to achieve strategic objectives.
In the reporting period, the Board of Directors based on the original internal control system to revise and formulate the "Internal Control Manual" and supportive "Internal Control Evaluation Manual", "Risk Management Systems", "Internal Control Operation and Management System".During the report period, there are no major defects and deficiencies on the corporate governance and management after the daily management control and the special supervision and check of internal control. For the general control defects during the report period, the company has formulated the strict rectification program, implemented the rectification measures and revised and perfected the relevant process system to promote the effective design and operation for the internal contro
II. Statement of the Board of directors on the Responsibility of internal control
In accordance with the provisions of the internal control system ofcompany，the Board of Directors has established the perfect and effective implementation of internal control, made the evaluation of its effectiveness and truthfully disclosed the assessment report of internal control. The Supervisor Committee has made supervision for the establishment and implementation of internal control of the Board of Directors, and the managers are responsible for the arrangement and direction of the daily operation of internal control, the goals of internal control of the company are to reasonably guarantee the legality and compliance of operation and management, the safety of assets, the financial report, the authenticity and integrality of the relevant information, the improvement of operation effectiveness and achievement, and the promotion of the strategic development of the company. Because of the inherent limitations of internal control exists, it can only achieve these goals to provide reasonable assurance. In addition, due to changes in the situation may lead to internal control becomes inappropriate, or reduce the degree of control policies and procedures to follow, according to the results of the evaluation of internal control effectiveness of future internal control speculation has certain risks.
III.Basis for establishment of internal control of the Financial Report
Basis:―Accounting Law of thePeople‗s Republic ofChina‖,―Fundamental Norms for Enterprise InternalControl‖,―Operation Guideline of Enterprise InternalControl‖,―Financial Reporting Regulations ofEnterprises‖,―General Principles of CorporateFinance‖,―Accounting Standards forEnterprises‖,―Management Methods of Information Disclosure of ListedCompanies‖,―Information Disclosure Preparation and Report Rule No.15 of Companies with Public Issuance Securities― General Provisions of Financial Report[Revision2010]‖ and the relevant memo on the financial report disclosure of Shenzhen Stock Exchange.
IV. Self-assessment report of the internal control
||
|-|
|About the significant Defects of the internal control found in the internal control self-assessment report in the reporting period|
|According to the internal control over financial reporting identified significant deficiencies, the report on the evaluation of internal|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||
|-|-|
|control reference date, there are no significant deficiencies of internal control of financial reporting, the Board believes that thecompany has been in accordance with the system of internal control practices and related requirements to maintain in all materialrespects effective internal control over financial reporting. According to the company's internal control over financial reportingnon-significant deficiencies identified cases, internal control evaluation report reference date, the company found no significantinternal control over financial reporting of non-defective. Since the internal control evaluation report reference to internal controlevaluation report factors affecting internal control effectiveness has not occurred between the date of issue of evaluation findings||
|Date of disclosing the internal control||
||February 17,2015|
|self-assessment report, full text||
|Index of disclosing the internal control|Refer to Self-assessment report t of internal control in 2014 disclosed on|
|self-assessment report, full text|www.cninfo.com.cn|

V.Internal control audit report
Internal control audit report
|||
|-|-|
|Review opinions in the internal control audit report||
|Disclosure date of audit repor of internal control (full-text)|February 17, 2015|
|Index of audit report of internal control (full-text)|www.cninfo.com.cn|

Dongxu Optoelectronic Technology Co.,Ltd： Auditing report of internal control
ZXCGHSZZD(2015)No.:05010. To All Shareholders of Dongxu Optoelectronic Technology Co.,Ltd：
In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing standards of Chinese Certified Public Accountant, we audited the effective-ness of the financialreport‘s internal control for Dongxu Optoelectronic Technology Co., Ltd . (the Company) dated 31December 2014.
I. As for responsibility of internal control,
The Company established and improved and implemented internal control effectively based on Basic Norms of Enterprises Internal Control, Supporting Guidelines for Enterprise Internal Control and Evaluation Guild lines for Enterprises Internal Control, and board of the director is
responsible for evaluating its effectiveness.
II.Auditor’s responsibilities
Our responsibility is to express an opinion on the effectiveness of internal control for the financial statements based on our audit. And disclosed major deficits of noted internal control without financial statement concerned.
III. Inherent feature of internal control:
The internal control has an inherent limitation, and exist mistakes that can not prevent and being discovered. Moreover, the internal control might be inappropriate due to the changes of conditions, or fails to follow the controlling policies and procedures, to speculate future effectiveness of the internal control in line with the auditing result has a certain risks.
IV. Auditing opinion: in our opinion, the Company.
In line with Basic Norms of Enterprises Internal Control and relevant regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2014.
Zhongxingcai Guanghua Ceritified Public Accountants
(Special General Partnership) Accountants Chinese C.P.A.: Wang Fengqi
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report . Beijing China Chinese C.P.A.:Meng Xiaoguang February 16, 2015
Has the CPAs issued a qualifiedauditor‘s report of internal control .
□ Yes√No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of Directors
√Yes□No
VI. Establishment and implementation of the Responsibility investigation system for serious Errors in the Annual Report
In order to promote the standard operation, enhance the authenticity, accuracy, integrality and promptness of information disclosure and improve the quality and transparency of information disclosure of annual report, the company has formulated the―Responsibility Claim System on Significant Error in AnnualReport‖ according to the requirements stipulated in China Securities Regulatory Commission. During the report period, the companydoesn‗t have the significant errors, major omission for information complement, the revision of performance forecast and other situations.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report XI. Financial Report
I. Audit report
|||
|-|-|
||Issued unqualified auditor's report with paragraph of emphasized|
|Type eof audit opinion||
||matters|
|Date for signing the auditor‘s report|February 16, 2015|
|Document serial of audit report|ZXCGHSZD( 2015 )No05006|
||Zhongxingcai Guanghua Ceritified Public Accountants (Special|
|Name of audit firm||
||General Partnership)|
|Name|Wang Fengqi, Meng Xiaoguang|

Auditors Report
ZXCGHSZD( 2015 )No.:05006 To all shareholders of Shareholders of Dongxu Optoelectronic Technology Co., Ltd.:
We audited accompanying financial statements of Dongxu Optoelectronic Technology Co., Ltd.. (hereinafter referred to as "the Company"), including Consolidation and parent Company balance sheet on December 31, 2014, Consolidation and parent Company profit statement, Consolidation and parent Company cash flow statement for the year 2014 and Consolidation and parent Company statement of change in shareholders' equity and the notes to financial
statements..
I.Management’s responsibility for the financial statements
Preparation of financial statements in accordance with the Accounting Standards for Business Enterprises is the responsibility of the management of the Company. Such responsibility includes: (1) Prepare the financial statements according to business enterprises regulation, so that making reasonable accounting estimate. (2) design, implementation and maintenance of internal control related to the preparation of financial statements so that financial statements are free from material misstatement caused by fraudulent practices or errors;
II. Responsibility of certified public accountants
We are responsible for expressing opinions on financial statements based on our audit. We conducted audit in accordance with the audit criteria for Chinese certified public accountants. The audit criteria for Chinese certified public accountants require us to abide by professional ethics, plan and conduct audit to obtain reasonable assurance as to whether financial statements are free from material misstatement. Audit involves carrying out audit procedure to obtain the audit evidences about the amounts and disclosure of financial
statements. The selected audit procedure relies on the judgment of certified public accountants, including the appraisal of risk of
material misstatement of financial statements caused by fraudulent practices or errors. While appraising risks, we considered the
internal control related to the preparation of financial statements to design proper audit procedure but the purpose is not to express an
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report opinion on the effectiveness of internal control. The audit also includes the appraisal of suitability of accounting policies selected by the management, the reasonableness of accounting estimate and the overall presentation of financial statements.
We believe that the audit evidences obtained by us are full and appropriate and provide a basis for expressing audit opinion. III. Audit opinion
In our opinion, the financial statements of Dongxu Optoelectronic Technology Co., Ltd. Wharf present fairly, in all material respects, thecompany‗s and consolidated financial position as of 31 December 2014, and theCompany‗s and consolidated results of operations and cash flows for the year then ended in accordance with Accounting Standards for Business Enterprises.
Zhongxingcai Guanghua Ceritified Public Accountants Accountants Chinese C.P.A.: Wang Fengqi .(Special General Partnership) Chinese C.P.A.: Meng Xiaoguang Beijing China February 16, 2015
II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1.Consolidated Balance sheet
Prepared by: Dongxu Optoelectronic Technology Co., Ltd. December 31, 2014
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|3,196,271,083.93|2,586,660,951.04|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Bill receivable|449,510,678.50||
|Account receivable|638,809,800.10|943,285,462.11|
|Prepayments|2,749,454,904.89|2,788,962,137.94|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|43,302,115.88|29,300,640.49|
|Repurchasing of financial assets|||
|Inventories|512,854,086.79|298,619,165.08|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|510,571,217.34|75,632,804.57|
|Total of current assets|8,100,773,887.43|6,722,461,161.23|
|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|||
|Property investment||12,216,614.26|
|Fixed assets|1,958,761,855.66|141,108,554.36|
|Construction in progress|2,045,729,633.22|1,914,118,112.98|
|Engineering material|22,095,086.42|112,687,660.04|
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|220,645,757.06|112,787,665.77|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|14,106,796.67||
|Differed income tax asset|106,050,283.31|17,598,632.50|
|Other non-current asset|||
|Total of non-current assets|4,367,389,412.34|2,310,517,239.91|
|Total of assets|12,468,163,299.77|9,032,978,401.14|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Current liabilities|||
|Short-term loans|1,288,900,000.00|580,000,000.00|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Bill payable|280,000,000.00|150,000,000.00|
|Account payable|232,393,429.70|134,665,580.06|
|Advance payment|22,382,273.47|3,451,630.20|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees‘ wage payable|23,745,764.49|17,885,009.53|
|Tax payable|108,920,459.16|-168,850,322.26|
|Interest payable|||
|Dividend payable|30,000,000.00||
|Other account payable|69,267,124.39|46,922,065.04|
|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|268,000,000.00||
|Other current liability|63,687,933.33|60,989,000.00|
|Total of current liability|2,387,296,984.54|825,062,962.57|
|Non-current liabilities：|||
|Long-term loan|3,572,000,000.00|2,300,000,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable employees‘s|||
|remuneration|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Special payable|||
|Expected liabilities|||
|Differed income|33,064,111.11|33,714,000.00|
|Differed income tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|3,605,064,111.11|2,333,714,000.00|
|Total of liability|5,992,361,095.65|3,158,776,962.57|
|Owners‘ equity|||
|Share capital|2,662,080,001.00|903,000,000.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|2,919,966,918.24|4,936,613,311.80|
|Less：Shares in stock|||
|Other comprehensive income|||
|Special reserves|||
|Surplus reserves|66,158,108.81|27,454,788.05|
|Common risk provision|||
|Undistributed profit|788,527,477.96|-53,394,384.81|
|Total of owner‘s equity belong to the|||
||6,436,732,506.01|5,813,673,715.04|
|parent company|||
|Minority shareholders‘ equity|39,069,698.11|60,527,723.53|
|Total of owners‘ equity|6,475,802,204.12|5,874,201,438.57|
|Total of liabilities and owners‘ equity|12,468,163,299.77|9,032,978,401.14|

 2. Balance sheet of the Parent Company
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Current asset：|||
|Monetary fund|1,736,774,243.99|29,805,307.79|
|Financial assets measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial assets|||
|Bill receivable|100,000.00||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Account receivable|12,495,493.29|16,547,491.42|
|Prepayments|863,556,776.13|25,310,796.89|
|Interest receivable|||
|Dividend receivable|323,000,000.00||
|Other account receivable|316,867,754.88|432,062,236.88|
|Inventories|18,563,041.11|19,766,175.81|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|19,211.84|19,211.84|
|Total of current assets|3,271,376,521.24|523,511,220.63|
|Non-current assets：|||
|Disposable financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|5,096,912,035.49|4,728,458,306.96|
|Property investment||4,203,586.44|
|Fixed assets|55,683,240.25|31,342,639.14|
|Construction in progress||23,712,084.39|
|Engineering material|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|10,521,614.79|10,847,178.52|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Differed income tax asset|9,097,970.44|8,034,510.33|
|Other non-current asset|||
|Total of non-current assets|5,172,214,860.97|4,806,598,305.78|
|Total of assets|8,443,591,382.21|5,330,109,526.41|
|Current liabilities|||
|Short-term loans|900,000,000.00||
|Financial liabilities measured at fair|||
|value with variations accounted into|||
|current income account|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Derivative financial liabilities|||
|Bill payable|||
|Account payable|19,083,770.39|16,158,244.45|
|Advance payment|20,937.90|6,702,336.70|
|Employees‘ wage payable|5,250,269.40|3,964,746.75|
|Tax payable|1,986,624.99|1,676,183.24|
|Interest payable|||
|Dividend payable|||
|Other account payable|1,253,172,816.58|105,904,670.83|
|Liabilities held for sales|||
|Non-current liability due in 1 year|||
|Other current liability|20,000.00|20,000.00|
|Total of current liability|2,179,534,419.26|134,426,181.97|
|Non-current liabilities：|||
|Long-term loan|400,000,000.00||
|Bond payable|||
|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|25,000.00|45,000.00|
|Total of Non-current liabilities|400,025,000.00|45,000.00|
|Total of liability|2,579,559,419.26|134,471,181.97|
|Owners‘ equity|||
|Share capital|2,662,080,001.00|903,000,000.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|2,782,714,603.79|4,799,360,997.35|
|Less：Shares in stock|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Other comprehensive income|||
|Special reserves|||
|Surplus reserves|70,907,471.36|32,204,150.60|
|Undistributed profit|348,329,886.80|-538,926,803.51|
|Total of owners‘ equity|5,864,031,962.95|5,195,638,344.44|
|Total of liabilities and owners‘ equity|8,443,591,382.21|5,330,109,526.41|

 3.Consolidated Profit statement
In RMB
||||
|-|-|-|
|Item|Report period|Same period of the previous year|
|I. Income from the key business|2,143,398,018.39|931,900,682.99|
|Incl：Business income|2,143,398,018.39|931,900,682.99|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|1,499,340,269.05|532,992,694.88|
|Incl：Business cost|1,179,501,794.60|409,803,391.02|
|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|26,343,940.13|11,561,848.42|
|Sales expense|14,824,806.90|8,166,835.21|
|Administrative expense|210,619,129.62|100,258,518.00|
|Financial expenses|60,438,346.22|3,046,596.45|
|Asset impairment loss|7,612,251.58|155,505.78|
|Add：Gains from change of fir value|||
|（―-‖for loss）|||
|Investment gain（―-‖for loss）|||
|Incl: investment gains from affiliates|||
|Gains from currency exchange|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|（―-‖for loss）|||
|III. Operational profit（―-‖for loss）|644,057,749.34|398,907,988.11|
|Add ：Non-operational income|441,257,169.75|150,509,411.04|
|Including：Income from disposal of|||
||12,738.05|6,783,729.96|
|non-current assets|||
|Less：Non business expenses|115,369.37|2,033,343.45|
|Incl：Loss from disposal of non-current|||
||102,108.77||
|assets|||
|IV.Total profit(―-‖for loss)|1,085,199,549.72|547,384,055.70|
|Less：Income tax expenses|176,032,391.61|137,839,716.58|
|V. Net profit|909,167,158.11|409,544,339.12|
|Net profit attributable to the owners of|||
||880,625,183.53|369,297,308.74|
|parent company|||
|Minority shareholders‘ equity|28,541,974.58|40,247,030.38|
|VI. Other comprehensive income|||
|Net of profit of other comprehensive inco|||
|me attributable to owners of the parent co|||
|mpany.|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
|gains/losses in the subsequent accounting|||
|period|||
|1.Re-measurement of defined benefit pla|||
|ns of changes in net debt or net assets|||
|2.Other comprehensive income under the|||
|equity method investee can not be reclass|||
|ified into profit or loss.|||
|（II）|||
|Other comprehensive income that will be|||
|reclassified into profit or loss.|||
|1.Other comprehensive income under the|||
|equity method investee can be reclassifie|||
|d into profit or loss.|||
|2.Gains and losses from changes in fair v|||
|alue available for sale financial assets|||
|3.Held-to-maturity investments reclassifi|||
|ed to gains and losses of available for sal|||
|e financial assets|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|4.The effective portion of cash flow hedg|||
|es and losses|||
|5.Translation differences in currency fina|||
|ncial statements|||
|6.Other|||
|7.Net of profit of other comprehensive in|||
|come attributable to Minority|||
|shareholders‘ equity|||
|VII. Total comprehensive income|909,167,158.11|409,544,339.12|
|Total comprehensive income attributable|880,625,183.53||
|||369,297,308.74|
|to the owner of the parent company|||
|Total comprehensive income|28,541,974.58||
|||40,247,030.38|
|attributable minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.33|0.17|
|(II)Diluted earnings per share|0.33|0.17|

