Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Dongxu Optoelectronic Technology Co., Ltd.
2015 Annual Report
February 2016
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company
hereby guarantees that there are no misstatement, misleading representation or important omissions in this report
and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
Mr.Li Zhaoting, The Company leader, Mr.Zhou Bo, Chief financial officer and the Mr..Zhou Bo, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in this annual report.
All the directors attended the board meeting for reviewing the Annual Report.
The development strategy, operation plan and other forward-looking statements involved in this
report will not constitute any substantive commitment to the investors by the Company. Investors
please be aware of the investment risks.
The development strategy, operation plan and other forward-looking statements involved in this report will not
constitute any substantive commitment to the investors by the Company. Meanwhile, investors please refer to
Chapter 4 Discussion and Analysis of Management on the possibly facing risks of Discussion and Analysis of the
Company’s Future Development, and be aware of the investment risks.
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows: total
share of December 31, 2015 for Base on the Company‘s total share capital , the Company would distribute cash
cash dividend to all the shareholders at the rate of CNY 0.70 for every 10 shares (with tax inclusive) ，
0 bonus shares（including tax）and no reserve would be converted into share capital
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Table of Contents
I..Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial ixdex
III. Outline of Company Business
IV. Management’s Discussion and Analysis
V.Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Financial Report
XI. Documents available for inspection
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Definition
Terms to be defined Refers to Definition
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Dongxu 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 Technology Co., Ltd., was the
Wuhu Optoelectronic Refers to implementation unit of the non-public item to raise money for and invest
in of “The Project of Production Line for Panel Display Plate” in 2013
Wuhu Equipment Refers to Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.
Shijiazhuang Equipment Refers to Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd.
Dongxu（Kunshan）Display material Co., Ltd.， was the implementation
Dongxu (Kunshan ) Refers to unit of the non-public item to raise money for and invest in “Project of
Production Line for the 5th-generation CF for TFT-LCD”.
BOE Refers to BOE Technology Group Co., Ltd.
IVO Refers to Infovision Optoelectronics Co., Ltd.
CPT Refers to Chunchwa Picture Tubes Co., Ltd.
CRT Refers to Cathode Ray Tube
TFT-LCD Refers to Thin Film Transistor Liquid Crystal Display
A thin glass sheet with extremely smooth surface is a basic component of
constituting LCD display device as well as one of the critical basic
Glass substrate Refers to materials in panel display industry. The glass sheet can be divided into
various generations by its size, and the higher the generation is, the bigger
the size will be.
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
G5 glass substrate Refers to The size of the 5th-generation glass substrate is 1100 mm×1300 mm.
G6 glass substrate Refers to The size of the 6th-generation glass substrate is 1500 mm×1850 mm.
CF Refers to Critical original materials of LCD panel for realizing colorization display
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
II. Basic Information of the Company and Financial ixdex
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
Shenzhen Stock Exchange
listing：
Name in Chinese 东旭光电科技股份有限公司
Chinese Abbreviation 东旭光电
English name (If any) Dongxu Optoelectronic Technology Co., Ltd.
English abbreviation (If any) Dongxu Optoelectronic
Legal Representative Li Zhaoting
No.9, Huanghe Road, Shijiazhuang High-tech Industrial Development Area,
Registered address
Shijiazhuang, Hebei Province
Postal code of the
050035
Registered 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:dongxuguangdian.com.cn
E-mail dxgd@dong-xu.com
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Gong Xin Wang Qingfei
No.5 Court, No.23 A Fuxing Road, No.5 Court, No.23 A Fuxing Road,
Contact address
Haidian District, Beijing Haidian District, Beijing
Tel 010-68297016 010-68297016
Fax 010-68297016 010-68297016
E-mail gongxin_dx@126.com baoshixzb@126.com
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
III. Information disclosure and placed
Newspapers selected by the Company for information China Securities Journal , Hong Kong Commercial Daily and Securities
disclosure Times
Internet website designated by CSRC for publishing
http://www.cninfo.com.cn
the simi-Annual report of the Company
The place where the semi-Annual report is prepared
Securities Dept of the Company
and placed
IV. Registration changes of the Company
Organization Code No change
Changes in principal business activities
No change
since listing (if any)
On April 18, 2013，520 million Ashares privately issued by the Company were
listedatthezhen Stock Exchange，Dongxu Group participated in subscription, and
directly controls 14.40% equity of the Company, becorning the controlling shareholder
of the Company, which indirectly held 12.27% of the Company’s shares by means of
Baoshi Group, the original controlling shareholder, holding 26.67% of the Company’s
Changes is the controlling shareholder in
shares in total. On December 17, 2015, 1,173,020,525 A shares with non-public issue
the past (is any)
of the Company in 2015 listed in SZSE, where Dongxu Group participated in
subscribing 439.882697 million shares, which would held 21.64% of the Company’s
shares directly after subscription and held 8.67% of the Company’s shares indirectly by
means of Baoshi Group, holding 30.31% of the Company’s shares in total.
V. Other Relevant Information
CPAs engaged
Name of the CPAs Hebei Guanghua Accounting Firms Co., Ltd.(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
4/F, Chuangjian Building,
March 20,2015-December 31,
Southwest Securities Co., Ltd. No.6023, Shennan Road, Futian Huang Bo, He Jin
2016
District, Shenzhen.
The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
□ Applicable√ Not applicable
VI. Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□ Yes √ No
Changed over last year
2015 2014 2013
（％）
Operating Gross income（RMB） 4,650,208,448.10 1,600,750,745.69 190.50% 765,518,591.49
Net profit attributable to the
shareholders of the listed company 1,326,233,674.37 468,902,701.44 182.84% 195,959,827.62
（RMB）
Net profit after deducting of
non-recurring gain/loss attributable
822,699,390.70 78,312,630.78 950.53% 73,813,371.40
to the shareholders of listed
company（RMB）
Cash flow generated by business
1,780,128,962.94 -1,017,554,188.65 274.94% -2,098,314,232.35
operation, net（RMB）
Basic earning per
0.48 0.17 182.35% 0.09
share(RMB/Share)
Diluted gains per
0.48 0.17 182.35% 0.09
share(RMB/Share)(RMB/Share)
Net asset earning ratio（%） 14.99% 6.11% 8.88% 4.41%
End of Changed over last
End of 2015 End of 2013
2014 year（％）
Gross assets（RMB） 28,798,623,253.33 18,488,221,665.49 55.77% 15,107,436,628.17
Net assets attributable to
shareholders of the listed company 14,319,481,941.28 7,677,125,274.36 86.52% 7,465,788,965.48
（RMB）
VII. The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
N/A
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable √Not applicable
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
N/A
VIII. Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 598,858,730.43 925,383,993.47 998,678,446.79 2,127,287,277.41
Net profit attributable to the
158,271,987.10 239,442,501.57 342,173,558.44 586,345,627.26
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
34,492,437.26 173,922,577.17 108,346,857.33 505,937,518.94
to the shareholders of listed
company
Net Cash flow generated by
-58,734,373.46 858,098,231.03 531,062,382.83 449,702,722.54
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
IX. Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2015) Amount (2014) Amount (2013) Notes
Non-current asset disposal
gain/loss(including the write-off part for -42,342.96 -89,370.72 6,783,729.96
which assets impairment provision is made)
Govemment subsidies recognized in
currentgain and loss(excluding those closely
514,763,264.28 441,054,640.22 133,954,541.90
related to the Company’s business and
granted under the state’s policies)
Gains and losses from change of fair values
of held-for-transaction financial assets and
financial liabilities except for the effective
hedge business related to normal business of
18,763,137.14 580.38
the Company, and investment income from
disposal of transactional financial assets and
liabilities and financial assets available for
sale
Net profit or loss of subsidiaries from the 84,703,345.09 44,240,758.16 42,341,652.39
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
beginning of the period up to the business
combination date recognized as a result of
business combination of enterprises under
common control
Reversal of impairment provisions for
the accounts receivable on which
14,009,355.59 134,137.19
impairment tests were carried out
separately
Gain/loss on loans obtained by
4,500,000.00 4,083,333.33 4,000,000.00
entrusting others
Other non-operating income and expenditure
2,588,776.63 175,950.50 7,737,795.73
beside for the above items
Less: Influenced amount of income tax 82,348,493.83 65,281,344.97 33,899,759.46
Amount of influence of minority interests
53,402,758.27 33,594,476.24 38,905,641.49
（After tax）
Total 503,534,283.67 390,590,070.66 122,146,456.22 --
For the Company’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.
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
III. Outline of Company Business
I. Main Business the Company is Engaged in During the Report Period
The company is primarily engaged in the development of flat panel display glass substrate and equipment, product
ion and sales, production and sales of electronic vacuum glass devices and supporting electronic components, Con
struction Engineering and Sapphire business,etc , The main products for the TFI-LCD glass substractes, glass
substrates outfit , A-frame, brick overflow, Construction Engineering and sapphire material ,etc.
LCD glass substrates are the basic components of LCD. TFT-LCD glass substrates are flat and thin glasses
and used as the upstream raw materials for the LCD panels. As one of the key basic materials in the FPD industry,
TFT-LCD glass substrates have been broadly applied in the fields of LCD TV, laptop, PC monitor and cell phone.
At the end of report period, the company has successfully finished the non-public issuing of 2015 and absorbed
Shijiazhuang Xuxin and Zhengzhou Xufei, the trustee companies, into the listed company, which have ensured 7
production lines of G5 TFT-LCD glass substrates in the company. Meanwhile, the 10 production lines of G6
(compatible with G5.5) TFT-LCD glass substrates have been constructed successfully in the subsidiary Wuhu
Photo-electricity, within which 5 lines have realized volume production and 6 are being put into trial operation. At
present, the glass substrates produced by the company have covered G5 and G6 products and been sold to
downstream customers such as IVO, BOE and Chunghwa Picture Tubes Ltd. With satisfying economic benefits,
the company has become the biggest LCD glass substrate manufacturers in the nation.
Relying on the self-developed and complete manufacturing technology of FPD glass substrates, the company
has become the only enterprise possessing overflow melting method and floating method simultaneously. With
green and environmentally friendly arsenic-free formula and key production technology including melting,
molding, cutting, transmitting, inspecting and packaging, the company has filled in the blanks of China. The
advanced technology has been applied in the production lines of TFT-LCD glass substrates and high-aluminum
cover glass in the company and the trustee companies, and the production lines are stably operated with increasing
rates of good products, mature application as well as realization of industrial scale. Based on the actual
domestication of G6 and the corresponding glass scribing and breaking machine, glass grinding machine, glass
washing machine, glass unpacking system, glass packaging system and glass logistics system, the company signed
a strategic cooperation frame agreement on equipments with BOE in 2015 for the transformation and upgrading of
equipment business.
During the report period, the company has actively expanded business through its construction and
installation subsidiaries Hebei Xubao and Sichuan Ruiyi, provided all kinds of engineering construction and
increased incomes gained from construction and installation through large-scale expansion of the business.
Acquiring 50.5% of equity in Jiangsu Jixing New Material Co. Ltd. through share acquisition and capital
increment in 2015, the company entered into the field of sapphire successfully. At present, the company has
owned complete production facility, equipment and related technology from crystal growth to the production of
substratum and diaphragm. Products cover large-sized sapphire ingot, 2-8 inch sapphire bar, 2-8 inch sapphire
substrate, optical window material, optical sheet for cell phone, crystal bar for laser cosmetology, sapphire
encapsulation for optical communication and etc. Xuzhou GAPSS OP Technology, North Microelectronics and
other partners are stable customers of the company, and satisfying economic benefits have been achieved during
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
the report period.
During the report period, the “G5 TFT-LCD CF production line”, which is one of the non-public
fund-raising investment projects of the company in 2015, has been kicked off. Composed of glass substrate, black
matrix color layer, covering layer and ITO conducting film, color filter belongs to the upstream materials of
TFT-LCD panel and is the key raw material to realize colorized display. The project will suit the G5 glass
substrates produced and sold by Zhengzhou Xufei and Shijiangzhuang Xuxin and promote the added value of
existing G5 glass substrates. The channel advantages of the strategic cooperation relations with major domestic
downstream panel makers such as BOE and IVO can be effectively developed and further strengthened, the
potential value of existing market channels can be explored and the market competitiveness of the company in the
TFT-LCD industry can be advanced.
FPD (flat-panel display) industry is one of the most important development projects listed in “Medium and
Long-term Development Plan for Information Industry from 2006 to 2020”. In future, relying on the independent
and advanced production technology, perfect production and management experience, powerful customer
resources and market superiority of FPD industry, the company keeps pushing forward the products optimization
and upgrading to consolidate its position as the leading enterprise in the LCD glass substrate production.
Meanwhile, by means of industrial investment and industrial integration, the product structure of the company in
the FPD industry can be constantly enriched, comprehensive competitiveness and sustainable development
capacity can be strengthened, the sustainable ability of independent innovation can be fostered and market
development ability can be promoted. Thus, the company can be built into the biggest photoelectric display
materials manufacturer in China.
II. Major Changes in Main Assets
1. Major Changes in Main Assets
Main Assets Major Changes
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III. Analysis On core Competitiveness
At present, the company business involves LCD glass substrate, complete high-end equipment, construction
and installation, and etc. With five industrial bases in Wuhu, Zhengzhou, Shijiazhuang and other cities, the
company now is considered as the largest local LCD glass substrate manufacturer in China. When developing the
LCD glass substrate, the company keeps focusing on the development of FPD industry and researches on the new
products. The business now has covered the color filter, sapphire and other industries with higher industrial
cooperativeness, and the company has enhanced the development and layout of strategic new materials including
grapheme. The core competitiveness of the company mainly lies in:
1. Powerful independent innovation and R&D ability
Up to the end of the period, the Company and the trustee company have acquired over 800 relevant
proprietary intellectual properties of LCD glass substrate, PDP glass substrate and high-alumina float cover glass
applying.As the few enterprises in the world mastering complete equipment production technology of LCD glass
substrates, the company possesses mature integrated manufacturing capacity of glass substrates through
independent innovation and technology R&D. At the same time, the overflow melting method and floating
method mastered by the company have laid solid technical foundation for the production of G5 and G6 glass
substrates in the company as well as the production of high-aluminum cover glass in Sichuan Xuhong. The
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
products of the company have now achieved international advanced levels in the technical indicators including
particle size, thickness deviation, strain point and luminousness. Besides the strong technical strength, there is also
a powerful technology innovation team in the company, and some experts are from South Korea, Japan, Taiwan
and etc. Rich experience in raw materials, technology, equipment and quality control has provided guarantee for
the continuous upgrading and innovation of technology. In addition, the company values highly the cooperation
and exchanges with well-known research institutions and professional colleges at home and abroad. A national
engineering laboratory in FPD glass technology and equipment has been set up and technology R&D and
innovation in production lines of high-generation glass substrate, LTPS glass substrate, high-aluminum cover
glass and home-made equipment have been comprehensively promoted, which have jointly provided powerful
technical and R&D supports for the follow-up development of the company.
2. Industrial strength of national leading enterprises
During the report period, the company has successfully absorbed Shijiazhuang Xuxin and Zhengzhou Xufei,
the trustee companies, into the listed company, which have ensured 7 production lines of G5 TFT-LCD glass
substrates in the company. Meanwhile, the 10 production lines of G6 (compatible with G5.5) TFT-LCD glass
substrates have been constructed successfully in the subsidiary Wuhu Photo electricity, within which 5 lines have
realized volume production. With five industrial bases in Wuhu, Zhengzhou, Shijiazhuang and other cities, the
company now is considered as the largest local LCD glass substrate manufacturer in China with apparent
competitive advantages, and the glass substrates produced by the company have covered G5 and G6 products.
While seizing the opportunity of supports to the FPD industry offered by the nation, the company takes
“building the flagship in China’s opto-electronics” as the core objective, and expands the production scale
through continuous investments in talents, technology, management, service and etc. Diversified glass substrates
have been covered, the industrial integration has been strengthened and the industrial chain has been expanded.
Channel advantages in strategic cooperation with downstream panel makers have been fully played, potential
values of market channels have been explored and the competitiveness of the company in the TFT-LCD industry
has been consolidated.
3. Obvious regional and cost advantages
The color filters, glass substrates and other key raw materials and the core technology as well as the
production of spare parts required by the TFT-LCD are controlled by few suppliers from America, Japan and
South Korea. The company has successfully broken the technology blockages set by foreign countries, and built
factories in Wuhu, Shijiazhuang, Zhengzhou, Kunshan and other places in succession. As to the regions, the
company is able to satisfy the product demands of downstream enterprises and provide related supporting services
rapidly. Then the demands of downstream panel customers can be better covered and the corresponsive ability for
market changes of downstream panel enterprises can be upgraded. In the case of cost, the construction cost and
human resource cost are relatively low in Mainland China. Besides, delivery to the downstream panel enterprises
at short range can effectively avoid excessive transportation cost, reduce the risk of breakage and save the cost of
tariffs if compared to the cooperation with foreign manufacturers. Therefore, compared to the imported products
in the market, the products of the company are advantageous in region and cost.
4. Flexible and efficient management and incentive mechanism
After the entrance of Dongxu into the company, the management mechanism has been transferred from
state-owned style to privately operated style. Taking over the rich experience in operation and management,
efficient management and incentive mechanism as well as a large number of advanced talents of Dongxu in the
electronic glass industry, the management of the company is able to accurately analyze the development direction
of the market and the industry, rapidly and flexibly seize the opportunities, mobilize talents, capital and other
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
resources by means of marketization, and preempt the strategic high ground in time. In the industrial chain of CE
(consumer electronics), which is featured with quick turnover and high trade barrier, the advantages of the
company in flexible and efficient management mechanism are highlighted.
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
IV. Management’s Discussion and Analysis
I. General
1. Industry Review
TFT-LCD had replaced CRT (cathode ray tube) in most cases because of its outstanding advantages in the display.
Currently, TFT-LCD has become the mainstream product in the market. Along with the technical progress and
simplification of the process, the costs of TFT-LCD have been largely reduced, and the whole industry has
entered into a stable growth period, therefore TFT-LCD will dominate the market in the future for a long time.
According to the prediction by Display Search, the revenue of global TFT-LCD panel industry will achieve 143.2
billion USD in 2017, taking 83.27% of the whole FPD (Flat-panel display) industry. As the glass substrates take
10%-20% of the TFT-LCD panel costs and the color films take about 20%, The Color Film accounted for 20% of
the costs of TFT-LCD panel. Yet the development of TFT-LCD panel will boost its material industries, such as
glass substrate industry and color film industry. According to Σintell’s survey data, showing that the total global
output of LCD TV panel in 2015 reached to 265 million pieces, a 6.9 percent increase year-on-year. Viewing from
the performance of each panel factory’s output, the ranking of global output had been changed a lot on the ground
of the continuous increased capacity of production in Mainland China. The BOE's market share increased 7.3
percent, a big leap and ranked fourth worldwide. TFT-LCD industry has a huge market space, which will
inevitably push the demanding of its materials, such as glass substrate and color film.
Due to the high technical barrier and capital demand of TFT-LCD industry, the LCD industry in mainland China
has a low degree of self-sufficiency, therefore there is a huge market space for import substitution. In recent years,
the state had promulgated the "2014 Tariff Implementation Plan", "2014-2016 New Display Industry Innovation
and Development Action Plan" with a series of policies to encourage the development of TFT-LCD industry and
promote the “domestication” of the industry, embolden and support the integration and reconstruction of the
related industries, then impel a fast development on upstream display material industries, such as liquid crystal
glass substrate, color filter, for the sake of improving the technology and the whole level of development of the
industry.
2. Company Operation Review
As an upstream material supplier to the TFT-LCD industry, the company has grabbed the momentous opportunity
of “Domestication”, trying to achieve the “Domestication” of materials, such as glass substrate. The company has
being active in the development of related downstream industries, for the sake of perfecting the industry chain and
improving the international competiveness of the country’s LCD industry.
The company’s 10th 6-generation production line (compatible with the 5.5-generation) of TFT-LCD glass
substrate has been constructing smoothly. As of the reporting period, 6 production lines had been put into
operation, among which, 5 lines realized mass production. At the end of the reporting period, the company had
smoothly completed the 2015 non-publicly issuing of shares to raise money and successfully purchased
Zhengzhou Xufei Company and Shijiazhuang Xuxin Company both before entrusted to the company, making
them becoming the company’s controlled subsidiaries and enabling the company possessing a 7th G5 production
line of glass substrate for TFT-LCD. The company had utilize the scale effect to incorporate the internal resources
of R&D, supply chain, clients and others to optimize business processes, reduce costs of procurement and
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
production and marketing, The company’s annual realized sales income was 979,843,900 RMB, which increased
65.12% year on year. while utilizing synergy effect for better selling company's glass substrate products to
downstream clients, such as BOE and IVO, Chunghwa Picture Tubes Ltd, that achieved good economic benefit.
The company is one of the several companies in the world who have mastered the technology of producing LCD
glass substrate and the pertinent equipments for its production line, and have provided sets of equipment and
technical service for manufactures of glass substrate, such as Zhengzhou Xufei Company and Shijiazhuang Xuxin
Company. As to the formulation and technical process, the company has mastered the environmental-friendly and
none-arsenic formulation and key production technologies on melting, shaping, cutting, transmission, inspection
and film packaging. In recent years, the company had respectively signed a strategic cooperation agreement with
BOE and IVO, and gradually expanded the equipment business of panel production line to downstream panel
manufacturers. During the report period, the Company invented in establishing Jiangxu Dongxu Yitai Intelligent
Equipment Co., Ltd., attempting to purchase the business of the high-end equipment company for reserving the
core technology patents and top talents for the steady development of equipment business. The income of outfit
manufacture and technical service was 233,355,761,800 RMB in a whole year, increasing 796.95% year on year.
In 2015, the company had extended its industrial chain via industrial integrations. Firstly, through share
acquisition and capital increase, the company had obtained 50.5% stake of Jiangsu Jixing Company, successfully
pitched in Sapphire fields. At present, the company possesses a whole set of production facility, equipments and
pertinent technology in respect of sapphire crystal growth and sapphire substrate and wafer manufacturing, having
stable customers, such as Xuzhou Tongxin Company, North Microelectronics Co.,Ltd, and 280,494,200 RMB of
sales income was realized at the report period, occupying 6.03% of the Company’s operation income, which made
good economic benefits. Besides, the company laterally expanded to the upstream material of TFT-LCD through
its project-“The Fifth Generation TFT-LCD Color Filter Production Line Project”, which is one of the invested
projects related to the 2015 non-public issuing. The color filter is attributed to upstream material of TFT-LCD
panel, and it is a key raw material for the realization of color display of LCD panels. The project of The 5G
TFT-LCD Color Filter Production Line will provide products matched with the 5G glass substrate provided by
Zhengzhou Xu Fei Company or Shijiazhuang Xu Xin Company. By means of producing color filter, it could
increase the added value of glass substrate, improve the company’s product chain, better serve panel
manufacturers and improve the company’s profitability and market competitiveness.
During the reporting period, the company had strengthened the research and development of new materials.
Concretely, the company, together with Beijing Institute of Technology, had set up a joint-venture company
Beijing Xutan New Materal Technology C0., ltd as a research platform for grapheme, being committed to
technology research and product development of applying technology of graphene and other photoelectric display
materials. Besides, the company had signed a strategic cooperation agreement with Beijing Hyundai Huaqing
Materials Science and Technology Development Center of a joint investment of establishing Beijing Dongxu
Huaqing Investment Co., Ltd.to build a graphene investment and financing platform focusing on investment and
strategic planning of industries related to the graphene industry. Graphene is a revolutionary material, which has
characteristics, such as high conductivity, high tenacity, high tensile, super light, and it will have a huge market
space in the future.
With the domestic expanded capacity of panel production in recent years, the domestic glass substrates are more
likely to replace the importations, which would create a great opportunity for glass substrate business. During the
reporting period, the company had fully utilized its dominant position in the domestic industry, as by virtue of the
product’s price advantage and the geographical advantage, the company positively seized the market
opportunities to constantly explore the market, establish stable sales channels, improve its market share and
achieve economies of scale, while laying a foundation for the company's future sustainable development.
16
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
3. Fulfill its commitments of asset injection to reduce horizontal competitions and related transactions.
At the end of the reporting period, the company completed the 2015 non-public share issuing and successfully
incorporated Zhengzhou Xufei Company and Shijiazhuang Xuxin Company, comparing with entrusted
management, it shall effectively solve horizontal competitions of glass substrate production and sales between the
controlling shareholder and the company, also, it was a commitment of solving horizontal competition fulfilled by
the company, its actual controller and the controlling shareholder, thus shall effectively reduce the related
transactions between the company and related parties, further make the company becoming a high quality and
standard listed company.
II. Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
2. Revenue and cost
(1)Component of Business Income
In RMB
2015 2014
Increase /decrease
Amount Proportion Amount Proportion
Total operating
4,650,208,448.10 100% 1,600,750,745.69 100% 190.50%
revenue
Industry
Whole set of
equipment and 2,335,561,840.90 50.22% 260,388,062.17 16.27% 796.95%
Technology serves
Glass substrate 979,843,906.90 21.07% 593,418,100.77 37.07% 65.12%
Construction
280,494,160.83 6.03% 0.00% 100.00%
Installation
Electric vacuum
glass devices and
890,941,023.85 19.16% 597,786,689.45 37.34% 49.04%
supporting electronic
device
Sapphire material 7,123,333.34 0.15% 11,588,953.38 0.72% -38.53%
Other 156,244,182.28 3.37% 137,568,939.92 8.60% 13.58%
Area
Domestic 4,354,395,626.02 93.64% 1,556,025,761.89 97.21% 179.84%
Hongkong, Macao 295,812,822.08 6.36% 40,126,454.99 2.51% 637.20%
17
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
and Taiwan
Overseas 4,598,528.81 0.29% -100.00%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
In RMB
Increase/decrease
Increase/decrease Increase/decrease
of rincipal
of reverue in the of gross profit
Gross profit business cost over
Turnover Operation cost same period of rate over the same
rate(%) the same period
the previous period of the
of previous year
year(%) previous year (%)
(%)
Industry
Whole set of
equipment and
2,335,561,840.90 1,078,657,382.33 53.82% 796.95% 867.59% -3.37%
Technology
serves
Glass substrate 979,843,906.90 623,256,190.80 36.39% 65.12% 88.57% -7.91%
Construction
890,941,023.85 800,382,739.30 10.16% 49.04% 59.75% -6.02%
Installation
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main subiness based on
latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
□ Yes √ No
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
2015 2014
Proportion in the Proportion in the Increase/Decrease
Industry Items
Amount operating costs Amount operating costs (%)
(%) (%)
Whole set of
equipment and
operation costs 1,078,657,382.33 38.52% 111,478,201.49 10.66% 867.59%
Technology
serves
Glass substrate operation costs 623,256,190.80 22.26% 330,524,374.62 31.60% 88.57%
Sapphire material operation costs 227,573,985.00 8.13% 0.00% 100.00%
Construction
operation costs 800,382,739.30 28.58% 501,033,984.81 47.90% 59.75%
Installation
18
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Electric vacuum
glass devices and
operation costs 5,956,064.28 0.21% 9,812,575.72 0.94% -39.30%
supporting
electronic devices
Other business operation costs 64,527,156.33 2.30% 93,173,473.76 8.90% -30.75%
(6)Whether Changes Occured in Sonsolidation Scope in the Report Period
√ Yes □ No
1.Enterprise consolidation ont under the same control
（1）Enterprise consolidation not under the same control in reporting period
In RMB’0000
Income of
Net Profit of
Acquire from
Time-poi Ratio of Determination Acquire from
Obtained Method of the
nt of Obtained Purchasing Basis on the the Purchasing
Name of Acquiree Cost of Obtained Purchasing
Obtained Equity Date Purchasing Date to the
Equity Equity Date to the
Equity (100%) Date End of the
End of the
Period
Period
16,734.53 50.50 Pay 28,115.28 3,029.73
consideration
and complete
Jiangsu Jixing New February Purchase and February
industrial and
Material Co., Ltd. 28,2015 add share 28,2015
commercial
change
registration
(2) Consolidation Cost and Goodwill
Items Jiangsu Jixing New Material Co., Ltd.