 The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0, last period the combined party realized RMB 0.
4. Profit statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|I. Income from the key business|60,265,810.68|96,047,179.19|
|Incl：Business cost|37,675,359.86|59,343,150.90|
|Business tax and surcharge|561,707.55|3,166,497.92|
|Sales expense|150,607.84|598,749.77|
|Administrative expense|32,361,040.13|17,982,814.02|
|Financial expenses|14,631,869.59|-1,814,396.71|
|Asset impairment loss|56,838.80|22,890.98|
|Add：Gains from change of fir value（―-‖for loss）|||
|Investment gain（―-‖for loss）|950,000,000.00||
|Incl: investment gains from affiliates|||
|II. Operational profit（―-‖for loss）|924,828,386.91|16,747,472.31|
|Add ：Non-operational income|72,684.29|12,858,190.26|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Including：Income from disposal of|||
|non-current assets|||
|Less：Non business expenses|4,520.24||
|Incl：Loss from disposal of non-current|||
|assets|||
|III.Total profit(―-‖for loss)|924,896,550.96|29,605,662.57|
|Less：Income tax expenses|-1,063,460.11|2,577,830.04|
|IV. Net profit（―-‖for net loss）|925,960,011.07|27,027,832.53|
|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|||
|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|925,960,011.07|27,027,832.53|
|VII. Earnings per share：|||
|（I）Basic earnings per share|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||
|-|
|(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|||
||2,278,469,761.23|607,586,110.54|
|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|174,290,479.10|71,535,818.49|
|Other cash received from business|||
||297,149,134.18|72,004,618.22|
|operation|||
|Sub-total of cash inflow|2,749,909,374.51|751,126,547.25|
|Cash paid for purchasing of|||
||1,964,280,347.44|1,913,667,192.67|
|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|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|277,041,213.72|177,258,300.64|
|Taxes paid|453,941,472.99|200,107,409.97|
|Other cash paid for business activities|98,703,749.64|297,312,478.88|
|Sub-total of cash outflow from business|||
||2,793,966,783.79|2,588,345,382.16|
|activities|||
|Cash flow generated by business|||
||-44,057,409.28|-1,837,218,834.91|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
|retrieving|||
|Cash received as investment gains|||
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other||4,349,773.95|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received|3,500,000.00||
|Sub-total of cash inflow due to|||
||3,500,000.00|4,349,773.95|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|1,139,622,693.12|2,254,600,150.18|
|and other long-term assets|||
|Cash paid as investment|||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and|||
||13,915,285.10||
|other operational units|||
|Other cash paid for investment|||
|activities|||
|Sub-total of cash outflow due to|||
||1,153,537,978.22|2,254,600,150.18|
|investment activities|||
|Net cash flow generated by investment|-1,150,037,978.22|-2,250,250,376.23|
|III.Cash flow generated by financing|||
|Cash received as investment|11,950,400.00|4,970,800,000.00|
|Incl: Cash received as investment from|||
|minor shareholders|||
|Cash received as loans|3,038,900,000.00|3,555,000,000.00|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Cash received from bond placing|||
|Other financing –related ash received|11,591,759.42|8,698,025.46|
|Sub-total of cash inflow from financing|||
||3,062,442,159.42|8,534,498,025.46|
|activities|||
|Cash to repay debts|790,000,000.00|1,960,000,000.00|
|Cash paid as dividend, profit, or|||
||263,088,668.78|132,362,386.43|
|interests|||
|Incl: Dividend and profit paid by|||
||20,000,000.00||
|subsidiaries to minor shareholders|||
|Other cash paid for financing activities|273,984,279.92|425,585.49|
|Sub-total of cash outflow due to|||
||1,327,072,948.70|2,092,787,971.92|
|financing activities|||
|Net cash flow generated by financing|1,735,369,210.72|6,441,710,053.54|
|IV. Influence of exchange rate|||
||-13,652.53||
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||541,260,170.69|2,354,240,842.40|
|equivalents|||
|Add: balance of cash and cash|||
||2,465,010,913.24|110,770,070.84|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||3,006,271,083.93|2,465,010,913.24|
|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|||
||63,696,323.73|119,878,595.24|
|rending of services|||
|Tax returned|||
|Other cash received from business|||
||1,492,371,479.23|7,804,675.18|
|operation|||
|Sub-total of cash inflow|1,556,067,802.96|127,683,270.42|
|Cash paid for purchasing of|||
||2,715,408.05|32,223,977.10|
|merchandise and services|||
|Cash paid to staffs or paid for staffs|18,313,407.43|14,275,906.84|
|Taxes paid|4,557,514.41|13,686,930.25|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Other cash paid for business activities|260,041,430.69|820,429,818.74|
|Sub-total of cash outflow from business|||
||285,627,760.58|880,616,632.93|
|activities|||
|Cash flow generated by business|||
||1,270,440,042.38|-752,933,362.51|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
|retrieving|||
|Cash received as investment gains|627,000,000.00||
|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|||
|Sub-total of cash inflow due to|||
||627,000,000.00||
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|850,000,000.00||
|and other long-term assets|||
|Cash paid as investment|368,453,728.53|4,189,664,000.00|
|Net cash received from subsidiaries and|||
|other operational units|||
|Other cash paid for investment|||
|activities|||
|Sub-total of cash outflow due to|||
||1,218,453,728.53|4,189,664,000.00|
|investment activities|||
|Net cash flow generated by investment|-591,453,728.53|-4,189,664,000.00|
|III.Cash flow generated by financing|||
|Cash received as investment|11,950,400.00|4,970,800,000.00|
|Cash received as loans|1,300,000,000.00||
|Cash received from bond placing|||
|Other financing –related ash received|487,371.87||
|Sub-total of cash inflow from|||
||1,312,437,771.87|4,970,800,000.00|
|financing activities|||
|Cash to repay debts|||
|Cash paid as dividend, profit, or|16,403,694.42||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|interests|||
|Other cash paid for financing activities|268,051,455.10||
|Sub-total of cash outflow due tofinancing activities|||
||284,455,149.52||
|Net cash flow generated by financing|1,027,982,622.35|4,970,800,000.00|
|IV. Influence of exchange ratealternation on cash and cash equivalents|||
|V.Net increase of cash and cashequivalents|||
||1,706,968,936.20|28,202,637.49|
|Add: balance of cash and cashequivalents at the beginning of term|||
||29,805,307.79|1,602,670.30|
|VI ..Balance of cash and cashequivalents at the end of term|||
||1,736,774,243.99|29,805,307.79|

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||
||||||Capital||Compre||Surplus|n risk|||owners‘|
||Capita|prefer||||Shares||zed|||able|lders‘||
||||Sustai||reserves||hensive||reserves|provisio|||equity|
||l|red||Other||in stock||reserve|||profit|equity||
||||nable||||Income|||n||||
|||stock||||||||||||
||||debt|||||||||||
||903,00||||4,936,6||||||||5,874,2|
|I.Balance at the|||||||||27,454,||-53,394,|60,527,||
||0,000.||||13,311.||||||||01,438.|
|end of last year|||||||||788.05||384.81|723.53||
||00||||80||||||||57|
|Add: Change of||||||||||||||
|accounting||||||||||||||
|policy||||||||||||||
|Correcting of||||||||||||||
|previous errors||||||||||||||
|Merger of entities||||||||||||||
|under common||||||||||||||
|control||||||||||||||
|Other||||||||||||||
|II.Balance at the|903,00||||4,936,6||||27,454,||-53,394,|60,527,|5,874,2|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|beginning of|0,000.|13,311.|788.05|384.81|723.53|01,438.|
|current year|00|80||||57|
||1,759,|-2,016,6|||||
|III.Changed in the|||38,703,|841,921|-21,458,|601,600|
||080,00|46,393.|||||
|current year|||320.76|,862.77|025.42|,765.55|
||1.00|56|||||
|（1）Total|||||||
|||||880,625|28,541,|909,167|
|comprehensive|||||||
|||||,183.53|974.58|,158.11|
|income|||||||
|（II）Investment|-46,91|-210,64||||-257,56|
|or decreasing of|9,999.|6,393.5||||6,392.5|
|capital by owners|00|6||||6|
|1．Ordinary Share|||||||
||3,080,|8,461,0||||11,541,|
|s invested by hare|||||||
||000.00|01.90||||001.90|
|holders|||||||
|2．Holders of oth|||||||
|er equity instrume|||||||
|nts invested capital|||||||
|3．Amount of|||||||
|shares paid and|||||||
|accounted as|||||||
|owners‘ equity|||||||
||-49,99|-219,10||||-269,10|
|4．Other|9,999.|7,395.4||||7,394.4|
||00|6||||6|
|（III）Profit|||38,703,|-38,703,|-50,000,|-50,000,|
|allotment|||320.76|320.76|000.00|000.00|
|1.Providing of|||38,703,|-38,703,|||
|surplus reserves|||320.76|320.76|||
|2.Providing of|||||||
|common risk|||||||
|provisions|||||||
|3．Allotment to the|||||||
||||||-50,000,|-50,000,|
|owners (or|||||||
||||||000.00|000.00|
|shareholders)|||||||
|4．Other|||||||
|(IV) Internal|1,806,|-1,806,0|||||
|transferring of|000,00|00,000.|||||
|owners‘ equity|0.00|00|||||
|1. Capitalizing of|1,806,|-1,806,0|||||
|capital reserves (or|000,00|00,000.|||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|to capital shares)|0.00|00|||||
|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|||||||
||2,662,|2,919,9||||6,475,802,204.12|
|IV. Balance at the|||66,158,|788,527|39,069,||
||080,00|66,918.|||||
|end of this term|||108.81|,477.96|698.11||
||1.00|24|||||

 Amount in last year
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year|||||||||||||
||Owner‘s equity Attributable to the Parent Company|||||||||||||
|||Other Equity|||||||||||Total|
|||||||||||||Minor||
|||instrusment||||Less:|Other||Surplu|Comm|||of|
|Items||||||||||||||
||Share||||Capital|||Specia|||Attribu|shareh||
|||||||Shares|Compre||s|on risk|||owner|
||Capit|prefer|||reserve|||lized|||table|olders‘||
||||Sustai|||in|hensive||reserve|provisi|||s‘|
||al|red||Other|s|||reserve|||profit|equity||
||||nable|||stock|Income||s|on|||equity|
|||stock||||||||||||
||||debt|||||||||||
||383,00||||||||||-422,69|||
|I.Balance at the|||||404,165||||27,454,|||111,414|503,343|
||0,000.||||||||||1,693.5|||
|end of last year|||||,683.34||||788.05|||,900.27|,678.11|
||00||||||||||5|||
|Add: Change of||||||||||||||
|accounting||||||||||||||
|policy||||||||||||||
|Correcting of||||||||||||||
|previous errors||||||||||||||
|Merger of entities||||||||||||||
|under common||||||||||||||
|control||||||||||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Other|||||||
|II.Balance at the|383,00|||-422,69|||
|||404,165|27,454,||111,414|503,343|
|beginning of|0,000.|||1,693.5|||
|||,683.34|788.05||,900.27|,678.11|
|current year|00|||5|||
||520,00|4,532,4||||5,370,8|
|III.Changed in the||||369,297|-50,887||
||0,000.|47,628.||||57,760.|
|current year||||,308.74|,176.74||
||00|46||||46|
|（1）Total|||||||
|||||369,297|40,247,|409,544|
|comprehensive|||||||
|||||,308.74|030.38|,339.12|
|income|||||||
|（II）Investment|520,00|4,532,4||||4,961,3|
||||||-91,134||
|or decreasing of|0,000.|47,628.||||13,421.|
||||||,207.12||
|capital by owners|00|46||||34|
|1．Ordinary Share|520,00|4,441,3||||4,961,3|
|s invested by hare|0,000.|13,421.||||13,421.|
|holders|00|34||||34|
|2．Holders of oth|||||||
|er equity instrume|||||||
|nts invested capital|||||||
|3．Allotment to the|||||||
|owners (or|||||||
|shareholders)|||||||
|||91,134,|||91,134,||
|4．Other|||||||
|||207.12|||207.12||
|(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|||||||
|(VI )Special|||||||
|reserves|||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|1. Provided this|||||||
|year|||||||
|2．Used this term|||||||
|（VII）Other|||||||
|IV. Balance at the|||||||
|end of this term|||||||
|(V) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||
|2．Used this term|||||||
|（VI）Other|||||||
||903,00|4,936,6||||5,874,2|
|IV. Balance at the|||27,454,|-53,394,|60,527,||
||0,000.|13,311.||||01,438.|
|end of this term|||788.05|384.81|723.53||
||00|80||||57|

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|Sustain|||Shares in|||risk|able|owners‘|
||Capital|||Other|reserves||ensive|reserves||||
|||d stock|able|||stock|||provision|profit|equity|
||||||||Income|||||
||||debt|||||||||
|||||||||||-538,92||
|I.Balance at the|903,000,||||4,799,360||||32,204,15||5,195,638|
|||||||||||6,803.5||
|end of last year|000.00||||,997.35||||0.60||,344.44|
|||||||||||1||
|Add: Change of||||||||||||
|accounting||||||||||||
|policy||||||||||||
|Correcting of||||||||||||
|previous errors||||||||||||
|Other||||||||||||
|II.Balance at the||||||||||-538,92||
||903,000,||||4,799,360||||32,204,15||5,195,638|
|beginning of||||||||||6,803.5||
||000.00||||,997.35||||0.60||,344.44|
|current year||||||||||1||
|III.Changed in the|1,759,08||||-2,016,64||||38,703,32|887,256|668,393,6|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||
|-|-|-|-|-|-|
|current year|0,001.00|6,393.56|0.76|,690.31|18.51|
|（I）Total||||||
|||||925,960|925,960,0|
|comprehensive||||||
|||||,011.07|11.07|
|income||||||
|(II) Investment or||||||
||-46,919,|-210,646,|||-257,566,|
|decreasing of||||||
||999.00|393.56|||392.56|
|capital by owners||||||
|1．Ordinary Share||||||
||3,080,00|8,461,001|||11,541,00|
|s invested by hareh||||||
||0.00|.90|||1.90|
|olders||||||
|2．Holders of oth||||||
|er equity instrume||||||
|nts invested capital||||||
|3.Amount of||||||
|shares paid and||||||
|accounted as||||||
|owners‘ equity||||||
||-49,999,|-219,107,|||-269,107,|
|4．Other||||||
||999.00|395.46|||394.46|
|（III）Profit|||38,703,32|-38,703,||
|allotment|||0.76|320.76||
|1.Providing of|||38,703,32|-38,703,||
|surplus reserves|||0.76|320.76||
|2．Allotment to the||||||
|owners (or||||||
|shareholders)||||||
|3．Other||||||
|(IV)Internal||||||
||1,806,00|-1,806,00||||
|transferring of||||||
||0,000.00|0,000.00||||
|owners‘ equity||||||
|1. Capitalizing of||||||
||1,806,00|-1,806,00||||
|capital reserves (or||||||
||0,000.00|0,000.00||||
|to capital shares)||||||
|2. Capitalizing of||||||
|surplus reserves||||||
|(or to capital||||||
|shares)||||||
|3．Making up||||||
|losses by surplus||||||
|reserves.||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||
|-|-|-|-|-|-|
|4. Other||||||
|(V) Special||||||
|reserves||||||
|1. Provided this||||||
|year||||||
|2．Used this term||||||
|（VI）Other||||||
|IV. Balance at the|2,662,08|2,782,714|70,907,47|348,329|5,864,031,962.95|
|end of this term|0,001.00|,603.79|1.36|,886.80||

 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|||||||||
|||||||||||-565,95||
|I.Balance at the|383,000,||||358,047,5||||32,204,15||207,297,0|
|||||||||||4,636.0||
|end of last year|000.00||||76.01||||0.60||90.57|
|||||||||||4||
|Add: Change of||||||||||||
|accounting||||||||||||
|policy||||||||||||
|Correcting of||||||||||||
|previous errors||||||||||||
|Other||||||||||||
|II.Balance at the||||||||||-565,95||
||383,000,||||358,047,5||||32,204,15||207,297,0|
|beginning of||||||||||4,636.0||
||000.00||||76.01||||0.60||90.57|
|current year||||||||||4||
|III.Changed in the|520,000,||||4,441,313|||||27,027,|4,988,341|
|current year|000.00||||,421.34|||||832.53|,253.87|
|（I）Total||||||||||||
|||||||||||27,027,|27,027,83|
|comprehensive||||||||||||
|||||||||||832.53|2.53|
|income||||||||||||
|(II) Investment or||||||||||||
||520,000,||||4,441,313||||||4,961,313|
|decreasing of||||||||||||
||000.00||||,421.34||||||,421.34|
|capital by owners||||||||||||
|1．Ordinary Share|520,000,||||4,441,313||||||4,961,313|
|s invested by hareh|000.00||||,421.34||||||,421.34|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||
|-|-|-|-|-|-|
|olders||||||
|2．Holders of oth||||||
|er equity instrume||||||
|nts invested capital||||||
|3.Amount of||||||
|shares paid and||||||
|accounted as||||||
|owners‘ equity||||||
|4．Other||||||
|（III）Profit||||||
|allotment||||||
|1.Providing of||||||
|surplus reserves||||||
|2．Allotment to the||||||
|owners (or||||||
|shareholders)||||||
|3．Other||||||
|(IV)Internal||||||
|transferring of||||||
|owners‘ equity||||||
|1. Capitalizing of||||||
|capital reserves (or||||||
|to capital shares)||||||
|2. Capitalizing of||||||
|surplus reserves||||||
|(or to capital||||||
|shares)||||||
|3．Making up||||||
|losses by surplus||||||
|reserves.||||||
|4. Other||||||
|(V) Special||||||
|reserves||||||
|1. Provided this||||||
|year||||||
|2．Used this term||||||
|（VI）Other||||||
|IV. Balance at the|903,000,|4,799,360|32,204,15|-538,92|5,195,638|
|end of this term|000.00|,997.35|0.60|6,803.5|,344.44|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||
|-|
|1|

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―TheCompany‖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.
According to the Approval of Private Issue of Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zhen Jian Xu Ke (2012) No. 1661 Document) issued by China Securities Regulatory Commission ("CSRC"), the Company privately issued 520 million RMB ordinary shares (A shares) to specific investors at the price of RMB 9.69 per share on April 3, 2013. All investors subscribed for shares in cash. After this private issue, the registered capital of the Company was changed to RMB 903.00 million. The controlling shareholder of the company by the Shijiazhuang Baoshi Electronic Group Co., Ltd. changed to Dongxu Group , a dir ect stake of14.40%, Shijiazhuang Baoshi Electronic Glass Co., Ltd. held the indirectly12.27% of the share.
The 6th Provisional shareholder meeting in 2013 approved the name change of Shijiazhuang Baoshi Electronic Glass Co., Ltd. to Do ngxu 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 (ShareB)‖ 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.
At the end of the report period, the Company had four wholly-owned subsidiaries: Hebei Xubao Construction Installation
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Engineering Co., Ltd., Wuhu Dongxu Optoelectronic Technology Co., Ltd., Sichuan Ruiyi Construction Engineering Co., Ltd. And Beijing Xufeng Real Estate Co., Ltd., four Controlled Subsidiaries: Shijiazhuang Baoshi Color Bulb Co., Ltd., Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.,Wuhan Dongxu Optoelectronic Technology Co., Ltd.and Dongxu(Kunshan) Display Material Co., Ltd., three controlled sub-subsidiary: Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd ., Beijing Dongxu Investment Development Co., Ltd.and Wuhu Ruiyi Labor Co., Ltd.
As of December 31, 2014, Registered capital :RMB 2,662,080,001.00, Legal representative: Li Zhaoting,
Registration No. of Legal Entity Business License : 130000000001040, Registered Address: No.9, Huanghe Road, Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei Province.
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; hydrogen (52.23 tons / year) of production (valid until June 30, 2015 (can not operate the laws, regulations and the State Council decided to ban or restrict, ; can operate after get approval from other departments).
IV.Basis for the preparation of financial statements
1.Basis for the preparation
The financial statements of the company are prepared based on the going-concern assumption and the actual transactions and items, and as per―Accounting Standards for Business Enterprises– BasicStandards‖ (released in Decree No.33, Ministry of Finance and amended in Decree No.76, Ministry of Finance) issued by Ministry of Finance, 41 specific accounting standards, application guide of accounting standards for business enterprises, interpretation of accounting standards for business enterprise and other provisions (collectively called―Accounting Standards for BusinessEnterprises‖ hereinafter) issued and amended on February 15, 2006 and later, and the disclosure provisions of―Rules for the Information Disclosure and Compilation of Companies Publicly Issuing Securities No.15– General Rules on Financial Reports (Revised in2014)‖ of China Securities Regulatory Commission.
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 accounting estimates
Principal accounting policies and accountingestimates， Specific accounting policies and accounting estimates tips:
The Company under the Ministry of Finance issued in 2014 - Accounting Standard For Business Enterprises No.2-Long-term equityinvestment.（Announced 2014 and other eight Accounting Standards to change the related Accounting Policies. But the comparison does not involve retrospective restatement of financial statements.
1. Statement on complying with corporate accounting standards
The Company state: the financial statements prepared are in line with the requirements in enterprise accounting standards in line with of system, and have truly and completely reflected of the financial status in December 31, 2014 , operational results, cash flow, and other relevant information for half year of 2014.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 2.Accounting 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.
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 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
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report rechecking.
If the deductible temporary difference of acquiree obtained by the acquirer is not recognized due to the recognition condition of the deferred income tax assets unmet on the acquisition date. Within 12 months after the acquisition date, the relevant deferred income tax assets shall be recognized and the business reputation shall be reduced if the acquired new or further evidence shows that the relevant situation has already existed and the economic benefit gained by the acquiree from the deductible temporary difference is expected to achieve, and the differences are recognized as the current profits and losses if the business reputation is insufficient to offset. With the exception of the above, the deferred income tax assets related to the business combination are recorded into the current profits and losses.
For the business combination under non-common control realized step-by-step through multiple transactions, the multiple transactions shall be judged if belong to―the packagedeal‖ according to the―Notice on Issuance of Interpretation of Accounting Standards for Business Enterprises from Ministry ofFinance‖ (Finance and Accounting[2012] No.19) and the judgment standards on―the packagedeal‖ in Article 51 of―Accounting Standards for Business Enterprises No.33– Consolidated FinancialStatement‖ (please see 5 (2) in Notes 3). For the package deal, please refer to above description of this section and Notes 3, 14―Long-term EquityInvestment‖ 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 acquiree 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 acquiree (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 acquiree as per the equity method).
6. 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
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report period adopted by the subsidiaries and the company is discrepant. For the subsidiaries acquired through the business combination under non-common control, the financial statement shall be adjusted on the basis of the fair value of the identifiable net assets on the acquisition date.
All the major balances, transactions and the unrealized profits of the company shall be offset in the preparation of the consolidated financial statement.
Those not belong to the company in 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 interestincome‖ 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 EquityInvestment‖ or―Accounting Standards for Business Enterprises No. 22– Recognition and Measurement of FinancialInstruments‖. For the details, please see Notes 3, 14―Long-term EquityInvestment‖ or Notes 3, 10―FinancialInstruments‖.
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 ControlLost‖ (please refer to 14, (2)④ in Notes 3,) and―The Control on Original Subsidiary Lost due to Disposal of Part of Equity Investment or OtherReasons‖ (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. 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.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 8. 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 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.
(3)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 currencystatement‖ 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―undistributedprofit‖ 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
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
9.Financial instruments
One financial asset or financial liability shall be recognized when the company becomes the party in the financial instrument contract. The financial assets and the financial liabilities are measured at the fair value in the initial recognition. For the financial assets and liabilities that measured at the fair values and the variation included in the current profits and losses, the relative transaction expenses shall be directly recorded into the profits and losses. For the financial assets and liabilities of other categories, the expenses related to transactions are recognized as initial amount.
（1）Determination Method for the Fair Value of Financial Assets and Liabilities
The fair value refers to the price that receivable for the sale of one asset or paid for the transfer of one liability in the orderly transactions occurring on the measurement date for the market participants. If there exists the active market for the financial instrument, the company shall recognize the fair value according to the quotation in the active market which refers to the price that easy to periodically acquire from Exchanges, Commission Brokers, Guilds and Pricing Services, and stands for the price of the market transactions actually occurred in the fair dealing. For 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.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
②The investments of held-to-maturity
The held-to-maturity investment refers to a non-derivative financial asset with a fixed date of maturity, a fixed or determinable amount of repo price and the company holds for a definite purpose or is able to hold until its maturity.
The held-to-maturity investments shall be made the subsequent measurement on the basis of the actual interest rate and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or amortization shall recorded into the current profits and losses.
The actual interest rate method is the way to calculate the post-amortization costs and the interest incomes or expenditure at each period as per the actual interest rate of the financial assets or liabilities (a group of financial assets or liabilities included). The actual interest rate means that the future cash flow of the financial assets or liabilities within the predicted term of existence or within a shorter applicable term shall be discounted as the rate used for the current book value of the financial assets or liabilities.
When calculating the actual interest rate, the company should consider all the contract terms of the financial assets or liabilities to estimate the future cash flow (without regard to the future credit loss), and take account of all the charges, transaction expenses and discounts or premium belong to the actual interest rate and paid or received between all the parties of the financial assets or liabilities contracts.
③Loans 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 non-transient depreciation by
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report the relevant comprehensive factors, which shows that the sellable equity instrument investments have the impairment. Of which, the―seriousdepreciation‖ refers to the decline range of the fair value accumulatively over20%, and the―non-transientdepreciation‖ 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 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
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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
For the derivative financial liability, 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
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.
10.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|
|The method of separate provision for bad debts for the accounts|Impairment test shall be separately conducted. If the test proves|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||
|-|-|
|receivable with significant single-item amount|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|
||impairment is not proved by separate test, such accounts|
||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|Method for recognition of impairment allowances|
|Division into groups with the age of accounts receivable as||
||The age analysis|
|characteristic of credit risk||
|Division into groups with the transaction object of accounts||
|receivable and the nature of money as the characteristic of credit||
|risk. Such as export rebates receivable, employees' borrowings|Other|
|for official duties, reserve fund, deposit, money for related||
|transactions.||

In Group, Provision for bad debts with the method of account ageanalysis：
√ Applicable□ Not Applicable
||||
|-|-|-|
||Proportion of provision for account|Proportion of provision for other|
|Aging|||
||receivable|receivable|
|Within 1 year（Including 1 year）|0.00%||
|Within 1 year after credit period|5.00%||
|1－2 years|10.00%||
|2－3 years|30.00%||
|3－4 years|50.00%||
|4－5 years|70.00%||
|Over 5 years|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
(3) Accounts receivable that are individually insignificant but with bad debt provision provided on anindividual 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.|
|Method of provision for bad debts|Provision for bad debts is made according to the difference|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||
|-|
|between the present value of its future cash flow and its book|
|value.|

11. Inventories
(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, 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.
12. 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
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
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.
①Long-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.
②Long-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.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
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 FinancialStatements‖, 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 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
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
13. 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. 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.
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 14. 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|5.00%|3.17%|
|||right certificate) or 30|||
|||years in case of no period|||
|||of title|||
|Kiln|Straight-line method|5|5.00%|19%|
|Platinum passage|Straight-line method|3|95.50%|1.5%|
|Glass flat-panel and other|||||
||Straight-line method|15|5.00%|6.33%|
|equipment|||||
|Other Production|||||
||Straight-line method|10|5.00%|9.5%|
|equipment|||||
|Transportation|||||
||Straight-line method|5|5.00%|19%|
|equipment|||||
|Other equipment|Straight-line method|5|5.00%|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.
15.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.
16. 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
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
17..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 expenditure for internal research and development
18. 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
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
19.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 all in current profit and loss. 20. 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. 21. 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;
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
22. 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.
(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.
23.Revenues
Income, is an enterprise formed in daily activities, will lead to an increase in shareholders' equity, the total inflow of capital has nothi ng to do with the economic interests of the owner of investment. The company involved in income, including revenue from selling go ods, income of labor and transferring assets use right.
（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 can be measured reli ably; the relevant economic benefits are likely to flow into the enterprise; completion of the transaction can be measured reliably; tra nsactions 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 treated as follows: t he costs incurred are expected to be compensated, according to the amount of labor costs that have occurred service revenue is recog nized, and the same amount knot turn labor costs; the costs incurred are not expected to be compensated, labor costs should be recogn ized in profit or loss has occurred, no service revenue is recognized.
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 sale of goods as sale of goods, the pro vision of services and as part of the provision of services deal with. Sales of goods and rendering of services can not be distinguished,
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report or can be distinguished but can not be measured separately, should be part of the sale of goods and provision of services as part of th e total sales of goods.
(3) Use Rights of Assets on Alienation
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, technology 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 or 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 percentage 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 amount of revenue recognized after the accounting period, recognized as the current contract revenue; at the same time, according to the contract multiplied by the estimated total cost of completion less accumulated previous accounting 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 before deducting the cumulative amount of revenue recognized after the accounting period, recognized as the current contract revenue; at the same time, according to the contract costs incurred for the deductible costs previously accumulated 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.
24.Governmental subsidy
(1)Basis and accounting methods for assets related government subsidies
The government grants of monetary assets shall be measured in accordance with the received or receivable amount. Of which, the grants can be measured at the receivable amount if there exists exact evidence to prove they are allocated according to the fixed quota standard, otherwise they shall be measured at the amount actually received. The government grants of non-monetary assets shall be measured at the fair value. If the fair value cannot be reliably obtained, it shall be measured according to the nominal amount of RMB 1. The government grants related to assets are recognized as the deferred incomes, which are equally distributed within the service life of related assets and account into the current profit or loss.
(2). Accounting Method
The government grants related to incomes shall be accounted into the current profit or loss if they are used to compensate for the correlative expenses or losses occurred, and shall be recognized as the deferred income and accounted into the current profit or loss during the expense confirmation period if they are used to compensate for the correlative expenses or losses occurred in the subsequent period. The government grants measured at the nominal amount shall be directly accounted into the current profit or loss. 25. 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
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
26.Operational leasing
（1）Accounting of operational leasing
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.
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
The Company will transfer substantially all the risks and rewards of ownership of an asset lease is recognized as a finance lease. 27.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable□ Not applicable
||||
|-|-|-|
|Changes in accounting policies and the|||
||Approval procedures|Remarks|
|reasons|||
|According to the Ministry of Finance, the|||
|company implemented the newly revised|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||
|-|
|and new accounting standards issued by|
|companies since July 1, 2014; revised|
|guidelines are not covered in this section,|
|the company is still in the implementation|
|of the relevant Ministry of Finance issued|
|by accounting Standards accounting|
|Standards application Guide since|
|February 15, 2006, corporate accounting|
|standards and other relevant provisions of|
|the Interpretation|

① Relevant Information on the Implementation of Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment
According to the provisions of Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment, as for the holding long-term equity investments with no controlling, co-controlling and significant influences and whose fair value cannot be reliably measured, the Company shall account them as available-for-sale financial assets, not as the long-term equity investments, and adjust them through the retroactive adjustment approach. The implementation of above-mentioned standards shall not have any influence on theCompany‘s financial statements of 2013 and 2014.
②Relevant Information on the Implementation of Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements
According to the provisions of Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements, the Company modifies the presentation of financial statement, which comprises the following two types of presentations of other comprehensive profitable projects in the profit statement: 1. other comprehensive profitable projects that shall be re-classified into the profit or loss in the latter accounting period when the prescribed conditions are met; 2. other comprehensive profitable projects that shall not be re-classified into the profit or loss in the latter accounting period; The implementation of this standard shall not have any influence on theCompany‘s financial statements of 2013 and 2014.
③ As for business and items related to employee compensation, presentation of financial instruments, fair value measurement, arrangement for joint venture and equity in other entities, the implementation of this standard shall not have any influence on theCompany‘s financial statements of 2013 and 2014.
(2) Change of main accounting estimations
□ Applicable√ Not applicable
VI.Taxation
1.Main categories and rates of taxes
||||
|-|-|-|
|Taxes|Tax references|Applicable tax rates|
|VAT|Sales revenue|17%|
|Consumption tax|0|0|
|Business tax|Income from labor service and lease|3%～5%|
|Urban construction tax|Turnover tax to be paid allowances|7%|
|Enterprises income tax|Taxable income|15%～25%|
|Educational surtax|Turnover tax to be paid allowances|5%|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
||Technical services revenue||
|VAT||6%|

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.（The Company）|15%|
|Wuhu Dongxu Optoelectronic Technology Co., Ltd.（Subsidiary）|15%|
|Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd（Subsidiary）|15%|
|Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd（Sub-subsidiary）|15%|
|Hebei Xubao Construction Installation Engineering Co., Ltd（Subsidiary）|25%|
|Shijiazhuang Baoshi Color Bulb Co., Ltd（Subsidiary）|25%|
|Wuhan Dongxu Optoelectronic Technology Co., Ltd（Subsidiary）|25%|
|Sichuan Ruiyi Construction Engineering Co., Ltd.（Subsidiary）|25%|
|Beijing Xufeng Real Estate Co., Ltd.（Subsidiary）|25%|
|Dongxu (Kunshan）Display Material Co., Ltd.（Subsidiary）|25%|
|Beijing Dongxu Investment Developement Co., Ltd.（Sub-subsidiary）|25%|
|Wuhu Ruiyi Labor Co., Ltd（Sub-subsidiary）|25%|

2.Tax Preference
① On November 6, 2012, 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 2012.
②On 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.
③On October 14, 2013, 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 2013.
④On November 4, 2013, 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 2013.
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Cash|203,730.89|187,646.23|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Bank deposit|3,025,347,655.46|2,303,544,544.74|
|Other|170,719,697.58|282,928,760.07|
|Total|3,196,271,083.93|2,586,660,951.04|

 Other Explanation
Notes1：The main reason of monetary capital increase in the beginning of the period compared with that in the end of the period is the increase of sales outstanding and bank loans.
Notes2：The amount of restricted monetary capital of the total monetary capital in the end of the period is RMB 190,000,000.00. Of which, 140,000,000.00 is draft earnest money and 50,000,000.00 is the fixed deposit receipt of the bank.
2.Bills receivable
（1）Classification bill receivable
In RMB
||||
|-|-|-|
|Classification|Year-end balance|Year-beginning balance|
|Bank acceptance|108,214,644.05||
|Trade acceptance|341,296,034.45||
|Total|449,510,678.50||

（2）Bills receivable pledged at period-end
In RMB
|||
|-|-|
|Items|Amount|

（3）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
||||
|-|-|-|
||End of the period amounts derecogni|End of the period amount unterminat|
|Items|||
||tion|ed|
|Bank acceptance|281,754,660.00||
|Total|281,754,660.00||

（4）Bills transferred to accounts receivable because drawer of the Bills fails to execute the contract or agreement
In RMB
|||
|-|-|
|Items|Amount|

Other explanation:
Notes1：As of December 31, 2014,There‘s no Bills receivable as security.
Notes2：There‘S no bill that transfers into receivables due to the incapable performance by the drawer in the current period. 3. Account receivable
（1）.Classification account receivables.
In RMB
||||
|-|-|-|
|Classification|Amount in year-end|Amount in year- begin|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||Bad debt||||||||
||Book Balance|||||Book Balance||Bad debt provision|||
||||provision||Book||||||
|||||||||||Book value|
|||Proportio||Proportio|value||Proportio||Proportion(||
||Amount||Amount|||Amount||Amount|||
|||n(%)||n(%)|||n(%)||%)||
|Receivables with|||||||||||
|major individual|||||||||||
|amount and bad debt|||||||||||
|provision provided|||||||||||
|individually|14,009,3||14,009,3|||14,009,||14,009,35|||
|||2.11%||100.00%|||1.46%||100.00%||
|receivables with|55.59||55.59|||355.59||5.59|||
|major individual|||||||||||
|amount and bad debt|||||||||||
|provision provided|||||||||||
|individually|||||||||||
|Account receivable|||||||||||
|with minor individual|649,413,||10,603,7||638,809,8|946,295||3,010,290||943,285,46|
|||97.89%||2.02%|||98.54%||46.75%||
|amount but bad debt|516.18||16.08||00.10|,752.59||.48||2.11|
|provision is provided|||||||||||
||663,422,||24,613,0||638,809,800.10|960,305||17,019,64||943,285,462.11|
|Total||100.00%||3.71%|||100.00%||1.77%||
||871.77||71.67|||,108.18||6.07|||