Consolidation Cost
—Cash 167,345,300.00
Total consolidation cost 167,345,300.00
Less：Reduction: Obtained Definable Net Assets Fair Proportion 186,108,437.14
Amount of merging cost which is less than the fair value proportion of obtained net 18,763,137.14
identifiable asset
(3) The identifiable assets and liabilities of acquiree at purchase date
Items Jiangsu Jixing New Material Co., Ltd.
19
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Fair value on purchase date Book value on purchase date
Assets：
Monetary fund 259,007,478.19 259,007,478.19
Bill receivable 3,753,250.00 3,753,250.00
Account receivable 47,264,960.80 47,264,960.80
Prepayments 12,885,701.67 12,885,701.67
Other receivable 18,625,745.67 18,625,745.67
Inventories 28,472,711.75 28,472,711.75
Fixed assets 287,064,516.90 256,317,009.13
Construction in process 13,625,131.74 13,625,131.74
Intangible assets 60,810,554.47 58,497,844.31
Deferred income tax asset 4,661.45 4,661.45
Liability
Short-term loans 106,257,500.00 106,257,500.00
Bill payable 203,000,000.00 203,000,000.00
Account payable 17,956,318.31 17,956,318.31
Advance receipts 30,936.29 30,936.29
Employees’ wage payable 1,420,363.53 1,420,363.53
Tax payable -9,484,406.23 -9,484,406.23
Interest payable 614,166.00 614,166.00
Other payable 43,188,276.05 43,188,276.05
Net assets 368,531,558.69 335,471,340.76
Less：Minority interest
Acquire net assets 368,531,558.69 335,471,340.76
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
Name of Combined Party Equity Ratios Obtaining Basis of Constituting Business Combining Determining Basis
from Business Combination under the Same Date of Combining
Combination (%) Control Date
Zhengzhou Xufei 100 Both are ultimately controlled by Li December 19 Pay consideration
Optoelectronic Technology Zhaoting and complete
Co., Ltd. industrial and
commercial
change registration
Shijiazhuang Xuxin 100 Both are ultimately controlled by Li December 31 Pay consideration
Optoelectronic Technology Zhaoting and complete
Co., Ltd. industrial and
20
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
commercial
change registration
（Continued）
Name of Combined Party Income of Combined Net Profit of Combined Income of Net Profit of
Party from the Party from the Beginning Combined Party Combined Party
Beginning of the of the Combining Year to during the during the
Combining Year to Combining Date Comparision Comparision Period
Combining Date Period
Zhengzhou Xufei Optoelectronic 547,067,663.63 45,472,999.97 361,113,003.53 45,391,421.55
Technology Co., Ltd.
Shijiazhuang Xuxin Optoelectronic 162,453,972.34 39,230,345.12 64,300,670.00 -1,150,663.39
Technology Co., Ltd.
（2）Consolidation Cost
Consolidation Cost Zhengzhou Xufei Shijiazhuang Xuxin
Optoelectronic Optoelectronic
Technology Co., Ltd. Technology Co., Ltd.
—Cash 1,927,626,856.67 2,072,061,491.20
Total 1,927,626,856.67 2, 072,061,491.20
(3) The book value of the assets and liabilities of the combined party at combining date
Items Zhengzhou Xufei Optoelectronic Shijiazhuang Xuxin Optoelectronic
Technology Co., Ltd. Technology Co., Ltd.
Combination date Last closing period Combination date Last closing period
Assets：
Monetary fund 217,646,461.18 15,694,203.60 217,519,691.15 327,927,096.51
Account receivable 159,462,635.78 206,889,744.90 181,471,618.22 134,192,379.79
Prepayments 591,118.29 157,454,654.53 53,496,782.82 112,807,748.28
Other receivable 7,439,692.87 7,152,056.69 1,944,985.00 1,952,555.46
Inventories 31,403,438.27 99,272,537.67 13,106,022.42 15,600,814.54
Non-current assets due to 1 year 139,395.72 185,227.78
Other current assets 228,226,969.12 208,104,721.49 251,226,714.56 213,850,153.36
Fixed assets 2,416,811,450.24 2,112,857,821.52 1,677,395,718.92 830,897,597.83
Construction in process 1,143,107,800.76 1,269,064,691.25 752,348,179.42 1,455,797,213.20
Intangible assets 81,156,396.70 67,431,592.26 55,476,435.85 56,729,790.37
Development and expenditure 10,730,941.05
21
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Deferred income tax asset 532,237.00 462,761.15
Other Non –current assets 132,425,529.20 41,212,433.48
Long-term deferred expenses 975,769.20
Liability
Short-term loans 272,000,000.00 299,000,000.00
Bill payable 27,275,319.94 200,000,000.00
Account payable 354,001,621.02 265,771,687.83 96,718,278.38 16,915,882.14
Advance receipts 332,100.88
Employees’ wage payable 1,383,570.40 3,826,044.71 2,092,597.69 1,893,777.23
Tax payable 2,613,146.19 5,296,432.21 4,668,435.03 492,665.68
Interest payable 2,159,442.82 1,486,741.66
Other payable 722,319,436.46 196,696,473.40 4,505,484.95 1,566,379.93
Non-current liability dueto 1 year 260,987,200.00 242,238,000.00 200,000,000.00 210,000,000.00
Other current liability 14,533,029.75 17,202,928.56 11,436,000.00 8,280,000.00
Long –term loans 863,397,300.00 1,092,309,000.00 790,000,000.00 840,000,000.00
Long-term payable 57,000,000.00
Estimated liability 53,046.23
Deferred income 42,968,876.45 81,104,974.25 167,390,333.33 143,215,333.33
Net assets 1,798,304,182.10 1,752,831,182.13 1,966,568,609.92 1,927,338,264.80
Acquire net assets 1,798,304,182.10 1,752,831,182.13 1,966,568,609.92 1,927,338,264.80
3.New Subsidiaries in Reason of the Current New Establishment
Examined and adopted by the 32th meeting of the 7th board of directors of the Company, “Proposal on Jointly
Establishing the Holding Subsidiary with Beijing Institute of Technology” agreed the Company to jointly
establish the holding subsidiary Beijing Xutan New Material Technology Co., Ltd. with Beijing Institute of
Technology.
On January 22, 2015, the Company jointly established Beijing Dongxu Huaqing Investment Co., Ltd. with
Beijing Modern Huaqing Material Technology Development Center. The registered capital of the new company
was RMB 5 million , of which the Company invested RMB 3.5 million and Beijing Modern Huaqing Material
Technology Development Center invested RMB 1.5 million.
On July 9, 2015, Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd., the subsidiary of the
Company, 100.00% invested in establishing Jiangxu Dongxu Yitai Intelligent Equipment Co., Ltd., of which the
registered capital was RMB10 million.
On December 25, 2015, the Company established Fuzhou Dongxu Optoelectronic Technology Co., Ltd. with
sole proprietorship, of which the registered capital was RMB10 million.
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the Company’s
22
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of the Company’s top 5 customers
Total sales amount to top 5 customers (RMB) 1,784,091,256.08
Proportion of sales to top 5 customers in the
38.37%
annual sales(%)
Information of the Company’s top 5 customers
√ Applicable □Not applicable
No Name Amount（RMB） Proportion
1 Custormer 1 447,349,332.66 8.21%
2 Custormer 2 265,654,082.81 4.88%
3 Custormer 3 220,180,427.59 4.04%
4 Custormer 4 214,348,851.61 3.93%
5 Custormer 5 188,723,977,97 3.46%
合计 -- 1,147,532,694.67 24.52%
Other explanation :
□ Applicable√ Not applicable
Principal suppliers
Total purchase of top 5 Suppliers（RMB） 1,336,256,672.64
Percentage of total purchase of top 5 suppliers In total
47.11%
annual purchase(%)
Information about the top 5 suppliers
√ Applicable □Not applicable
No Name Amount（RMB） Proportion
1 Supplier 1 447,349,332.66 15.77%
2 Supplier 2 265,654,082.81 9.37%
3 Supplier 3 220,180,427.59 7.76%
4 Supplier 4 214,348,851.61 7.56%
5 Supplier 5 188,723,977.97 6.65%
合计 -- 1,336,256,672.64 47.11%
Other explanation :
□ Applicable √ Not applicable
23
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
3.Expenses
In RMB
Increase/Decrea
2015 2014 Notes
se(%)
Sale expenses Mainly caused by the increase of
44,944,240.87 26,289,296.53 70.96% the current sales income, which
resulted in increase in cost.
Administration Mainly caused by the increase of
expenses 421,789,075.31 240,993,820.53 75.02% the current research and
development expenditure.
Financial expenses Mainly caused by the increase of
the current financing, which
294,416,400.12 76,463,904.62 285.04%
resulted in increase in interest
expense.
4. Research and Development
√Applicable □Not applicable
The Company laid emphasis on widely implementing cooperation and communication with famous domestic and
overseas research institutions and specialized institutions, which established the “National Engineering
Laboratory of Panel Display Technology and Equipment” and comprehensively boosted the innovation of
technology research and development in the production line of high-generation glass substrate, LTPS glass
substrate, high-alumina cover glass and domestic equipment. At present, the technology index on granularity,
thickness deviation, strain point and transmittance of the Company have reached international advanced level.
Situation of Research and Development Input by the Company
2015 2014 Increase/Decrease(%)
Amount of Research and
Development Investment (In 95,340,666.01 74,849,951.46 27.38%
RMB)
Proportion of Research and
Development Investment of 2.05% 4.68% -2.63%
Operation Revenue
Amount of Research and
Development Investment 18,520,903.08 9,680,432.84 91.32%
Capitalization (In RMB)
Proportion of Capitalization
Research and Development
19.43% 12.93% 6.50%
Investment of Research and
Development Investment
24
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable√ Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
□ Applicable√ Not applicable
Situation of Patents in the Past 2 Years
√Applicable □ Not applicable
Accumulate Acquisition
Applied Acquired
up to the Report Period
Patent for Invention 40 1 1
Utility Model 168 126 205
Situation of Changes of the Core
Technology Team or Key Technician of this No personnel changes occured in the Company’s core technology team in this year.
Year
Whether Belonging to High-tech Enterprise
identified by Ministry of Science and Yes
Technology
5.Cash Flow
In RMB
Items 2015 2014 Increase/Decrease(%)
Subtotal of cash inflow received
5,974,728,361.07 2,295,205,246.62 160.31%
from operation activities
Subtotal of cash outflow
received from operation 4,194,599,398.13 3,312,759,435.27 26.62%
activities
Net cash flow arising from
1,780,128,962.94 -1,017,554,188.65 274.94%
operating activities
Subtotal of cash inflow received
1,143,295,255.26 40,852,380.00 2,698.60%
from investing activities
Subtotal of cash outflow for
5,338,967,728.49 714,471,635.84 647.26%
investment activities
Net cash flow arising from
-4,195,672,473.23 -673,619,255.84 -522.86%
investment activities
Subtotal cash inflow received
15,122,597,079.50 3,699,852,138.30 308.74%
from financing activities
25
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Subtotal cash outflow for
4,091,475,189.10 1,823,845,538.34 124.33%
financing activities
Net cash flow arising from
11,031,121,890.40 1,876,006,599.96 488.01%
financing activities
Net increase in cash and cash
8,614,877,020.69 184,886,997.48 4,559.54%
equivalents
Notes to the year-on-year change of the relevant data
□ Applicable√ Not applicable
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
□ Applicable√ Not applicable
III. Analysis of Non-core Business
√ Applicable □Not applicable
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Non-operating
557,753,811.42 34.21% Government grants yes
revenue
IV. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2015 End of 2014 Proportio
Proportion in n
Notes to the significant change
Amount the total increase/d
assets(%) ecrease
12,409,510,17 3,539,892,384. Increase of sale outstanding and
Monetary fund 43.09% 19.15% 23.94%
0.26 04 financing
Accounts 1,042,538,312.
3.62% 751,483,740.27 4.06% -0.44% Increase of operating revenue
receivable 51
2,177,979,684. Increase of development cost and
Inventories 7.56% 616,095,820.74 3.33% 4.23%
06 materials
Long-term equity
72,426,252.41 0.25% 0.25% Increase of joint venture
investment
6,900,189,927. 4,620,098,007. Increase due to consolidation and being
Fixed assets 23.96% 24.99% -1.03%
76 93 transferred to fixed assets
Construction 3,433,016,388. 4,069,722,104. Decrease due to being transferred to
11.92% 22.01% -10.09%
inprocess 90 54 fixed assets
26
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
3,783,300,000. 1,587,900,000.
Short-term loans 13.14% 8.59% 4.55% Increase due to operation needs
00 00
6,249,397,300. 5,504,309,000.
Long-term loans 21.70% 29.77% -8.07% Increase due to operation needs
00 00
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
V. Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2015(RMB) Investment Amount in 2014(RMB) Change rate
4,975,533,647.90 368,453,728.53 1,250.38%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
Gain or
Progres Whethe
Name of Investm Investm Less or Date of
Investm Share s up to r to
the Main ent Capital ent Product Anticip the Disclos Disclosure
ent Proport Partner Balance Involve
Company Business Amoun Source Horizo Type ated Current ure(Not Index
Way ion % Sheet in
Invested t n Income Investm e 5)
Date Lawsuit
ent
Technolo
gy
Develop
ment of
Jixing China
Cultivati
New Securities
Jiangsu on,Incisi
Materia Sapphir News ,
Jixing New on, 167,34 January
Acquisi l(Hong e Comple 30,000, 30,297, Hongkong
Material Progress, 5,300.0 50.50% Self 15 No 20,2
tion Kong) materia te 000.00 257.36 Commercial
Co., Ltd. Sales 0 015
Co., l Daily and
and
Ltd. www.cninfo
Relevant
.com.cn.
Product
for
Sapphire
Crystal
27
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Panel
Display
China
Industry
Zhengzhou Securities
Material,
Xufei Non-pu News ,
Equipme 1,927,6 January
Optoelectr Acquisi 100.00 blic Comple 40,705, 45,472, Hongkong
nt , 26,856. No 28,2
onic tion % raised te 500.00 999.97 Commercial
product 67 015
Technolog fund Daily and
desigy
y Co., Ltd. www.cninfo
Manufac
.com.cn.
turing
and sales
Optoelec
tronic
China
LCD
Shijiazhua Securities
Glass
ng Xuxin Non-pu News ,
Substrate 2,072,0 January
Optoelectr Acquisi 100.00 blic Comple 30,623, 39,230, Hongkong
Industy 61,491. No 28,2
onic tion % raised te 500.00 345.12 Commercial
Investme 20 015
Technolog fund Daily and
nt,
y Co., Ltd. www.cninfo
Construc
.com.cn.
tion and
Business
4,167,0 101,32
115,000
Total -- -- 33,647. -- -- -- -- -- -- 9,000.0 -- -- --
,602.45
87 0
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
N/A.
（2）Investment in Derivatives
□ Applicable √ Not applicable
N/A.
5.Application of the raised capital
√ Applicable □ Not applicable
（1）General application of the raised funds
√ Applicable □ Not applicable
In RMB
28
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Amount of Total
Accumulat Proportion
raised Amount of Amount of
ive amount of raised Use and
Total capital of the the Raised
Total of raised capital of Whereabo
Total Amount of which the Unused Fund with
Year of Way of amount of capital of which the uts of the
raised the Raised purpose Raised over 2
Raising Raising Raised which the purpose Unused
capital Fund Used was Fund at Years’
Funds purpose has been Raised
at the changed in the Idling
has been changed Fund
the report Current
changed (%)
period Period
To
supplemen
Non-publi t the
2013 503,880 218.94 471469.53 0 0 25,115.15 0
c issue circulating
fund
To
supplemen
Corporate
2015 100,000 100,000 99,966.29 0 0 33.71 t the 0
bonds
circulating
fund
Invest in
Non-publi equity
2015 800,000 486,034.07 486,034.07 0 0 311,346.46 0
c issue investment
projects
Total -- 1,303,880 486,253.01 957,503.6 0 0 0.00% 336,461.61 --
Notes to use of raised capital
In 2015,The company strictly accordance with "use of funds raised management system" and "raise funds tripartite regulatory
agreement" to raise funds and special accounts storage use, and timely, truely, accurately and completely disclosure of the deposit
and use of proceeds, there is no violation circumstances.
（2）Promised projects of raised capital
√ Applicable □ Not applicable
In RMB’0000
Accumul Investme Date
Total ated nt when the Has any
Project Total Amount Benefit
raised amount progress project Has the material
changed(i investme inested in realized
Committed investment capital invested ended the has predicted change
ncluding nt after the in the
projects and investment invested at the end reporting reached result be taken
partial adjustme reporting reporting
as of the period(% the realized place in
change) nt (1) period period
commited reporting )(3)=(2)( predicted feasibility
period(2) 1) applicabl
29
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
e status
Committed investment projects
Panel display galass 471,469.5 December Not appli
No 496,106.4 496,106.4 218.94 95.03% 34258.7 No
substrate project 3 31,2016 cable
Project of Production
Not
Line for the
No 300,000 300,000 10,708.42 10,708.42 3.57% applicabl No
5th-Generation CF for
e
TFT-LCD
Acquisition for 100%
169,591.6 169,591.6 December
share rights of Xufei No 177,000 177,000 95.81% 4,547.3 Yes No
7 7 31, 2015
Optoelectronic
Acquisition for 100%
184,196.9 184,196.9 December
share rights of Xuxin No 198,000 198,000 93.03% 3,923.03 Yes No
8 8 31,2015
Optoelectronic
To supplement the
circulating fund No 125,000 125,000 121,537 121,537 97.23% Yes No
To supplement the
circulating fund No 100,000 100,000 99,966.29 99,966.29 99.97% Yes No
（Corporate bonds）
Investment of excessive raised capital
Reason or situation The project of production line for glass substrate of panel display and the project production line for the
thatnot on schedule (on 5th-generation CF for TFT-LCD are under construction, which can’t be applicable due to the incomplete
specific project) production.
Notes to major
changesin project N/A
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
Investment projects Applicable
30
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
initial investment and On December 29, 2015, the 46th meeting of the 7th board of directors and the 18th meeting of the 7th
replacement board of supervisors of the Company examined and adopted “Proposal on Using the Raised Fund to
Replace the Self-raised Fund of the Advanced Invested Item to Raise Money for and Invest in ”, agreeing
the Company to replace RMB107.0842 million of the self-raised fund of the advanced invested item to
raise money for and invest in of “Project of Production Line for the 5th-Generation CF for TFT-LCD” with
non-publicly issued raised fund according to the arrangement of the raised fund replacing with the
advanced investment in the Preplan of Non-public Issue of Share.
Applicable
About the initial On May 29, 2015, the 37th Meeting of the 7th Board of Directors of the company deliberated and approved
investment in the Proposal of Using Partial Idle Raised Fund to Supplement Circulating Fund, which agreed the company to
projects planned to be use the idle raised fund valuing 250 million yuan (taking 5.04% of the actual net raised fund) to
invested with the temporarily supplement the circulating fund of the company. Service life lasts for 12 months since the
proceeds and the approval date by the Board of Directors. The company will return to the special account for fund-raising in
replacement time when the fund used to supplement the circulation is due.
Using the idle proceeds Not applicable
to supplement the
working capital on
temporary basis
About application and Within the reserved raised fund, 3114.6161 million yuan has been deposited and managed in the special
status of the proceeds account of fund-raising (including the deposit interest income), and additional temporary and
unused supplementary circulating fund valuing 250 million yuan has been provided.
Problems existing in
application of the The company strictly accordance with "use of funds raised management system" and "raise funds tripartite
proceeds and the regulatory agreement" to raise funds and special accounts storage use, and timely, truely, accurately and
information disclosure completely disclosure of the deposit and use of proceeds, there is no violation circumstances.
or other issues
（3）Changes of raised funds projects
□ Applicable√ Not applicable
There is no change in raised funds in company reporting period.
VI. Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable√ Not applicable
N/A.
2.Situation of Substantial Stake Sale
□ Applicable√ Not applicable
31
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
VII. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Sectors Registered Operating
Company type Total assets Net assets Turnover Net Profit
Name engaged in capital profit
Hebei Xubao
Construction
Construction 100,000,000. 137,002,364. 125,866,325.
Installation Subsidiary 8,100,000.00 1,522,676.15 878,357.73
Installation 00 29 60
Engineering
Co., Ltd.
Shijiazhuang
Baoshi Color 540,680,000. 192,735,997. 94,027,476.3 -4,121,039.0 -4,121,039.0
Subsidiary Color bulb.
Bulb Co., 00 77 9 4 4
Ltd..
Wuhu
hole set of
Dongxu
equipment
Optoelectroni 98,000,000.0 5,239,376,83 1,484,627,98 2,706,633,71 1,078,629,75 1,102,907,65
Subsidiary and
c Equipment 0 9.30 1.69 2.47 3.40 4.44
Technology
Technology
serves
Co., Ltd
Wuhu Photoelectric
Dongxu disply glass
2,000,000,00 9,217,920,58 5,403,718,42 587,420,588. 96,930,503.5 342,587,005.
Optoelectroni Subsidiary substrate
0.00 6.77 4.05 23 4 89
c Technology industry
Co., Ltd. investment
Wuhan Photoelectric
Dongxu disply glass
15,047,341.2
Optoelectroni Subsidiary substrate 5,000,000.00 3,881,422.47 442,188.08 442,188.08
9
c Technology industry
Co., Ltd investment
Sichuan
Ruiyi
Constructio Construction 1,000,000,00 975,163,715. 186,717,356. 890,941,023. 59,011,576.6 44,034,330.3
Subsidiary
n Installation 0.00 58 36 85 3 3
Engineering
Co., Ltd.
Beijing
Real estate
Xufeng Real 870,000,000. 2,233,576,28 468,077,244. -1,909,242.0 -1,909,242.0
Subsidiary Development
estate Co., 00 2.52 82 1 1
and sales
Ltd.
32
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Sales of opto
Dongxu
electronic de
（Kunshan）
vices and oth 500,000,000. 332,890,085. 299,994,814.
Display Subsidiary -17,273.34 -5,185.77
er electronic 00 67 23
Material Co.,
devices
Ltd.
Jiangsu
Jixing New Sapphire 392,000,000. 616,599,293. 398,828,816. 281,152,806. 27,590,770.0 30,297,257.3
Subsidiary
Material Co., material 00 91 05 99 9 6
Ltd.
Beijing
Xutan New Technology
15,000,000.0 14,391,057.2 14,391,057.2
Material Subsidiary Developme 0.00 -608,942.80 -608,942.80
0 0 0
Technology nt
Co., Ltd.
Beijing
Dongxu
Project
Huaqing Subsidiary 5,000,000.00 4,500,385.00 4,500,385.00 385.00 385.00
investment
Investment
Co., Ltd.
Zhengzhou
Xufei
Optoelectro Panel display 1,650,000,00 4,418,943,12 1,798,304,18 547,067,663. 45,629,145.4 45,472,999.9
Subsidiary
nic Material 0.00 5.13 2.10 63 7 7
Technology
Co., Ltd.
Shijiazhuang Photoelectric
Xuxin Display
Optoelectro glass 1,906,000,00 3,245,198,58 1,966,568,60 162,453,972. 34,972,423.4 39,230,345.1
Subsidiary
nic substrate 0.00 1.84 9.92 34 7 2
Technology industry
Co., Ltd. investment
Fuzhou Photoelectric
Dongxu Display
Optoelectro glass 10,000,000.0
Subsidiary 0.00 0.00 0.00 0.00 0.00
nic substrate 0
Technology industry
Co., Ltd. investment
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □ Not applicable
Name Mode Influence
33
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Jiangsu Jixing New Material Co., Ltd. Acquisition Increase profit
Beijing Xutan New Material Technology
New establishment Under construction period
Co., Ltd.
Beijing Dongxu Huaqing Investment Co.,
New establishment Under construction period
Ltd.
Zhengzhou Xufei Optoelectronic
Acquisition Increase profit
Technology Co., Ltd.
Zhengzhou Xuxin Optoelectronic
Acquisition Increase profit
Technology Co., Ltd.
Jiangsu Dongxu Yitai Intelligence
New establishment Under construction period
Equipment Co., Ltd.
Fuzhou Dongxu Optoelectronic
New establishment Under construction period
Technology Co., Ltd.
Notes
VIII. Special purpose vehicle controlled by the Company
□ Applicable√ Not applicable
IX. Prospect for future development of the Company
1. The Development Trend of the Industry
TFT-LCD had replaced CRT (cathode ray tube) in most cases because of its outstanding advantages in the
display. Currently, TFT-LCD has become the mainstream product in the market. Along with the technical
progress and simplification of the process, the costs of TFT-LCD have been largely reduced, and the whole
industry has entered into a stable growth period, thus TFT-LCD will dominate the market in the future for a long
time. According to Display Search’s forecast, the global TFT-LCD panel industry revenue will reach $143.2 billion,
which account for 83.27% of the whole panel industry. Yet the glass substrate accounts for 10%-20% of the
panel’s costs and the color film accounts for about 20% of the panel’s costs, therefore the development of
TFT-LCD panel will boost the demand of upstream materials, like glass substrate and color film.
With the sustained growth of China's economy, the consumption capacity of residents has been continually
increasing, thus the demand of flat panel display products in China has been continually increasing and its
proportion of the global demand has been rising year by year. The companies being set up in mainland, with the
advantage of being close to the downstream market, can provide a more flexible delivery and better after-service
for customers; besides, the companies being set up in mainland can realize the nearest matching to save costs of
tariff and transportation, and there is a comparatively low labor costs, leading to have a cost advantage.
Considering multi factors, particularly in market demand and product costs, the main global investment transfer to
Mainland China will speed up, thus the increase of downstream demand will certainly boost the demand of glass
substrates. According to estimate done by LCD Branch of China Optics and Optoelectronics Association, the
average annual growth rate of glass substrate in Mainland China would be about 11%
The Flat Panel Display industry is one of the new strategic industries encouraged by the national industrial
policies. However, because of the high technical barrier and capital demand, the Flat Panel Display industry in
34
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Mainland China has a low degree of self-sufficiency, indicating that there is a huge market space for substitution
of the importations all the time. In 2014, the National Development and Reform Commission and the Ministry of
Industry and Information Technology jointly issued "2014-2016 New Display Industry Innovation and
Development Action Plan". The Action Plan pointed out that by 2016, the systematic supporting industry of new
display will be possibly completed, that will make the ratio of key matching materials for panel of small and
medium size TFT-LCD reaching to 60% and the ratio of key matching materials for panel of large size TFT-LCD
and AMOLED reaching to 30%. The strong support of the national industrial policies has laid a solid foundation
for the development of the flat panel display industry.
Ⅱ. Development strategy of the company
1. Strengthening the main business of glass substrate and consolidating its leading position in China
After years of independent research and development, the company had achieved many technology breakthroughs.
Dongxu Optoelectronic Technology Co., Ltd started to set up the 6-generation glass substrate production line of
TFT-LCD in 2013, and its products had been recognized by some principal manufactures of panel production like
BOE in the mid of 2014. In 2015, by incorporating Xu Fei Optoelectronic technology Co.,LTD and Xu Xin
Optoelectronic technology Co.,LTD, the listed company had a 7th 5-generation glass substrate production line of
TFT-LCD and a 10th 6-generation glass substrate production line of TFT-LCD. Also, the company’s market share
has been continuously increasing in Mainland China and Taiwan, and the company is the largest manufacture in
liquid crystal glass substrate in China.