 Receivable accounts with large amount individually and bad debt provisions were provided
√ Applicable□ not applicable
In RMB
||||||
|-|-|-|-|-|
|Receivable accounts|Balance in year-end||||
|（Unit）|Receivable accounts|Bad debt provision|Proportion|Reason|
|Baoshi TV Plant|14,009,355.59|14,009,355.59|100.00%|Over 5year s|
|Total|14,009,355.59|14,009,355.59|--|--|

Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable□ not applicable
In RMB
|||||
|-|-|-|-|
||Balance in year-end|||
|Aging||||
||Receivable accounts|Bad debt provision|Proportion|
|Within 1 year||||
|Within credit period|374,274,637.27||0.00%|
|Within 1 year after credit||||
||146,316,249.73|7,315,812.49|5.00%|
|period||||
|1-2 years|1,035,106.59|103,510.66|10.00%|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||
|-|-|-|-|
|2-3 years|1,179,813.91|353,944.17|30.00%|
|Over 5 years|2,830,448.76|2,830,448.76|100.00%|
|Total|525,636,256.26|10,603,716.08||

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
|||
|-|-|
|Name|Book Balance|
|Other Group|123,777,259.92|

（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB7,593,425.60; recovery or payback for bad debts Amount is RMB 0.00. Where the current bad debts back or recover significant amounts:
In RMB
||||
|-|-|-|
|Name|Back or withdraw money|Recovery methods|

（3）The current accounts receivable write-offs situation
In RMB
|||
|-|-|
|Items|Amount of written off|

Account receivables actually written-off during the reportingperiod：
In RMB
|||||||
|-|-|-|-|-|-|
||Nature of account|||Verification|Arising from related|
|Name||Amount written off|Reason for write-off|||
||receivables|||procedures|transactions (Y/N)|

 Explanation for write-off of account receivables:
N/A
（4）The ending balance of other 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 RMB
583,574,151.38, which accounts for87.96% of the total receivables. The total amount of closing balance for corresponding accrued bad-debt provision is RMB 6,922,456.63.
(5)Because of the transfer of financial assets and derecognition of account receivables
(6) The amount of the transfer of other assets, receivables and liabilities of continuing involvement
4. Payment in advance
（1）Payment in advance:age :
In RMB
||||
|-|-|-|
|Aging|Amount in year-end|Amount in year- begin|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||
|-|-|-|-|-|
||Amount|Proportion(%)|Amount|Proportion(%)|
|Within 1 year|2,656,787,665.73|96.63%|2,736,913,977.82|98.13%|
|1-2 years|83,367,492.00|3.03%|51,156,109.27|1.84%|
|2-3 years|8,514,114.31|0.31%|884,616.10|0.03%|
|Over 3 years|785,632.85|0.03%|7,434.75||
|Total|2,749,454,904.89|--|2,788,962,137.94|--|

Note:
The prepayment in the current period is basically equal to that in the prior period, which is caused by the reduced prepayment through successive delivery of goods and labors and the acceptance processing stipulated in the contract, as well as the increased prepayment for purchasing lands but the land use certificate has not obtained.
(2) Receivable information of top five closing balances collected by the objects of prepayment:
The total prepayment amount of top five closing balances collected by the objects of prepayment in the current reporting period is RMB 1,837,958,734.19, which accounts for66.85% of the total closing prepayment balance.
Notes：
5. Other receivable
（1）Type analyses:
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year- begin|||||
||||Bad debt||||||||
||Book Balance|||||Book Balance||Bad debt provision|||
|Type|||provision||Book||||||
|||||||||||Book value|
|||Proportio||Proportion(%)|value||Proportio||Proportion(||
||Amount||Amount|||Amount||Amount|||
|||n(%)|||||n(%)||%)||
|Other accounts|||||||||||
|receivable that is|||||||||||
|individually|||||||||||
||46,223,2||2,921,12||43,302,11|32,189,||2,889,329||29,300,640.|
|significant for which||100.00%||6.32%|||100.00%||8.98%||
||40.76||4.88||5.88|970.27||.78||49|
|provisions for bad|||||||||||
|debts separately|||||||||||
|accrued|||||||||||
||46,223,2||2,921,12||43,302,115.88|32,189,||2,889,329||29,300,640.49|
|Total||100.00%||6.32%|||100.00%||8.98%||
||40.76||4.88|||970.27||.78|||

 Other closing accounts receivable that is individually significant and provisions for bad debts individually.
□ Applicable√ Not applicable
In the group, other accounts receivable that provision for bad debts by aging analysis:
√ Applicable□ Not applicable
In RMB
|||
|-|-|
|Aging|Balance in year -end|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||
|-|-|-|-|
||Other receivable|Bad debt provision|Proportion|
|Within 1 year||||
|Within credit period||||
|Within 1 year after credit||||
||685,846.00|34,292.30|5.00%|
|period||||
|Over 5 years|2,886,832.58|2,886,832.58|100.00%|
|Total|3,572,678.58|2,921,124.88|81.76%|

Notes：
In the group, other accounts receivable that provision for bad debts by balance percentage:
□ Applicable√ Not applicable
In the group, other accounts receivable that provision for bad debts by other methods:
√ Applicable□ Not applicable
|||
|-|-|
|Name|Book balance|
|Other Group|42,650,562.18|

（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB 31,795.10; recovery or payback for bad debts Amount is RMB 0.00. Where the current bad debts back or recover significant amounts:
In RMB
||||
|-|-|-|
|Name|Back or withdraw money|Recovery methods|

(3)Information of other accounts receivable written off in the report period
In RMB
|||
|-|-|
|Items|Amount of written off|
|Individual reserve fund|2,787.20|

Notes：
In RMB
|||||||
|-|-|-|-|-|-|
||||||Whether the|
||||||amount was|
|||Amount of written||||
|Name|Nature||Rrason|Procedure|generated by the|
|||off||||
||||||related party|
||||||transactions|

Notes：
（4）Other receivables fund classification
In RMB
||||
|-|-|-|
|Nature|Amount in year-end|Amount in year- begin|
|Capital Intercourse|1,580,870.75|10,284,240.55|
|Cash Deposit|11,568,937.50|685,297.50|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Personal Official Borrowing|3,147,658.48|4,334,948.20|
|Guarantee Deposit|21,237,660.36|10,738,704.65|
|Repayment||2,092,200.25|
|Persona Returnable Insurance|767,164.60|613,611.10|
|Power Cost|448,544.45|448,544.45|
|Pretty Cash|4,151,934.92|908,963.32|
|Other|3,320,469.70|2,083,460.25|
|Total|46,223,240.76|32,189,970.27|

（5）The ending balance of other receivables owed by the imputation of the top five parties
|||||||
|-|-|-|-|-|-|
||||||The closing bal|
||||||ance of bad deb|
|Name|Nature|Amount in year-end|Aging|Proportion||
||||||ts|
|Changan International Trust Co.,||||||
||Non related party|10,000,000.00|Within 1 year|21.63%||
|Ltd.||||||
|Wuhu Economic and Technological||||||
||Non related party|9,978,000.00|Within 1 year|21.59%||
|Development Zone Finance Bureau||||||
|China Electronics Import &||||||
||Non related party|3,902,067.00|1-2 years|8.44%||
|Export Corporation||||||
|Henan Aanfei Electronics Co., Ltd.|Non related party|1,094,333.29|Over 5 years|2.37%||
|Export tax refund receivable||||||
||Non related party|653,753.38|Within 1 year|1.41%||
|Total|--|25,628,153.67|--|55.44%||

（6）Government subsidy recognized according to the accounts receivable
In RMB
||||||
|-|-|-|-|-|
|Name|Project|Year-end balance|Age|Time, Amount and Basis|

 (7)Because of the transfer of financial assets and derecognition of other receivables
(8) The amount of the transfer of other assets, receivables and liabilities of continuing involvement
Other explanation:
6．Inventory
（1）Inventory types
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items|||||||
|||Provision for baddebts|||Provision for bad||
||Book Balance||Book value|Book Balance||Book value|
||||||debts||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||
|-|-|-|-|-|-|
|Raw materials|382,245,773.22|382,245,773.22|279,248,721.95||279,248,721.95|
|Processing||||||
||10,388,557.26|10,388,557.26|1,768,002.26||1,768,002.26|
|products||||||
|Stock goods|117,526,116.51|117,526,116.51|13,756,104.07|251,564.26|13,504,539.81|
|Revolving||||||
||71,386.81|71,386.81|23,590.28||23,590.28|
|materials||||||
|Consumptive||||||
||0.00|0.00||||
|biological assets||||||
|Construction cont||||||
|ract has been com||||||
|pleted unsettled a|2,622,252.99|2,622,252.99|4,074,310.78||4,074,310.78|
|ssets||||||
|Total|512,854,086.79|512,854,086.79|298,870,729.34|251,564.26|298,619,165.08|

（2）Inventory Impairment provision
In RMB
||||||||
|-|-|-|-|-|-|-|
||Balance at year|Increase||Decrease||Balance at period|
|Items|||||||
||beginning|Provision|Other|Reversal|Other|end|
|Stock goods|251,564.26|||251,564.26|||
|Total|251,564.26|||251,564.26|||

The selling and reselling of inventories lead to the reduction of inventory falling price reserves in the end of the current period. Other explanation
(3) Description of The closing balance of inventories contain the amount of borrowing costs capitalized
(4) Information of unliquidated completed assets formed in the construction contract in the end of the period
In RMB
|||
|-|-|
|Items|Amount|
|Accumulated Incurred Cost|214,095,388.94|
|Accumulated Confirmed Gross Profit|63,420,974.16|
|Less: Anticipated Loss|0.00|
|Settlement Amount|274,894,110.11|
|Unliquidated Completed Assets Formed in the Construction|2,622,252.99|
|Contract||

7.Other Current assets
In RMB
||||
|-|-|-|
||Year-end balance|Year-beginning balance|
|Items|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|USD exchange|58,000,000.00|58,000,000.00|
|Prepaid or pending certified taxes|452,571,217.34|17,632,804.57|
|Total|510,571,217.34|75,632,804.57|

 Other explanation:
8.Investment real estate
（1）Measured by the cost of investment in real estate
√ Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|House, Building|Land use right|Construction in process|Total|
|1.Balance at year|||||
||77,990,458.53|||77,990,458.53|
|beginning|||||
|3.Decrease at this period|77,990,458.53|||77,990,458.53|
|（2）Other Outsourcing|77,990,458.53|||77,990,458.53|
|1.Balance at year|||||
||65,773,844.27|||65,773,844.27|
|beginning|||||
|3.Decrease at this period|65,773,844.27|||65,773,844.27|
|（2）Other Outsourcing|65,773,844.27|||65,773,844.27|
|2. Book value at year||||12,216,614.26|
||12,216,614.26||||
|beginning|||||

（2）Investment property under fair value measurement model
□ Applicable√ Not applicable
（3）Uncompleted investment property ownership certificate cases
In RMB
||||
|-|-|-|
|Items|Book value|Reason|

Other explanation:
The current period of an investment property is no longer for rent, converted for personal use.
9. Fixed assets
（1）Fixed assets
In RMB
||||||||
|-|-|-|-|-|-|-|
||House and|Machine|Electronic|Transpiration|||
|Items|||||Other equipment|Total|
||building|equipment|equipment|Equipment|||
|1.Balance at year beginning|111,580,740.49|201,556,420.69||14,021,810.65|7,316,226.17|334,475,198.00|
|||1,640,272,729.|||||
|2.Increase at this period|288,980,443.97|||4,466,461.18|13,140,846.07|1,946,860,480.79|
|||57|||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||
|-|-|-|-|-|-|
|（1）Purchase|32,058,961.16|11,237,690.48|4,466,461.18|13,140,846.07|60,903,958.89|
|（2）Transferred to||1,629,035,039.||||
||178,931,024.28||||1,807,966,063.37|
|construction in process||09||||
|Enterprises combination||||||
||77,990,458.53||||77,990,458.53|
|increase||||||
|3. Decrease at this period|||357,034.80|158,950.00|515,984.80|
|(1)Disposition|||357,034.80|158,950.00|515,984.80|
|（2)Other decrease||||||
|||1,841,829,150.||||
|4.Balance at year end|400,561,184.46||18,131,237.03|20,298,122.24|2,280,819,693.99|
|||26||||
|1.Balance at year beginning|76,192,320.77|111,694,912.98|2,713,330.06|2,729,634.99|193,330,198.80|
|2.Increase at this period|71,697,700.59|51,294,105.68|2,963,301.82|3,143,771.84|129,098,879.93|
|（1）Provision|5,923,856.32|51,294,105.68|2,963,301.82|3,143,771.84|63,325,035.66|
|（2）Other|65,773,844.27||||65,773,844.27|
|3.Decrease at this period|||346,323.76|61,361.48|407,685.24|
|（1）Disposition|||346,323.76|61,361.48|407,685.24|
|4.Balance at year end|147,890,021.36|162,989,018.66|5,330,308.12|5,812,045.35|322,021,393.49|
|1.Balance at year||||||
|||36,444.84|||36,444.84|
|beginning||||||
|4.Balance at year end||36,444.84|||36,444.84|
|||1,678,803,686.|||1,958,761,855.66|
|1. Book value at year end|252,671,163.10||12,800,928.91|14,486,076.89||
|||76||||
|2. Book value at year|||||141,108,554.36|
||35,388,419.72|89,825,062.87|11,308,480.59|4,586,591.18||
|beginning||||||

（2）Fixed assets temporarily idled
In RMB
|||||||
|-|-|-|-|-|-|
|||Accummlated|Provision for|||
|Items|Original book value|||Book value|Remark|
|||depreciation|impairment|||

（3）Fixed assets under finance leases
In RMB
||||||
|-|-|-|-|-|
|||Accurmulative|Impairment||
|Items|Book value|||Book value|
|||Depreciation|||

(4) Operating lease fixed assets
In RMB
|||
|-|-|
|Items|End-Book value|

（5）Fixed assets with un-completed property certificates
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report In RMB
||||
|-|-|-|
|Items|Book value|Reason|

Other explanation:
Note 1: The current period other fixed assets increased to investment property transferred.
Note 2: Other accumulated depreciation of the current period for investment real estate to increase.
Note 3: The Company has no warrants that have not completed fixed assets.
10. 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||
|Transformation ofGlass II tube|||||||
|||||23,712,084.39||23,712,084.39|
|LCD glass|||||||
|substrate|2,008,412,102.91||2,008,412,102.91|1,875,763,731.37||1,875,763,731.37|
|production line|||||||
|Factory buildingproject|||||||
||37,317,530.31||37,317,530.31|14,642,297.22||14,642,297.22|
|Total|2,045,729,633.22||2,045,729,633.22|1,914,118,112.98||1,914,118,112.98|

 (2) The variation in constructing the engineering project
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Openingbalance||||||||Including:capitalization ofiinterestthisperiod|||
|||||Transferr|||||||Capitaliz||
||||||||||Capitaliz|||Source|
|Name of||||ed to|Other|End|Proporti|Project|||ation of||
||Budget||Increase||||||ation of|||of|
|project||||fixed|decrease|balance|on %|process|||nterest||
||||||||||interest|||funding|
|||||assets|||||||rate (%)||
|Transfor||23,712,084.39|||||||||||
|mation||||23,712,0|||||||||
||||||||100.00%|100.00%|||||
|of Glass||||84.39|||||||||
|II tube|||||||||||||
|LCD||||||||||191,623,336.17|||
|glass|||||||||||||
||7,576,52|1,875,76|1,916,90|1,784,25||2,008,41|||264,925,||||
|substrate|||||||21.56%|21.56%|||||
||0,000.00|3,731.37|2,350.52|3,978.98||2,102.91|||297.35||||
|producti|||||||||||||
|on line|||||||||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Factory|||||37,317,530.31|||||||
||40,000,0|14,642,2|22,675,2|||||||||
|building||||||93.29%|93.29％|||||
||00.00|97.22|33.09|||||||||
|project||||||||||||
||7,616,52|1,914,11|1,939,57|1,807,96|2,045,729,633.22|||264,925,|191,623|,7||
|Total||||||--|--||||--|
||0,000.00|8,112.98|7,583.61|6,063.37||||297.35|336.1|||

（3）The current period provision for impairment of construction in progress situation
In RMB
||||
|-|-|-|
|Items|Amount|Reason|

Other explanation
11. Engineering Material
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Special Equipment|22,086,763.66|17,699,810.22|
|Special tools||14,017.09|
|Special material|8,322.76|94,973,832.73|
|Less：Engineering material impairment|||
|Total|22,095,086.42|112,687,660.04|