The company has mastered the core technology of producing liquid crystal glass substrate and the relevant
equipments for its production line, and accumulated rich experiences in production management and control. In
the future, the company will continue to enhance its technical ability and the ability in market development,
mainly focus on R&D about thin glass substrate, advanced generation glass substrate for TFT-LCD, low
temperature poly-silicon (LTPS) glass substrate and high aluminum face-cap glass and make technical
breakthroughs, further strengthen the company's core competitiveness, continually expand its market scale,
enhance the strength of the enterprise and consolidate its leading position in the substrate glass industry.
2. Enriching product range and unitizing synergy effect of optoelectronic industrial cluster
For realizing the strategic goal of being “China’s largest optoelectronic display material manufacture", the company
has been continuously consolidating and enhancing the foundation for LCD glass substrate business, and began to
actively promote the lateral expansion of optoelectronic industry chain. In 2015, the company had entered into
materials fields of color filter and sapphire one by one and actively engaged in R&D of graphene materials for
display. At present, the company has built a rudiment of the photovoltaic industrial cluster.
In the future, based on three core businesses on LCD glass substrate, optical film and high-end equipment, the
company will constantly enrich the product range and unitize synergy effect of downstream panel manufacturers
and optoelectronic display industrial chain to become the mainstay of the domestic manufacturing industry in
optoelectronic display materials. Meanwhile, the company will seek industrial integration in the region of
optoelectronic display materials upon the market demand to form the optoelectronic industrial cluster for
obtaining comprehensive competitiveness.
3. Promoting the transformation and upgrading of the equipment business and snatching the market.
Upon the whole set equipment technology gained from independent R&D, the company has become the only
enterprise who both own overflow fusion technology and float technology for producing glass substrate in the
worldwide. The company has mastered the environmental-friendly and none-arsenic formulation and key
production technologies on melting, shaping, cutting, transmission, inspection and film packaging, which had
been applied in the production line of glass substrate and high alumina face-cap glass in the company and hosting
companies, and the production lines are not only stable, but also each line yield is continuous improving.
35
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
According to the "Made in China 2025" plan and the 13th Five-Year-Plan, China will focus on the strategy of
upgrading the manufacturing sector, among which the development of intelligent manufacturing is the top priority.
Based on the real situation of the “domestication” of the glass breaking machine, glass grinding machine, glass
washing machine, glass package-split system, glass packaging system, glass logistics system and other
equipments in 6G or below generations carried out by the company, who had signed a strategic cooperation
framework agreement with BOE, the world's third-largest panel manufacture, in 2015 and realized the bulk supply
of some none core equipments for panel production line. In the future, the company’s outfit business will be
transformed from equipments for substrate production line to panel production line. At the same time, the
company will prepare for entering into the field of intelligent machinery, enhance its ability on equipment
business and improve profitability from multi aspects.
Ⅲ. Business plan in 2016
1. Construction plan of the production line:
At first, the company will steadily push forward the ignition progress of the 10th 6G glass substrate production line
in Wuhu Optoelectronic Technology Co.,LTD, meanwhile, the company will efficiently run all the available G5
and G6 production lines and expand production and sales of low and medium generation glass substrate. Secondly,
the company will speed up the construction of the project-“5G Color Filter Production Line for TFT-LCD”, one of
the items invested by the capital raised by 2015 non-public issuing, to engage in upstream material industry for
TFT-LCD and create synergy effect with the company’s 5G glass substrate’s production and sales, thus raise the
added value of the products. Thirdly, the company will start to build the 8.5G or such high-generation glass
substrate production line in an appropriate time to adapt the market changes, add up products of high-generation
glass substrate, maintain the advantage of technology and product innovation and enhance the company’s core
competiveness.
2. Intergration plan of the industry chain
In order to seize the significant opportunity in flat-panel-display glass substrate industry strongly supported by the
country, the company will positively seek integrations in the industry chain. Under the premise of conforming to
the relevant regulations, the company shall implement the asset injection by incorporating the hosting companies
and fulfill the commitment made by the controlling shareholder, meanwhile, which shall contribute new profit to
the company. Also at the same time, the company will promote lateral expansion to optoelectronic display
material industry according to the market demand.
3. Technical innovation plan:
The technical R&D capability and product innovation capability are the cornerstones for a company to survive
and grow, as well as the concentrated reflection of the company’s core competiveness. In the future, by virtue of
realizing domestically manufacturing of the glass substrate, the company will continuously increase the
researching funds. Also, the company will focus on R&D and technical processes about thin glass substrate,
advanced generation glass substrate for TFT-LCD, low temperature poly-silicon (LTPS) glass substrate and high
aluminum face-cap glass substrate, high-end color filter matching with the glass substrate, graphene and ITO
substitution materials, sapphire wafer and high-end equipments for advanced generations, strengthen the
cooperation with universities and institutes on R&D, constantly raise the technical innovation ability,
continuously improve the technical process and equipment manufacturing technology, elevate the product quality
and reduce the costs, thus further enhance the company’s technology advantage and core competiveness, for
ensuing sustainable support to technology and researches.
4. Market development plan
As the leading company in manufacturing glass substrate in China, the company has many advantages, such as
advanced technology, high quality, large scale and low costs, and the company has established long-term and
36
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
stable strategic cooperative relations with panel manufactures, like BOE and IVO. Based on this, the company
will continuously adopt the strategy of “High-quality, Low-cost and Quality service”, and by continuous
improving the technical process of manufacturing the outfit for glass substrate, strengthening the management
level of the production process, elevating the product’s performance and quality and ameliorating the after-sale
service, the company will gradually realize the substitution for the imported glass substrates and constantly
increase its market share in Taiwan.
5. Talents cultivation and introduction plan
The company will adhere to the "people-oriented" guiding ideology to carry out the talent strategy. According to
the needs of the business, the company will establish the reasonable and sound training system and the talent
introduction mechanism, as well as constantly optimize the personnel structure to ensure the company's talent pool
matching with the company's development strategy and maintain the company's core competitiveness for ensuring
the company's long-term development. Meanwhile, the company will gradually improve the talent incentive and
performance appraisal system.
6. Elevating plan on the managment
As of the end of the reporting period, the company totally has 18 controlled subsidiaries and 1 joint-stock
company. The increase of business scale and staff size, as well as the growing customers and market share, the
expansion of production and sales require a more efficient and better management. In light of the company's
development strategy and planning, the company will further to establish a highly-efficient enterprise organization
and management mode based on the principles of scientific-management and institutionalization and constantly
improve the decision-making, implementation, supervision and other processes under the management structure
based on the principle of mutual checks and balances.
Ⅳ. Possible risks
1. Risk of fluctuation caused by economic cycle
The glass substrate industry and the color filter industry and the downstream industry of TFT-LCD panel
producing are cyclical industries, which are sensitive to fluctuations caused by the economic cycle and the
business cycle. The prospect of TFT-LCD panel industry will impact the extent of prosperity of glass substrate
industry and the color filter industry, that the company can hardly avoid the short-term impact caused by the
industrial cycle, which may possibly affect the company’s operation and the underlying asset’s operation in a
certain extent.
2. Risk of competition in the market
At present, the global glass substrate industry is dominated by Corning Incorporated and other three foreign giants,
and the domestic glass substrate manufacturers still cannot take the initiative in the competition with foreign
giants, and the market competition is fierce.
Solutions of the Company: The Company will consistently reinforce and enhance the main business of LCD glass
substrate, increasing the product variety and scale and giving play to the profit complement of various-generation
products. Meanwhile, the Company will actively boost the horizontal expansion of Optoelectronic industry chain,
accelerating the construction of the 5th-generation CF film, intensifying the research and development and
application for display material of sapphire and graphene and constructing Optoelectronic industry cluster, which
makes the Company established on LCD glass substrate, optical film and high-end equipment, the 3 core
industries. To consistently enrich the product system in accordance with the market demand to make the Company
one of pillar enterprises of the domestic manufacture of Optoelectronic display material.
37
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
X. Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Reception time Way of reception Types of visitors Basic index
For the specific information, please refer
to the “Record of Relations Activities
May 29, 2015 Onsite investigation Organization
between the Company and Investors”
issued on Cninfo on May 29, 2015.
For the specific information, please refer
to the “Record of Relations Activities
June 10,2015 Onsite investigation Organization
between the Company and Investors”
issued on Cninfo on Jun 11, 2015.
For the specific information, please refer
to the “Record of Relations Activities
October 19,2015 Onsite investigation Organization
between the Company and Investors”
issued on Cninfo on October 21, 2015.
For the specific information, please refer
to the “Record of Relations Activities
October 21, 2015 By Phone Organization
between the Company and Investors”
issued on Cninfo on October 23, 2015.
For the specific information, please refer
to the “Record of Relations Activities
November 9, 2015 Onsite investigation Organization
between the Company and Investors”
issued on Cninfo on November 12, 2015.
For the specific information, please refer
to the “Record of Relations Activities
November 10,2015 Onsite investigation Organization
between the Company and Investors”
issued on Cninfo on November 12, 2015.
For the specific information, please refer
to the “Record of Relations Activities
November 19,2015 Onsite investigation Organization
between the Company and Investors”
issued on Cninfo on November 20, 2015.
June 1, 2015 By phone Individual
Reception times 7
Reception agency amount 44
Reception personal number 384
Others 0
Whether to disclose, reveal or disclose non-public
No
material information
38
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
2. Particulars about researches, visits and interviews received in this reporting period
Statement of such activities as reception, research, communication, interview from the end of the reporting period
to the disclosure date.
□ Applicable √ Not applicable
N/A
39
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
V. Important Events
I. Specification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
√ Applicable □ Not applicable
According to the Company Law, Further Implementation of the Cash Dividends of Listed Companies and The
No.3 Regulatory Guidelines for Listed Companies released by China Securities Regulatory Commission,
considering the sustainable development of the company based on comprehensively analyzing the characteristics
of the industry, the company’s operation strategy and planning, the shareholders’ requirements and desires, as
well as considering the company’s current profitability and possible future profit scale, current cash flow,
development stage, funds demand of the invested projects, bank credit and debt finance environment, the
company further improved the cash dividend policy, that the Amendments of Articles of Association on the profit
distribution policy and The Next Three-year Plan on Company Shareholder Returns (2015-2017) were approved
in the 27th meeting of the Seventh Board of Directors on Jan 27, 2015 and 2015 First Extraordinary General
Meeting on Mar 18, 2015. The revised profit distribution policy shall increase the transparency of the profit
distribution, better protect the rights of the public investors and elevate the company’s operation level.
During the reporting period, 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).
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):
For the year 2013, As undistributed profit of the company by the end-of-period has been negative, there would be
no cash dividends, meanwhile, on the base of December 31, 2013 ,903 million shares of the total share capital, the
40
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
company would distribute20 shares to all the shareholders for every 10 shares, for a total distribution
of1806million shares.
In 2014, the company total share capital of 2,662,080,001 shares on December 31, 2014 as base to undistributed p
rofits to all shareholders for every 10 shares of cash dividends 1.0 yuan (including tax). there was no turning of
capital reserve into share capital.
In 2015, The profit distribution proposal reviewed and approved by the boarding meeting was summarized as
follows : total share of December 31, 2015 for base on the Company’s total share capital, the Company would
distribute cash dividend to all the shareholders at the rate of CNY 0.70 For every 10 shares(with tax includive), 0
bonus shares (including tax) and no reserve would be converted into share capital.
Dividend distribution of the latest three years
In RMB
Net profit
Ratio in net profit
attributable to the Amount of cash Proportion of cash
attributable to the
Cash dividend over of the parent dividends from cash dividends from cash
Year parent company in
(Including Tax) company in the offer to repurchase offer to repurchase
the consolidated
consolidated shares of the funds shares of the funds
financial statements
financial statements
2015 268,450,036.82 1,326,233,674.37 20.24% 0.00 0.00%
2014 266,208,000.10 468,902,701.44 56.77% 0.00 0.00%
2013 0.00 195,959,827.62 0.00% 0.00 0.00%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive however not cash
dividend distribution proposal has been put forward.
□Applicable√ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares) 0
Cash dividend for everty ten shares
0.70
(Yuan)(Tax-included)
A total number of shares as the distribution
3,835,100,526
basis(shares)
Total cash dividend (Yuan)(Tax-included) 268,457,036.82
Distributable profits (yuan) 467,563,381.30
Proportion of cash dividend in the distributable
100.00%
profit (%)
Cash dividend distribution policy
Details of profit distribution or reserve capitalization plan
III. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
41
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior
management personnel and other related parities.
√ Applicable □ Not applicable
Commitment Time of making Peiod of
Commitment Type 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
first sales, will
disclose the
Shijiazhuang
contents
Baoshi Share reduction Long-term Under
Commitment on share reform specified by the March 29,2007
Electronics commitment effective Fulfillment
Form Guide to
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
Commitments on 1.From the date
December 22, Long-term Under
Commitments made upon issuance Li Zhaoting horizontal of commitment
2011 effective Fulfillment
competition, letter issued,
42
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
related except the
transaction and managed hosting
capital company for
occupation Dongxue
Optoelectronic ,
this company and
majority-owned
subsidiaries do
not in any way,
directly or
indirectly
engaged in
business and
Dongxue
Optoelectronic
and its
subsidiaries are
the same, or
similar, future
Dongxue
Optoelectronic
shares and its
subsidiaries are
not engaged in
the same or
similar
businesses.
1.From the date
of commitment
letter issued,
except the
Dongxu
managed hosting
Optoelectronic
Commitments on company for
Investment Co.,
horizontal Dongxue
Ltd.,
competition, Optoelectronic ,
Shijiazhuang Long-term Under
related this company and April1， 2012
Baoshi effective Fulfillment
transaction and majority-owned
Electronics
capital subsidiaries do
Group Co.,
occupation not in any way,
Ltd.Dongxu
directly or
Group,
indirectly
engaged in
business and
Dongxue
43
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
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
44
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
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
45
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
company will
transfer all the
shares that
Dongxu Group
entrusted to
Dongxu Yingkou
and Sichuan
Xuhong to
Dongxu
Optoelectronics.
Within the time
limit mentioned
above, if there
were the external
factors such as a
depression of
industry as a
whole, or the
changes in
regulatory
requirements,
which lead to the
result that the
shares of hosting
company can not
meet the
requirements of
capital
investment, Li
Zhaoting, the
actual controller,
Dongxu
Optoelectronic
Investment ,
Dongxu Group
and Baoshi
Group as well as
the company will
actively negotiate
with related
parties, continue
to entrust the
above mentioned
shares and the
46
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
power of
management to
Dongxu
Optoelectronics.
Within the period
when the
company is still
the controlling
shareholder of
Dongxu
Optoelectronics,
the commitments
are in effect.
Dongxu Group
Co., Ltd.
subscribed for
25.01% of the
shares privately
issued by the
Share limited Company and Valid period to Under
Dongxu Group April 18,2013
commitment promised that the April 18,2016 Fulfillment
period of sale
restriction of
such shares was
36 months from
the first day of
listing.
In view of:
The main
business of
Dongxu
Optoelectronic is
the production of
TFT-LCD glass
substrate, and the
Other Under
company now is February 8,2015 Valid for 5 years
commitment Fulfillment
applying for
non-public
offering
of ,bonds (2)
Dongxu Group is
the controlling
shareholder of
Dongxu
47
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Optoelectronic;
and during the
period of
holding, Dongxu
Group has signed
patent license
contracts
separately with
Dongxu
Optoelectronic
and its
subsidiaries
including Wuhu
Dongxu
Optoelectronic
Science and
Technology Co.,
Ltd. (hereinafter
referred to as
Wuhu
Optoelectronic),
Wuhu Dongxu
Optoelectronic
Equipment
Technology Co.,
Ltd. (hereinafter
referred to as
Wuhu
Equipment) and
Shijiazhuang
Dongxu
Optoelectronic
Equipment
Technology Co.,
Ltd. (hereinafter
referred to as
Shijiazhuang
Equipment). For
this purpose,
Dongxu Group
has made
following
promises: Any
patents related to
48
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
panel display
glass substrate
not included in
the aforesaid
Contract on the
Licensing of
Patent
Exploitation
obtained by
Dongxu group in
the future,
Dongxu group
shall sign a free
contract of
licensing the new
pertinent patents
with the
company and the
company’s
subsidiaries
(Wuhu
Optoelectronic
Technology
Co.,Ltd, Wuhu
Equipment
Company and
Shijiazhuang
Equipment
Company) with
the same articles
of the former
patent licensing
contract. After
the company
successfully
completed the
issuance of
corporate bonds,
whether Dongxu
group control the
company during
the duration of
the bonds,
Dongxu group
49
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
shall renew the
patent licensing
contract
unreserved with
the company and
the company’s
subsidiaries
(Wuhu
Optoelectronic
Technology
Co.,Ltd, Wuhu
Equipment
Company and
Shijiazhuang
Equipment
Company) under
the company’s
requirement until
the bonds
expired.
In view of:
Dongxu
Optoelectronic
Technology Co.,
Ltd. is applying
for public
offering of
corporate bonds,
and the total
scale of bonds
Dongxu will not exceed 1
To raise funds to
Optoelectronic billion yuan. February 10, Under
use the Valid for 5 years
Technology Co., After the 2015 Fulfillment
commitment
Ltd. deduction of
issue expenses,
all the funds
raised are planed
to be used to
supplement the
liquidity and
support the
R&D, production
and material
purchase of glass
50
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
substrate and the
equipment. Thus,
the demands of
business
operation and
expansion in the
company will be
satisfied. The
company
promises: 1. The
funds raised
through the
public offering of
corporate bonds
will not be
directly or
indirectly
invested in real
estate
development
business, or used
to increase the
capital fund or as
loans in
subsidiaries
engaged in real
estate business;
2. the funds
raised through
the public
offering of
corporate bonds
will not be used
for real estate
development
business in any
form. The term
of validity of the
promises is
consistent with
the duration of
the corporate
bonds issued in
the company this
51
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
time.
In view of:
(1) The main
business of
Dongxu
Optoelectronic is
the production of
TFT-LCD glass
substrate, and the
company now is
applying for
non-public
offering of stock;
(2) Dongxu
Group is the
controlling
shareholder of
Dongxu
Optoelectronic;
and during the
period of
Other holding, Dongxu June 17, Long-term Under
Dongxu Group
commitment Group has signed 2015 effective Fulfillment
patent license
contracts
separately with
Dongxu
Optoelectronic
and its
subsidiaries
including Wuhu
Dongxu
Optoelectronic
Science and
Technology Co.,
Ltd. (hereinafter
referred to as
Wuhu
Optoelectronic),
Wuhu Dongxu
Optoelectronic
Equipment
Technology Co.,
52
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Ltd. (hereinafter
referred to as
Wuhu
Equipment) and
Shijiazhuang
Dongxu
Optoelectronic
Equipment
Technology Co.,
Ltd. (hereinafter
referred to as
Shijiazhuang
Equipment). For
this purpose,
Dongxu Group
has made
following
promises: within
the term of
validity
involving patent
right stated in
patent license
contracts,
whether Dongxu
Optoelectronic is
in the control of
Dongxu Group or
not, Dongxu
Group promises
that when the
above mentioned
patent license
contracts expire,
the group will
unconditionally
renew the
contracts with
Dongxu
Optoelectronic
and its
subsidiaries
(Wuhu
Optoelectronic,
53
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Wuhu
Equipment,
Shijiazhuang
Equipment and
etc) according to
the terms of
original contracts
based on the
requirements of
Dongxu
Optoelectronic.
To avoid the
horizontal
competition with
the issuer, the
company’s actual
controller-Zhaoti
ng, Li and the
holding
company-Dongx
u group
promised: 1. As
of this
declaration and
Commitments on
from the date of
horizontal
commitment
Dongxu competition,
letter issued, Decembert 16, Long-term Under
Group,Li related
except the 2015 effective Fulfillment
Zhaoting transaction and
managed hosting
capital
companies, the
occupation
other companies
directly or
indirectly
controlled by the
controller or
holding company
have no
horizontal
competitions
with Dongxu
Optoelectronic
Technology Co.,
Ltd. 2. Any other
54
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
companies
controlled by the
actual controller
or holding
company shall
avoid businesses
identical or
similar to the
company may
lead to a
competitive
relation and
cannot do any
harm activities to
Dongxu
Optoelectronic
Technology Co.,
Ltd and
companies
controlled by
Dongxu
Optoelectronic
Technology Co.,
Ltd as long as
there are no
alterations of the
actual controller
and the holding
company. Any
businesses
opportunities
under the main
business scope of
Dongxu
Optoelectronic
Technology Co.,
Ltd and its
controlled
companies shall
not take by the
companies
controlled by the
actual controller
or the holding
55
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
company, and the
business
opportunities
shall be given to
Dongxu
Optoelectronic
Technology Co.,
Ltd and its
controlled
companies.3. As
long as the actual
controller and the
holding company
are the same, the
actual controller
and the holding
company shall
continue to
strictly
performance the
relevant
declarations and
commitments of
avoiding
horizontal
competition.
It was promised
that after Dongxu
Optoelectronic
Guangzhou
Technology Co.,
Securities Co.,
Ltd completed
Ltd., Huaan
the non public
Future Asset
issuance of
Management
shares to the
(Shanghai) Co., Valid period to
Share limited company and December 16, Under
Ltd.;Minsheng December
commitment specific objects 2015 Fulfillment
Bank Fund 16,2016
for raising funds,
Management
the new shares
Co., Ltd.;Boshi
subscribed by the
Assets
company shall
Management
not be transferred
Co., Ltd.
to any others in
12 months
commenced from
56
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
the publicly
listed date of the
new shares.
The company,
one of the
subscription
objects, promised
that after Dongxu
Optoelectronic
Technology Co.,
Dongxu Ltd completed
Group;Changjian the non public
g Securities issuance of
(Shanghai )Asset shares to the
Management company and
Co., specific objects
Ltd.;Kunshan for raising funds, Valid period to
Share limited December 16, Under
Development the shares (New December
commitment 2015 Fulfillment
Zone State shares) issued by 16,2018
Investment Co., Dongxu
Ltd.;Beijing Optoelectronic
Yingfei Hailin Technology Co.,
Investment Ltd and
Center (Limited subscribed by the
partnership). company shall
not be transferred
to any others in
36 months
commenced from
the publicly
listed date of the
new shares.
Dongxu
investment/Baos
Dongxu hi group
Optoelectronic promised the net
Investment Co., profit level of the
Performance Valid period to
Ltd., next three years March 2, Under
compensation December
Shijiazhuang and profit 2015 Fulfillment
commitment 31,2018
Baoshi compensation
Electronics scheme in
Group Co., Ltd respective to
Xufei
Optoelectronic
57
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Technology Co.,
Ltd and Xuxin
Optoelectronic
Technology Co.,
Ltd as follows:
The Net profits
after deducting
non-recurring
gain or loss that
are attributable to
Xufei
Optoelectronic
Technology Co.,
Ltd in year 2015,
year 2016, year
2017, year 2018
shall accordingly
be not less than
RMB
36,669,800,
RMB
84,562,800,
RMB
156,531,100,
RMB
225,405,200；The
Net profits after
deducting
non-recurring
gain or loss that
are attributable to
Xuxin
Optoelectronic
Technology Co.,
Ltd in year 2015,
year 2016, year
2017, year 2018
shall accordingly
be not less than
RMB23,348,800,
RMB55,420,500,
RMB
86,627,700,
RMB
58
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
158,345,000. If
any year’s actual
net profits are
less than the
estimated profits
as aforesaid
within the
compensation
period, Dongxu
investment/Baos
hi group shall
make up the
difference in
accordance with
the aforesaid
principles in cash
to Dongxu
Optoelectronic
Technology Co.,
Ltd; If the actual
net profits are not
less than the
estimated profits,
there is no need
for Dongxu
investment /
Baoshi group to
carry out the
compensation.
The
compensation
period includes
the year
contained the
date on which the
transaction
completed and
the subsequent
two consecutive
accounting years.
Equity incentive commitment
Jixing New Performance Jixing New
Other commitments made to minority January 20, Long-term Under
Material commitment and Material
shareholders 2015 effective Fulfillment
Investment (HK) compensation Investment (HK)
59
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Co., Ltd. ; Wang arrangements Co., Ltd. and
Lubao Lubao, Wang
(The legal
representative of
the company
(HK)) jointly
promised that the
net profits after
tax attributable to
Jixing New
Material
Investment Co.,
Ltd in year 2015,
year 2016, year
2017 shall
accordingly be
not less than
RMB30,
000,000,
RMB60,000,000,
RMB
100,000,000. If
the net profits
attributable to
Jixing New
Material
Investment Co.,
Ltd after audited
in any year of
year 2015, year
2016 and year
2017 are less
than the
promised net
profits, the
difference shall
be compensated
by Jixing New
Material
Investment (HK)
Co., Ltd. and
Lubao, Wang in
cash.
Dongxu Group Share holdings The holding July 11, 2015 Valid period to Under
60
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
commitment company-Dongx April 11,2018 Fulfillment
u group and its
controlled
subsidiaries have
planned to buy
the company’s
shares in the
transaction
market (i.e
secondary
market) via
Trading System
of the Shenzhen
Stock Exchange
with the total
amount no more
than RMB 100
million in six
months
commenced from
the date of the
announcement
(Jul 11, 2015).
Dongxu group
promised that it
will not reduce
its stake in six
months
subsequently. In
light of Dongxu
Optoelectronic
Technology Co.,
Ltd planned to
release its 2015
annual report on
Feb 6, 2016, and
the impact of the
window period
for regular
reports, the
company’s
controlling
shareholder plans
to extend three
61
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
months for the
plan of buying
shares, beyond
that, any other
commitments
unchanged.
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
Asset or Project
Start date of End date of the
Name of Forecast Actual Reason for less Disclosure date Reference for
the forecasting forecasting
Earnings earnings earnings than forecast of the Forecast the Forecast
period period
Forecast
Earnings Forecast
Report by
Zhengzhou Xufei
Zhengzhou Xufei Optoelectronic
Optoelectronic December 31, Technology Co.,
January 1, 2015 4,070.55 4,547.3 Completed March 2, 2015
Technology Co., 2015 Ltd(No.05007-Zh
Ltd. ongxin Cai Guan
Hua
Certified(2015)
issued on Cninfo.
Earnings Forecast
Report by
Shijiazhuang
Xuxin Xufei
Shijiazhuang Xuxin
Optoelectronic
Optoelectronic December 31,
January 1, 2015 3,062.35 3,923.03 Completed March 2, 2015 Technology Co.,
Technology Co., 2015
Ltd(No.05002-Zh
Ltd.
ongxin Cai Guan
Hua
Certified(2015)
issued on Cninfo.
Earnings Forecast
Dongxu
Report by Dongxu
Optoelectronic December 31,
January 1, 2015 124,397.66 132,623.37 Completed March 2, 2015 Optoelectronic
Technology Co., 2015
Technology Co.,
Ltd.
Ltd(No.05011-Zh
62
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
ongxin Cai Guan
Hua
Certified(2015)
issued on Cninfo.
The commitments of the operating earnings made by the company’s shareholder and relevant transaction parties
□ Applicable √ Not applicable
IV. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
N/A
V. Explanation of the Supervisory Committee and Independent Directors (If applicable)on
the Qualified Auditor’s Report Issued by the CPAs.
□ Applicable √ Not applicable
N/A
VI.Explain change of the accounting policy, accounting estimate and measurement methods
as compared with the financial reporting of last year.
□ Applicable √ Not applicable
N/A
VII. Explain retrospective restatement due to correction of significant accounting errors
in the reporting period
□Applicable √ Not applicable
N/A
VIII. Explain change of the consolidation scope as compared with the financial reporting of
last year.