 Other explanation
Notes :The current period decreased mainly due to Wuhu Dongxu Optoelectronic Technology Co., Ltd. a subsidiary recipients of En gineering Materials
12. Intangible assets
（1） Intangible assets
In RMB
|||||||
|-|-|-|-|-|-|
||||Non patent|||
|Items|Land use right|Patent right||Other|Total|
||||technology|||
|1. Balance in year-begin|118,884,221.00|||1,125,005.25|120,009,226.25|
|2.Increase at this period|111,535,236.00|||141,927.65|111,677,163.65|
|（1）Purchase|111,535,236.00|||141,927.65|111,677,163.65|
|4.Balance in year-end|230,419,457.00|||1,266,932.90|231,686,389.90|
|1. Balance in year-begin|7,167,721.41|||53,839.07|7,221,560.48|
|2.Increase at this period|3,690,884.47|||128,187.89|3,819,072.36|
|（1）Provision|3,690,884.47|||128,187.89|3,819,072.36|
|4.Balance in year-end|10,858,605.88|||182,026.96|11,040,632.84|
|1. Book value in year -end|219,560,851.12|||1,084,905.94|220,645,757.06|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||
|-|-|-|-|
|2.Book value in year-begin|111,716,499.59|1,071,166.18|112,787,665.77|

 N/A
（2）Property license not obtained the land use rights situation
In RMB
||||
|-|-|-|
|Items|Amount|Reason|

Other explanation
Note 1: The main reason for the increase over the beginning of the end of the purchase of land use rights for company of the current p eriod.
Note 2: The Company has no warrants that have not completed fixed assets.
13. Development and expenditure
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase at this period||Decrease at this period||||
||Balance in|Development a||Recognized as i|Transferred to||Balance in|
|Items||||||||
||year-begin|nd expenditure|Other|ntangible assets|current profits|Other|year-end|
||||||and losses|||

Other explanation
14.Long-term amortization expenses
In RMB
|||||||
|-|-|-|-|-|-|
||Balance in|Increase at this|Amortization at|||
|Items||||Decrease|Balance in year-end|
||year-begin|period|this period|||
|Operating lease a||||||
|ssets improvemen||16,351,059.78|2,244,263.11||14,106,796.67|
|t expenses||||||
|Total||16,351,059.78|2,244,263.11||14,106,796.67|

 Other explanation:
15 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|||||
||20,111,210.46|3,085,565.86|12,485,989.76|3,121,497.44|
|provision|||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||
|-|-|-|-|-|
|Not realized the internal|||||
||628,965,896.93|94,344,884.54|38,123,873.84|9,530,968.46|
|profit|||||
|Deductible loss|57,465,552.78|8,619,832.91|19,533,102.12|4,883,275.53|
|Inventory impairment|||251,564.26|62,891.07|
|Total|706,542,660.17|106,050,283.31|70,394,529.98|17,598,632.50|

（2）Details of the un-recognized deferred income tax liabilities
In RMB
||||||
|-|-|-|-|-|
||Balance in year-end||Balance in year-begin||
|Items|Temporarily Deductable|Deferred Income Tax|Temporarily Deductable|Deferred Income Tax|
||or Taxable Difference|liabilities|or Taxable Difference|liabilities|

（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||106,050,283.31||17,598,632.50|
|assets|||||

（4）Details of the un-recognized deferred income tax assets
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Deductible loss|4,260,364.76|28,957,252.70|
|Provision for bad debts|7,422,986.09|7,422,986.09|
|Fixed asset impairment provision|36,444.84|36,444.84|
|Total|11,719,795.69|36,416,683.63|

（5）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
|||||
|-|-|-|-|
|Year|At end of term|At beginning of term|Notes|
|2017|1,360,570.52|1,376,220.32||
|2018|15,649.80|27,581,032.38||
|2019|2,884,144.44|||
|Total|4,260,364.76|28,957,252.70|--|

Other explanation:
16. Short-term loan
（1）Categories of short-term loans
In RMB
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
||Balance in year-end|Balance in year-Beginning|
|Items|||
|Pledge loans|48,900,000.00||
|Guarantee loan|1,240,000,000.00|580,000,000.00|
|Total|1,288,900,000.00|580,000,000.00|

Notes：
Notes1：The Company increases the bank loans due to the production and operation needs in the current period.
Notes2：the guaranteed loan amount in the end of the period is RMB 1240 million. Of which: Dongxu Group Co., Ltd provides guarantee of RMB 200 million to the Dongxu Optoelectronic Technology Co., Ltd, the pledgor is Zhengzhou Dongxu Optoelectronic Technology Co., Ltd and the pledge is the receivable; Dongxu Group Co., Ltd provides guarantee of RMB 400 million to the Dongxu Optoelectronic Technology Co., Ltd; Wuhu Construction Investment Co., Ltd provides the joint and several guarantee of RMB 165 million; Construction Investment Co., Ltd in the Wuhu Economic and Technological Development Zone provides guarantee of RMB 175 million to its subsidiary Wuhu Dongxu Optoelectronic Technology Co., Ltd.
Notes3：The pledge of the pledge loan is the fixed deposit receipts.
(2)Short-term loans due but not repaid
This period what has been overdue short-term borrowings outstanding are total Yuan, one of the important overdue outstanding short -term borrowings are as follows
In RMB
||||||
|-|-|-|-|-|
|Unit|Balance in year-end|Rate|Overdue time|Overdue rate|

 Other explanation
17. .Bills payable
In RMB
||||
|-|-|-|
|Type|At end of term|At beginning of term|
|Bank acceptance|280,000,000.00|150,000,000.00|
|Total|280,000,000.00|150,000,000.00|

 Amount due in next fiscal period is RMB 0.00.
18.Account payable
（1）Account payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Account payable|232,393,429.70|134,665,580.06|
|Total|232,393,429.70|134,665,580.06|

（2）Significant accounts payable that aged over one year
In RMB
||||
|-|-|-|
|Items|Balance in year-end|The reason for not repaid or carried forward|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Shanghai Siemens Industrial Automation|||
||7,201,709.40|Not reached the agreed payment terms and deadlines|
|Co Ltd.|||
|Shijiazhuang Baoshi VacuumGlass Co., Ltd.|5,533,363.79|Not reached the agreed payment terms and deadlines|
|Shanghai Xingxiang Electric Co., Ltd.|2,226,709.41|Not reached the agreed payment terms and deadlines|
|Beijing Oriental DATAI technology Co., Ltd.|1,928,803.42|Not reached the agreed payment terms and deadlines|
|Shanghai Dahe Weighing Apparatus Co., Ltd.|1,025,000.00|Not reached the agreed payment terms and deadlines|
|Total|17,915,586.02|--|

Other explanation
Notes 1:The Increase of accounts payable in the current period is mainly the increase of the accounts payable of materials and equipmment
19..Advance account
（1）Advance account
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Advance account|22,382,273.47|3,451,630.20|
|Total|22,382,273.47|3,451,630.20|

（2）Significant .Advance account that aged over one year
In RMB
||||
|-|-|-|
|||The reason for not repaid or carried forwar|
|Items|Balance in year-end||
|||d|
|Mingshan County Ya'an Liao Chang township|||
||954,048.00|Not settled project fee|
|government|||
|Bazhong Shengquan Water Co Ltd|828,344.00|Not settled project fee|
|Nanjiang national treasury payment cente|790,000.00|Not settled project fee|
|ABA Water Bureau|779,155.00|Not settled project fee|
|Total|3,351,547.00|--|

(3) Information of unliquidated completed assets formed in the construction contract at the end of the period
In RMB
|||
|-|-|
|Items|Amount|
|Accumulated Incurred Cost|214,095,388.96|
|Accumulated Confirmed Gross Profit|63,420,974.16|
|Reduction: Anticipated Loss||
|Settlement Amount|274,894,110.11|
|Unliquidated Completed Assets Formed in the Construction||
||2,622,253.01|
|Contract||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Other explanation：
Notes：Annotation: the main reason of prepayment increase in the end of the period compared with that in the beginning of the period is the prepayment increase of construction and installation engineering projects.
20. Payable Employee wage
（1）Payable Employee wage
In RMB
||||||
|-|-|-|-|-|
|Items|Balance in year-begin|Increase at this period|Decrease at this period|Balance in year-end|
|I.|||||
||17,674,141.94|293,090,162.67|287,562,219.30|23,202,085.31|
|Short-term remuneration|||||
|II.|||||
|Post-employment benefit|||||
||210,867.59|20,595,926.53|20,263,114.94|543,679.18|
|s - defined contribution p|||||
|lans|||||
|Total|17,885,009.53|313,686,089.20|307,825,334.24|23,745,764.49|

（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,|||||
||12,743,358.52|238,537,243.40|235,258,672.40|16,021,929.52|
|allowances and subsidies|||||
|2.Employee welfare||33,469,901.77|33,459,861.77|10,040.00|
|3. Social insurance|||||
||177,888.62|10,890,085.32|10,547,279.52|520,694.42|
|premiums|||||
|Including：Medical|||||
||24,775.53|8,126,763.48|7,920,639.47|230,899.54|
|insurance|||||
|Work injury insurance|153,113.09|464,364.11|334,557.96|282,919.24|
|Maternity insurance||2,298,957.73|2,292,082.09|6,875.64|
|4. Public reserves for|||||
||628,181.02|6,228,431.01|5,436,725.40|1,419,886.63|
|housing|||||
|5.Union funds and staff|||||
||3,055,258.20|1,176,440.24|200,002.60|4,031,695.84|
|education fee|||||
|6.Other|1,069,455.58|2,788,060.93|2,659,677.61|1,197,838.90|
|Total|17,674,141.94|293,090,162.67|287,562,219.30|23,202,085.31|

（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|||||
||203,677.83|19,612,867.64|19,335,208.12|481,337.35|
|insurance premiums|||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||
|-|-|-|-|-|
|2.Unemployment|||||
||7,189.76|983,058.89|927,906.82|62,341.83|
|insurance|||||
|Total|210,867.59|20,595,926.53|20,263,114.94|543,679.18|

 Other explanation：
Notes1：No remuneration payable staff salary in arrears.
21. Tax Payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|VAT|9,247,682.59|-236,913,065.93|
|Business Tax|6,936,257.84|4,483,483.91|
|Enterprise Income tax|87,006,009.38|59,242,665.33|
|Individual income tax|1,386,232.05|1,141,382.69|
|City Construction tax|1,007,109.51|950,353.67|
|House property Tax|1,730,669.03|1,470,509.76|
|Land use tax|757,712.65||
|Educational surtax|613,437.48|635,193.15|
|Stamp Tax|204,847.64|146,249.31|
|Tariff||-7,094.15|
|Other|30,500.99||
|Total|108,920,459.16|-168,850,322.26|

 Other explanation：
22. Dividend payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Common stock dividend|0.00|0.00|
|Preference shares classified as equity instr|||
||0.00|0.00|
|uments \ perpetual debt dividend|||
|Minority shareholders of a subsidiary divid|||
||30,000,000.00||
|ends|||
|Other|0.00|0.00|
|Total|30,000,000.00||

Other explanation
Including the important more than one year unpaid dividends payable, should disclose the reasons for non-payment
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Notes: Dividends payable to a subsidiary of Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. has not finished paying dividends
23.Other payable
（1）Other payable
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Current account|22,989,721.83|14,540,805.42|
|Deposit|10,112,118.72|11,287,476.81|
|Individual official borrowing|15,582,532.44|1,303,484.10|
|Deposit|739,230.00|761,410.00|
|Wages and surtax|153,034.22|37,707.61|
|Tax|1,193,495.00|1,193,495.00|
|Engineering fund|1,617,175.91|1,617,175.91|
|Equipment fund|6,065,857.97|6,065,857.97|
|Material fund|564,774.31|564,774.31|
|Petty cash|1,075,934.44|936,979.84|
|Other|9,173,249.55|8,612,898.07|
|Total|69,267,124.39|46,922,065.04|

（2）Important Other payables aged over 1 year
In RMB
||||
|-|-|-|
|||The reason for not repaid or carried f|
|Items|Balance in year-end|orward|

Other explanation：
Aged over one year Other payables of RMB 28,755,555.40 mainly for contract deposit and current models
24.Non-current liabilities due 1 year
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Long-term loans due 1 year|268,000,000.00|0.00|
|Bonds payable due 1 year|0.00|0.00|
|Long-term payable due 1 year|0.00|0.00|
|Total|268,000,000.00||

Other explanation：
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 25.Other current liabilities
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|USD exchange|61,190,000.00|60,969,000.00|
|Government grants projects|2,497,933.33|20,000.00|
|Total|63,687,933.33|60,989,000.00|

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

Other explanation：
Notes1：Government grants projects
||||||
|-|-|-|-|-|
|Items|Balance inyear-begin ap|New grantsmount of thiseriod|Thenon-operatingrevenue amountof this period|Balance inyear-end|
|Environmental protectionsubsidy for Phase-II GlassTube Project|20,000.00|20,000.00|20,000.00|20,000.00|
|Government support funds||2,244,600.00||2,244,600.00|
|Grant of IndustryRevitalization andTechnology ReconstructionProject||233,333.33||233,333.33|
|Total|20,000.00|2,497,933.33|20,000.00|2,497,933.33|

Notes2：Notes2：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 December 31, 2014, the Group still consults with the Exchange Unit on the returning of the exchange.
26. Long-term loan
（1）Long-term loans classifications
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-begin|
|Mortagage loans|3,840,000,000.00|2,300,000,000.00|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Less ：Long-term loan due 1 year|-268,000,000.00||
|Total|3,572,000,000.00|2,300,000,000.00|

Notes：
Other explanation，including interest rateinterval：
Notes1：Mortgage loan of RMB 3,840,000,000.00 is both mortgage loan and guaranteed loan and the amount of transferred non-current liability payable within one year is RMB 268,000,000.00. Of which:
(1) The mortgage and guarantor of loan of RMB 740,000,000.00 are: a. the usage right of state-owned land of 202 mu, workshops after the construction of this project and two noble-metal platinum channels mortgaged and guaranteed by Wuhu Dongxu Optoelectronic Technology Co., Ltd; b. the guarantor of the loan is Wuhu Construction Investment Co., Ltd.
(2) The mortgage and guarantor of loan of RMB 2,200,000,000.00 are: a. eight noble-metal platinum channels are mortgaged and guaranteed by Wuhu Dongxu Optoelectronic Technology Co., Ltd; b. Dongxu Optoelectronic Technology Co., Ltd provides the entire joint liability guaranty.
(3) The mortgage and guarantor of loan of RMB 500,000,000.00 are: a. lands owned by Wuhu Dongxu Optoelectronic Technology Co., Ltd are mortgaged and guaranteed; b. Dongxu Optoelectronic Technology Co., Ltd provides the entire joint liability guaranty. (4) Dongxu Group Co., Ltd provides guarantee of RMB 400 million to the Dongxu Optoelectronic Technology Co., Ltd, the mortgager is Beijing Xufeng Real Estate Co., Ltd, the mortgages are100% shares and the land usage right of No. 1516-43 plot located in the Third Phase of East Region of Fengtai Science Park, Beijing City owned by Beijing Xufeng Real Estate Co., Ltd. Notes2：The Company has no long-term borrowings outstanding at maturity.
27.Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
||Balance in|Increase at this|Decrease at this|||
|Items||||Balance in year-end|Reason|
||year-begin|period|period|||
|Govemment Subsidy|33,714,000.00||649,888.89|33,064,111.11||
|Total|33,714,000.00||649,888.89|33,064,111.11|--|

Liabilities related to government subsidy:
In RMB
||||||||
|-|-|-|-|-|-|-|
||||The||||
||Balance at the|New grants|||||
||||non-operating||Balance at the|Income related to|
|Liabilities|beginning of|amount of this||Other changes|||
||||revenue amount||end of period|assets|
||period|period|||||
||||of this period||||
|Grant of|||||||
|Government|33,669,000.00||1,496,400.00|2,244,600.00|29,928,000.00|Related to assets|
|Infrastructure|||||||
|Grant of|||||||
|Glass-tube|||||||
|Secondary|45,000.00|||20,000.00|25,000.00|Related to assets|
|Environmental|||||||
|Protection|||||||
|Grant of Industry|||||||
|||3,500,000.00|155,555.56|233,333.33|3,111,111.11|Related to assets|
|Revitalization|||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||
|-|-|-|-|-|-|-|
|and Technology|||||||
|Reconstruction|||||||
|Project|||||||
|Total|33,714,000.00|3,500,000.00|1,651,955.56|2,497,933.33|33,064,111.11|--|

 Other explanation：
28.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|903,000,000.00|||1,806,000,000.||1,759,080,001.|2,662,080,001.00|
|||3,080,000.00|||-49,999,999.00|||
|shares||||00||00||

 Other explanation：
Notes :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 Optoelectronicl 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 RMB3.08 million with the price of RMB3.88 per share, which are all in cash subscription. Thus, the company shall increase the share capital of RMB3,080,000.00 and the capital reserve of RMB8,870,400.00, 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 (ShareB)‖ 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.
29 Capital reserves
In RMB
||||||
|-|-|-|-|-|
||||Decrease in the current||
|Items|Year-beginning balance|Increase in the current||Year-end balance|
||||period||
|Share premium|4,905,090,936.54|9,932,700.00|2,026,579,093.56|2,888,444,542.98|
|Other|31,522,375.26|||31,522,375.26|
|Total|4,936,613,311.80|9,932,700.00|2,026,579,093.56|2,919,966,918.24|

Statement on capitalreserves：
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Notes: In addition to changes in the capital reserve Notes V. 28, the result of the amortization of equity incentive to increase capital r eserves of RMB 1,062,300.00, Because of the repurchase of B shares, the implementation of equity incentive costs arising reduce the capital reserve of RMB 2,554,716.96
30. Surplus reserve
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginning balance|Increase in the current|Decrease in the current|Year-end balance|
|||period|period||
|Statutory surplus reserve|27,454,788.0|5 38,703,320.76||66,158,108.81|
|Total|27,454,788.0|5 38,703,320.76||66,158,108.81|

 :Statement on surplus reserves. Please state the related resolutions of the Board on capitalizing of reserves, making up losses, anddividends：
31. Retained profits
In RMB
||||
|-|-|-|
||Amount of current period|Amount of previous period|
|Items|||
|Before adjustments: Retained profits in last period|||
||-53,394,384.81|-422,691,693.55|
|end|||
|After adjustments: Retained profits at the period|-53,394,384.81||
|||-422,691,693.55|
|beginning|||
|Add：Net profit belonging to the owner of the|||
||880,625,183.53|369,297,308.74|
|parent company|||
|Less: Withdrawal Statutory surplus reserve|38,703,320.76||
|Retained profits at the period end|788,527,477.96|-53,394,384.81|

 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 .
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 32. Business income, Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Business income|Business cost|Business income|Business cost|
|Income from Business|||||
||2,098,388,290.45|1,162,620,709.21|857,281,736.03|368,794,010.31|
|income|||||
|Other business income|45,009,727.94|16,881,085.39|74,618,946.96|41,009,380.71|
|Total|2,143,398,018.39|1,179,501,794.60|931,900,682.99|409,803,391.02|

 33. Business tax and subjoin
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Business tax|4,184,587.99|2,204,286.23|
|Urban construction tax|13,077,928.07|5,230,337.16|
|Education surcharge|9,076,725.68|3,735,910.76|
|Other|4,698.39|391,314.27|
|Total|26,343,940.13|11,561,848.42|

 Other explanation：
Annotation: the main reason of the business tax increase in the current year compared with that in the prior year is that the income increase in the current year led to the increase of business tax and surcharges.
34.Sales expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage and additional|5,780,590.94|5,585,936.75|
|Business expenses|1,844,768.16|324,463.20|
|Lobor protection fee|0.00|107,000.00|
|Office fees|698,536.44|51,089.07|
|Travel fees|1,520,980.93|575,461.12|
|Publicize Fees|1,029,214.72|188,679.20|
|Miscellaneous charges|2,518,070.06|463,393.61|
|Other|1,432,645.65|870,812.26|
|Total|14,824,806.90|8,166,835.21|

Other explanation：
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Annotation: the main reason of the selling expense increase in the current year compared with that in the prior year is that the operating income increase led to the increase of corresponding freight and miscellaneous charges, entertainment expenses and travelling expenses.
35.Administrative expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Wage and additional cost|84,171,383.01|26,338,323.16|
|Business expenses|4,024,078.17|2,961,650.24|
|Labor protect fee|1,424,433.50|1,449,692.59|
|Office fees|5,716,272.18|16,292,424.48|
|Travel fees|7,439,657.42|3,240,019.93|
|Publicize Fees|582,241.50|3,394,785.62|
|Miscellaneous charges|249,213.76|35,986.37|
|Tax|15,984,426.62|7,475,309.51|
|Depreciation accumulative|14,579,817.20|6,221,093.17|
|Research expenses|14,908,951.49|2,043,411.04|
|Consultation fees|9,800,021.15|3,760,973.35|
|Rental fees|26,734,924.72|11,724,076.31|
|Other|25,003,708.90|15,320,772.23|
|Total|210,619,129.62|100,258,518.00|

 Other explanation：
Administrative expenses increased over the previous period, mainly due to employee benefits, taxes, depreciation and amortization re search expenses increased
36. Financial Expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest expenses|43,318,369.84|8,527,333.33|
|Less：Interest income|12,525,856.14|11,645,998.75|
|Add：Exchange loss|-699,773.41|896,544.55|
|Finance Organization expenses|5,948,095.35|467,544.02|
|Discount expenses|24,385,701.61|4,800,000.00|
|Other|11,808.97|1,173.30|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Total|60,438,346.22|3,046,596.45|

 Other explanation：
The current period compared with the same period last year mainly due to increase borrowing, leading to increase in interest expense. 37. Loss of assets impairment
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|1. .Loss for bad debts|7,612,251.58|155,505.78|
|Total|7,612,251.58|155,505.78|

 Other explanation：
Impairment losses on assets current period mainly due to the increase in bad debt loss for the current period
38. Non-operating income
In RMB
|||||
|-|-|-|-|
||||The amount of non-operating|
|Items|Amount of current period|Amount of previous period||
||||gains & losses|
|Total income from liquidation|12,738.05|6,783,729.96||
||||12,738.05|
|of non-current assets||||
|Including：Income from||||
||12,738.05|6,783,729.96|12,738.05|
|liquidation of fixed asset||||
|Govemment Subsidy|441,054,640.22|133,954,541.90|441,054,640.22|
|Other|189,791.48|377,353.26|189,791.48|
|The sale of receivable||9,393,785.92||
|Total|441,257,169.75|150,509,411.04|441,257,169.75|

 Government subsidy reckoned into current gains/losses
In RMB
|||||
|-|-|-|-|
||||Assets-related/income|
|Items|Amount of this period|Amount of last period||
||||-related|
|Grant of Government Infrastructure|1,496,400.00||Related to assets|
|Grant of Industry Revitalization and Technology||||
||155,555.56||Related to assets|
|Reconstruction Project||||
|Grant of Glass-tube Secondary Environmental||||
||20,000.00|20,000.00|Related to assets|
|Protection||||
|Grant of Glass Substrate Research and||||
|||2,000,000.00|Related to income|
|Development Project||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||
|-|-|-|-|
|Financial Grant of Bureau of Finance in Wuhu||||
||60,000,000.00|60,000,000.00|Related to income|
|Economic and Technological Development Zone||||
|Tax Returns|172,162,470.80|71,535,818.49|Related to income|
|Patent Grant of Economic and Trade Development||||
|Department in Wuhu Economic and Technological|42,000.00||Related to income|
|Development Zone||||
|Science and Technology Awards by Anhui||||
|||105,000.00|Related to income|
|Province||||
|Received Commission Charges of Individual||||
||7,500.00|83,723.41|Related to income|
|Income Tax Returned by The Tax Bureau||||
|Government Support Fund|90,000.00|210,000.00|Related to income|
|Industry Development Fund|5,945,613.86||Related to income|
|Grant of Single Device Provided by Wuhu Bureau||||
||435,100.00||Related to income|
|of Finance||||
|Production line technology research and developme||||
||200,000,000.00||Related to income|
|nt granted funds||||
|Fund of Wuhu Key Science and Technology||||
||700,000.00||Related to income|
|Program||||
|Total|441,054,640.22|133,954,541.90|--|

Other explanation：
R& D production line above RMB200 million yuan of subsidies for technology development and other special subsidies required for glass substrate production line Wuhu Economic and Technological Development Zone Finance Bureau allocated on the company fla t panel display.
39.Non-Operation expense
In RMB
|||||
|-|-|-|-|
||Amount of current period|Amount of previous period|The amount of non-operating|
|Items||||
||||gains & lossed|
|Total of Non-current assets|102,108.77|||
||||102,108.77|
|Disposition||||
|Donation expenses||1,500,000.00||
|Fine expenses|9,200.00|19,524.54|9,200.00|
|Other|4,060.60|513,818.91|4,060.60|
|Total|115,369.37|2,033,343.45|115,369.37|

 Other explanation：
Notes :
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 40. Income tax expenses
（1）Income tax expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Income tax at current period|264,484,042.42|141,938,887.24|
|Deferred income tax|-88,451,650.81|-4,099,170.66|
|Total|176,032,391.61|137,839,716.58|

（2）Accounting profit and income tax expense adjustment process
In RMB
|||
|-|-|
|Items|Amount of current period|
|Total profit|1,085,199,549.72|
|Income tax expense at statutory / applicable tax rates|162,779,932.46|
|Effect of different tax rates applicable to subsidiaries|8,131,861.28|
|Income tax adjustments on prior periods|5,982,371.72|
|Impact of non-deductible costs, expenses and losses|2,601,584.26|
|Affect the use of deferred tax assets early unconfirmed||
||-4,010,284.70|
|deductible losses||
|The current period does not affect the deferred tax assets||
||546,926.59|
|recognized deductible temporary differences or deductible loss||
|Income tax expense|176,032,391.61|

 Other explanation：
Notes : Increase during the period of the company's sales revenue increased income corresponding to the number of the Company payable by the Company to increase the income tax expense.
41. Items of Cash flow statement
(1)Other cash received from business operation
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest income|934,096.72|2,947,973.29|
|Government subsidy|267,220,213.90|60,398,723.41|
|Deposits income|10,813,140.15|4,744,023.78|
|Fine income|64,739.10||
|The return of individual borrowers||3,195,103.84|
|Other|18,116,944.31|718,793.90|
|Total|297,149,134.18|72,004,618.22|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual ReportNotes：
（2）Other cash paid related to oprating activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Consultation Services fee|14,861,456.97|2,678,993.80|
|Business expenses|3,693,451.68|2,655,485.44|
|Current account||220,420,031.54|
|Other|9,665,729.12|7,663,369.75|
|Labour insurance expenses|1,293,443.40|114,907.50|
|Donation expenses||150,000.00|
|Communication expenses|5,103,276.25|105,842.64|
|Advertising expenses|5,508,558.20|3,583,464.82|
|Water and electricity expense|27,321,286.89|4,602,202.57|
|Travel expenses|8,361,721.92|3,502,662.00|
|Petty cash|2,352,071.54|41,651,504.11|
|Office expenses|7,882,753.67|10,184,014.71|
|Deposit|12,660,000.00||
|Total|98,703,749.64|297,312,478.88|

Notes：
（3）Other Cash received related to investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Investment|3,500,000.00||
|Total|3,500,000.00||

Notes：
（4）Other Cash payable related to investment activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|

 Notes：
（5）Other Cash received related to Financing activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Interest income|11,591,759.42|8,698,025.46|
|Total|11,591,759.42|8,698,025.46|

Notes：
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report（6）Other Cash payable related to Financing activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Bank charges|5,959,904.32|425,585.49|
|Payment of share repurchase funds|268,024,375.60||
|Total|273,984,279.92|425,585.49|

Notes：
42. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
||||
|-|-|-|
|Supplement Information|Amount of current period|Amount of previous period|
|I. Adjusting net profit to cash flow from|||
||--|--|
|operating activities|||
|Net profit|909,167,158.11|409,544,339.12|
|Add: Impairment loss provision of assets|||
||7,612,251.58|155,505.78|
|Depreciation of fixed assets, oil and gas|||
||63,325,035.66|9,899,598.82|
|assets and consumable biological assets|||
|Amortization of intangible assets|3,819,072.36|1,745,351.06|
|Amortization of long-term deferred|||
||2,244,263.11||
|fexpenses|||
|Loss on disposals of fixed assets, intangible|||
|assets and|89,370.72|-6,783,729.96|
|other long-term assets ("-" for gains)|||
|Financial expenses|37,686,514.74|-3,278,669.31|
|Decrease of deferred income tax assets|-88,447,711.73|-4,099,170.66|
|Decrease of inventories|-213,242,893.75|-112,973,585.08|
|Decease of operating receivables|3,586,322,946.60|-623,062,295.01|
|Increased of operating Payable|-4,352,633,416.68|-1,508,366,179.67|
|Net cash flows arising from operating|-44,057,409.28|-1,837,218,834.91|
|activities|||
|2.Significant investment and financing|||
||--|--|
|activities that without cash flows:|||
|3．Changes Balance of cash and cash|||
||--|--|
|equivalents|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Ending balance of cash|3,006,271,083.93|2,465,010,913.24|
|Less: Beginning balance of cash|2,465,010,913.24|110,770,070.84|
|Net increase of cash and cash equivalents|541,260,170.69|2,354,240,842.40|

 (2) Received cash net value of subsidiary paid in the current period
In RMB
|||
|-|-|
||Amount|
|Cash or Cash Equivalent of Enterprise consolidation that Occurred||
||20,513,728.53|
|in the Current Period Paid in the Current Period||
|Including：|--|
|Sichuan Ruiyi Construction Engineering Co., Ltd|20,513,728.53|
|Less：Cash or Cash Equivalent Owned by Subsidiary on the||
||6,598,443.43|
|Purchasing Date||
|Including：|--|
|Sichuan Ruiyi Construction Engineering Co., Ltd|6,598,443.43|
|Including：|--|
|Received Net Cash Paid by Subsidiary|13,915,285.10|

 Other explanation：
（3）Net cash received from disposal of subsidiaries of the current period
In RMB
|||
|-|-|
||Amount|
|Including：|--|
|Including：|--|
|Including：|--|

Other explanation：
（4）Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|Balance in year-end|Balance in year-Beginning|
|I. Cash|3,006,271,083.93|2,465,010,913.24|
|Of which: Cash in stock|||
||203,730.89|187,646.23|
|Bank savings could be used at any time|3,025,347,655.46|2,303,544,544.74|
|Other monetary capital could be used at any time|30,719,697.58|161,278,722.27|
|III. Balance of cash and cash equivalents at the period|3,006,271,083.93|2,465,010,913.24|
|end|||
|Including：|||
||190,000,000.00|121,650,037.80|
|Parent company or subsidiary of the Group cash and c|||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||
|-|
|ash equivalents restricted|

Other explanation：
43.Assets with ownership or right-to-use restricted
In RMB
||||
|-|-|-|
|Items|Book value in year-end|Reason|
||190,000,000.00|RMB140 million yuan for the margin notes, 50 million for loan collateral pledge|
|Monetary fund|||
|Intangible assets|45,119,769.75|The spouse of the actual controller|
|Total|235,119,769.75|--|

Other explanation：
44.Foreign currency monetary items
（1）Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||Ending balance of foreign curr|Exchange rate|Ending balance of RMB conver|
|Items||||
||ency||sion|
|Including ：USD|9,395.64|6.119|57,491.92|
|Euro|11,540.00|7.4556|86,037.62|
|HKD|4,666.70|0.7889|3,681.56|
|JPY|909,941.00|0.05137|46,743.67|
|GBP|2,277.81|9.5437|21,738.74|
|JPY|206,736,000.00|0.05137|10,620,028.32|
|Prepayments||||
|Including ：JPY|199,721,664.00|0.0601|10,259,701.88|
|USD|2,595,704.13|6.119|15,883,113.57|
|GBP|451,058.90|9.5437|4,304,770.82|
|Euro|2,252,857.69|7.4556|16,796,405.79|

 Other explanation：
(2) Explanation on foreign operational entity, as for major foreign operational entity, disclosed foreignmain operation land, book-keeping currency and basis; and disclosed reasons if the book-keeping currency changed
□ Applicable√ Not applicable
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report VIII.Changes of consolidation scope
1.Enterprise consolidation ont 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|
|SichuanRuiyiConstructionEngineeringCo., Ltd.|||||||488,585,400.00|42,228,700.00|
|||20,513,700.0|||||||
||June 30, 2014||100.00%|Cash|||||
|||0|||||||

Other explanation：
(2) Consolidation Cost and Goodwill
||
|-|
|Items|
|Consolidation Cost|
|—Cash|
|Total of Consolidation Cost|
|Reduction: Obtained Definable Net Assets Fair Proportion|
|The Consolidation Cost is Less Than the Obtained Definable Net Assets FairProportion|

Method for determining the fair value of the cost of the merger, or to changes in the price and description
The main reason for the formation of large amounts of goodwill
Other explanation：
(3) The Definable Assets and Liabilities of the Acquiree on the Purchasing Date
|||
|-|-|
|Items||
||Purchasing Date|
||Fair Value|
|Assets：||
|Monetary fund|6,598,443.43|
|Account receivable|9,507,718.80|
|Prepayments|671,429.00|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||
|-|-|
|Other receivable|17,170,566.41|
|Inventory|740,463.70|
|Deferred income taxes|3,939.08|
|Liabilities：||
|Advance received|13,535,235.73|
|Tax payable|54,859.09|
|Other payable|588,156.69|
|Net assets|20,514,308.91|
|Less：Minority equity||
|Obtained Net Assets|20,514,308.91|

Method for determining the fair value of the identifiable assets, liabilities:
Assumed in a business combination or the acquiree's contingent liabilities:
Other explanation：
(4) Gains or losses of the equity held before purchasing date, arising from re-measured by fair value Realized enterprise combine step by step through multi-trading and dealing obtained controlling rights in Period
□ Yes√ Not
(5) On purchasing date or current combine period, fails to determine the combination considerationoracquiree’s fair value of identifiable assets and liabilities rationally
（6）Other explanation：
Consolidation Scope of Other Reasons :
Upon the approval of Proposal on Investment and Establishment of Beijing Xufeng Real Estate Co., Ltd by the 7th session of the 21th Board Meeting, the Company is agreed to establish the wholly-owned subsidiary Beijing Xufeng Real Estate Co., Ltd.
Upon the approval of Proposal on Investment and Establishment of Holding Subsidiary with KETD State Development and Investment Holding Co., Ltd by the 7th session of the 25 th Board Meeting ,, the Company is agreed to establish the holding subsidiary Dongxu (Kunshan) Display Material Co., Ltd.
Sichuan Ruiyi Construction Engineering Co., Ltd, the wholly-owned subsidiary, invested to establish the sub-subsidiary Wuhu Ruiyi Labor Co., Ltd in July, 2014 with investment amount of RMB 20 million and investment ratio of100.00%.
2.Enterprise consolidation under the same control
（1）Enterprise consolidation under the same control in reporting period
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Beginning of||||
||The|Constitute a||||Merge|||
||||||the period to||Comparing|Comparing|
||proportion of|business||The basis for||beginning of|||
||||||the merger||income|net profit|
|Combined|equity|combination|The merger|determining||the period to|||
||||||date||during the|during the|
|party name|acquired in a|under|date|The merger||the merger|||
||||||consolidation||merging|merging|
||business|common||date||date net|||
||||||was merged||parties|parties|
||combination|control basis||||merged party|||
||||||party revenue||||