√ Applicable □ Not Applicable
1. The Proposal on Purchasing the Equity of Jiangsu Jixing New Materials Co.,Ltd was approved on the 26th of
the seventh session board meeting on Jan 19, 2015, according to that, the company shall purchase 50.5% stake of
Jiangsu Jixing New Materials Co.,Ltd through equity acquisition and capital increase. It mainly engaged in the
cultivation, processing and sales of sapphire crystal materials.
2.On March 3, 2015, the 32th meeting of the 7th board of directors of the Company examined and adopted
“Proposal on Jointly Establishing a Holding Subsidiary with Beijing Institute of Technology”. The Company
jointly established the holding subsidiary “Beijing Xutan New Material Technology Co., Ltd” with Beijing
Institute of Technology, carrying out new material development, industrialization, market management and
project investment of graphene. The registered capital was 15 million RMB, of which the Company invested 10.5
million RMB in currency, occupying 70% of registered capital.
3. On Jul 9, 2015, according to the provisions specified in the Articles of Association, and by the approval from
the chairman of the board, the company’s controlled subsidiary-Wuhu Dongxu Optoelectronic Equipment
Technology Co.,Ltd set up “ Jiangsu Dongxu Yitai Intelligent Equipment Co.,Ltd” in Jiangsu province. The
63
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
registered capital of the new company is RMB 10 million, and its 100% stake was held by Wuhu Equipment
Company, and it mainly engaged in research and development, production and sales of intelligent robot and
intelligent automatic controlling equipment.
4.On October , 22,2015, according to the provisions specified in the Articles of Association, and by the approval
from the chairman of the board，the Company jointly invested in establishing a graphene investment
company “Beijing Dongxu Huaqing Investment Co., Ltd.” according to the Strategic Cooperation Agreement
signed with Beijing Modern Huaqing Material Technology Development Center, which was as the main
investment subject for investing graphene project of both. The initial registered capital was RMB 5 million , in
which the Company invested RMB 3.5 million , occupying 70% of the registered capital.
5.On Dec 25, 2015, according to the provisions specified in the Articles of Association, and by the approval from
the chairman of the board, the company’s whole-owned subsidiary-Wuhu Optoelectronic Technology Co.,Ltd set
up “Fuzhou Dongxu Optoelectronic Technology Co.,Ltd” in Fuzhou free-trade zone located in Fujian province,
and the new company mainly engaged in investment, construction and operation of optoelectronic display glass
substrate industry.
6. In December 2015,the Company succeeded in the work of non-public issue of 2015. According to “Preplan of
Non-public Issue of Shares of 2015(Revised Draft) of the Company ”, the raised funds of the non-public issue of
share after deducting the issue expense would be partly used in acquiring 100% share right of Zhengzhou Xufei
Optoelectronic Technology Co., Ltd. and 100% share right of Zhijiazhuang Xuxin Optoelectronic Technology Co.,
Ltd. . Up to December 31, 2015, the relevant procedures for share right transfer and industry and commerce
change of Zhengzhou Xufei and Shijiazhuang Xuxin have been completed, which obtained business license after
change. So far, the Company has held 100% share right of Zhengzhou Xufei Optoelectronic Technology Co., Ltd.
and 100% share right of Zhijiazhuang Xuxin Optoelectronic Technology Co., Ltd. .
IX.Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs Hebei Guanghua Accounting Firms Co., Ltd.(Special General Partnership)
Remuneration for domestic accounting firm (RMB’
55
0000)
Continuous life of auditing service for domestic
4
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
1.In the report period, the Company hired Zhongxingcai Guanghua Certified Public Accountant LLP as the
accountant office of the Company’s internal control audit , during which the Company paid RMB0.25 million for
the audit expense in total.
2. In this year, the Company hired Southwest Securities Co., Ltd. as the Company sponsor in reason of the matter
of non-public issue, during which the Company paid RMB 49.5 million for the sponsor fee.
X. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the
Yearly Report
64
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
□Applicable √ Not applicable
XI.Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
N/A
XII. Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
N/A
XIII. Situation of Punishment and Rectification
□Applicable √ Not applicable
N/A
XIV. Credit Condition of the Company and its Controlling Shareholders and Actual
Controllers
□Applicable √ Not applicable
XV. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock
Ownership Plan or Other Employee Incentive Measures
√applicable □ Not applicable
1.Equity Incentive Plan
(1). The Company’s business income of 2014 was RMB 2,143,398,018.39 , of which the net profit attributable to
listed company’s shareholders was RMB 880,625,183.53 and the net profit attributable to listed company’s
shareholders after deducting non-recurring gains and losses was RMB 503,125,122.42 ; The 40 incentive objects
were qualified in performance appraisal, meeting the requirement of unlocking. On October 29, 2015, the 43rd
meeting of the 7th board of directors and the 17th meeting of the 7th board of supervisors of the Company
examined and adopted “Proposal on Unlocking Restricted Stocks Incentive Plan in the First Unlocking Period”,
agreeing on the appliance for unlocking 20% of the 2.98 million awarded restricted shares of those 40 incentive
objects.
(2).On October 29, 2015, the 43rd meeting of the 7th board of directors and the 17th meeting of the 7th board of
supervisors of the Company examined and adopted “Proposal on Repurchasing and Canceling Partial Restricted
Stock”, which repurchased and canceled 100,000 of the restricted shares awarded but hasn’t yet been unlocked
which was originally held by the incentive object Chen Yinwei, who has left his post.
2.Employee Stock Ownership Plan
(1).On January 27, 2015 and March 18, 2015, the 27th meeting of the 7th board of directors of the Company and
the 1st provisional shareholder’s meeting of 2015 examined and adopted “Proposal on Dongxu Optoelectronic
Technology Co., Ltd. Phase 1 for Employee Stock Ownership Plan(Draft) (Subscription for the Way of
Non-public Issue of Shares) and its Summary”, agreeing the Company to carry out Employee Stock Ownership
Plan to participate in the subscription for the non-public issue of share of 2015, where the participants of the Plan
were the Company’s directors, supervisors, executives, the Company and regular employees of the subordinate
subsidiary who were up to the standard.
(2).On October 10, 2015, the Company was examined and adopted by “Reply on Examining and Adopting
65
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Dongxu Optoelectronic Technology Co., Ltd. Non-public Issue of Shares” [2015] No.2270 with permission of
CSRC, approving the Company to issue A shares by means of non-public issue of share.
(3).The scale of Phase 1 for Employee Stock Ownership Plan of Dongxu Optoelectronic was 495,400,000 RMB,
subscribing 72,639,296 of non-publicly issued shares of 2015 with full amount through No.2 Changjiang Xingli
Oriented Plan, where the above shares were listed in SZSE on December 17, 2015, which was with 36-month
locking period.
XVI. Material related transactions
1. Related transactions in connection with daily operation
√Applicable □ Not applicable
Whethe
Trading r over
Principl
limit the Market Index
Subjects e of
Amount price of of
of the pricing Ratio in approve approve Way of Date of
Related Relation Type of Price of of trade similar informa
related the similar paymen disclosu
parties ship trade trade RMB0’ trade tion
transacti related trades d d t re
000 availabl disclos
ons transacti
e ure
ons （RMB limited
’0000） or not
(Y/N)
Controll Controll
Shijiazh ed by ed by
uang the the Referen
Currenc March
Baoshi same same Energy ce price 87.43 87.43 15,000 No 87.43
y 18,2015
Group actual actual setting
Co., Ltd. controll controll
er er
Controll
Commo
Shijiazh ed by
dity
uang the Referen
purchas Security Currenc
Baoshi same ce price 100 100 22.31 Yes 100
ed/labor Fee y
Group actual setting
service
Co., Ltd. controll
received
er
Chengdu Controll
Commo
Dongxu ed by
dity
Energy the Energy Referen March
purchas Currenc
Saving same saving ce price 15.66 15.66 Yes 15.66 18,
ed/labor y
Technolo actual lamp setting 2015
service
gy Co., controll
received
Ltd. er
66
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Controll
Shijiazhu Commo
ed by
ang Bofa dity
the Referen
Mechanic purchas Machine Currenc August
same ce price 766.18 766.18 Yes 766.18
al ed/labor dpart y 29,2015
actual setting
Equipmen service
controll
t Co., Ltd. received
er
Controll
Shijiazhu Commo
ed by
ang Bofa dity
the Referen
Mechanic purchas Raw Currenc
same ce price 31.92 31.92 17,000 Yes 31.92
al ed/labor material y
actual setting
Equipmen service
controll
t Co., Ltd. received
er
Controll
Shijiazhu Commo
ed by
ang Bofa dity
the Processi Referen
Mechanic purchas Currenc
same ng ce price 144.92 144.92 Yes 144.92
al ed/labor y
actual changes setting
Equipmen service
controll
t Co., Ltd. received
er
Controll
Commo
SichuanX ed by
dity
uhong the Referen
purchas Raw Currenc
Optoel same ce price 71.99 71.99 1,000 Yes 71.99
ed/labor material y
ectroni actual setting
service
c controll
received
er
Controll
Chengdu Commo
ed by
Zhong dity
the Referen
Optoelec purchas Currenc
same Material ce price 1.54 1.54 400 Yes 1.54
tronic ed/labor y
actual setting
Technol service
controll
ogy Co., received
er
Ltd.
Shijiazhu
Controll Commo
ang
ed by dity
Xuling Supervis Referen
the purchas Currenc
Electronic ory ce price 44.52 44.52 1,500 Yes 44.52
same ed/labor y
s system setting
actual service
Technolo
controll received
gy Co.,
67
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Ltd. er
Hebei
Controll
Baoshi Commo
ed by
Energy dity
the Referen
Saving purchas Currenc
same Lamps ce price 1.35 1.35 50 Yes 1.35
Lighting ed/labor y
actual setting
Technolo service
controll
gy Co., received
er
Ltd.
Controll
Shijiazhu
ed by Sales
ang Bofa
the Goods/ Referen
Mechanic Currenc March
same Labor A-frame ce price 554.49 554.49 100 No 554.49
al y 18,2015
actual service setting
Equipmen
controll received
t Co., Ltd.
er
Controll Glass
Shijiazhu
ed by Sales substrate
ang Bofa
the Goods/ defect Referen August
Mechanic 3,641.2 3,641.2 Currenc 3,641.2
same Labor detectio ce price 50 No 29,
al 1 1 y 1
actual service n setting 2015
Equipmen
controll received equipme
t Co., Ltd.
er nt
SichuanX
Sales Xuhong
uhong
Goods/ Technol Referen March
Optoelect 15,047. 15,047. Currenc 15,047.
Labor ogy ce price 100 Yes 18,
ronic 17 17 y 17
service upgradin setting 2015
Technolo
received g
gy
JinzhouX Controll
ulong ed by Sales
Solar the Goods/ Referen August
Currenc
energy same Labor Testing ce price 22.31 22.31 100 No 22.31 29,
y
Technolo actual service setting 2015
gy Co., controll received
Ltd. er
Chengdu Controll
Sales
Zhong ed by
Goods/ Glass Referen
Optoelect the Currenc
Labor Substrat ce price 268.59 268.59 100 Yes 268.59
ronic same y
service e setting
Technolo actual
received
gy Co., controll
68
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Ltd. er
Sales
Controll
Goods/ Referen
Dongxu ed Currenc
Labor Material ce price 65.7 65.7 Yes 65.7
Group sharehol y
service setting
ders
received
National
Engine
Sales ering
Controll
Goods/ Labora Referen March
Dongxu ed 8,211.5 8,211.5 40,456. Currenc 8,211.5
Labor tory ce price No 18,
Group sharehol 4 4 96 y 4
service test setting 2015
ders
received line
equipm
ent
Controll
SichuanX
ed by Sales
uhong
the Goods/ Technol Referen
Optoelect 1,190.9 1,190.9 Currenc 1,190.9
same Labor ogy ce price 0 Yes
ronic 4 4 y 4
actual service service setting
Technolo
controll received
gy
er
Controll
Dongxu(
ed by Sales
Yingkou)
the Goods/ Technol Referen March
Optoelect Currenc
same Labor ogy ce price 913.58 1,000 No 913.58 18,
ronic y
actual service service setting 2015
Display
controll received
Co., Ltd
er
Controll
Dongxu
ed by
Optoelect 2015-0
the Associat Referen March
ronic Currenc 29、
same ed Equity ce price 50 50 No 0 18,
Investme y 2015-0
actual hosting setting 2015
nt Co., 36、
controll
Ltd.
er
Controll
ed by 2015-0
Shijiazhu Associat Referen March
the Currenc 29、
ang Boshi ed Equity ce price 50 50 No 0 18,
same y 2015-0
Group hosting setting 2015
actual 36、
controll
69
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
er
Controll
Dongxu(
ed by
Yingkou)
the Agreem March
Optoelect Trustees Currenc
same Equity ent 100 100 No 50 18,
ronic hip y
actual price 2015
Display
controll
Co., Ltd
er
Controll
SichuanX
ed by
uhong
the Manage Agreem March
Optoelect Trustees Currenc
same ment ent 100 100 No 100 18,
ronic hip y
actual right price 2015
Technolo
controll
gy
er
Controll
Chengdu ed by
Taiyesi the Manage Agreem March
Trustees Currenc
Technolo same ment ent 50 100 No 50 18,
hip y
gy Co., actual right price 2015
Ltd. controll
er
Controll
Equity Agreem March
Dongxu ed Trustees Currenc
manage ent 100 100 No 100 18,
Group sharehol hip y
ment price 2015
ders
Controll
Agreem
Dongxu ed House Currenc
Lease ent 453.83 0 Yes 100
Group sharehol lease y
price
ders
32,084. 38,556.
Total -- -- -- -- -- -- -- -- 50
87 96
453.83
--
2. Related-party transactions arising from asset acquisition or sale
√ Applicable □Not applicable
转让资产 转让资产
关联交易 关联交易 关联交易 转让价格 关联交易 交易损益
关联方 关联关系 的账面价 的评估价 披露日期 披露索引
类型 内容 定价原则 （万元） 结算方式 （万元）
值（万元）值（万元）
东旭光电 受同一实 东旭光电 2016 年 巨潮资讯
股权收购 评估值 71,563.91 73,110.83 73,114.59 货币资金 0
投资有限 际控制人 投资有限 01 月 05 网
70
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
公司 控制 公司持有 日 2016-001
的旭飞 公告
41.21%的
股权
石家庄宝
石电子集
石家庄宝 巨潮资讯
受同一实 团有限责 2016 年
石电子集 网
际控制人 股权收购 任公司持 评估值 73,261.8 76,813.96 76,808.73 货币资金 0 01 月 05
团有限责 2016-001
控制 有旭新的 日
任公司 公告
38.67%的
股权
转让价格与账面价值或评估价值差异较
无
大的原因（如有）
对公司经营成果与财务状况的影响情况 扩大了玻璃基板的收入，与现有产业互相融合促进
如相关交易涉及业绩约定的，报告期内
无
的业绩实现情况
The Company was not involved in any related-party transactions arising from asset acquisition or sale during the
reporting period.
3. Related-party transitions with joint investments
√ Applicable □ Not applicable
N/A
4. Credits and liabilities with related parties
√Applicable □Not applicable
Was there any non-operating credit or liability with any related party?
5. Other significant related-party transactions
□ Applicable √ Not applicable
The Company was not Other significant related-party transactions during the reporting period.
XVII. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
√Applicable □Not applicable
Description of custodies
During the reporting period, the Company continued entrusted with the management of Dongxu( Yingkou)
Optoelectronic Display Co., Ltd., Sichuan Xuhong Optoelectronic Technology Co., Ltd., Zhengzhou Xufei
Optoelectrionic Technology Co., Ltd., Shijiazhuang Baoshi Electrinic Group Co., Ltd., Shijiazhuang Xuxin
Optoelectronic Technology Co.,Ltd. and Chengdu Taiyisi Technology Co., Ltd.
71
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
In December 2011, Dongxu Group, Dongxu Optoelectronic Investment Co., Ltd. and Shijiazhuang Baoshi
Electronic Group Co., Ltd signed the Equity Trusteeship Agreement with the Company , of which 60% share
rights of Dongxu (Yingkou) Optoelectronic Display Co., Ltd., 51% share rights of Sichuan Xuhong
Optoelectronic Technology Co., Ltd., 40 % share rights of Zhengzhou Xufei Optoelectronic Co., Ltd. and 50%
share rights of Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. were entrusted by the Company, where
the agreement went into effect as of March 2013. The clients paid the Company 500 thousand RMB of
management fee per year for each subject, of which Zhengzhou Xufei Optoelectronic Technology Co., Ltd. and
Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. were acquired by the Company in December 2015,
becoming the wholly-owned subsidiary of the Company.
In November 2014, Dongxu Group signed Business Trusteeship Agreement with the Company, which
entrusted the management right of Chengdu Taiyisi Technology Co., Ltd. which was with 90% shareholding
proportion. The Agreement was went into effect as of December 2014.
See details in the table below:
Name of Clients/Contractee Name of Type of Entrusting Starting Date of Expiration Confirmed Entrusting
Trustee/Contract Asset/Contracting Asset Entrusting Date of /Contracting Fee at the
ee /Contracting Entrusting Current Period
/Contracting
Dongxu Group, Yingkou Coastal Development Management Right of Note 1 1,500,000.00
Construction Co., Ltd.Minmetals (Yingkou) Industrial Dongxu(Yingkou)
Park Development Co., Ltd. Optoelectroric Display Co., Ltd.
Dongxu Optoelectronic Investment Co., Ltd., Henan Management Right of March 2012 Note 2 500,000.00
State-owned Assets Management Co., Ltd, Zhengzhou Dongxu Zhengzhou Xufei
Investment Holding Co., Ltd. Optoelectronic Optoelectronic Technology Co.,
Technology Co., Ltd.
Ltd.
Dongxu Group, Mianyang Investment City Development Management Right of Sichuan March 2012 Notes 2 1,500,000.00
(Group ) Co., Ltd., Sichuan Changhong Electric Co., Ltd. Xuhong Optoelectronic
Technology Co., Ltd.
Shijiazhuang Baoshi Group Co., Ltd., Shijiazhuang Management Right of March 2012 Note 2 500,000.00
High-tech Zone Lanhu Investment Co., Ltd.,Shijiazhuang Shijiazhuang Xuxin
State Controlling Group Co., Ltd. Optoelectronic Technology Co.,
Ltd.
Dongxu Group Management Right of Chengdu December 2014 Note 3 500,000.00
TaiyisiTechnologyCo.， Ltd.
Total 4,500,000.00
Note 1: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee. The operation
trustee fee is basic management fee and incentive management fee, of which the basic management fee is 1 million RMB/year, the
incentive management fee is counted by 5% of the after-tax net profit yearly achieved by the trustee company(the base of the
incentive management fee deducts the loss of the previous year.)
Note 2: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee. The operation
trustee fee is basic management fee and incentive management fee, of which the basic management fee is 1 million RMB/year, the
incentive management fee is counted by 5% of the after-tax net profit yearly achieved by the trustee company
Note 3: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee. The operation
trustee fee is basic management fee and incentive management fee, of which the basic management fee is 1 million RMB/year, the
72
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
incentive management fee is counted by 5% of the after-tax net profit yearly achieved by the trustee company.
Items which resulted in profit or loss achieving over 10% of the total profit for the Company
□ Applicable √ Not applicable
(2) Contract
□ Applicable √ Not applicable
There was no any contract of the Company in the reporting period.
(3) Lease
√Applicable□Not applicable
Explanation of Situation of Lease
In December 2015, Zhengzhou Xufei Optoelectronic Technology Co., Ltd. was acquired by the Company,
becoming the wholly-owned subsidiary of the Company. As it was in merger and acquisitions, the former direct
leasing business between Zhengzhou Xufei and Dongxu Group would be merged into the Company, forming
related leasing.
Name of Lessor Name of Type of Starting Date Expiration Pricing Basis Confirmed Influence of
Leasee Leasing of Leasing Date of of Leasing Leasing Earnings Leasing
Asset Leasiing Earnings of 2015 Earnings
to the Company
Zhengzhou Xufei Dongxu Group House 2015.4.1 2015.12.31 Leasing 4,538,268.00 Increase
Optoelectronic contract earnings
Technology Co.,
Ltd.
Total 4,538,268.00
Items which resulted in profit or loss achieving over 10% of the total profit for the Company of the report period
□ Applicable √ Not applicable
2.Guarantees
√Applicable□Not applicable
（1）Guarantees
In RMB
External Guarantee (Exclude controlled subsidiaries)
Relevant Date of Complete Guarantee
Actual
disclosure Amount of happening implementa for
Name of the Company mount of Guarantee type Guarantee term
date/No. of Guarantee (Date of tion associated
guarantee
the signing or not parties
73
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
guaranteed agreement) (Yes or no)
amount
Guarantee of the Company for the controlling subsidiaries
Relevant
Date of Complete Guarantee
disclosure
Name of the Amount happening Actual implementa for
date/No. of Guarantee
Company of (Date o mount of Guarantee term tion associated
the type
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Wuhu Dongxu The joint
Optoelectronic Equipment May 16, 2015 15,000 May 14,2015 15,000 liability 1 year No No
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
Optoelectronic Equipment May 16, 2015 5,000 June 5, 2015 5,000 liability 1 year No No
Technology Co., Ltd. guaranty
The joint
Jiangsu Jixing New
May 16,2015 8,000 0 liability 3 years No No
Material Co., Ltd.
guaranty
The joint
Jiangsu Jixing New August
12,500 September 30,2015 5,000 liability 1 year No No
Material Co., Ltd. 15,2015
guaranty
Wuhu Dongxu The joint
September
Optoelectronic Equipment 20,000 September 29, 2015 20,000 liability 1 year No No
29,2015
Technology Co., Ltd. guaranty
Wuhu Dongxu The joint
September
Optoelectronic Equipment 4,000 December 22, 2015 4,000 liability 1 year No No
29,2015
Technology Co., Ltd. guaranty
The joint
Beijing Xufeng Realestate October
120,000 November 5,2015 120,000 liability 5 years No No
Co., Ltd. 20,2015
guaranty
Wuhu Dongxu The joint
October
Optoelectronic Equipment 10,000 November 30,2015 5,000 liability 1 year No No
20,2015
Technology Co., Ltd. guaranty
Total of actual guarantee
Total of guarantee for subsidiaries
194,500 for subsidiaries in the 174,000
approved in the Period (B1)
Period (B2)
Total of actual guarantee
Total of guarantee for subsidiaries
564,000 for subsidiaries at 444,000
approved at Period-end (B3)
Period-end (B4)
Guarantee of the subsidiaries for the controlling subsidiaries
74
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Relevant
Date of Complete Guarantee
disclosure
Name of the Amount happening Actual implementa for
date/No. of Guarantee
Company of (Date o mount of Guarantee term tion associated
the type
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
194,500 174,000
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
564,000 Period-end 444,000
（A3+B3+C3）
（A4+B4+C4）
Including：
Amount of guarantee for shareholders, actual controller and its associated
0
parties（D）
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 5,000
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the company exceed
130,000
50%（F）
Total guarantee Amount of the abovementioned guarantees（D+E+F） 135,000
Description of the guarantee with complex method
（2）Illegal external guarantee
□ Applicable √ Not applicable
N/A
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
N/A
(2)Situation of Entrusted Loans
□ Applicable √ Not applicable
N/A
75
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
4. Other significant contract
□ Applicable √ Not applicable
N/A
XVIII. Explanation about other significant matters
□ Applicable √ Not applicable
There was no any other significant matters of the Company in the reporting period.
XIX. Major issues of subsidiary
□ Applicable √ Not applicable
XX. Social responsibility
□ Applicable √ Not applicable
XXI. Information about the corporate bonds
Whether the listed company failed to honor the corporate bonds public issued and listed on the Stock Exchange in
due or undue at the approval date of the annual report
Yes
1. Basic information of the corporate bonds
Method of
Bond
Abbreviated Bond repayment of the
Bond Name Code Issue Date Date Due Balance(RMB ’ Interest Rate
Name principal and
0000)
interest payment
Interest paid every
2015- corporate year, the principal
bond of Dongxu will be repaid with
Optoelectronic 15 Dongxu bonds 112243 May 19,2015 May 19,2020 100,000 6.00% the last unpaid
Technology Co., interest in one
Ltd time as the bond
due
Listed place or Transaction place for
Shenzhen Stock Exchange
the corporate bonds
Arrangement of investor’s eligibility Investor’s puttable right
Information about interest paid and
bonds honored during the reporting The period needed paying interest or repayment of principal is not mature.
period
Implementation of relevant special
clauses(if applicable) such as option None happened in the reporting period
clause for the bond issuer or investors
76
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
and exchangeable clause
2.Information about the bond trustee and credit rating agency
Bond trustee:
19-20/F, Main
Tower ,
Guangzhou
Guangzhou International
Shi Jianhua, Yan
Name Securities Co., Business Address Finance Center, Contacts Telephone 020-88836999
Xiangjun
Ltd. No.5 Zhujiang
West Road,
Tianhe District
Guangzhou City
The credit rating agency who follow up and rate the corporate bonds in the reporting period:
Room 508 Ailiyuan Apartment, No.38 Water Park North
Name United Rating Co.,Ltd Business Address
Road, Nankai District, Tianjin City
3.Information about the use of the funds raised by issuing corporate bonds
The information of the use of the funds Using the funds raised by issuing corporate bonds strictly conforming to the purpose
raised by issuing corporate bonds and stipulated by Rules of Management and Use of the Raised Funds and the Prospectus,
related implementation procedure and implemented the corresponding approval procedures
Ending balance of the year(RMB’0000) 33.71
Operation status of the special account for
Normal
the raised funds
Whether the use of the raised funds
conforming to the purpose, use plan and
The use of the raised funds conformed to the purpose promised in the Prospectus
other provisions specified in the
Prospectus
4. Information about the rating of the corporate bonds
The Untied Rating Co.,Ltd issued a Tracking and Rating Report according to the company’s 2014 annual report
on April 17, 2015, and the rating result was the same as the last time. According to the United Rating Co.,Ltd’s
requirements on tacking and rating, a regular rating shall be carried out within 2 months after the company’s
disclosure of 2015 annual report. Also, the United Rating Co.,Ltd shall carry out randomly tracking and rating
during the duration of the corporate bonds based on relevant information.
5. The corporate bond’s credit mechanism, repayment plan and other safeguard measures for repayment
Repayment Plan
I. Payment of the interest
1. The interest of the bonds shall be paid each year and the last payment of interest shall be paid with the principal.
Every payment of interest shall not be charged on interest after the interest paying day and the principal shall not
be charged on interest after the bond’s date due. The interest payment day of this corporate bond is May 19 of
each year from 2016 to 2020(If it is not a working day, the payment day will be postponed to the first working day
77
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
after the day).If the investors exercise the puttable right at the end of the third year in the duration of the bond, the
interest payment day of the bonds sold back is May 19 of each year from 2016 to 2018.
2. The payment of the interest of the bonds shall be handled through the bond registration institution and other
related institutions. The concrete information of the interest payment will be specified in the Interest Payment
Announcement issued on the media designated by CSRC, with in accordance with the relevant state regulations.
3. According to relevant national tax laws and regulations, the investor of the corporate bond shall fully bear the
relevant tax should be paid.
II. The repayment of the principal
1. The principal will be fully repaid in a time, and its repaying day is May 19, 2020. If the investors exercise the
puttable right at the end of the third year in the duration of the bond, the repaying day of the principal of the bonds
being sold back is May 19, 2018. (If the repaying day aforesaid is not a working day, the repaying day shall be
postponed to the first working day after the original day, and there is no need to pay interest in the deferred
period)
2. The repayment of the principal of the bonds will be handled through the bond registration institution and other
related institutions. The concrete information of repayment of the principal of the bonds will be specified in the
Principal Repayment Announcement issued on the media designated by CSRC, with in accordance with the
relevant state regulations.