Other explanation：
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report（2）Consolidation cost
Notes：
Other explanation：
（3）The merger date of the merged party assets and liabilities of the book value
Assumed in a business combination to be merged party liabilities:
Other explanation：
3.Disposal of subsidiaries
Losing controlling rights while dispose subsidiary on one-time
□ Yes√ No
Dispose subsidiary step by step through multi-dealings and losing controlling rights in the Period
□ Yes√ No
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) The Constitution of Enterprise Group
||||||||
|-|-|-|-|-|-|-|
|Name of|Main Places of|Registration|Nature of|Shareholding Ratio (%)||Obtaining|
|Subsidiary|Operation|Place|Business|direct|indirect|Method|
|||9 Huanghe Road,|||||
|||Shijiazhuang|||||
|Hebei Xubao|||||||
|||High-tech|||||
|Construction|||||||
|||Industrial|Construction||||
|Installation|Shijiazhuang|||100.00%||Establish|
|||Development|Installation||||
|Engineering Co.,|||||||
|||Area,|||||
|Ltd.|||||||
|||Shijiazhuang,|||||
|||Hebei Province|||||
|||9 Huanghe Road,|||||
|||Shijiazhuang|||||
|||High-tech|||||
|Shijiazhuang|||||||
|||Industrial|||||
|Colour Bulb Co.,|Shijiazhuang||Manufacturing|81.26%||Establish|
|||Development|||||
|Ltd.|||||||
|||Area,|||||
|||Shijiazhuang,|||||
|||Hebei Province|||||
|Wuhu Dongxu||Room 302, A floo|||||
|Optoelectronic||r,Management Co|||||
|Equipment|Wuhu|mmittee of Jiangb|Manufacturing|95.00%||Establish|
|Technology Co.,||ei Industry Zone,|||||
|Ltd.||Anhui Prov|||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||
|-|-|-|-|-|-|
|||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.||||
|Sichuan Ruiyi||21, Ring Road 18||||
|Construction||1 West Third Sect||||
||Sichuan||Manufacturing|100.00%|Purchase|
|Engineering Co.,||ion,Jinniu District||||
|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||||
|||Room 1517,||||
|||Building 1||||
|Dongxu||(International||||
|（Kunshan）||Building), No.||||
||Kunshan||Manufacturing|80.00%|Establish|
|Display Material||167, Qianjin||||
|Co., Ltd.||Middle Road,||||
|||Suzhou City,||||
|||Jiangsu Province||||

N/A
(2) Important Non-wholly-owned Subsidiary
In RMB
||||||
|-|-|-|-|-|
||Shareholding Ratio of|Profit or Loss Owned by|Dividends Distributed to|Equity Balance of the|
|Name of Subsidiary|Minority Shareholders|the Minority|the Minority|Minority Shareholders in|
||(%)|Shareholders in the|Shareholders in the|the End of the Period|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||
|-|-|-|-|-|
|||Current Period|Current Period||
|Wuhu Dongxu|||||
|Optoelectronic|||||
||5.00%|26,355,114.74|50,000,000.00|19,386,953.42|
|Equipment Technology|||||
|Co., Ltd.|||||

Notes
Other explanation：
(3) The Main Financial Information of Important Non-wholly-owned Subsidiary
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Year-end balance||||||Year-beginning balance||||||
|||Non||Current|Non|||Non||Current|Non||
|Name|Current||Totalassets|||Total|Current||Totalassets|||Total|
|||current||Liabilitie|current|||current||Liabilitie|current||
||assets|||||liabilities|assets|||||liabilities|
|||assets||s|liabilities|||assets||s|liabilities||
|Wuhu|||||||||||||
|Dongxu|||||||||||||
|Optoelec|||||||||||||
|tronic|||||||||||||
||4,493,09|181,030,|4,674,12|3,392,40|500,000,|3,892,40|4,458,99|46,160,0|4,505,15|3,784,49||3,784,49|
|Equipme|||||||||||||
||4,490.64|619.01|5,109.65|4,782.40|000.00|4,782.40|6,336.66|03.78|6,340.44|7,400.60||7,400.60|
|nt|||||||||||||
|Technolo|||||||||||||
|gy Co.,|||||||||||||
|Ltd.|||||||||||||

In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of current period||||Amount of previous period||||
|||||Cash flows||||Cash flows|
||||Total||||Total||
|Name|Businessincome|||from|Business|||from|
|||Net profit|Comprehensi|||Net profit|Comprehensi||
|||||operating|income|||operating|
||||ve income||||ve income||
|||||activities||||activities|
|Wuhu|||||||||
|Dongxu|||||||||
|Optoelectroni|2,252,680,54|1,061,061,38|1,061,061,38|-347,637,597.|1,204,326,88|357,612,970.|357,612,970.|1,216,579,04|
|c Equipment|2.60|7.41|7.41|22|4.87|51|51|6.37|
|Technology|||||||||
|Co., Ltd.|||||||||

Other explanation：
X. Risks Related to 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
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
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 2014 and 2013.
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|Ending balance of foreign currency|Exchange rate|End balance ofRMB Conversion|Beginning balanveo f foreign currency|Exchange rate|
|Monetary fund||||||
|Including：USD|9,395.64|6.1190|5 7 , 4 9 1 . 9 2|4,430.64|6.0969|
|Euro|11,540.00|7.4556|8 6 , 0 3 7 . 6 2|5,000.00|8.4189|
|HKD|4,666.70|0.7889|3 , 6 8 1 .5 6|4,666.70|0.7862|
|JPY|909,941.00|0.0514|4 6 , 7 4 3 . 6 7|4,122.00|0.0578|
|GBP|2,277.81|9.5437|2 1 , 7 3 8 . 7 4|2,277.81|10.0556|
|Prepaid Account||||||
|Including：USD|2,595,704.13||1 5 ,8 8 3 , 1 1 3 .5 7|800,979.13||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||||
|-|-|-|-|-|-|
|||6.1190|||6.0969|
|Euro|2,252,857.69|7.4556|1 6 ,7 9 6 , 4 0 5 .7 9|3,092,240.69|8.4189|
|JPY|199,721,664.00|0.0514|10,259,701.88|408,772,064.00|0.0578|
|GBP|451,058.90|9.5437|4 , 3 0 4 ,7 7 0 . 8 2|910,673.90|10.0556|

XI. Related party and related party transactions
1. Parent company information of the enterprise
|||||||
|-|-|-|-|-|-|
|||||The parent company|The parent company|
|Name|Registered address|Natrue|Regisrated capital|of the Company's|of the Company‘s|
|||||shareholding ratio|vote ratio|
||No.369, Zhujiang|||||
|Dongxu Group|Road, High-tech|Production|5 billion|14.65%|14.65%|
||zone, Shijiazhuang|||||

Notes
During the reporting period, the following changes in the real-up capital of the parent company:
|||||
|-|-|-|-|
|Items|Year-beginning balance|Increase in the currentperiod|Decrease in the currentperiod|
|Paid-in capital|2,200,000,000.00|1,950,000,000.00||

 The enterprise is the ultimate controlling party is Li Zhaoting.
Other explanation：
2.Particulars of the subsidiaries
see Notes .
3. Other Related parties information of the enterprise
|||
|-|-|
|Other Related parties name|Relation of other Related parties with the company|
|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|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||
|-|-|
|Hebei Baoshi Lighting Co., Ltd.|Controlled by the same actual controller|
|Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd.|Controlled by the same actual controller|
|Zhengzhou Xufei Optoelectronic Technology 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 Machine Equipment Co., Ltd.|Controlled by the same actual controller|
|Chengdu Zhong Optoelectronic Technology Co., Ltd.|General Manager: Li Zhaoting|
|Chengdu Dongxu Energy saving 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|
|Hejing Xushuang Solar energy Technology Co., Ltd.|Controlled by the same actual controller|
|Ningxia Xuning New Energy Technology Co.,Ltd.|Controlled by the same actual controller|
|Li Qing|The spouse of the actual controller|

Other explanation：
4. Related transactions.
（1）Related transactions on purchasing goods and receiving services
In RMB
|||||
|-|-|-|-|
|||Amount of current|Amount of|
|Related parties|Content of related transaction|||
|||period|previous period|
|Shijiazhuang Baoshi Electronics Group Co., Ltd.|Energy|2,450,586.42|4,266,530.37|
|Shijiazhuang Baoshi Xuming Tube Co., Ltd.|Material, Merchandise inventory||3,300.75|
|Zhengzhou Xufei Optoelectronic Technology Co., Ltd.|Checking machine|7,264,957.28|14,529,914.53|
|Zhengzhou Xufei Optoelectronic Technology Co., Ltd.|LCG||5,067,692.31|
|Zhengzhou Xufei Optoelectronic Technology Co., Ltd.|Material||1,142,409.30|
|Chengdu Dongxu Energy Saving Technology Co., Ltd.|ESL|93,400.00|2,763,257.32|
|Shijiazhuang Baoshi Large-diameter plastic tube Co., Ltd.|Carat Tube||4,798,541.42|
|Hebei Energy SavingLighting Technology Co., Ltd.|Construction installation||3,163,610.00|
|Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co.,||||
||Doors and windows|1,050,000.00||
|Ltd.||||
|Shijiazhuang Bofa Mechanical Equipment Co., Ltd.|Machining parts|1,112,148.72||
|Shijiazhuang Xuling Electrinic Technology Co., Ltd.|Spare parts|255,942.90||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||
|-|-|-|-|
|Shijiazhuang Xuling Electrinic Technology Co., Ltd.|Monitoring system|3,636,526.13||
|Dongxu Group Co., Ltd.|Processing charges|3,573,094.84||
|Total||19,436,656.29|35,735,256.00|

 Related transactions on sale goods and receiving services
In RMB
|||||
|-|-|-|-|
|||Amount of current|Amount of|
|Related parties|Content of related transaction|||
|||period|previous period|
||High-Display production line|||
|Dongxu （Yingkou）Optoelectronic Display Co., Ltd.||6,360,752.23|223,066,469.15|
||Equipment Construction|||
||High-Display production line|||
|Zhengzhou Xufei Optoelectronic Technology Co., Ltd.||40,205,250.38|397,161,185.80|
||Equipment Construction|||
|Shijiazhuang Xuxin Optoelectronic Technology Co.,|High-Display production line|||
|||846,671,023.38|88,152,406.84|
|Ltd.|Equipment Construction|||
|Zhengzhou Xufei Optoelectronic Technology Co., Ltd|Broken glass|588,119.66||
|Zhengzhou Xufei Optoelectronic Technology Co., Ltd|A-frame|2,923,076.93|7,256,410.27|
|Zhengzhou Xufei Optoelectronic Technology Co., Ltd|Shape measuring instrument||6,410,256.41|
|Shijiazhuang Baoshi Electronics Group Co., Ltd.|Lead Tube|3,521,605.78||
|Shijiazhuang Bofa Mechanical Equipment Co., Ltd.|A-frame|8,854,273.50|2,184,615.38|
|Sichuan Xuhong Optoelectronic Technology Co., Ltd.|A-frame||1,547,990.43|
|Hebei Baoshi Energy saving lighting technology Co.,||||
||Construction installation|74,270.00|176,224.76|
|Ltd||||
|Shijiazhuang Baoshi Electronics Group Co., Ltd.|Processing charges||39,925.00|
|Sichuan Xuhong Optoelectronic Technology Co., Ltd.|Construction installation||1,884,120.04|
|Shijiazhuang Xuxin Optoelectronic Technology Co.,||||
||Construction installation||540,000.00|
|Ltd.||||
|Shijiazhuang Xuxin Optoelectronic Technology Co.,|Fill in the furnace of glass raw|||
|||820,512.82||
|Ltd.|materials|||
|Shijiazhuang Baodong Electrinic Co., Ltd.|Hydrogen gas|259,857.69||
|Chengdu Taiyisi Technology Co., Ltd.|Equipment and Technology|45,792,614.10||
|Dongxu Group|Construction installation|56,550,283.94||
|Chengdu Zhong Optoelectronic Technology Co., Ltd|Glass substrate|1,401,923.08|5,067,692.28|
|Hejing Xushuang Solar Energy Technology Co., Ltd.|Construction installation|34,711,241.21||
|Ningxia Xuning New Energy Technology Co., Ltd.|Construction installation|58,505,557.50||
|Total||1,107,240,362.20|733,487,296.36|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Notes
Notes1：R& DCosts+Production line materialcost+Production line integrationcost+Management Cost and salescosts+
commissioning of productionline+after sale servicecost+ Reasonable profit
（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertake
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Gains from the|
||Name of the|Asset situation of the||Terminating|Pricing||
|Name of the employer|||Start date|||deal in report|
||undertaker|undertaker||date|basis||
|||||||period|
|Dongxu Group Co.,Yingko|||||||
||Dongxu|The right to operate of|||||
|Yanhai Development|||||||
||Optoelectronic|Dongxu (Yingkou)|January 1,||||
|Construction Co., Ltd.,||||||1,500,000.00|
||Technology Co.,|Optoelectronic|2012||||
|Minerals (Yingko) Industry|||||||
||Ltd.|Display Co., Ltd.|||||
|Park Development Co., Ltd.|||||||
|Dongxu Optoelectrnic|||||||
|Investment Co.,|Dongxu|The right to operate of|||||
|Ltd.,Henan State-owned|Optoelectronic|Zhenghou Xufei|||||
||||March 1, 2012|||4,254,595.57|
|Assets Management Co.,|Technology Co.,|Optoelectronic|||||
|Ltd.,Zhengzhou Investment|Ltd.|Technology Co., Ltd.|||||
|Holdings Co., Ltd.|||||||
|Dongxu Group Co.,|||||||
|Mianyang Investment City|Dongxu|The right to operate of|||||
|Development Investment|Optoelectronic|Sichuan|||||
||||March 1, 2012|||1,500,000.00|
|(Group) Co., Ltd., Sichuan|Technology Co.,|Optoelectronic|||||
|Changhong Electrical Co.,|Ltd.|Technology Co., Ltd.|||||
|Ltd.|||||||
|Shijiazhuang Baoshi|||||||
|Electronic Group Co.,|Dongxu|The right to operate of|||||
|Ltd.,Shijiazhuang High|Optoelectronic|Shijiazhuang Xuxin|||||
||||March 1, 2012|||1,916,238.17|
|Lanhu Investment Co., Ltd.,|Technology Co.,|Optoelectronic|||||
|Shijiazhuang State Holding|Ltd.|Technology Co., Ltd.|||||
|Investment Co., Ltd.|||||||
||Dongxu||||||
|||The right to operate of|||||
||Optoelectronic||December 1,||||
|Dongxu Group||Chengdu Taiyisi||||83,333.33|
||Technology Co.,||2014||||
|||Technology Co., Ltd.|||||
||Ltd.||||||
|Total||||||9,254,167.07|

 Notes:
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 of
5%calculation（Base incentive management fees deduct prior years'losses）
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 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.
Notes3：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.
Statement of entrusted management and contract
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Income|
|Assignee/contract|Assigner/contract||||||
|||Assts type|Starting from|Terminated dated|Pricing basis|recognized in this|
|–out party|or||||||
|||||||period|

 Notes
（3）Related guarantee condition
The Company as a guarantor
In RMB
||||||
|-|-|-|-|-|
|||||If completed|
|Guarantor|Amount|Starting date|Stop date||
|||||or not|
|Dongxu Group, Zhengzhou Xufei|||||
|Optoelectronic Technology Co., Ltd pledged|100,000,000.00|May 27, 2014|May 26, 2015|No|
|accounts receivable|||||
|Dongxu Groupo|200,000,000.00|August 21, 2014|August 19, 2015|No|
|Dongxu Group, Zhengzhou Xufei|||||
|Optoelectronic Technology Co., Ltd pledged|20,000,000.00|September 18, 2014|August 22, 2015|No|
|accounts receivable|||||
|Dongxu Group, Zhengzhou Xufei|||||
|Optoelectronic Technology Co., Ltd pledged|60,000,000.00|September 24, 2014|August 22, 2015|No|
|accounts receivable|||||
|Dongxu Group|100,000,000.00|August 22, 2014|August 22, 2015|No|
|Dongxu Group, Zhengzhou Xufei|||||
|Optoelectronic Technology Co., Ltd pledged|20,000,000.00|August 27, 2014|August 22, 2015|No|
|accounts receivable|||||
||||December 22,||
|Dongxu Group|400,000,000.00|December 22, 2014||No|
||||2016||
|Dongxu Group, Li Zhaoting|140,000,000.00|March 28, 2013|March 28, 2014|Yes|
|Dongxu Group, Li Zhaoting, Li Qing|100,000,000.00|August 29, 2014|August 28,|Yes|
|Li Zhaoting|250,000,000.00|December 2, 2014|October 2, 2015||
|Li Zhaoting|50,000,000.00|December 30,2014|September||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||
|-|
|30,2015|

The company as a secured party
||||||
|-|-|-|-|-|
|Secured party|Amount|Starting date|Stop date|If completed or not|

 Notes
（4）Key management personnel remuneration
In RMB
||||
|-|-|-|
||Amount of current period|Amount of previous period|
|Items|||
|Key management personnel remuneration|3,916,700.00|3,796,100.00|