Safeguard measures for the repayment
I. A designated special department in charge of the repayment working
The company designated its finance department to take the lead in the coordination work for repayment of the
bonds and the finance department shall coordinate other relevant departments to schedule the demanded funds for
the repayment of the bonds in every year’s financial budget, for ensuring the repayment of the interest and
principal of the bonds is timely, guaranteeing the bond-holder’s interest. The company will set up a working team
for repayment 15days before the day that is the interest paying day or principal repaying day of the bonds, with
the personnel of the finance department being included, to specially in charge of the work of paying the interest of
the bonds and the repayment of the principal.
II. Establishing Meeting Rules for Bond-holders
According to the provisions specified in the Pilot Approach, the company with bond trustee has established the
Meeting Rules for Bond-holders for the corporate bonds. The Meeting Rules for Bond-holders specified the scope,
procedures and other important items for the bond-holders to exercise rights through the Meeting of the
Bond-holders, which provided a reasonable institutional arrangement for the timely and full payment to the
interest and the principal of the corporate bonds.
III. Making the full use of the bond trustee
According to the requirements specified in the Pilot Approach, the company has adopted the institution of bond
trustee, engaged Guangzhou Securities Co.,Ltd as the trustee of the bonds this time and signed the Agreement of
Bond Entrusted Management with Guangzhou Securities. The Bond Trustee shall represent all the bond-holders to
supervise the relevant information about the company and take all necessary measures to protect the legitimate
interest of the bond-holders when the interest or principal of the bonds cannot be repaid in time. The company
shall strictly conform to the provisions specified in the Agreement of Bond Entrusted Management, being
cooperative when the bond trustee performance its duties, and regularly submit the report of commitment
fulfillment status to the bond trustee. When there is a possible bond default, the company shall notice the bond
trustee in time, thus the bond trustee can take other necessary measures in time according to the Bond Entrusted
Management.
Ⅳ. Strictly fulfilling the obligation of information disclosure
78
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
The company shall adhere to the information disclosure principles of authentic, accurate and completed, making
the information of the company’s repaying ability and use of the raised funds to be supervised by the bond trustee
and shareholders, for preventing the risk of repayment. According to the Agreement of Bond Entrusted
Management and relevant regulations, the company shall release the information of major issues, which include
but not limited to the following contents: (1) According to the Prospectus and agreement with the registered
trustee institution, the company shall transfer the maturity interest payment or principal to the account designated
by the registered trustee institution; (2) By estimate or in fact, the company cannot fully repay the interest or
principal of the bonds in time according to the provisions stipulated in the Prospectus; (3) Singing the guarantee
contract for external or other major contracts may have significant adverse effects of repaying the interest and
principal of the bonds; (4) A severe loss occurred or expected to occur, and the loss exceeds 10% of the net asset
audited in the last accounting year; (5) Occurrence of capital reduction, merger, division, dissolution, file for
bankruptcy, entering into bankruptcy procedure or other main changes of the company; (6) Occurrence of the
amount of subject in the major arbitration or lawsuit exceeding 10% of the net asset audited in the last accounting
year; (7) Planning to dispose the asset or debt with subject amount exceeding 10% of the net asset audited in the
last accounting year; (8) Planning to change the bond trustee; (9) Failing to perform or Planning to change the
stipulations specified in the Prospectus; (10) Alteration of the designated person for specially in charge of the
relevant matters of the corporate bonds; (11) Occurrence of suspending the bond transaction; (12) Others may
significantly impact the repaying of the interest and principal or circumstances specified by laws, administrative
regulations and stipulations by the CSRC or exchange.
Ⅴ. Setting up the capital management plan and strictly implementing the plan
After the issuance of the bonds, the company shall further reinforce the company’s assets and liabilities
management, liquidity management, use management of the raised funds, funds management and so forth
according to the company’s debt structure. Also, the company will set up monthly and yearly funds use plan based
on the maturity of repaying the interest and principal, ensuring on-schedule, timely and full-amount preparing of
the funds for repaying every year’s interest or principal of the bonds to adequately protect the investor’s interest.
VI. Commitments
According to the resolutions of the issuance of the bonds approved on the board meeting on Oct 21, 2014 and the
general meeting of shareholders on Nov 6, 2014, when the company cannot repay the interest or principal of the
bonds in time or fully repay the interest or principal of the bonds, the company shall take the following resolutions
and make corresponding measures: (1) None profit distribution to shareholders; (2) Postponing capital
expenditure items, such as major investment, merger and acquisition; (3) Reducing or stopping the salaries and
bonuses of the directors and senior management personnel; (4) No transferring of principal responsible personnel
and so on.
6. Information about the bond-holder meeting during the reporting period
There was no bond-holder meeting convened in the reporting period.
7. Information about the obligations fulfilled by the bond trustee in the reporting period
The bond trustee has been continuously following up the company’s credit status, and paid a visit to the company
in Dec, 2015, checking the bank statement of the designated account for the raised funds. Also, the trustee has
been continuously supervising the use of the raised funds.
8. The key accounting data and financial indicators of the latest two years to the end of the reporting period
In RMB’0000
Rate of change in the same
Items 2015 2014
period
79
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Earnings before interest, tax,
233,623.36 92,532.39 152.48%
depreciation and amortization
Net cash flows from investing
-419,567.25 -67,361.93 522.86%
activities
Net cash flows from financing
1,103,112.19 187,600.66 488.01%
activities
The Ending Balance of Cash
1,196,476.94 334,989.24 257.17%
and Cash Equivalents
Current ratio 259.46% 267.84% -8.38%
Debt ratio 49.44% 49.64% -0.20%
Quick ratio 208.76% 222.50% -13.74%
EBITDA/Total debts 16.41% 10.08% 6.33%
Interest coverage ratio 5.69 12.22 -53.44%
Cash interest coverage ratio 35.67 62.22 -42.67%
EBITDA interest coverage ratio 6.72 16.26 -58.67%
Loans repayment rate 100.00% 100.00% 0.00%
Interest payment rate 100.00% 100.00% 0.00%
The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over the last
year
□ Applicable √ Not applicable
9. Information about restrictions on asset right by the end of the reporting period
Items Borrowing amount/Limited amount Reason
Monetary funds 444,740,765.54 Pledge of deposit and loan
Inventory 914,716,683.08 Obtain loans as collateral
Fixed assets 5,853,008,739.24 Obtain loans as collateral
Intangible assets 244,542,726.48 Obtain loans as collateral
Construction in process 2,721,402,063.43 Obtain loans as collateral
Total 10,178,410,977.77
10. Information about the repayment of interest and principal for other bonds or debt financing instruments
11. Information about the bank credit obtaining and use, as well as repayment of the bank loans during the
reporting period
12. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of
the bonds during the reporting period
During the reporting period, the company had been strictly conforming to the stipulations specified in the
Prospectus of the issuance of the bonds to use the raised funds, and the company had fulfilled the commitments of
not using any raised funds to indirectly or directly invest real estate business or raise capital for the subsidiaries
engaged in real estate business.
80
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
13. Major events occurred during the reporting period
During the reporting period, the company had increased the guarantee amount of RMB 1740,000,000 for its
controlled subsidiaries and wholly-owned subsidies, beyond that, there were no major events occurred in
accordance with the article-45 specified in the Measures on Issuance and Management for Corporate Bonds
14. Whether the corporate bonds have a guarantor
□ Yes √No
81
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
VI. Change of share capital and shareholding of Principal
Shareholders
I. Changes in share capital
1. Changes in share capital
In Shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportio Capitaliza
n tion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
1.Shares with conditional 393,410,8 1,173,020, 1,172,434, 1,565,845
14.78% -586,000 40.83%
subscription 79 525 525 ,404
393,410,8 1,173,020, 1,172,434, 1,565,845
3.Other domestic shares 14.78% -586,000 40.83%
79 525 525 ,404
Incl：Domestic legal person 390,309,0 1,173,020, 1,173,005, 1,563,314
14.66% -15,000 40.76%
shares 00 525 525 ,525
Domestic Natural Person
3,101,879 0.12% -571,000 -571,000 2,530,879 0.07%
shares
II.Shares with unconditional 2,268,669, 2,269,255
85.22% 586,000 586,000 59.17%
subscription 122 ,122
2,018,669, 2,019,255
1.Common shares in RMB 75.83% 586,000 586,000 52.65%
121 ,121
2.Foreign shares in domestic 250,000,0 250,000,0
9.39% 6.52%
market 01 01
2,662,080, 1,173,020, 1,173,020, 3,835,100
III. Total of capital shares 100.00% 0 100.00%
001 525 525 ,526
Reasons for share changed:
√ Applicable □ Not applicable
1.On August 6, 2015, the Company reformed in equity division, which released the restricted shares, circulating 15,000 shares on the
market.
82
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
2.On November 25, 2015, stocks with restricted equity incentive met the unlocking requirements of Phase 1, releasing the restricted
shares and circulating 5,960,000,000 shares on the market
3.On December 17, 2015, the Company non-publicly issued 1,173,020,525 of new shares, separately locking for 12 months and 36
months.
4.On December 16, the former CFO Li Quannian left his post,of whose 30,000 shares of unlocked restricted stocks with awarded
equity incentive were locked for 6 months.
Approval of Change of Shares
√ Applicable □ Not applicable
1.On August 6, 2015, the Company reformed in equity division, which released the restricted shares, circulating 15,000 shares on the
market, of which the reform proposal was examined and adopted by relevant shareholder’s meeting of the Company convened on
March 6, 2006.
2.On October 29, 2015, the 43rd meeting of the 7th board of director of the Company and the 17th meeting of the board of
supervisors examined and adopted “Proposal on Unlocking Restricted Stocks Incentive Plan in the First Unlocking Period”,
agreeing
on the appliance for unlocking 20% of the 2.98 million awarded restricted shares of those 40 incentive objects.
3.Examined and approved by “Reply on Examining and Adopting Dongxu Optoelectric Technology Co., Ltd. Non-publicly Issue of
Shares”[2015]No.2270 with permission of CSRC, the Company issued 1,173,020,525 of A shares by means of non-public issue in
December 2015, of which the locking period was 12 months and 36 months
Ownership transfer of share changes
√ Applicable □ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
√ Applicable □ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
√ Applicable □ Not applicable
2. Change of shares with limited sales condition
√ Applicable □ Not applicable
In Shares
Number of Number of Increased
Initial Restricted Restricted Shares in Reason for Date of Restriction
Shareholder Name Unrestricted Shares Restricted Shares
Shares the End of the Term Restricted Shares Removal
This Term This Term
Of which
390,093,000 shares
Non-agency
Dongxu Group 390,093,000 0 439,882,697 829,975,697 will be released on
restricted shares after
April 18, 2016;
the first issue
439,882,697 of the
83
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
rest shares will be
released on
December 17, 2018.
Minsheng Royal Fund
Management Co., New non-agency
Ltd.-Ping An restricted shares after
Bank-Ping An 0 0 183,284,457 183,284,457 the first issue with December 17,2018
Trust-Ping An Wealth* non-public issue of
Huitai No.163 Single 2015
Fund Trust
Bosera Capital-Ping New non-agency
An Bank- Ping An restricted shares after
Trust-Ping An Wealth* 0 0 167,155,426 167,155,426 the first issue with December 17,2018
Huitai No.164 Single non-public issue of
Fund Trust 2015
Guangzhou
Securities-China
New non-agency
Guangfa
restricted shares after
Bank-Guangzhou
0 0 131,964,809 131,964,809 the first issue with December 17,2018
Securities No.2
non-public issue of
Collective Asset
2015
Management Plan of
Kunpeng Dingcheng
HuaAn Future
Asset-ICBC-No.1 New non-agency
Asset Management restricted shares after
Plan of Dongxu 0 0 96,774,193 96,774,193 the first issue with December 17,2018
Optoelectronic’s non-public issue of
Private Placement 2015
Dongxu Optoelectronic New non-agency
Technology Co., restricted shares after
Ltd-Phase 1 for 0 0 72,639,296 72,639,296 the first issue with December 17,2018
Employee Stock non-public issue of
Ownership Plan 2015
New non-agency
Kunshan Development restricted shares after
Zone State-invested 0 0 43,988,269 43,988,269 the first issue with December 17,2018
Holding Co., Ltd. non-public issue of
2015
Beijing Yinghai Hailin New non-agency
0 0 29,325,513 29,325,513 December 17,2018
Investment Center( restricted shares after
84
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Limited Partnership ) the first issue with
non-public issue of
2015
Shanghai Changjiang
Wealth Asset-China New non-agency
Merchant restricted shares after
Bank-Changjiang 0 0 8,005,865 8,005,865 the first issue with December 17,2018
Wealth-No.1 Plan for non-public issue of
Dongxu Special Asset 2015
Management
Sichuan Leshan Non-agency
Diamond Natural 15,000 15,000 0 0 restricted shares after August 6,2015
Abrasive Co., Ltd. the first issue
The shares will be
unlocked by stages
after meeting the
unlocking condition
Stock incentive
for restricted stock
The 40 Shareholders hasn’t been
3,080,000 596,000 46,879 2,530,879 with stock incentive;
Awarded Stock unlocked; Executives
After 6 months the
Incentive locked the shares
executive left his
post, 30,000 shares
will be released on
June 16, 2016.
Till the relevant
The 9 Non-agency shareholders entrust
Non-agency
Restricted the Company to
201,000 0 0 201,000 restricted shares after
Shareholders before conduct the release
the first issue
the First Issue business for the
restricted shares
Total 393,389,000 611,000 1,173,067,404 1,565,845,404 -- --
II. Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
√ Applicable □ Not applicable
Description of stock
Issuing price(Or Quantity approved Expiration date of
and its Derivative Issuing date Issuing quantity Listing date
interest rate) for listing transaction
securities
Stocks
85
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Dongxu
November 12, 2015 6.82 1,173,020,525 December 17, 2015 1,173,020,525
Optoelectronic
Convertible Corporate Bonds, Detachable Convertible Bond and Corporate Bonds
15 Dongxu Bonds May 19, 2015 6% 1,000,000,000 July 8, 2015 1,000,000,000
Other derivative securities
Notes
2.Change of asset and liability structure caused by change of total capital shares and structure
√ Applicable □ Not applicable
Approved by CSRC permission[2015] Document No.2270 for “Reply on Approving Non-public Issue of Share
by Dongxu Optoelectronic Technology Co., Ltd.”, the company non-publicly issued 1,173,020,525 of A shares, of
which the issue price was RMB 6.82 /share and the net raised fund was RMB7,940,523,244.49. On December 17,
2015, 1,173,020,525 of new shares listed in SZSE, where RMB 1,173,020,525 increased in the company’s share
capital, the general share capital was up to RMB 3,835,100,526 and RMB 6,767,502,719.49 increased in the
company’s capital reserve.
3.About the existing employees’ shares
□Applicable√Not applicable
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
Total
The total number o preferred shareh
Total number Total
f preferred shareho olders at the end
of common shareholders at
lders voting rights of the month
shareholders at the end of the
212,702 restored at period-e 0 from the date of 0
the end of the month from the
nd disclosing the
reporting date of disclosing
(if any)(See annual report(if
period the annual report
Notes 8) any)(See Notes
8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Amount Amount Number os share pledged/frozen
Proportio Changes
of shares of of
Shareholders Nuture of n of in
held at restricted un-restrict
shareholder shares reporting State of share Amount
period shares ed shares
held（%） period
-end held held
86
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Domestic Non
829,975,6 439,882,6 829,975,6
Dongxu Group -State-owned legal 21.64% Pledge 322,030,000
97 97 97
person
Shijiazhuang Domestic Non
332,382,1 332,382,1
Baoshi Electronic -State-owned legal 8.67% Pledge 329,770,148
71 71
Group Co., Ltd. person
Minsheng Royal
Fund Management
Co., Ltd.-Ping An
Bank-Ping An 183,284,4 183,284,4 183,284,4
0tuer 4.78%
Trust-Ping An 57 57 57
Wealth* Huitai
No.163 Single
Fund Trust
Bosera
Capital-Ping An
Bank- Ping An
167,155,4 167,155,4 167,155,4
Trust-Ping An Other 4.36%
26 26 26
Wealth* Huitai
No.164 Single
Fund Trust
Guangzhou
Securities-China
Guangfa
Bank-Guangzhou
131,964,8 131,964,8 131,964,8
Securities No.2 Other 3.44%
09 09 09
Collective Asset
Management Plan
of Kunpeng
Dingcheng
HuaAn Future
Asset-ICBC-No.1
Asset Management 96,774,19 96,774,19 96,774,19
Other 2.52%
Plan of Dongxu 33 3
Optoelectronic’s
Private Placement
Dongxu
Optoelectronic
Technology Co., 72,639,29 72,639,29 72,639,29
Other 1.89%
Ltd-Phase 1 for 66 6
Employee Stock
Ownership Plan
87
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
China Securities State-owned legal 69,487,96 69,487,96
1.81%
Finance Co., Ltd. person 2 2
Kunshan
Development Zone State-owned legal 43,988,26 43,988,26 43,988,26
1.15%
State-invested person 99 9
Holding Co., Ltd.
Bank of China－
Huaxia New
36,608,09 36,608,09
Economic Mixed Other 0.95%
8 8
Securities
Investment Funds
Strategy investors or general legal Before the country's top ten shareholders of Kunshan Development Zone Investment
person becomes top 10 shareholders Holdings Limited was involved in the company in 2015 non-public offering to subscribe,
due to rights issued (if applicable)（See became the top 10 shareholders. The sub-holding restricted period of 36 months, ie
Notes 3） December 17, 2015 to December 16, 2018.
Among the top ten shareholders , Dongxu Group and Baoshi Group, Dongxu
Notes to the related relationship Optoelectronic – II Employee stock ownership plan have relationship and constitute
between the top ten shareholders or persons taking concerted action. The company does not know whether there is relationship
their concerted action between other 8 shareholders or whether they are persons taking concerted action defined
in Administrative Measures Relating to Acquisitions of Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period (Note 4) Share type Quantity
Shijiazhuang Baoshi Electronic Group RMB Common
332,382,171 332,382,171
Co., Ltd. shares
RMB Common
China Securities Finance Co., Ltd. 69,487,962 69,487,962
shares
Bank of China－Huaxia New
RMB Common
Economic Mixed Securities 36,608,098 36,608,098
shares
Investment Funds
RMB Common
Huijin Asset Management Co., Ltd. 24,205,500 24,205,500
shares
RMB Common
Wang Wenxue 20,218,792 20,218,792
shares
China Mensheng Bank－Oriental
RMB Common
Featured mixed Open Securities 7,000,000 7,000,000
shares
Investment Funds
Yinhua Funds－Agricultural Bank of
RMB Common
China－Yinhua CSI Financial Asset 6,632,927 6,632,927
shares
management Plan
88
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
RMB Common
Wu Yizhong 5,998,100 5,998,100
shares
Foreign shares
China Merchants Securities (HK) placed in
5,844,751 5,844,751
Co.,Ltd. domestic
exchange
Foreign shares
Sherwan Hongyuan Securities(HK) placed in
5,512,690 5,512,690
Co., Ltd. domestic
exchange
Explanation on associated relationship
or consistent action among the top 10 Shijiazhuang Baoshi Electronic Group Co., Ltd, the first 10 shareholders with unrestricted
shareholders of non-restricted circulating shares and Dongxu Group Co., Ltd, Dongxu Optoelectronic Technology Co.,
negotiable shares and that between the Ltd., the first 10 shareholders- Association relationship existed in Employee Stock
top 10 shareholders of non-restricted Ownership Plan Phase 1, constituting the relationship of persons acting in concert.
negotiable shares and top 10
shareholders
Wang wenxue and Wu Yizhong, the first 10 ordinary shareholders with shares without
restricted condition, separately held 19,260,592 and 5,998,100 of the Company’s shares by
Explanation on shareholders
means of the securities accounts with customer credit guarantee of China Securities and
participating in the margin trading
Shenwan Hongyuan Securities, which separately occupy 0.5% and 0.16% of the
business(if any )(See Notes 4)
Company’s total shares.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Corporation Group Holding; Natural Person Holding
Type of Controlling Shareholders:Legal person
LegalLegal Date of
Name of the Controlling Principal business
representative incorporati ofOrganization code Organization codeCapitalPrincipal business activities
shareholder activities
/Leaderr on
Investing projects with
owned funds; Development
Dongxu Group Li Zhaoting November 5, 2004 76813036-3 of mechanical equipment
and electronic products;
Productions and process
89
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
formulation of various
non-standard equipment
and components; Process
and sales of component for
abrasive materials and
electromechanical
products(no equipment of
public security); Import and
export of self-run and agent
goods and technology;
Computer system
integration ; Software
development; Technology
consulting; Installation and
engineering consulting of
electromechanical
device(no pre-licensing
projects included above).
(Operation is allowed only
if being within the confines
of the above laws and
regulations and the matters
forbidden or restricted by
the State Council;
Operation is allowed once
the matters are examined
and approved by other
departments.
The equity of the controlling
shareholder in other domestic Up to December 31, 2015, Dongxu Group has held 140,299,605 shares of Baoan Hongji Real
and foreign listed companies Estate Group Co., Ltd., occupying 29.88% of this company’s total share capital.( Stock
held or partly held by it in the abbreviation: Baoan Real Estate, Stock code:000040)
report period
Change of the actual controller in the reporting period
□Applicable √Not applicable
N/A
3．Information about the controlling shareholder of the Company
Actual controller nature：Domestic naturaol person 人
Actual controller type：Natural person
90
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Whether to obtain the right of abode in other countries or
Name Nationality
regions
Li Zhaoting China No
Refer to: 3.Tenure Situation in Chapter 8 Situation of Directors, Supervisors, Senior
Main occupations and duties Executives and Employee of the
Company
In 2015, the actual controller of the Company held 140,299,605 shares of Baoan
Situation of domestic and abroad holding Hongji Real Estate Group Co., Ltd. by means of Dongxu Group, occupying 29.88%
listed companies in the part 10 years of this company’s total share capital( Stock abbreviation: Baoan Real Estate, Stock
code:00040)
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
Huarong
Liu Yinqing Li Zhaoting Li Wenting International
Trust Co., Ltd.
0.038% 51.778% 0.036% 48.148%
Beijing Dongxu
Dongxu Optoelectronic
Investment Li Qing Li Wenting
Technology Co., Ltd
Management Co., Ltd
22.22% 22.55% 51.46% 3.77%
Dongxu Group
66.67%
70%
30%
Beijing Heran Hengye
Technology Co., Ltd.
Dongxu
Optoelectronic Other shareholder
Technology Co., Ltd
8.67% 21.64% 69.69%
Dongxu Optoelectronic Technology
Co., Ltd.
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
91
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
4.Other corporate shareholder holding over 10% of the Company’s shares
□Applicable √Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
VII. Situation of the Preferred Shares
□ Applicable √Not applicable
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
In office Male 50 0 0 0 0
Zhaoting chairman 29,2013
July
Zhou Bo Director In office Male 50 129,172 0 0 129,172
29,2013
Director,
June
Gong Xin Board In office Female 36 100,000 0 0 100,000
1,2015
secretary
July
Niu Jianlin Director In office Male 51 150,000 0 0 150,000
29,2013
Independe July
Mu Tiehu In office Male 48 0 0 0 0
nt director 29,2013
Zhang Independe In office Male 54 July 0 0 0 0
92
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Shuangcai nt director 29,2013
Independe May
Lu Guihua In office Male 47 0 0 0 0
nt director 19,2014
Chairman
of the
Guo July
supervisor In office Male 51 0 0 0 0
Zhisheng 29,2013
y
committee
Wang July
Supervisor In office Male 51 0 0 0 0
Jianqiang 29,2013
Xie
July 29,
Mengxion Supervisor In office Male 59 0 0 0 0
2013
g
October
Xie Juwen Supervisor In office Male 38 0 0 0 0
15,2014
Wan October
Supervisor In office Female 30 0 0 0 0
Huanhuan 15,2014
Shi General July
In office Male 49 200,000 0 0 200,000
Zhiqiang Manager 29,2013
Deputy
July 29,
Liu Wentai General In office Male 46 150,000 0 0 150,000
2013
Manager
Deputy
Xiao May
General In office Male 31 0 0 0 0
Zhaoxiong 15,2015
Manager
December
Zhou Bo CFO In office Male 36 0 0 0 0
16,2015
Director,
Fu July 29, April
Board Dimission Female 48 150,000 0 0 150,000
Yinfang 2013 20,2015
secretary
Deputy
Hou July May
General Dimission Male 49 150,000 0 0 150,000
Jianwei 29,2013 15,2015
Manager
Li July December
CFO Dimission Male 41 150,000 0 0 150,000
Quannian 29,2013 16, 2015
Total -- -- -- -- -- -- 1,179,172 0 0 1,179,172
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
II. Change in shares held by directors, supervisors and senior executives
Name Positions Types Date Reason
Director,
Fu Yinfang Dimission April 20,2015 Job Change
Board secretary
Deputy General
Hou Jianwei Dimission May 15,2015 Job Change
Manager
December
Li Quannian CFO Dimission Job Change
16,2015
III.Posts holding
The professional background, working experience and main responsibilities of the current board members,
supervisors and senior managers in the company
1. Mr. Li Zhaoting，Chinese, born in 1965，graduated from Hebei University of Technology as a mechanical
engineering major, senior engineer, member of the Communist Party of China and the founder of Dongxu Group.
Li has served successively as the general manager assistant and vice-general manager of Shijiazhuang Diesel
Engine Factory, and Chairman of Hebei Dongxu Investment Group Co., Ltd. Li is now the chairman of the
company and the subsidiaries including Wuhu Dongxu Photo-electric Science &Technology Co., Ltd. At the same
time, he is also the chairman of Dongxu Group and Dongxu Photoelectric Investment, general manager of COE,
and the vice chairman as well as general manager of Chengdu COE. Li is the 12th National People's Congress
member, vice chairman of Innovation Promotion Committee of The Chinese Association of Productivity Science,
vice chairman of Electronic Glass Branch of the Chinese Ceramic Society, honorary board member of Peking
University, board director of Renmin University of China and Beijing Jiaotong University, member of the
standing committee of Hebei Youth Federation, and the executive council member of young entrepreneurs in
Hebei. He has been awarded the“10 Person of the Year of 2012 Innovative China”“The Most Respected Listed
Company Leaders in 2013”, “Ten Innovation Leaders of China’s Economy in 2014”, “Person of the Year in
2014 of Brand China (Electronic Information) ” , “ 2014 Individual Quality Prize by Hebei Provincial
Government”, “The Outstanding Private Entrepreneurs of Hebei”, “Outstanding Young Entrepreneurs of
Shijiazhuang” and etc.
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. Ms.Gong Xin, Nationality: Chinese, born in 1979, bachelor degree. She once worked in Capital Edge Investment and
Management as Project Manager of Investment-banking Department, Assistant to Chairman, Vice General Manager and etc. Now
Gong is Chief of Securities Department, Company Direcotr and Board Secretary of the company.
94
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
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. ow is Independent Director of Hanvon Technology Co., Ltd., China Minsheng Investment Corp., Ltd., Hebei
Iron and Steel Co., Ltd. and the company.
6.Mr. 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 the Company.
9.Mr. Wang Jianqiang, 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 serves as supervisor of the Company.
11.Mr. Xie Juwen, Chinese nationality, born in June 1977, Master's degree, specializing in project management, B
eijing Polytechnic University, a former Beiren group R & D engineers, project managers, the group of Beiren fold
ing 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 Busi
ness University accounting profession, a former iron Information Group Limited audit manager; Jiangsu Huaxing
Accounting Company business manager; Shenzhen Jun Zhiyuan Accounting Company business commissioner. T
he Audit Manager supervisor in Audit Supervision Department .