 5.Payables and receivables of the related party
（1）Listed company related party fund
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount at year end||Amount at year beginning||
|Name|Related party||Bad debt||Bad debt|
|||Balance of Book||Balance of Book||
||||Provision||Provision|
||Dongxu （Yingkou）|||||
|Account receivable||24,136,000.00||323,298,380.95||
||Optoelectronic Display Co., Ltd.|||||
||Zhengzhou Xufei Optoelectronic|||||
|Account receivable||94,885,328.82||496,453,936.75||
||Technology Co., Ltd|||||
||Sichuan Xuhong Optoelectronic|||||
|Account receivable||914,000.00||85,332,403.52||
||Technology Co., Ltd.|||||
|Account receivable|Dongxu Group|||1,000,000.00||
||Shijiazhuang Xuxin|||||
|Account receivable|Optoelectronic Technology Co.,|1,434,491.24||22,684,306.99||
||Ltd.|||||
||Dongxu Optoelectronic|||||
|Account receivable||||500,000.00||
||Investment Co., Ltd.|||||
||Hebei Baoshi Energy saving|||||
|Account receivable||10,000.00||20,000.00||
||lighting technology Co., Ltd.|||||
||Shijiazhuang Bofa Mechanical|||||
|Account receivable||88,000.00||||
||Equipment Co., Ltd.|||||
||Chengdu Zhong Optoelectronic|||||
|Account receivable||1,184,777.00||||
||Technology Co., Ltd.|||||
||Chengdu Taiyisi Technology Co.,|||||
|Account receivable||83,333.33||||
||Ltd.|||||
||Hejing Xushuang Solar energy|||||
|Account receivable||4,711,241.21||||
||Technology Co., Ltd.|||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||
|-|-|-|-|
|Other receivable|Shijiazhuang Baoshi Group||899,535.29|
||Shijiazhuang Baoshi|||
|Other receivable|Large-diameter plastic tube||673,962.50|
||Co., ltd|||
||Shijiazhuang Baodong Electrinic|||
|Other receivable||299,905.00|351,203.36|
||Co., Ltd.|||
||Shijiazhuang Baoshi Zhonghe|||
|Other receivable|||1,222,881.50|
||Steel Plastic Shape Co., Ltd.|||
||Hebei Baoshi Energy saving|||
|Other receivable|||646,561.00|
||lighting technology Co., Ltd.|||
||Shijiazhuang Baoshi Electronic|||
|Other receivable|||2,244,567.50|
||vacuum Glass Co., Ltd.|||
||Shijiazhuang XumingTube Co.,|||
|Other receivable|||771,500.55|
||Ltd.|||
||Sichuan Xuhong Optoelectronic|||
|Other receivable|||11,674.72|
||Technology Co., Ltd.|||
||Chengdu Xushuang Solar energy|||
|Other receivable|||5,837.36|
||Technology Co., Ltd.|||
||Shijiazhuang Baoshi Zhonghe|||
|Prepayable account|||840,000.00|
||Steel Plastic Shape Co., Ltd.|||
||Hebei Baoshi Energy saving|||
|Prepayable account|||4,084,924.00|
||lighting technology Co., Ltd.|||
|Prepayable account|Shijiazhuang Baoshi Group||14,536,043.55|
||Shijiazhuang Xuling Electrinic|||
|Prepayable account|||2,130,000.00|
||Technology Co., Ltd.|||

（2）The listed company Payables of the related party
In RMB
|||||
|-|-|-|-|
|Name|Related party|Book balance at|Book balanc at year|
|||year end|beginning|
|Account payable|Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd.|5,533,363.79|5,462,784.95|
|Account payable|Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd|533,942.80|533,942.80|
|Account payable|Chengdu Dongxu Energy Technology Co., Ltd.|649,745.00|757,818.38|
|Account payable|Zhengzhou Xufei Optoelectronic Technology Co., Ltd.||20,459,114.53|
|Account payable|Shijiazhuang XumingTube Co., Ltd.|14,948.00|14,948.00|
|Account payable|Shijiazhuang Dongxu Mechine Equiement Co., Ltd.||1,917,869.00|
|Account payable|Dongxu Group|5,000,394.12||
|Account payable|Shijiazhuang Xuling Electronic Technology Co., Ltd.|1,008,852.78||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
|||||
|-|-|-|-|
|Account payable|Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd.|122,682.00||
|Account payable|Shijiazhuang Bofa Mechanical Equipment Co., Ltd.|827,210.50||
|Advance revenue|Dongxu Group|3,449,716.06||
|Advance revenue|Chengdu Zhong Optoelectronic Technology Co., Ltd.|38,692.80||
|Other payable|Shijiazhuang Baoshi Group|5,892,565.56||
|Other payable|Jinzhou Xulong Solar energy Technology Co., Ltd.|1,500,000.00|1,500,000.00|
|Other payable|Dongxu Group|11,451,798.44|9,218,289.20|
|Other payable|Shijiazhuang XumingTube Co., Ltd.|97,031.00||
|Other payable|Chengdu Dongxu Energy saving Technology Co., Ltd.|50,000.00||
|Other payable|Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd|231,186.44||

XII. Share–base payment
1.Overall performance of share-base payment
√ Applicable□ Not applicable
In RMB
|||
|-|-|
|Current period of granted total equity instruments|3,080,000.00|
|Current period of total equity instuments of the right tools|0.00|
|Current period of total equity instruments of failure tool|0.00|

 Other explanation：
2. Share-base payment settled by equity
√Applicable□Not applicable
In RMB
|||
|-|-|
|Method for determining the granted fair value of the equity|Stock incentive plan announcement before the company stock|
|instruments|price the 20 trading days to 50%|
|The current period with the previous estimate of reasons to differ m||
||No|
|aterially from estimated||
|The cumulative amount of equity-settled share-based payment||
||8,461,001.90|
|recognized in the capital reserve||
|The total cost of the current period equity-settled share-based paym||
||1,062,300.00|
|ent confirmation||

Other explanation：
3.Share-base payment settled by cost
□ Applicable√ Not applicable
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 4. Modification and termination of share-base payment
N/A
5.Other
XIII. Commitments and contingencies
1. Material commitments
Major commitments on balance sheet date
N/A
2. Contingencies
（1）Majorcontingencies on balance sheet date
N/A
（2）For no major contingencies disclosed, explain reasons
N/A
3.Other
N/A
XIV.Explanation on other events after balance sheet date
In RMB
|||
|-|-|
|Profit distribution||
||266,208,000.10|
|Profits or dividends declared to be distributed||
|After consideration and approval of profits or dividends declared to||
||266,208,000.10|
|be distributed||

XV..Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Type|Book Balance|Provision for bad|Book|Book Balance|Provision for bad debts||
|||||||Book value|
|||debts|value||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Proportio||Proportion|||Proportio||||
||Amount||Amount|||Amount||Amount|Proportion||
|||n|||||n||||
|Receivables with|||||||||||
|major individual|||||||||||
|amount and bad debt|||||||||||
|provision provided|||||||||||
|individually|6,661,700.00||6,661,70|||6,661,7||6,661,700|||
|||30.20%||100.00%|||25.53%||100.00%||
|receivables with|||0.00|||00.00||.00|||
|major individual|||||||||||
|amount and bad debt|||||||||||
|provision provided|||||||||||
|individually|||||||||||
|Account receivable|||||||||||
|with minor individual|15,395,425.47||2,899,93||12,495,49|19,428,||2,881,075||16,547,491.|
|||69.80%||18.84%|||74.47%||14.83%||
|amount but bad debt|||2.18||3.29|567.10||.68||42|
|provision is provided|||||||||||
||22,057,125.47||9,561,63||12,495,493.29|26,090,||9,542,775||16,547,491.42|
|Total||100.00%||43.35%|||100.00%||36.58%||
||||2.18|||267.10||.68|||

 Receivable accounts with large amount individually and bad debt provisions were provided.
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
||Year-end balance||||
|Account receivable(Unit)|||||
||Account receivable|Bad debt provision|Rate|Reason to provide|
|Baoshi TV Plant|6,661,700.00|6,661,700.00|100.00%||
|Total|6,661,700.00|6,661,700.00|--|--|

Receivable account in Group on which bad debt provisions were provided on agebasis：
√Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
||Year-end balanceAccount receivable Bad debt provision Proportion|||
|Aging||||
|||Bad debt provision|Proportion|
|Within 1 year||||
|Subtotal of Within 1 year|1,389,668.39|69,483.42|5.00%|
|Over 5 years|2,830,448.76|2,830,448.76|100.00%|

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：
Name Book balance Bad debt provision
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report Other Group
11,175,308.32
（2）Receivable accounts written back or retrieved in the report period
The current amount of provision for bad debts is RMB0.00; recovery or payback for bad debts Amount is RMB 0.00.
Where the current bad debts back or recover significant amounts:
In RMB
||||
|-|-|-|
|Name|Back or withdraw money|Recovery method|

（3）Account receivables actually written-off during the reporting period
In RMB
|||
|-|-|
|Items|Amount written off|

Account receivables actually written-off during the reportingperiod：
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of account||||Arising from related|
|||Amount written off|Reason for write-off|Program||
|Company|receivables||||transactions (Y/N)|

 Notes:There were no receivables written off in this reporting period.
（4）The ending balance of other 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 RMB
17,514,890.87, which accounts for79.41% of the total other receivables. The total amount of balances in the end of the period for corresponding accrued bad-debt provision is RMB 9,227,554.05.
2. Other receivable
（1）Type analyses:
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in year-end|||||Amount in year-begin|||||
||||Bad debt||||||||
||Book Balance|||||Book Balance||Bad debt provision|||
|Type|||provision||Book||||||
|||||||||||value|
|||Proportio||Proportio|value||Proportio||Proportion(||
||Amount||Amount|||Amount||Amount|||
|||n(%)||n(%)|||n(%)||%)||
|Account receivable|||||316,867,754.88|||||432,062,236.88|
|with minor individual|319,713,||2,845,79|||434,872||2,810,599|||
|||100.00%||0.89%|||100.00%||100.00%||
|amount but bad debt|549.26||4.38|||,836.16||.28|||
|provision is provided|||||||||||
||319,713,||2,845,79||316,867,754.88|434,872||2,810,599||432,062,236.88|
|Total||100.00%||0.89%|||100.00%||100.00%||
||549.26||4.38|||,836.16||.28|||

 Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
□Applicable√Not applicable
Other receivable accounts in Group on which bad debt provisions were provided on age analyzebasis：
√Applicable□Not applicable
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report In RMB
|||||
|-|-|-|-|
||Balance in year-end|||
|Aging||||
||Other receivable|Bad debt provision|Proportion|
|Within 1 year||||
|Subtotal of Within 1 year|685,846.00|34,292.30|5.00%|
|Over 5 years|2,811,502.08|2,811,502.08|100.00%|
|Total|3,497,348.08|2,845,794.38||

Notes：
Other receivable accounts on which bad debt provisions are provided by Percentage Method in theportfolio：□Applicable√Not applicable
Other receivable accounts on which bad debt provisions are provided by other method in theportfolio：
√Applicable□ Not applicable
|||
|-|-|
|Name|Book balance|
|Other Group|316,216,201.18|

（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB0.00; recovery or payback for bad debts Amount is RMB 0.00.
Where the current bad debts back or recover significant amounts:
In RMB
||||
|-|-|-|
|Name|Back or withdraw money|Recovery methods|

（3）Other receivable accounts actually written off in the report period
In RMB
|||
|-|-|
|Items|Amount written off|

Other account receivables actually written-off during the reportingperiod：
In RMB
|||||||
|-|-|-|-|-|-|
||Nature of account|||Verification|Arising from related|
|Name||Amount written off|Reason for write-off|||
||receivables|||procedures|transactions (Y/N)|
||Individual||Money can not be re|||
|Yang Zhanji||787.20|||No|
||Revolving fund||covered|||
||Individual||Money can not be re|||
|Li Zhi||2,000.00|||No|
||revolvingfund||covered|||
|Total|--|2,787.20|--|--|--|

Notes：
（4）Other receivables fund classification
In RMB
||||
|-|-|-|
|Nature|Book balance in year-end|Book balance in year –beginning|

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||
|-|-|-|
|Other|319,713,549.26|434,872,836.16|
|Total|319,713,549.26|434,872,836.16|

（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
|||||||
|-|-|-|-|-|-|
|||balance in|||The ending balance|
|Name|Nature||Age|Proportion||
|||year-end|||of bad debts|

（6）Government subsidy recognized according to the accounts receivable
In RMB
||||||
|-|-|-|-|-|
|Name|Project|Year-end balance|Age|Time, Amount and Basis|

 (7) The amount of the transfer of other assets, receivables and liabilities of continuing involvement
Other explanation：
The total Other receivable amount of top five closing balances collected by the debtors in the current reporting period is RMB 315,466,864.20, which accounts for98.67% of the total other receivables. The total amount of balances in the end of the period for corresponding accrued bad-debt provision is RMB 1,094,333.29.
3. Long term share equity investment.
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-end balance|||Year-beginning balance|||
|Items||Provision for|||Provision for||
||Book Balance||Book value|Book Balance||Book value|
|||impairment|||impairment||
|Investment|||||||
|in|5,475,084,685.33|378,172,649.84|5,096,912,035.49|5,106,630,956.80|378,172,649.84|4,728,458,306.96|
|subsidiaries|||||||
|Total|5,475,084,685.33|378,172,649.84|5,096,912,035.49|5,106,630,956.80|378,172,649.84|4,728,458,306.96|

（1）Investment in subsidiaries
In RMB
||||||||
|-|-|-|-|-|-|-|
||Year-beginningbalance|Increase in the|Decrase in the||Provision for||
|Investee||||Year-end balance||Year-End balance|
|||current period|current period||impairment||
|Shijiazhuang|||||||
|Baoshi Color Bulb|439,341,956.80|||439,341,956.80||378,172,649.84|
|Co., Ltd.|||||||
|Hebei Xubao|||||||
|Construction|||||||
|Engineering|100,000,000.00|||100,000,000.00|||
|Installation Co.,|||||||
|Ltd.|||||||
|Wuhu Dongxu|||||||
||93,100,000.00|||93,100,000.00|||
|Optoelectronic|||||||

Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report
||||||
|-|-|-|-|-|
|Equipment|||||
|Technology Co.,|||||
|Ltd.|||||
|Wuhu Dongxu|||||
|Optoelectronic|||||
||4,471,064,000.00|240,000,000.00|4,711,064,000.00||
|Technology Co.,|||||
|Ltd.|||||
|Sichuan Ruiyi|||||
|Construction|||||
|||100,453,728.53|100,453,728.53||
|Engineering Co.,|||||
|Ltd.|||||
|Wuhan Dongxu|||||
|Optoelectronic|||||
||3,125,000.00||3,125,000.00||
|Technology Co.,|||||
|Ltd.|||||
|Beijing Xufeng|||||
|Real Estate Co.,||20,000,000.00|20,000,000.00||
|Ltd.|||||
|Dongxu|||||
|（Kunshan）|||||
|||8,000,000.00|8,000,000.00||
|Display Material|||||
|Co., Ltd.|||||
|Total|5,106,630,956.80|368,453,728.53|5,475,084,685.33|378,172,649.84|

（2）For Associated enterprise and joint venture investments
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase or decrease of the current period||||||||||
|||||Investme||||||||
||||||||||||Impairme|
|||||nt gains a|Adjustme|||||||
||||||||Cash||||nt|
||Beginnin|||||||||Ending||
|Investee||Additiona|Reduce|nd losses|nt of|Other|dividend|Provision|||provision|
||g balance|l||recognize|other|||for||balance||
||||investmen|||equity|or profit||Other||at ending|
|||investmen||d under th|comprehe|||impairme||||
||||||||||||balance|
||||t|||changes|declare to|||||
|||t||e equity|nsive|||nt losses||||
||||||||issue|||||
|||||method|income|||||||
|I. Joint ventrue||||||||||||
|II. Associated enterprise||||||||||||

（3）Other explanation
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report 4. Business income and Business cost
In RMB
||||||
|-|-|-|-|-|
||Amount of current period||Amount of previous period||
|Items|||||
||Revenue|Cost|Revenue|Cost|
|Main business|31,543,226.87|30,310,753.30|31,143,678.92|24,668,915.76|
|Other business|28,722,583.81|7,364,606.56|64,903,500.27|34,674,235.14|
|Total|60,265,810.68|37,675,359.86|96,047,179.19|59,343,150.90|

 Other explanation：
XV. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Amount|Notes|
|Gains/Losses on the disposal of non-current assets|-89,370.72||
|Government grants recognized in the current period, except forthose|||
|acquired in the ordinary course of business or granted at certain|441,054,640.22||
|quotas or amounts according to the country‘s unified standards|||
|Gains due to that the investment costs for the Company to obtain|||
|subsidiaries, associates and joint ventures are lower than the|||
||580.38||
|enjoyable fair value of the identifiable net assets of the investees|||
|when making the investments|||
|Gain/loss on loans obtained by entrusting others|9,254,167.07||
|Other non-operating income and expenditure beside for the above|||
||175,950.50||
|items|||
|Less: Influenced amount of income tax|65,281,344.97||
|Amount of influence of minority interests（After tax）|7,614,561.37||
|Total|377,500,061.11|--|

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. 2014 Annual Report 2 Return on net assets and earnings per share
|||||
|-|-|-|-|
|||Earnings per share||
||Return on net assets .|||
|Profit of the report period||||
|||Basic earnings per share|Diluted gains per share|
||Weighted（%）|||
|Net profit attributable to the Common stock||0.33|0.33|
||14.13%|||
|shareholders of Company.||||
|Net profit attributable to the Common stock||||
|shareholders of Company after deducting of|8.07%|0.19|0.19|
|non-recurring gain/loss.||||

3.The differences between domestic and international accounting standards
（1）.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
□ Applicable√Not applicable
（2）According to the Chinese accounting standards and international accounting standards to disclose the financial reports of differences in net profit and net assets.
□ Applicable√ Not applicable
(3) The difference explanation of the net profit and net assets disclosed under foreign accounting rules, data audited by foreign accounting agency need to have differences adjustment, the name of the agency should be noted.
4. Supplement information related to the changes in accounting policies
□ Applicable√Not applicable
5. Other
Dongxu Optoelectronic Technology Co., Ltd. 2014 Annual Report XII. Documents available for inspection
1.The original 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. 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
Issue day approved by the Board ofDirectors：February 16,2015