13.Mr.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
95
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
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. Xiao Zhaoxiong，Chinese Nationality, born in 1984，bachelor degree, was the marketing manager of Global
Marketing Dept. and Securities Transactions Representative of Stock Dept. of The Board Secretary's Office of
BOE. Now Xiao is Vice-director of Securities Dept. and Vice-general Manager of the company.
16. Mr. Zhou Bo，Chinese Nationality, born in 1979，MBA of School of Economics and Management of Tsinghua
University, is certified public accountant and certified tax agent. He was General Manager of Financial Asset
Management Dept. of China Electronics Import and Export Corporation and now is Finance Director of the
company.
Office taking in shareholder companies
√Applicable □Not applicable
Titles Does he /she
Names of the engaged in receive
Sharing date Expiry date of
persons in Names of the shareholders the remuneration or
of office term office term
office shareholder allowance from
s the shareholder
Board
Li Zhaoting Dongxu Group Yes
chairman
Zhou Bo Baoshi Group Director No
Vice
Wang Jianqiang Dongxu Group Yes
President
Offices taken in other organizations
√Applicable □Not applicable
Whether
receiving
Office term Office term
Name Name of other units Position remuneration
start from ended
from other units
or not
Executive
Beijing Dongxu Investment Management
Li Zhaoting director, No
Co., Ltd.
Manager
Executive
Beijing Dongxu Investment Development
Li Zhaoting director, No
Co., Ltd
Manager
Li Zhaoting Dongxu Optoelectronic Investment Co., Executive No
96
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Ltd. director
Sichan Xuhong Optoelectronic Executive
Li Zhaoting No
TechnologyCo., Ltd. director
Mudanjiang Xuyang Solar energy Board
Li Zhaoting No
Technology Co., Ltd. chairman
Jinzhou Xulong Solar energy Technology Board
Li Zhaoting No
Co., Ltd. chairman
Tongliao Xutong Solar energy Technology Board
Li Zhaoting No
Co., Ltd. chairman
Dongxu（Yingkou）Optoelectronic Board
Li Zhaoting No
DisplayCo., Ltd. chairman
Chengdu Xushuang Solar energy Board
Li Zhaoting No
Technology Co., Ltd. chairman
General
Li Zhaoting Zhong Optoelectronic Technology Co., Ltd. No
Manager
Zhengzhou Xufei Optoelectronic
Li Zhaoting Director Yes
Technology Co., Ltd.
Shijiazhuang Baoshi Large-diameter Board
Li Zhaoting No
plastic tube Co., ltd chairman
Beijing Dongxu Tianze Real Estate Board
Li Zhaoting No
Development Co., Ltd. chairman
Hebei Rongzhuo Real Estate Board
Li Zhaoting No
DevelopmentCo., Ltd. chairman
Beijing Dongxu Enterprise Planning Co., Board
Li Zhaoting No
Ltd. chairman
Vice Board
chairman,
Li Zhaoting Ningbo Xuze Industrial Co., Ltd. No
General
Manager
Board
Li Zhaoting Tibet Financial Leasing Co., Ltd. No
chairman
Board
Li Zhaoting Beijing Xufeng Real Estate Co., Ltd. No
chairman
Wuhu Dongxu Optoelectronic Technology
Li Zhaoting Director Yes
Co., Ltd.
Executive
Wuhu Dongxu Optoelectronic Equipment director,,
Li Zhaoting No
Technology Co., Ltd. General
Manager
97
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Executive
Shijiazhuang Dongxu Optoelectronic
Li Zhaoting director,, No
Equipment Technology Co., Ltd.
Manager
Executive
Wuhan Dongxu Optoelectronic Technology
Li Zhaoting director,, No
Co., Ltd.
Manager
Executive
Chengdu Zhong Optoelectronic Technology
Li Zhaoting director,, No
Co., Ltd.
Manager
Shijiazhuang Xuling Electrinic Board
Li Zhaoting No
Technology Co., Ltd. chairman
Executive
Li Zhaoting Shijiazhuang XumingTube Co., Ltd. director,, No
Manager
Shijiazhuang Xuxin Optoelectronic Board
Li Zhaoting No
Technology Co., Ltd. chairman
Hebei Xubao Construction Installation Board
Li Zhaoting No
Engineering Co., Ltd. chairman
Li Zhaoting Dongxu Technology Group Co., Ltd. Director No
Executive
Li Zhaoting Dongxu Technology Development Co., Ltd. director,, No
Manager
Executive
Li Zhaoting Beijing Heran Hengye Technology Co., Ltd. director,Gene No
ral Manager
Board
Ningxia Dongxu Solar Energy chairman,
Li Zhaoting No
TechnologyCo., Ltd. General
Manager
Executive
Beijing Dongxu Hongda Technology Co.,
Li Zhaoting director,, No
Ltd.
Manager
Chengdu Dongxu Energy Technology Board
Zhou Bo No
Co.,Ltd. chairman
Shijiazhuang Baoshi Electronic vacuum
Zhou Bo Director No
Glass Co., Ltd.
Zhou Bo Shijiazhuang Baodong Electrinic Co., Ltd. Director No
Shijiazhuang Xuling Electrinic
Zhou Bo Director No
Technology Co., Ltd.
98
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Zhou Bo Shijiazhuang Baishi Xuming Tube Co., Ltd. Director No
Shijiazhuang Xuxin Optoelectronic
Zhou Bo Director No
Technology Co., Ltd.
Shijiazhuang Baoshi Zhonghe Steel
Zhou Bo Director No
Plastic Shape Co., Ltd.
Hebei Energy SavingLighting Technology
Zhou Bo Director No
Co., Ltd.
Zhou Bo Shijiazhuang Baoshi Color Bulb Co., Ltd. Director No
Shijiazhuang Baoshi Large-diameter
Zhou Bo Director No
plastic tube Co., ltd
Wuhan Dongxu Optoelectronic Technology General
Shi Zhiqiang No
Co., Ltd. Manager
Wuhu Dongxu Optoelectronic Technology General
Shi Zhiqiang Yes
Co., Ltd. Manager
Mudanjiang Xuyang Solar Energy
Wang Jianqiang Director No
Technology Co., Ltd.
Jinzhou Xulong Solar Energy Technology
Wang Jianqiang Director No
Co., Ltd.
Dongxu（Yingkou）Optoelectronic Display
Wang Jianqiang Director No
Co., Ltd.
Chengdu Xushuang Solar Energy
Wang Jianqiang Director No
Technology Co., Ltd.
Wuhu Dongxu Optoelectronic Technology
Wang Jianqiang Director No
Co., Ltd.
Wuhan Dongxu Optoelectronic Technology
Wang Jianqiang Director No
Co., Ltd.
Chengdu Dongxu Energy saving
Wang Jianqiang Director No
Technology Co., Ltd.
Executive
Jiangsu Dongxu Yitai Intelligent
Wang Jianqiang director,Gene No
EquipmentCo., Ltd.
ral Manager
Beijing Hexue Guanglu Technology Co., Board
Wang Jianqiang No
Ltd. chairman
Ningxia Xutang New Material Technology
Wang Jianqiang Supervisor No
Co., Ltd.
Beijing Dongxu Investment Development
Liu Wentai Director No
Co., Ltd.
Liu Wentai Wuhu Dongxu Optoelectronic Eq1uipment Director No
99
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Technology Co., Ltd.
Mu Tiehu Hylands law firm Lowyer Yes
Kangxin New Material Technology Co., Independent
Mu Tiehu Yes
Ltd. director
Dalian Yishida New Energy Independent
Mu Tiehu Yes
DevelopmentCo., Ltd. director
Zhang
Hebei University , College of Management Professor Yes
Shuangcai
Zhang Independent
Lekai Film Co., Ltd. Yes
Shuangcai director
Zhang Independent
Boshen Tooks Co., Ltd. Yes
Shuangcai director
Zhang Independent
Baoding Tianwei Electric Co., Ltd. Yes
Shuangcai director
Independent
Lu Guihua Hanvon Polytron echnology Co., Ltd. Yes
director
Independent
Lu Guihua Mensheng Holding Co., Ltd. Yes
director
Independent
Lu Guihua Hebei Iron & steel Co., Ltd. Yes
director
Central University of Finance and
Lu Guihua Professor Yes
Economics
Tongliao Xutong Solar Energy General
Xie Mengxiong Yes
TechnologyCo., Ltd. Manager
Director,
Dongxu（Kunshan ）Display Material
Guo Zhisheng General Yes
Co.,Ltd.
Manager
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV.Remuneration to directors, supervisors and senior executives in the reporting period
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
The payments for the company board directors, supervisors and senior managers are determined on the salary
management system. The annual payments (including basic wages, bonus, allowance, subsidy, welfare expense
and insurance premium, housing accumulation funds and other pretax net payments paid by the company) paid to
board directors, supervisors and senior managers in 2015 are all based on the salary standard administration
related to the job responsibilities, performance appraisal and salary level of the corresponding post. During the
report period, the salaries for board directors, supervisors and senior managers have been paid monthly.
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Remuneration to directors, supervisors and senior executives in the reporting period
In RMB’0000
Total Whether to get
remuneration paid in the
Name Positions Sex Age Office status
received from the company related
Company party
Li Zhaoting Board chairman Male 50 In Office Yes
Zhou Bo Director Male 50 In Office 41.65 No
Director/Board
Gong Xin Female 36 In Office 51.77 No
secretary
Niu Jianlin Director Male 51 In Office 41.94 No
Independent
Mu Tiehu Male 48 In Office 5 No
Director
Independent
Zhang Shuangcai Male 54 In Office 5 No
Director
Independent
Lu Guihua Male 47 In Office 5 No
Director
Chairman of the
Guo Zhisheng supervisory Male 51 In Office Yes
committee
Wang Jianqiang Supervisor Male 51 In Office Yes
Xie Mengxiong Supervisor Male 59 In Office Yes
Xie Juwen Supervisor Male 38 In Office 20.71 No
Wan Huanhuan Supervisor Female 30 In Office 9.03 No
Shi Zhiqiang General Manager Male 49 In Office 60 No
Deputy General
Liu Wentai Male 46 In Office 34.44 No
Manager
Deputy General
Xiao Zhaoxiong Male 31 In Office 25.58 No
Manager
Zhou Bo CFO Male 36 In Office 29.8 No
Director,
Fu Yinfang Female 48 Dimission 55.5 No
Board secretary
Deputy General
Hou Jianwei Male 49 Dimission 35.32 No
Manager
Li Quannian CFO Male 41 Dimission 40.17 No
Incentive equity to directors, supervisors or/and senior executives in the reporting period
√Applicable□Not applicable
101
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
In shares
Exercise
Number of
Price of Market Number of
Number of Number of Restricted Grant Number of
Vested Price in Number os Restricted
Vesting Vested Shares at Price of Restricted
Shares the End of shares to Shares
Shares Shares the Restricted Shares in
Name Position Within Reporting unlock of Granted
Within Within Beginning Shares the End of
Reporting Period reporting Within
Reporting Reporting of (yuan/shar Reporting
Period (yuan/shar period Reporting
Period Period Reporting e) Period
(yuan/shar e) Period
Period
e)
Niu Jianlin Director 150,000 30,000 0 0 120,000
Deputy
Liu Wentai General 150,000 30,000 0 0 120,000
Manager
Shi General
200,000 40,000 0 0 160,000
Zhiqiang Manager
Zhou Bo Director 100,000 20,000 0 0 80,000
Director,
Gong Xin Board 100,000 20,000 0 0 80,000
secretary
Total -- 0 0 -- -- 700,000 140,000 0 -- 560,000
The restricted stocks for ownership incentive issued to the above mentioned board directors
and senior managers have reached the conditions for unlocking during the report period and
Notes（If any）
the proportion of unlocking is 20% of the restricted stocks. The rest 80% of the stocks are
still restricted.
V. Particulars about employees.
（1）Particulars about employees.
The company implemented the labor contract system, in accordance with the provisions of the "Labor Contract La
w" and the relevant laws and regulations, strict implementation of national employment system, labor protection s
ystem, the social security system and medical insurance system, the company retired worker costs assumed by soc
ial pooling costs instead of the company.
As of December 31, 2015, the Company(including subsidiary) has 5050 staff members in total.
Number of Proportion Particulars about Number of Proportion（%）
Particulars about Persons （%） education Persons
employees.
Production 1614 31.96% Postgraduate or 60 1.19%
102
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
above
Technical 2028 40.16% Universities 1603 31.74%
Administrative 1303 25.8% Colleges 1836 36.36%
Financial 105 2.08% Mid-schoool or 1551 30.71%
below
Total 5050 100.00% Total 5050 100.00%
Payroll cost of the company
This period
The current (people) the total number of paid staff 5,050
The current overall compensation amount ($ten 52,326.36
103
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
thousand)
Overall compensation ratio of current operating
11.25%
revenues
Executive compensation amount per capita (RMB
30.73
ten thousand/person)
All employees per capita salary amount (RMB ten
10.36
thousand/person)
104
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
IX. Administrative structure
I. General situation
In strict accordance with the Company Law of the PRC, the Securities Law of the PRC, Shenzhen Stock
Exchange Listing Rules, Instructions on Standard Operation for Main-board Listed Companies of Shenzhen Stock
Exchange and other normative documents, the company manages sincerely, operates legally and fulfills its
information disclosure obligations in time. Gradually established and improved shareholders meeting, board of
directors, board of supervisors and the independent director system have perfected the framework of corporate
governance made up of shareholders meeting, board of directors, board of supervisors and the management, and
formed a mechanism within which the authority, decision-making body, supervisory body and the management
share well defined power and responsibility and the operation has been standardized with inter-coordination and
mutual restriction.
Shareholders Meeting is the authority organ of the company. In 2015, 5 shareholders meetings in total have been
convened. In strict accordance with Articles of Incorporation and Rules of Procedure of Shareholders Meeting, the
shareholders meeting and the shareholders have fulfilled their obligations with efforts and exercised shareholders'
rights in accordance with the law. The gathering, convening and voting procedures of shareholders meetings are
legal and the resolutions are legal and available. The company has actively protected the voting right of small and
medium investors, all the shareholders meetings have been convened in the form of onsite and online meetings.
During the report period, the company has revised and improved Rule of Procedure of Shareholders Meeting. The
establishment and implementation of shareholders' meeting organization and institutions have acted positive
effects on perfecting corporate governance structure and standardizing corporate operation.
Board of Directors is responsible to the shareholders meeting and 21 meetings have been convened by Board of
Directors during the report period. In strict accordance with related laws and regulations, Articles of Incorporation
and Rules of Procedure of Board of Directors, the company has executed board meeting mechanism. The directors
have fulfilled obligations with efforts and have exercised their rights according to law. The gathering, convening
and voting procedures of board meetings are legal and the resolutions are legal and available. Besides deliberating
on routine business, Board of Directors has played an actual role in appointing and dismissing senior managers,
major investments, formulating general systems and other issues. Board of Directors of the company consists of
Strategy Committee, Audit Committee, Nominations Commission, and Remuneration and Appraisal Committee.
Conveners have been confirmed in each special committee for the internal communication and cooperation.
Special committees under Board of Directors are in charge of approving and reviewing business strategies and
major decisions of the company on a regular basis. Strategy Committee is permitted to research the long-term
development strategy program, major investment financing plans, significant capital operation and assets
management projects of the company and provide suggestions. Audit Committee is permitted to supervise the
internal audit system and the implementation of the company, audit the financial information, and provide
suggestions on the acceptable level of business risks based on the information provided by Audit Department.
Nominations Commission is permitted to research the selection criteria and procedures of board directors and
senior managers, widely search for eligible board directors and senior managers, examine and provide suggestions
on the board director’s candidates and senior managers. Remuneration and Appraisal Committee is permitted to
research assessment criteria of board directors and senior managers, research and review payment policies and
programs of board directors and senior managers, and assess and provide suggestions based on the actual situation.
105
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
The establishment and implementation of the board of directors and the mechanism have acted positive effects on
perfecting corporate governance structure and standardizing corporate operation.
Independent board directors protect the interests of small and medium shareholders. During the report period, the
company has executed independent director system in strict accordance with related laws and regulations, Articles
of Incorporation and Work System of Independent Board Directors. Independent board directors have fulfilled
obligations with efforts and have exercised their rights according to law. Independent board directors of the
company are diligent and dutiful, acquire information related to the production and operation in time, comprehend
the development situation of the company in all directions, actively attend related meetings of the company, fully
play their roles as independent board directors, and effectively protect the interests of the company and
shareholders.
The management is responsible to Board of Directors. Based on Articles of Incorporation, the management has
established and perfected all kinds of systems, covering the whole process of operation including financial
management, operation management and administrative management, which have ensured the orderly procedure
and standardized operation of the company. Systems mainly contain: Rules of Procedure of Shareholders Meeting,
Rules of Procedure of Board of Directors, Rules of Procedure of Board of Supervisors, Working System of
Information Disclosure, Management System of Related Transaction, Management System of Raised Funds
Utilization, Implementing Rules of Committees under Board of Directors, Reporting System of Internal Major
Issues, Major Mistake Accountability System of Information Disclosed in Annual Reports, Registration and
Management System of Insider Information Sources, Management System of External Information Users, and etc.
During the report period, on the basis of existing institutional system, the company has formulated and revised
Manual of Internal Control and the matching Manual of Internal Control Evaluation, Risk Management System,
and Management System of Internal Control and Operation, which have further supplemented and perfected the
internal control management mechanism and system, and ensured the normal operation of the company.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
□ Yes √ No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The controlling shareholder of the company has the standard behavior and hasn‘t directly or indirectly interfered
the decision-making and operations of the company beyond the shareholders‘ meeting. “Five Separations”
achieved on the fields of human resource, finance, assets, organization and business by the company and holding
shareholders.
1. Human resource: Management on labor, personnel and wages by the company is independent from holding
shareholders. Senior managers all receive payments in the company; none of them receive payment from or serve
in controlling shareholder's entities.
2. Finance: An independent financial management department and accounting system have been established. A
formal financial management system has been set up for independent financial decisions. An independent bank
account has been opened for independent tax payment in accordance with the law. No accountant work
106
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
simultaneously in controlling shareholder's entities.
3. Assets: The property rights of company's assets are clear and complete. Production system and supporting
facilities independent from holding shareholders have been built up, and free use and embezzlement of corporate
assets by holding shareholders or other related parties will not happen.
4. Organization: A sound organization system has been constructed in the company, with which Board of
Directors, Board of Supervisors and internal organizations operate independently and no affiliation exists between
holding shareholders and functional departments. All the holding shareholders participate in corporate decisions in
accordance with legal procedures and have caused no influence on the independence of the corporate operation
and management.
5. Business: The company operates independently with complete business structure as well as independent
production, sale and financial systems. The company operates and manages independently in accordance with the
statutory scope of business, and no shareholders will directly or indirectly control and intervene in the supply and
sale. Complete and independent business has been maintained with major shareholders.
III. Competition situations of the industry
√ Applicable e □ Not applicable
Name of Holding
Nature of Holding Schedule and
Problem Types Shareholders Causes of Problems Solving Measures
Shareholders Follow-up Plan
It is planned to inject
all the equities of
Dongxu (Yingkou)
and Sichuan Xuhong
into the company
The non-public
before December 31,
issuing of stocks for Dongxu Group,
2016. If the equities
funds raising “ G6 Sichuan Xuhong,
of the trustee
FPD LCD glass Dongxu (Yingkou)
companies are
substrate production and the shareholders
unable to satisfy the
line” signed entrusted
conditions of capital
Competitions in the carried out by management
Dongxu Group Individual infusion due to the
industry Sichuan Xuhong and agreements with the
industry downturn,
Dongxu (Yingkou), company, which
changes of
which are controlled authorizes the
supervision
by the holding company to manage
requirements and
shareholder Dongxu the right of operation
other external
Group, has caused uniformly
factors, the above
competition
mentioned equities
and right of
operation will be still
host by the company.
107
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Sessions Type Meeting Date Disclosure date Disclosure index
participation ratio
Announcement
No.2015—027,Chin
Annual a Securities Daily,
2014 Shareholders’
Shareholders’ 26.22% March 9,2015 March 10,2015 Hongkong
general meeting
General Meeting Commercial Daily
and
www.cninfo.com.cn
Announcement
No.2015—033,Chin
The First provisional
Provisional a Securities Daily,
shareholders’
shareholders’ 31.68% March 18,2015 March 19,2015 Hongkong
General meeting in
General meeting Commercial Daily
2015
and
www.cninfo.com.cn
Announcement
The Second No.2015—036,Chin
provisional Provisional a Securities Daily,
shareholders’ shareholders’ 29.74% April 2, 2015 April 3, 2015 Hongkong
General meeting in General meeting Commercial Daily
2015 and
www.cninfo.com.cn
Announcement
The Third No.2015—063,Chin
provisional Provisional a Securities Daily,
shareholders’ shareholders’ 27.19% June 1,2015 June 2, 2015 Hongkong
General meeting in General meeting Commercial Daily
2015 and
www.cninfo.com.cn
Announcement
The Third
No.2015—111,China
provisional Provisional
Securities Daily,
shareholders’ shareholders’ 27.28% November 4, 2015 November 5, 2015
Hongkong
General meeting in General meeting
Commercial Daily
2015
and
108
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
www.cninfo.com.cn
Situations of institutional investor
Number of Participation in Shareholders'
Name of Institutional Investor Number of Served Directors
Meeting
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
V. Duty performance of independent Directors
1. Attendance of Board Meetings and General Meetings
Independent Directors’ Attendance at Board Meetings
Number of
Failure to
Board Number of
personally
meetings Number of meetings Number of
Independent Number of attend board
necessary to spot attended by attendances by
Directors absence meetings
be attended in attendances Communicatio representative
successively
the reporting n
twice (Yes/No)
period
Lu Guihua 21 21 0 0 0 No
Mu Tiehu 21 21 0 0 0 No
Zhang Shuangcai 21 21 0 0 0 No
Number of general meetings attended
by independent directors as non-voting 5
delegates
Notes to failure to personally attend Board Meetings Successively Twice
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
During the report period, the independent directors of the company has strictly followed the relevant laws and
109
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
regulations of “Governance Rules of Listed Companies”, “Stock Listed Rules in Shenzhen Stock Exchange”
and “Guidance Suggestion on the Establishment of Independent Directors System by the Listed Company”, and
the provisions of “Articles of Association” to attend the Board of Directors and Shareholders of the company,
conscientiously perform their duties, express the constructive comments or suggestions for the development
decisions of the company, review the major matters, such as the affiliated transactions, the appointment of senior
executives, use of funds-raising and external guarantee, and issue the opinions of the independent directors, which
has effectively ensured the impartiality and objectivity of decision-making of the Board of Directors, maintained
the whole interests of the company and the legitimate rights of miedium and small shareholders, and played a
positive role in the company‘s standard operation and healthy development.
IV. Duty Performance of Special Committees under the Board of Directors in the Reporting period
1.Performance of duties of the Nomination Committee
In 2015, The Nomination Committee of the Board of Directors earnestly performs their duties, and reviews and
make recommendations on the company’s general manager ,Deputy general manager, Board secretary and CFO
candidates as per the provisions of “Implementation Rules of Nomination Committee of the Board of Directors”
2.Performance of Remuneration and Appraisal Committee
2.Performance of Remuneration and Appraisal Committee
In 2015, Remuneration and Appraisal Committee under the Board of Directors have conscientiously performed their duties, and
conducted the review and provide the suggestions on the subsidy of the independent directors of the company according to the
provisions of “Detailed Rules for Implementation of Remuneration and Appraisal Committee under the Board of Directors”.
3. Performance of Audit Committee
In 2015, Audit Committee under the Board of Directors has conscientiously performed the duties, conducted the
duty of care, actively performs all kinds of works according to the relevant provisions of “Detailed Rules for
Implementation of Audit Committee under the Board of Directors” and “Articles of Association”, and mainly
made communication, control and review on the annual audits of the company.
Audit Committee and the certified accountants have made fully communication on the audit plans, business
engagement letters, risks and control matters. The Audit Committee has reviewed the audit opinions and the
financial accounting statements issued by the certified accountants, and supervised the certified accountants to
submit the audit report within the appointment time. At the same time, the Audit Committee believes that the
certified accountants have strictly followed the provisions of the independent audit rules from CPAs to perform
the audit work, the audit time is enough, the audit personnel is allocated reasonably, the certificated competence is
qualified, and the financial accounting statements audited by the certified accountants shall reflect the true,
accurate and complete financial condition.
4. Performance of Strategy Committee
In accordance with related provisions of The Detailed Rules for Implementing the Strategy Committee of the
Board and Articles of Incorporation, Strategy Committee of the company is diligent and dutiful in fulfilling its
duties and carrying out its work in 2015. It mainly focuses on the discussion and revision of strategic development
planning of the company.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
110
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
period
□Yes √No
The supervisory Committee has no objection against any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
1. Appraisal principles:
The appraisal on senior managers by the company follows the principles of openness, fairness and impartiality
and is carried out in strict accordance with work performance, which will closely integrate the appraisal with the
strategy realization, individual performance, individual ability and professional quality.
2. Evaluation contents (KPI Key performance indicators):
(1) Work performance (70%) Annual evaluation based on the performance appraisal system and the completion of
target tasks of personnel in corresponding departments.
(2) Work ability (20%) Different job competency indicators will be selected according to the characteristics of
personnel in corresponding departments.
(3) Learning and growth (10%) Career qualities, learning and growth conditions revealed during the work, such
as enterprise culture construction, analyzing and decision-making, retention of key employees, guiding and
cultivation, responsibilities and commitments, courage to bring forth new ideas, adaptability to conflicts, diligence
and devotion, and etc.
3. The procedure of appraisal:
(1) The company organizes senior managers to decompose and formulate individual KPI of the year based on the
middle and long-term development strategies of the company and business objectives and strategies of the year.
After being approved by Chairman of the Board, KPI should be reported to Remuneration and Appraisal
Committee of Board of Directors for reference.
(2) Monthly summary reports on the achievements of KPI.
(3) Achievement data of KPI are used as evidence monthly and recorded by Remuneration and Appraisal
Committee of Board of Directors.
(4) Annual appraisals on senior managers by Remuneration and Appraisal Committee of Board of Directors on the
basis of monthly KPI achievements, which form appraisal results.
(5) Adjustments on annual objectives and plans formulated at the beginning of the year based on the changes of
company actual situations and demands must be approved by Chairman of the Board and reported to
Remuneration and Appraisal Committee of Board of Directors for reference.
4. The application of appraisal results: Performance rewards to senior managers based on the levels of appraisal
results (centesimal system).
IX. Internal control situations
1. Specific situations on major defects of internal control discovered during report period
□ Yes √ No
2. Self-evaluation report on internal control
Disclosure date of appraisal report on
February 6,2016
internal control
Disclosure index of appraisal report on http://www.cninfo.com.cn
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
internal control
Proportion of total unit assets covered by
appraisal in the total assets of the
90.00%
consolidated financial statements of the
company
Proportion of total unit incomes covered
by appraisal in the total business incomes
90.00%
of the consolidated financial statements of
the company
Standards of Defects Evaluation
Type Financial Report Non-financial Report
Evaluation standards of internal control
defects in financial reports are based on the
degree of importance of the misstatement
due to the internal control defects. The
Criteria of quality refers to the severity
degree of importance mainly relies on
of involved business nature, which can
following factors: (1) the possibility of loss
be determined by the nature, range of
or fraud of related assets or debts; the
influence and other factors of direct or
severity degree of defect control relies on the
potential negative effects. The following
possibility of prevention, discovery or
signs indicate possible major defects in
correction of misstatement concerning to
internal control of non-financial reports:
account or presentation; (2) involved
(1) invalid supervision on internal
account, presentation and related recognized
control by Audit Committee and the
property: whether there is a recognized
internal audit authority; (2) lack of
direct relationship with one or more financial
democratic decision-making process,
statements; (3) whether the control for
such as the decision-making process of
evaluation and compensation can offset the
Standard “ major policies, appointment or
control defects, whether the control for
dismissal of cadres in important
evaluation and compensation is precise
positions, arrangement of major projects
enough to prevent, discover or correct
and utilization of sizable funds”; (3)
possible majors misstatements; (4) whether it
violation of state laws and regulations,
can arouse attention of personnel in charge
for example environment pollution; (4)
of supervising enterprise financial reports: a.
the outflow of managers and technicians;
control defects have been existed since
(5) lack of system control or systemic
previous year and recognized as major ones;
failure in major business; (6) no
b. control defects exist in the rising business
rectification of major or important
or high-risk business of the company; c.
defects concerning to the results of
control defects exist in fields highly focused
internal control appraisal.
by Board of Directors or Audit Committee,
such as special part or sensitive business; (5)
the interaction among control defects:
whether control defects, which influence the
same important account, presentation and
112
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
related recognized or internal control factors,
form major defects; (6) the possible
influences caused by control defects in
future. When a cautious manager considers a
control defect or the combination of control
defects are obstacles in formulating basic
recording transactions with applicable
financial reports in a reasonable way, then
the control defect or the combination of
control defects should be considered as the
indication of major defects. The following
signs indicate major defects in internal
control of financial reports: (1) any degree of
fraud carried out by board members,
supervisors and senior managers; (2)
financial statements re-published by the
company to correct major misstatements due
to fraud or mistakes; (3) major
misstatements existed in the current financial
statements of the company, which have not
been discovered during the operation of
internal control; (4) invalid supervision on
internal control carried out by Audit
Committee and internal audit authority; (5)
invalid internal control environment in the
company; (6) major deviation on budgets;
(7) negative effects due to the punishments
by regulators; (8) huge losses of the
company; (9) total amount of associated
business surpasses the upper limit of
associated business amount approved by
general meeting of shareholders; (10) defects
influencing the revenue trend, such as profit
and loss results; (11) other defects
influencing the sound judgment by statement
users.
① Single defect: a. when the influence level (1) Defects and problems concerning to
reaches or surpasses 3% of the profits before the internal control: ① Single defect:
tax when appraising the annual consolidated when the influence level reaches or
statements of Dongxu Photo-electricity, it surpasses 0.3% of the sales revenue
Standards of Quantitation
will be considered as major defect; b. when when appraising the annual consolidated
the influence level is lower than 3% but statements of Dongxu Photo-electricity,
reaches or surpasses 0.3% of the profits it will be considered as major defect; b.
before tax when appraising the annual when the influence level is lower than
113
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
consolidated statements of Dongxu 3% but reaches or surpasses 0.3% of the
Photo-electricity, it will be considered as sales revenue when appraising the annual
major defect; c. when it is not belonged to consolidated statements of Dongxu
major or important defects, then it will be Photo-electricity, it will be considered as
considered as normal defect. ② The major defect; c. when it is not belonged
collection of defects influencing the same to major or important defects, then it will
important account title or disclosure: a. when be considered as normal defect. ② The
the influence level after collection reaches or collection of defects influencing the
surpasses 3% of the profits before tax when same important account title or
appraising the annual consolidated disclosure: a. when the influence level
statements of Dongxu Photo-electricity, it after collection reaches or surpasses
will be considered as major defect; b. when 0.3% of the sales revenue when
the influence level after collection is lower appraising the annual consolidated
than 3% but reaches or surpasses 0.3% of the statements of Dongxu Photo-electricity,
profits before tax when appraising the annual it will be considered as major defect; b.
consolidated statements of Dongxu when the influence level after collection
Photo-electricity, it will be considered as is lower than 0.3% but reaches or
major defect; c. when it is not belonged to surpasses 0.03% of the sales revenue
major or important defects, then it will be when appraising the annual consolidated
considered as normal defect. statements of Dongxu Photo-electricity,
it will be considered as major defect; c.
when it is not belonged to major or
important defects, then it will be
considered as normal defect. (2) For
internal control defects and problems
including personal fraud, please refer to
the integrity management related rules of
the company. Standards of internal
control defects and problems including
personal fraud: a. normal defects: less
than one million yuan, or punishments by
the government departments following
the provincial level (including
provincial) without negative effects on
regular reports or disclosures published
by Dongxu Photo-electricity; b. major
defects: one million yuan (including one
million) to ten million yuan, or
punishments by the government
departments at the national level without
negative effects on regular reports or
disclosures published by Dongxu
Photo-electricity; c. major defects: 10
million yuan or more or defects which
114
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
have been officially announced and
caused negative effects on regular reports
or disclosures published by Dongxu
Photo-electricity
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
ZXCGHSZZD(2016)No.:
To All Shareholders of Dongxu Optoelectronic Technology Co., Ltd：
In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing standards of Chinese
Certified Public Accountant, we audited the effective-ness of the financial report’s internal control for Dongxu Optoelectronic
Technology Co., Ltd . (the Company) dated 31December 2015.
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 2015.
Disclosure of internal audit report Disclosure
Disclosure date of audit report
February 6, 2016
of internal control (full-text)
Index of audit report of
http://www.cninfo.com.cn
internal control (full-text)
Internal audit report’s opinion Standard opinion
Non-financial reporting the existence
No
of significant deficiencies
Has the CPAs issued a qualified auditor’s report of internal control .
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
□ 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
116
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
X. Financial Report
I. Audit report
Type of audit opinion Unqualified audit opinion
Date for signing the auditor’s report February 5,2016
Zhongxingcai Guanghua Ceritified Public Accountants
Name of audit firm
(SpecialGeneral Partnership)
The audit of the report
Certified public accountant's name Wang Fengqi Meng Xiaoguang
Auditors Report
To all shareholders of Shareholders of Dongxu Optoelectronic Technology Co., Ltd.:
We audited accompanying financial statements of Dongxu Optoelectronic Technology Co., Ltd.. (hereinafter
referred to as "the Company"), including Consolidation and parent Company balance sheet on December 31, 2015,
Consolidation and parent Company profit statement, Consolidation and parent Company cash flow statement for
the year 2015 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
117
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
but the purpose is not to express an opinion on the effectiveness of internal control. The audit also includes the
appraisal of suitability of accounting policies selected by the management, the reasonableness of accounting
estimate and the overall presentation of financial statements.
We believe that the audit evidences obtained by us are full and appropriate and provide a basis for expressing
audit opinion.
III. Audit opinion
In our opinion, the financial statements of Dongxu Optoelectronic Technology Co., Ltd. Wharf present fairly, in
all material respects, the company‘s and consolidated financial position as of 31 December 2015, and the
Company‘s and consolidated results of operations and cash flows for the year then ended in accordance with
Accounting Standards for Business Enterprises.
II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1.Consolidated Balance sheet
Prepared by: Dongxu Optoelectronic Technology Co., Ltd.
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 12,409,510,170.26 3,539,892,384.04
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Bill receivable 51,014,152.00 249,510,678.50
Account receivable 1,042,538,312.51 751,483,740.27
Prepayments 418,910,587.57 3,007,834,056.21
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Other account receivable 55,197,871.28 52,406,728.03
Repurchasing of financial assets
Inventories 2,177,979,684.06 616,095,820.74
Assets held for sales
Non-current asset due in 1 year 139,395.72 185,227.78
Other current asset 1,216,401,769.76 932,526,092.19
Total of current assets 17,371,691,943.16 9,149,934,727.76
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 72,426,252.41
Property investment
Fixed assets 6,900,189,927.76 4,620,098,007.93
Construction in progress 3,433,016,388.90 4,069,722,104.54
Engineering material 38,214.99 22,095,086.42
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 462,291,286.50 344,807,139.69
R & D petrol 10,730,941.05
Goodwill
Long-germ expenses to be amortized 16,560,387.39 15,082,565.87
Differed income tax asset 299,129,677.91 255,751,092.23
Other non-current asset 243,279,174.31
Total of non-current assets 11,426,931,310.17 9,338,286,937.73
Total of assets 28,798,623,253.33 18,488,221,665.49
Current liabilities
Short-term loans 3,783,300,000.00 1,587,900,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
119
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable 410,594,929.94 280,000,000.00
Account payable 675,736,226.62 275,322,303.89
Advance payment 97,920,689.41 22,382,273.47
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 36,856,257.86 29,465,586.43
Tax payable 105,451,423.67 114,709,557.05
Interest payable 55,405,608.76
Dividend payable 20,000,000.00 30,000,000.00
Other account payable 539,796,113.78 266,997,237.49
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 876,987,200.00 720,238,000.00
Other current liability 93,402,963.08 89,170,861.89
Total of current liability 6,695,451,413.12 3,416,185,820.22
Non-current liabilities：
Long-term loan 6,249,397,300.00 5,504,309,000.00
Bond payable 988,400,388.00
Including：preferred stock
Sustainable debt
Long-term payable 57,000,000.00
Long-term payable employees’s
remuneration
Special payable
Expected liabilities 53,046.23
Differed income 246,925,387.61 257,384,418.69
Differed income tax liability
Other non-current liabilities
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Total non-current liabilities 7,541,723,075.61 5,761,746,464.92
Total of liability 14,237,174,488.73 9,177,932,285.14
Owners’ equity
Share capital 3,835,000,526.00 2,662,080,001.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 9,391,388,905.89 4,972,966,918.24
Less：Shares in stock 9,011,520.00
Other comprehensive income
Special reserves
Surplus reserves 132,723,528.42 82,025,280.68
Common risk provision
Undistributed profit 969,380,500.97 -39,946,925.56
Total of owner’s equity belong to the
14,319,481,941.28 7,677,125,274.36
parent company
Minority shareholders’ equity 241,966,823.32 1,633,164,105.99
Total of owners’ equity 14,561,448,764.60 9,310,289,380.35
Total of liabilities and owners’ equity 28,798,623,253.33 18,488,221,665.49
Legal representative ：Li Zhaoting
Person-in-charge of the accounting work：Zhou Bo
Person-in -charge of the accounting organ：Zhou Boi
2. Balance sheet of the Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 9,835,157,652.41 1,736,774,243.99
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 611,200.00 100,000.00
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Account receivable 25,928,808.63 12,495,493.29
Prepayments 5,148,881.09 863,556,776.13
Interest receivable
Dividend receivable 380,000,000.00 323,000,000.00
Other account receivable 1,257,350,098.69 316,867,754.88
Inventories 337,875,634.06 18,563,041.11
Assets held for sales
Non-current asset due in 1 year
Other current asset 19,211.84 19,211.84
Total of current assets 11,842,091,486.72 3,271,376,521.24
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 9,838,056,379.92 5,096,912,035.49
Property investment
Fixed assets 54,559,265.28 55,683,240.25
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 10,196,051.07 10,521,614.79
R & D petrol
Goodwill
Long-germ expenses to be amortized
Differed income tax asset 784,271.45 9,097,970.44
Other non-current asset
Total of non-current assets 9,903,595,967.72 5,172,214,860.97
Total of assets 21,745,687,454.44 8,443,591,382.21
Current liabilities
Short-term loans 2,630,000,000.00 900,000,000.00
Financial liabilities measured at fair
value with variations accounted into
current income account
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Derivative financial liabilities
Bill payable 69,458,800.00
Account payable 131,278,936.59 19,083,770.39
Advance payment 115,587.90 20,937.90
Employees’ wage payable 3,725,606.27 5,250,269.40
Tax payable 15,710,028.19 1,986,624.99
Interest payable 42,908,777.78
Dividend payable
Other account payable 3,427,777,437.96 1,253,172,816.58
Liabilities held for sales
Non-current liability due in 1 year
Other current liability 20,000.00 20,000.00
Total of current liability 6,388,896,407.62 2,179,534,419.26
Non-current liabilities：
Long-term loan 640,000,000.00 400,000,000.00
Bond payable 988,400,388.00
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Differed income 5,000.00 25,000.00
Differed income tax liability
Other non-current liabilities
Total of Non-current liabilities 1,628,405,388.00 400,025,000.00
Total of liability 8,017,301,795.62 2,579,559,419.26
Owners’ equity
Share capital 3,835,000,526.00 2,662,080,001.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 9,321,098,967.43 2,782,714,603.79
Less：Shares in stock 9,011,520.00
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Other comprehensive income
Special reserves
Surplus reserves 113,734,304.09 70,907,471.36
Undistributed profit 467,563,381.30 348,329,886.80
Total of owners’ equity 13,728,385,658.82 5,864,031,962.95
Total of liabilities and owners’ equity 21,745,687,454.44 8,443,591,382.21
3.Consolidated income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 4,650,208,448.10 1,600,750,745.69
Incl：Business income 4,650,208,448.10 1,600,750,745.69
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 3,581,146,792.66 1,425,888,085.16
Incl：Business cost 2,800,353,518.04 1,046,022,610.40
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 35,549,264.79 26,682,797.47
Sales expense 44,944,240.87 26,289,296.53
Administrative expense 421,789,075.31 240,993,820.53
Financial expenses 294,416,400.12 76,463,904.62
Asset impairment loss -15,905,706.47 9,435,655.61
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 4,147,238.73
Incl: investment gains from affiliates 426,252.41
Gains from currency exchange
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
（“-”for loss）
III. Operational profit（“-”for loss） 1,073,208,894.17 174,862,660.53
Add ：Non-operational income 557,753,811.42 463,935,565.47
Including：Income from disposal of
12,738.05
non-current assets
Less：Non business expenses 656,012.54 477,402.29
Incl：Loss from disposal of non-current
43,425.70 209,323.84
assets
IV.Total profit(“-”for loss) 1,630,306,693.05 638,320,823.71
Less：Income tax expenses 237,783,006.87 114,896,232.82
V. Net profit 1,392,523,686.18 523,424,590.89
Net profit attributable to the owners of
1,326,233,674.37 468,902,701.44
parent company
Minority shareholders’ equity 66,290,011.81 54,521,889.45
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
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
ncial statements
6.Other
Net of profit of other comprehensive inco
me attributable to Minority shareholders’
equity
VII. Total comprehensive income 1,392,523,686.18 523,424,590.89
Total comprehensive income attributable
1,326,233,674.37 468,902,701.44
to the owner of the parent company
Total comprehensive income
66,290,011.81 54,521,889.45
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.48 0.17
(II)Diluted earnings per share 0.48 0.17
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0, last period the combined party realized RMB 0.
Legal representative ：Li Zhaoting
Person-in-charge of the accounting work：Zhou Bo
Person-in -charge of the accounting organ：Zhou Bo
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 721,162,496.33 60,265,810.68
Incl：Business cost 389,424,836.30 37,675,359.86
Business tax and surcharge 1,025,210.11 561,707.55
Sales expense 2,744.00 150,607.84
Administrative expense 66,780,037.74 32,361,040.13
Financial expenses 218,014,246.30 14,631,869.59
Asset impairment loss -10,244,819.52 56,838.80
Add：Gains from change of fir value
（“-”for loss）
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Investment gain（“-”for loss） 380,426,252.41 950,000,000.00
Incl: investment gains from affiliates 426,252.41
II. Operational profit（“-”for loss） 436,586,493.81 924,828,386.91
Add ：Non-operational income 29,440.95 72,684.29
Including：Income from disposal
12,738.05
of non-current assets
Less：Non business expenses 33,908.44 4,520.24
Incl：Loss from disposal of
41,000.83 4,520.24
non-current assets
III.Total profit(“-”for loss) 436,582,026.32 924,896,550.96
Less：Income tax expenses 8,313,698.99 -1,063,460.11
IV. Net profit（“-”for net loss） 428,268,327.33 925,960,011.07
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
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
6.Other
VI. Total comprehensive income 428,268,327.33 925,960,011.07
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
5,320,383,955.63 1,479,539,699.35
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 201,893,711.00 180,440,202.68
Other cash received from business
452,450,694.44 635,225,344.59
operation
Sub-total of cash inflow 5,974,728,361.07 2,295,205,246.62
Cash paid for purchasing of
2,802,640,506.75 2,259,267,235.65
merchandise and services
Net increase of client trade and advance
128
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 450,784,386.72 355,749,692.97
Taxes paid 627,085,942.98 473,736,399.51
Other cash paid for business activities 314,088,561.68 224,006,107.14
Sub-total of cash outflow from business
4,194,599,398.13 3,312,759,435.27
activities
Cash flow generated by business
1,780,128,962.94 -1,017,554,188.65
operation, net
II.Cash flow generated by investing
Cash received from investment
1,080,000,000.00
retrieving
Cash received as investment gains 3,720,986.32
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 12,380.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 59,574,268.94 40,840,000.00
Sub-total of cash inflow due to
1,143,295,255.26 40,852,380.00
investment activities
Cash paid for construction of
fixed assets, intangible assets 539,895,733.55 700,556,350.74
and other long-term assets
Cash paid as investment 4,792,951,994.94
Net increase of loan against pledge
Net cash received from subsidiaries and
13,915,285.10
other operational units
Other cash paid for investment
6,120,000.00
activities
Sub-total of cash outflow due to
5,338,967,728.49 714,471,635.84
investment activities
Net cash flow generated by investment -4,195,672,473.23 -673,619,255.84
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
III.Cash flow generated by financing
Cash received as investment 7,984,999,980.50 47,140,400.00
Incl: Cash received as investment from
20,500,000.00
minor shareholders
Cash received as loans 5,848,934,138.87 3,637,900,000.00
Cash received from bond placing 987,000,000.00
Other financing –related ash received 301,662,960.13 14,811,738.30
Sub-total of cash inflow from financing
15,122,597,079.50 3,699,852,138.30
activities
Cash to repay debts 2,886,415,300.00 1,023,317,700.00
Cash paid as dividend, profit, or
910,290,074.11 430,409,938.83
interests
Incl: Dividend and profit paid by
30,000,000.00 20,000,000.00
subsidiaries to minor shareholders
Other cash paid for financing activities 294,769,814.99 370,117,899.51
Sub-total of cash outflow due to
4,091,475,189.10 1,823,845,538.34
financing activities
Net cash flow generated by financing 11,031,121,890.40 1,876,006,599.96
IV. Influence of exchange rate
-701,359.42 53,842.01
alternation on cash and cash equivalents
V.Net increase of cash and cash
8,614,877,020.69 184,886,997.48
equivalents
Add: balance of cash and cash
3,349,892,384.04 3,165,005,386.56
equivalents at the beginning of term
VI ..Balance of cash and cash
11,964,769,404.73 3,349,892,384.04
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
836,777,633.78 63,696,323.73
rending of services
Tax returned 400,038.32
Other cash received from business
2,778,636,800.26 1,492,371,479.23
operation
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Sub-total of cash inflow 3,615,814,472.36 1,556,067,802.96
Cash paid for purchasing of
638,609,349.11 2,715,408.05
merchandise and services
Cash paid to staffs or paid for staffs 12,448,459.82 18,313,407.43
Taxes paid 5,254,948.30 4,557,514.41
Other cash paid for business activities 698,242,344.14 260,041,430.69
Sub-total of cash outflow from business
1,354,555,101.37 285,627,760.58
activities
Cash flow generated by business
2,261,259,370.99 1,270,440,042.38
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 4,616,797,294.94 368,453,728.53
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
6,120,000.00
activities
Sub-total of cash outflow due to
4,622,917,294.94 1,218,453,728.53
investment activities
Net cash flow generated by investment -4,622,917,294.94 -591,453,728.53
III.Cash flow generated by financing
Cash received as investment 7,964,499,980.50 11,950,400.00
Cash received as loans 3,268,000,000.00 1,300,000,000.00
Cash received from bond placing 987,000,000.00
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Other financing –related ash received 46,580,667.53 487,371.87
Sub-total of cash inflow from
12,266,080,648.03 1,312,437,771.87
financing activities
Cash to repay debts 1,300,000,000.00
Cash paid as dividend, profit, or
477,547,800.15 16,403,694.42
interests
Other cash paid for financing activities 28,491,515.51 268,051,455.10
Sub-total of cash outflow due to
1,806,039,315.66 284,455,149.52
financing activities
Net cash flow generated by financing 10,460,041,332.37 1,027,982,622.35
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
8,098,383,408.42 1,706,968,936.20
equivalents
Add: balance of cash and cash
1,736,774,243.99 29,805,307.79
equivalents at the beginning of term
VI ..Balance of cash and cash
9,835,157,652.41 1,736,774,243.99
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity Total
Minor
Items
instrusment Less: Other Surplu Comm of
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
2,662, 4,972,9 1,633,1 9,310,2
I.Balance at the 82,025, -39,946,
080,00 66,918. 64,105. 89,380.
end of last year 280.68 925.56
1.00 24 99 35
Add: Change of
accounting
policy
Correcting of
132
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
previous errors
Merger of entities
under common
control
Other
II.Balance at the 2,662, 4,972,9 1,633,1 9,310,2
82,025, -39,946,
beginning of 080,00 66,918. 64,105. 89,380.
280.68 925.56
current year 1.00 24 99 35
1,172, 4,418,4 1,009,3 -1,391,1 5,251,1
III.Changed in the 9,011,5 50,698,
920,52 21,987. 27,426. 97,282. 59,384.
current year 20.00 247.74
5.00 65 53 67 25
（1）Total 1,326,2 1,392,5
66,290,
comprehensive 33,674. 23,686.
011.81
income 37 18
（II）Investment 1,172, 6,538,4 7,727,3
9,011,5 25,000,
or decreasing of 920,52 06,824. 15,829.
20.00 000.00
capital by owners 5.00 45 45
1．Ordinary Share 1,173, 6,767,5 7,965,5
25,000,
s invested by hare 020,52 02,719. 23,244.
000.00
holders 5.00 49 49
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and 9,011,5 -9,011,5
accounted as 20.00 20.00
owners’ equity
-229,09 -229,19
-100,0
4．Other 5,895.0 5,895.0
00.00
4 4
-316,90 -286,20
（III）Profit 50,698, -20,000,
6,247.8 8,000.1
allotment 247.74 000.00
4 0
1.Providing of 50,698, -50,698,
surplus reserves 247.74 247.74
2.Providing of
common risk
provisions
3．Allotment to the -266,20 -20,000, -286,20
owners (or 8,000.1 000.00 8,000.1
133
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
shareholders) 0 0
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V). Special
reserves
1. Provided this
year
2．Used this term
-2,119,9 -1,462,4 -3,582,4
（VI）Other 84,836. 87,294. 72,131.
80 48 28
3,835, 9,391,3 14,561,
IV. Balance at the 9,011,5 132,723 969,380 241,966
000,52 88,905. 448,764
end of this term 20.00 ,528.42 ,500.97 ,823.32
6.00 89 .60
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity Total
Minor
Items
instrusment Other Commo of
Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owner
Capit prefer Shares zed able lders’
Sustai reserves hensive reserves provisio s’
al red Other in stock reserve profit equity
nable Income n equity
stock
debt
I.Balance at the 903,00 4,936,6 27,454, -53,394, 60,527, 5,874,2
end of last year 0,000. 13,311. 788.05 384.81 723.53 01,438.
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
00 80 57
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities 2,053,0 -409,44 1,532,9 3,185,0
8,557,1
under common 00,000. 1,900.5 24,493. 39,743.
50.95
control 00 1 01 45
Other
II.Balance at the 903,00 6,989,6 -462,83 1,593,4 9,059,2
36,011,
beginning of 0,000. 13,311. 6,285.3 52,216. 41,182.
939.00
current year 00 80 2 54 02
1,759, -2,016,6
III.Changed in the 46,013, 422,889 39,711, 251,048
080,00 46,393.
current year 341.68 ,359.76 889.45 ,198.33
1.00 56
（1）Total
468,902 54,521, 523,424
comprehensive
,701.44 889.45 ,590.89
income
（II）Investment -46,91 -210,64 -222,37
35,190,
or decreasing of 9,999. 6,393.5 6,392.5
000.00
capital by owners 00 6 6
1．Ordinary Share
3,080, 8,461,0 35,190, 46,731,
s invested by hare
000.00 01.90 000.00 001.90
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
-49,99 -219,10 -269,10
4．Other 9,999. 7,395.4 7,394.4
00 6 6
(IV) Internal
46,013, -46,013, -50,000 -50,000,
transferring of
341.68 341.68 ,000.00 000.00
owners’ equity
1. Capitalizing of
46,013, -46,013,
capital reserves (or
341.68 341.68
to capital shares)
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
-50,000 -50,000,
losses by surplus
,000.00 000.00
reserves.
4. Other
1,806, -1,806,0
(VI )Special
000,00 00,000.
reserves
0.00 00
1,806, -1,806,0
1. Provided this
000,00 00,000.
year
0.00 00
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
2,662, 4,972,9 1,633,1 9,310,2
IV. Balance at the 82,025, -39,946,
080,00 66,918. 64,105. 89,380.
end of this term 280.68 925.56
1.00 24 99 35
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrusment
Other
Less: Common Attribut Total of
Items Share Capital Compreh Surplus
preferre Sustain Shares in risk able owners’
Capital Other reserves ensive reserves
d stock able stock provision profit equity
Income
debt
136
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
I.Balance at the 2,662,08 2,782,714 70,907,47 348,329 5,864,031
end of last year 0,001.00 ,603.79 1.36 ,886.80 ,962.95
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
2,662,08 2,782,714 70,907,47 348,329 5,864,031
beginning of
0,001.00 ,603.79 1.36 ,886.80 ,962.95
current year
III.Changed in the 1,172,92 6,538,384 9,011,520 42,826,83 119,233 7,864,353
current year 0,525.00 ,363.64 .00 2.73 ,494.50 ,695.87
（I）Total
428,268 428,268,3
comprehensive
,327.33 27.33
income
(II) Investment or
1,172,92 6,538,384 9,011,520 7,702,293
decreasing of
0,525.00 ,363.64 .00 ,368.64
capital by owners
1．Ordinary Share
1,173,02 6,767,502 7,940,523
s invested by hareh
0,525.00 ,719.49 ,244.49
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and 9,011,520 -9,011,52
accounted as .00 0.00
owners’ equity
-100,00 -229,118, -229,218,
4．Other
0.00 355.85 355.85
-309,03
（III）Profit 42,826,83 -266,208,
4,832.8
allotment 2.73 000.10
3
1.Providing of 42,826,83 -42,826,
surplus reserves 2.73 832.73
2．Allotment to the -266,20
-266,208,
owners (or 8,000.1
000.10
shareholders) 0
3．Other
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the 3,835,00 9,321,098 9,011,520 113,734,3 467,563 13,728,38
end of this term 0,526.00 ,967.43 .00 04.09 ,381.30 5,658.82
Amount in last year
In RMB
Amount in last year
Other Equity instrusment
Other Commo
Items
Less: Attribu Total of
Share Capital Compreh Surplus n risk
preferre Sustain Shares table owners’
Capital Other reserves ensive reserves provisio
d stock able in stock profit equity
Income n
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
138
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
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
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
139
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
(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 2,662,08 2,782,714 70,907,47 348,329 5,864,031
end of this term 0,001.00 ,603.79 1.36 ,886.80 ,962.95
III.Brief introduction of the Company：
Approved by Hebei Economic System Reform Commission with the Approval of Establishment of Dongxu
Optoelectronic Technology Co., Ltd.（Hereinafter referred to as “The Company”or “Dongxu Optoelectronic”）(Ji
Ti Gfai Wei Gu Zi(1992) No.5 Document) in 1992, Shijiazhuang Baoshi Electronic Glass Co., Ltd. is a joint stock
limited company company jointly established by Shijiazhuang Kinescope General Factory (transformed into
Shijiazhuang Baoshi Electronics Group Co., Ltd.later), China Electronic Import and export Corporaqtion and
Zonghua Hebei Import and Export Company. At the Time of establishment, the Company had 25.68 million
shares (the par value of each share is RMB 10) and total share capital of RMB 256.80 million.
On July 17, 1993, the Company held a provisional shareholders' general meeting and decided to split the stock
equity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result, the total
number of the Company's shares became 256.80 million and its total share capital became RMB 256.80 million.
Approved by Securities Commission under State Council with the Approval of Issue of 100 Million Domestically
Listed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zheng Wei Fa (1996) No. 15
Document) on June 11, 1996, the Company issued 100 million domestically listed foreign investment shares (B
shares) (the par value of each share is RMB 1). Approved by China Securities Regulatory Commission with the
Approval of the Application of Shijiazhuang Baoshi Electronic Glass Co., Ltd. to Publicly Issue Shares (Zheng
Jian Fa Zi (1996) No. 174 Document) on August 30 of the same year, the Company publicly issued 26.20 million
shares (the par value of each share is RMB 1). As of September 17, 1996, the total share capital of the Company
increased to RMB 383 million.
On July 17, 1993, the Company held a provisional shareholders' general meeting and decided to split the stock
equity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result, the total
number of the Company's shares became 256.80 million and its total share capital became RMB 256.80 million.
Approved by Securities Commission under State Council with the Approval of Issue of 100 million Domestically
Listed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zheng Wei Fa (1996) No. 15
Document) on June 11, 1996, the Company issued 100 million domestically listed foreign investment shares (B
140
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
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 Do
ngxu Group , a direct stake of 14.40%, Shijiazhuang Baoshi Electronic Glass Co., Ltd. held the indirectly 12.27%
of the share.
The 6th Provisional shareholder meeting in 2013 approved the name change of Shijiazhuang Baoshi Electronic G
lass Co., Ltd. to Dongxu Optoelectronic Technology Co., Ltd..
According to the resolution of annual shareholder meeting in 2013 and the provisions of amendments to articles of
association approved on April 27, 2014, the company has transferred 20 shares for each 10 shares to all shareholders,
and with total shares of 1806 million transferred ,and the registered capital is RMB2709 million after changed.
According to the resolution of annual shareholder meeting in 2013 and the provisions of amendments to articles of
association approved on April 27, 2014, the company has transferred 20 shares for each 10 shares to all shareholders,
and with total shares of 1806 million transferred on the basis of the general capital of 903 million on December 31,
2013. Thus, the registered capital of RMB1806 million applied to add by the company should be transferred into the
share capital by the capital reserve with the reference date on May 27, 2014, and the registered capital is RMB2709
million after changed.
As per the provisions of “Restricted Stock Incentive Plan of Dongxu Optoelectronic Technology Co., Ltd. (Draft)” and
its summary proposal approved after the second temporary shareholders’ resolution in 2014, the company has
implemented the stock option incentive to grant 41 people the restricted stocks of RMB3,080,000.00 with the price of
RMB3.88 per share, which are all in cash subscription. Thus, the company shall increase the share capital of RMB3.08
million and the capital reserve of RMB 8,870,400.00, and the share capital is RMB2,712,080,000.00 after changed.
Under the provisions of “Proposal on Repurchase of Part of Domestic Listed Foreign Shares (Share B)” approved after
the second temporary shareholders’ resolution in 2014, the company has repurchased 49,999,999.00 B shares released
outside, and the repurchased shares shall be written off and the registered capital is reduced correspondingly. Thus, the
company shall decrease the share capital of RMB49,999,999.00 and the capital reserve of RMB218,024,376.60, and
the share capital is RMB2,662,080,001.00 after changed.
Referring to the resolutions determined on the 27th Meeting of the 7th Board of Directors of the company, the 31st
Meeting of the 7th Board of Directors, the 1st General Meeting of Extraordinary Shareholders in 2015, the 38th
Meeting of the 7th Board of Directors and the Regulatory Approval No. [2015] 2270 by China Securities
Regulatory Commission: Replies on Approval of Private Issuing of Stocks by Dongxu Photoelectric
Technology Co., Ltd., it is approved that the company issues new shares less than 1,186,943,620 privately. The
141
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
planned number of privately issued stocks is less than (including) 1,186,943,620. The actual issuance number of
the stock is 1,173,020,525, and the modified equity capital is 3,835,100,526.00 yuan.
According to Proposals on the Repurchase and Cancellation of Partial Restricted Shares deliberated and approved
on the 43rd Meeting of the 7th Board of Directors of the company convened on October 29, 2015, the company
plans to repurchase and cancel restricted shares. The granted but unlocked restricted shares held by left equity
incentive objects sum to 100,000 at the repurchase price of 3.78 yuan/share.Other forms of lease besides financial
leasing are considered as operating leasing
As of December 31, 2015, Registered capital :RMB 3,835,000,526.00, 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.
Dongxu Optoelectronic Parent Company is the Dongxu Group，Uitimate controller is Li Zhaoting.
In2015, 13 subsidiaries and 4 sub-subsidiaries were included in the consolidation scope by the company, see
details at Note 7 “Rights and Interests in Other Subjects ”. The consolidation scope of the company increased by 6
companies year on year at this reporting period, see details at Note 6“Change of Consolidation Scope”
Financial statements and notes to the financial statements approved at the 47th meeting of the seventh Board of
of Directors on February 5, 2016.
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,，the Company prepared financial statements in accordance with the ASBE-Basic Standard and revised
thereafter, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of Accounting Standards for
Business Enterprises and other regulations(hereinafter referred to as “the Accounting Standards for Business Enterprises”, “China
Accounting Standards” or “CAS”)，Rules for Preparation Convention of Disclosure of Public Offering Companies No.15 – General
Regulations for Financial Reporting (revised in 2014) by China Securities Regulatory Commission.
In accordance with relevant provisions of the Accounting Standards for Business Enterprises, the Group adopted the accrual
basis in accounting. Except for some financial instruments, where impairment occurred on an asset, an impairment reserve was
withdrawn accordingly pursuant to relevant requirements.
2. Going-concern
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The company has the capacity to continually operate within 12 months at least since the end of report period,
and hasn’t the major issues impacting on the sustainable operation ability.
V.Principal accounting policies and accounting estimates
Principal accounting policies and accounting estimates，Specific accounting policies and accounting estimates tips:
1. Statement on complying with corporate accounting standards
The Company state: the financial statements prepared are in line with the requirements in enterprise accounting st
andards in line with of system, and have truly and completely reflected of the financial status in December
31, 2015 , operational results, cash flow, and other relevant information for half year of 2015.
2.Accounting year: The Group’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year..from
January 1 to December 31 as one accounting year.
3. Operating Cycle
The normal business cycle refers to the period from the assets used for processing after purchased by the company
to the cash or cash equivalents achieved. 12 months are regarded as one operating cycle in the company, and which is as
the division criterion for the liquidity of assets and liabilities.
4.Standard currency for bookkeeping：The Company takes RMB as the standard currency for bookkeeping.
5. Accounting treatment methods of the merger of enterprises under the control of the same company and different
companies
Business combination refers to the transactions or items with one reporting entity formed by the combination of
two or more separate enterprises. The business combination shall be divided into the business combination under
common control and the business combination under non-common control.
(1) Business Combination under Common Control
The business combination under common control refers to the business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the combination, and that
control is not transitory. Of which, the combining party is that acquiring the control right to other combining
enterprises at combining date, and the combining date means the date that the combining party actually acquires
the control right of the combined party.
The assets and liabilities acquired by the combining party are measured in accordance with the book value of the
combined party at the combining date. For the balance between the book value of net assets acquired by the
combining party and the book value of the combining valuable consideration (or the nominal amount of issued
shares), the capital reserves (stock premium) shall be adjusted, or the retained earnings shall be adjusted when the
capital reserves (stock premium) are insufficient.
All the costs directly incurred for the business combination by the combining party shall be recorded into the
current profits and losses when occurred.
（2）Business Combination under Non-common Control
The business combination under non-common control refers to the business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties both before and after the
combination. Of which, the acquirer is that obtaining the control right to other combining enterprises at
acquisition date, and other combining enterprises refers to the acquiree. The acquisition date means the date that
the acquirer actually obtains the control right of the acquiree. For the business combination under non-common
control, the merger costs include the assets paid for obtaining the control right of acquiree by the acquirer, the
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liabilities occurred or borne and the fair value of equity securities issued, the intermediary fees for audit, legal
services, evaluation and consultation when the business combination issued, and other management costs shall be
recorded into the current profits and losses when occurred. The transaction costs of equity securities or debt
securities issued for the merger consideration by the acquirer shall be included into the initially recognized
amount of the equity securities or the debt securities. The contingent consideration involved shall be recorded into
the merger cost as per the fair value at the acquisition date. Within 12 months after the acquisition date, the
combining business reputation should be adjusted correspondingly if the contingent consideration is required to
adjust because of new or further evidence for the existed situation on the acquisition date. The merger cost issued
by the acquirer and the identifiable net assets acquired in the combination are measured as per the fair value on the
acquisition date. The difference of the merger cost minus the fair value shares of identifiable net assets obtained
by the acquiree during the merger on the acquisition date, is recognized as the business reputation. While the
merger cost is less than the fair value shares of identifiable net assets obtained by the acquiree during the merger,
all the measurement on the identifiable assets, the liabilities, the fair value of liabilities and the merger cost
obtained by the acquiree should firstly be rechecked, and the difference shall be recorded into the current profits
and costs if the merger cost is still less than the fair value shares of identifiable net assets obtained by the acquiree
during the merger after rechecking.
If the deductible temporary difference of acquiree obtained by the acquirer is not recognized due to the
recognition condition of the deferred income tax assets unmet on the acquisition date. Within 12 months after the
acquisition date, the relevant deferred income tax assets shall be recognized and the business reputation shall be
reduced if the acquired new or further evidence shows that the relevant situation has already existed and the
economic benefit gained by the acquiree from the deductible temporary difference is expected to achieve, and the
differences are recognized as the current profits and losses if the business reputation is insufficient to offset. With
the exception of the above, the deferred income tax assets related to the business combination are recorded into
the current profits and losses.
For the business combination under non-common control realized step-by-step through multiple transactions, the
multiple transactions shall be judged if belong to “the package deal” according to the “Notice on Issuance of
Interpretation of Accounting Standards for Business Enterprises from Ministry of Finance” (Finance and
Accounting [2012] No.19) and the judgment standards on “the package deal” in Article 51 of “Accounting
Standards for Business Enterprises No.33 – Consolidated Financial Statement” (please see 5 (2) in Notes 3). For
the package deal, please refer to above description of this section and Notes 3, 12 “Long-term Equity Investment”
to conduction the accounting treatment. For the non-package deal, the relevant accounting treatment should be
respectively conducted for the individual financial statement and the consolidated financial statements:
For the individual financial statements, the sum of the book value of equity investment from the purchased party
held before the purchase date and the new investment cost at the purchase date shall be as the initial investment
cost of the investment. For the other comprehensive incomes involved in the equity of the acquiree held before the
acquisition date, the investment and the relevant other comprehensive incomes shall be disposed through the
accounting treatment on the same basis of the direct disposal of the relevant assets or liabilities by the acquiree
(Namely, the rest is transferred into the current investment incomes with the exception of the corresponding shares
of changes caused by the net liabilities or the net assets of the defined benefit plans re-measured by the acquiree as
per the equity method).
In the consolidated financial statements, the equity of the acquiree held before the acquisition date shall be
measured again as per the fair value of the equity on the acquisition date, and the difference between the fair value
and the book value is recorded into the current investment income. For the other comprehensive incomes involved
in the equity of the acquire held before the acquisition date, the relevant other comprehensive incomes shall be
disposed through the accounting treatment on the same basis of the direct disposal of the relevant assets or
liabilities by the acquire (Namely, the rest is transferred into the current investment incomes on the acquisition
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date, with the exception of the corresponding shares of changes caused by the net liabilities or the net assets of the
defined benefit plans re-measured by the acquire as per the equity method).
6. Compiling method of consolidated accounting statements
(1) Compiling method of consolidated accounting statements
The company starts to include the actual control right to the net assets and the production and management
decisions of the subsidiaries into the combination scope since the date of the actual right acquired, and will stop
covering into the combination scope on the date of the actual right lost. For the disposed subsidiaries, the business
performance and the cash flow before the disposal date have been properly covered in the consolidated profit
statement and the consolidated cash flow statement. For the subsidiaries disposed in the current period, the
opening balance of the consolidated balance sheet shall not be adjusted. Meanwhile, for the subsidiaries increased
through the business combination under non-common control, the business performance and the cash flow after
the acquisition date have been properly included in the consolidated profit statement and the consolidated cash
flow statement, and the opening balance and the comparison balance of the consolidated financial statement shall
not be adjusted. For the subsidiaries increased through the business combination under common control, the
business performance and the cash flow from the beginning of current combination period to the combination date
have been properly included in the consolidated profit statement and the consolidated cash flow statement, and the
comparison balance of the consolidated financial statement shall be adjusted simultaneously.
When the preparation of the consolidated financial statement, the necessary adjustment shall be made
according to the accounting policy of the company and the financial statement of the subsidiaries during the fiscal
period if the accounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For
the subsidiaries acquired through the business combination under non-common control, the financial statement
shall be adjusted on the basis of the fair value of the identifiable net assets on the acquisition date.
All the major balances, transactions and the unrealized profits of the company shall be offset in the preparation
of the consolidated financial statement.
Those not belong to the company in the shareholders’ equity and the current net profit or loss of the
subsidiaries shall be respectively as the minority equity and the minority interest income and individually listed
under the shareholders’ equity and the net profit of the consolidated financial statement. The minority equity
portion from the net profit or loss in current period shall be as “minority interest income” and listed under the net
profit in the consolidated financial statement. Moreover, the minority equity is still offset even if the losses of the
subsidiaries undertaken by the minority shareholders are beyond the portion of the shareholders’ equity shared by
the minority shareholders of the company at the beginning of period.
When the control on the original subsidiaries lost due to the disposal of partial equity investment or other
reasons, the remaining equity should be measured again according to the fair value on the control lost date. The
difference of the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the
net assets portion of the original subsidiaries calculated from the purchase date as per the original stock proportion
shall be recorded into the current investment income after the control lost. Other comprehensive returns relevant
to the original subsidiary shares investment shall be disposed through the accounting treatment on the same basis
of the direct disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely, all the rest
are transferred into the current investment incomes, with the exception of the changes caused by the net liabilities
or the net assets of the defined benefit plans re-measured by the original subsidiaries). Thereafter, the subsequent
measurement shall be made for the rest equity according to the relevant provisions of “Accounting Standards for
Business Enterprises No. 2 – Long-term Equity Investment” or “Accounting Standards for Business Enterprises
No. 22 – Recognition and Measurement of Financial Instruments”. For the details, please see Notes 3, 12
“Long-term Equity Investment” or Notes 3, 9 “Financial Instruments”.
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For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till the
control right lost, the company should respectively dispose all the transactions if belong to the package deal. As
long as the terms, conditions and economic influence on all the transactions of the disposal of the equity
investment in the subsidiary meet one status below, it usually shows that the multiple transactions matters should
be conducted the accounting treatment as the package deal: ① these transactions are made simultaneously or
under the consideration of the influence each other. ② these transactions shall be as the whole to achieve one
complete business results. ③ one transaction occurs depending on the appearance of other one transaction at
least. ④ one transaction is economic under the consideration with other transactions even if it is not economic
when individually considerate. For the non-package deal, each transaction shall be respectively conducted the
accounting treatment according to the applicable principles of “Partial Disposal of Long-term Equity Investment
in Subsidiary without Control Lost” (please refer to 12, (2) ④ in Notes 3,) and “The Control on Original
Subsidiary Lost due to Disposal of Part of Equity Investment or Other Reasons” (details please see forepart). For
the package deal from the transactions after the disposal of equity investment in the subsidiary till the control right
lost, the transactions shall be as one transaction of the disposal of subsidiary and the control lost for the
accounting treatment. Therefore, every balance between the net assets proportion of the subsidiary shared relative
to the disposal price and the disposal investment before the control right lost, shall be recognized as other
comprehensive incomes in the consolidated financial treatment and transferred into the current profits and losses
when the control lost.
7.Joint venture arrangements classification and Co-operation accounting treatment
8. Recognition Standard of Cash & Cash Equivalents
The cash stated in cash flow statement refers to cash in hand and bank deposits usable for payment at any time.
Cash equivalent refers to the investments with holding period of less than three months that are readily convertible
to known amount of cash and subject to insignificant risk of changes in value.
9. Accounting and Translation Method of Foreign Currency Transaction
(1) Translation Method of Foreign Currency Transaction
The shot exchange rate (usually refers to the middle rate at the date of currency exchange published by the
People’s Bank of China, hereinafter inclusive) on the transaction date is adopted to convert to the amount of
functional currency when the foreign currency transaction issued in the company is initially recognized. However,
the foreign currency exchanges or the transactions relative to the foreign currency exchanges occurred in the
company shall be translated into the amount of functional currency as per the actually adopted exchange rate.
(2) Translation Method for Monetary Items of Foreign Currency and Non-monetary Items of Foreign Currency
On the balance sheet date, the monetary items of foreign currency are translated as per the shot exchange rate on
the balance sheet date, and the foreign exchange conversion gap arising from which shall be recorded into the
profits and losses of the current period, except for ① the balance of exchange arising from special foreign
currency borrowings for the purchase and construction of qualified assets subject to the principle of borrowing
costs. ② the exchange balance generated from other book balances in the foreign currency monetary items
available for sale with the exception of the post-amortization costs shall be recorded into other comprehensive
incomes.
The non-monetary items of foreign currency measured at the historical cost shall still be measured by the amount
of functional currency translated at the spot exchange rate on the transaction date. The non-monetary items of
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foreign currency measured at the fair value shall be translated at the spot exchange rate on the fair value
recognized date, and the gap of the translated amount of functional currency and the original the amount of
functional currency shall be as the fair value variation (change in exchange rate included) to make treatment and
recorded into the current profits and losses or recognized as other comprehensive incomes.
(1) Translation Method of Foreign Currency Financial Statement
For the overseas business operation involved in the preparation of the consolidated financial statement, the
exchange balance arising from the change in exchange rate for the foreign currency monetary items of the net
investment in the overseas business, shall be as “translation reserve of foreign currency statement” and recognized
as other comprehensive incomes. The profits and losses of the current disposal period shall be recorded when
disposal of the overseas business operations.
The foreign currency financial statement of the overseas business operation shall be translated as RMB statement
as per the following methods: the assets and liabilities in the balance sheet shall be translated at a spot exchange
rate on the balance sheet date. For the shareholders’ equity items, other items shall be translated at a spot exchange
rate when occurring, except for the “undistributed profit” items. The earnings and expenses items in the profit
statement shall be translated at a spot exchange rate on the transaction date. Moreover, the undistributed profits at
the beginning of this year are the profits translated at the end of last year which shall be distributed and listed all
the items measurement as per the translated profits. The difference between the translated assets items and the sum
of the liabilities items and the shareholders’ equity items shall be as the translation reserve of foreign currency
statement and recognized as other comprehensive incomes. When disposing the overseas business operation and
losing the control right, the translation reserves of foreign currency statement related to the overseas business
operation which listed in the shareholders’ equity items in the balance sheet, are all recorded into the current
disposal profits and losses or shifted as per the disposal proportion of the overseas business operation.
The cash flows of foreign currency and overseas subsidiary shall be translated at the spot exchange rate on the
cash flow date. The influence amount of the change in exchange rate on the cash shall be individually listed and
reported as the adjustment items in the cash flow statement.
The amount at the beginning of this year and the actual amount of last year shall be listed according to the
translated amount of the financial statement.
If the control on the overseas business operation lost due to the disposal of partial equity investment or other
reasons when disposing all the owners’ equity of the overseas business operation of the company, the translation
reserves of foreign currency statement belong to the owners’ equity of the parent company related to the overseas
business operation which listed in the shareholders’ equity items in the balance sheet, are all recorded into the
current disposal profits and losses.
If the held equity proportion of the overseas business operation reduced due to the disposal of partial equity
investment or other reasons, but the control on the overseas business operation not lost, the translation reserves of
foreign currency statement related to the partial disposal of the overseas business operation shall be belong to the
minority equity and not recorded into the current profits and losses. When disposing partial equity of the joint
ventures or the cooperative enterprises of the overseas business operations, the translation reserves of foreign
currency statement related to the overseas business operations shall be recorded into the current disposal profits
and losses as per the disposal proportion of the overseas business operations.
10.Financial instruments
One financial asset or financial liability shall be recognized when the company becomes the party in the financial
instrument contract. The financial assets and the financial liabilities are measured at the fair value in the initial
recognition. For the financial assets and liabilities that measured at the fair values and the variation included in the
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current profits and losses, the relative transaction expenses shall be directly recorded into the profits and losses.
For the financial assets and liabilities of other categories, the expenses related to transactions are recognized as
initial amount.
(1) Determination Method for the Fair Value of Financial Assets and Liabilities
The fair value refers to the price that receivable for the sale of one asset or paid for the transfer of one liability in
the orderly transactions occurring on the measurement date for the market participants. If there exists the active
market for the financial instrument, the company shall recognize the fair value according to the quotation in the
active market which refers to the price that easy to periodically acquire from Exchanges, Commission Brokers,
Guilds and Pricing Services, and stands for the price of the market transactions actually occurred in the fair
dealing. For there isn’t the active market for the financial instrument, the company shall recognize the fair value
with adopting the valuation technique which includes the price used in the market transactions recently conducted
by the parities with voluntary trade and under the consideration and acquainting of the situation, the current fair
value in reference to other same financial instruments, the discount cash flow method and the option pricing
model.
(2) Classification, Recognition and Measurement of Financial Assets
The accounting recognition and de-recognition shall be conducted at the transaction date in the conventional way
for the financial assets dealing. The financial assets are divided into the financial assets, the held-to-maturity
investment, the loans, the receivables and the sellable financial assets which are measured at their fair values and
of which the variation are recorded into the current profits and losses when recognized initially.
① The financial assets measured at the fair value and of which the variation recorded into the current profits and
losses
Including the tradable financial assets and the financial assets designated at their fair values and of which the
variation is recorded into the current profits and losses.
The tradable financial assets refer to the financial assets meeting any of the following requirements: A. the
purpose to acquire the financial assets is for selling in the short-term. B. forming a part of the identifiable
combination of financial instruments which are managed in a centralized way and for which there are objective
evidences proving that the company may manage the combination by way of short-term profit making in the near
feature. C. being a derivative instrument, excluding the designated derivative instruments which are effective
hedging instruments, or derivative instruments belong to financial guarantee contracts, and the derivative
instruments which are connected with the equity instrument investments for which there is no quotation in the
active market and whose fair value cannot be reliably measured, and which shall be settled by the delivery of the
equity instruments.
The financial assets meeting any of the following requirements can be designated when they are initially
recognized as financial assets measured at their fair values and of which the variation is recorded into the current
profits and losses: A. the designation is able to eliminate or obviously reduce the discrepancies in the recognition
or measurement of relevant gains or losses arisen from the different basis of measurement of the financial assets.
B. the official written documents on risk management or investment strategies of the company have recorded that
the combination of the financial assets, or the combination of the financial assets and liabilities will be managed
and evaluated on the basis of the fair value and reported to the key management personnel.
The financial assets measured at their fair values and of which the variation is recorded into the current profits and
losses shall be made the subsequent measurement as per the fair value, and the gains or losses formed from the
variation of the fair value as well as the dividend and interest incomes related to the financial assets shall be
recorded into the current profits and losses.
(2)The investments of held-to-maturity
The held-to-maturity investment refers to a non-derivative financial asset with a fixed date of maturity, a fixed or
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determinable amount of repo price and the company holds for a definite purpose or is able to hold until its
maturity.
The held-to-maturity investments shall be made the subsequent measurement on the basis of the actual interest
rate and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or
amortization shall recorded into the current profits and losses.
The actual interest rate method is the way to calculate the post-amortization costs and the interest incomes or
expenditure at each period as per the actual interest rate of the financial assets or liabilities (a group of financial
assets or liabilities included). The actual interest rate means that the future cash flow of the financial assets or
liabilities within the predicted term of existence or within a shorter applicable term shall be discounted as the rate
used for the current book value of the financial assets or liabilities.
When calculating the actual interest rate, the company should consider all the contract terms of the financial assets
or liabilities to estimate the future cash flow (without regard to the future credit loss), and take account of all the
charges, transaction expenses and discounts or premium belong to the actual interest rate and paid or received
between all the parties of the financial assets or liabilities contracts.
(3)Loans and Receivables
The loans and the receivables refer to a non-derivative financial asset without the quotation, a fixed or
determinable amount of repo price in the active market. The financial assets divided into loans and receivables of
the company shall include the bill receivable, the accounts receivable, the interest receivable, the dividends
receivable and other receivables
The loans and the receivables shall be made the subsequent measurement on the basis of the actual interest rate
and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or amortization
shall recorded into the current profits and losses.
④ The financial assets available for sale
The sellable financial assets refer to the non-derivative financial assets which are designated as sellable when they
are initially recognized as well as the financial assets other than the financial assets, the loans, the receivables and
the held-to-maturity investments measured at the fair value and of which the variation recorded into the current
profits and losses.
The costs of the sellable liability instrument investments at the end of period shall be recognized as per the
post-amortization cost method, which is the amount that the accumulated amortization amount, formed after the
amortization for the initially recognized amount with the compensated capital deducted plus or minus the
difference between the initially recognized amount and the amount at the maturity date with use of the actual
interest rate method, with deduction of the impairment losses occurred. The costs of the sellable equity instrument
investments at the end of period are the initially acquired costs.
The sellable financial assets shall be conducted the subsequent measurement at the fair value, the balance
The gains or losses arising from the change in the fair value, except that the impairment losses and the exchange
balance related to the monetary financial assets of foreign currency and the post-amortization costs are recorded
into the current profits and losses, shall be recognized as other comprehensive incomes, transferred out 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
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The decline for the fair value of the sellable equity instrument investments can be judged as serious or
non-transient depreciation by the relevant comprehensive factors, which shows that the sellable equity instrument
investments have the impairment. Of which, the “serious depreciation” refers to the decline range of the fair value
accumulatively over 20%, and the “non-transient depreciation” is the decline period of the fair value continuously
beyond 12 months.
When the sellable financial assets impair, the accumulated losses formed due to the depreciation of the fair value
for other comprehensive incomes originally recorded shall be transferred out and recognized as the current profits
and losses, and the transferred accumulative losses are the balances of the costs of the assets initially acquired
with deduction of the withdrawn capitals, the amortized amount, the current fair value and the impairment losses
initially recorded into profits and losses.
After the impairment losses recognized and if there are objective evidences proving that the financial assets values
have resumed after the period and have objectively involved in the matters occurred after the losses recognized,
the impairment losses originally recognized shall be switched back, the reverse of the impairment losses for the
sellable equity instrument investments shall be recognized as other comprehensive incomes and the reverse of the
impairment losses for the sellable liability instrument shall be recorded into the current profits and losses.
The equity instrument investment which has no quotation in the active market and whose fair value cannot be
reliably measured, or the impairment losses of the derivative financial assets which are connected with the equity
instrument and required to settle by the delivery of the equity instrument shall not be reversed.
(3) Recognition criteria and measurement methods of transferred financial assert
For financial asset that satisfies the following criteria, it shall stop recognizing the financial asset: 1) the
contract rights to collect the cash flow of the financial assert has been terminated; 2) the financial assert has been
transferred with nearly all of the risks and rewards related to the ownership of the financial assert transferred to
transferee; 3) the financial assert has been transferred with the control to such financial asserts waived, though this
enterprise has not transferred or retained nearly all the risks and rewards related to the ownership of the financial
assert.
If this enterprise has neither transferred nor retained almost all the risks and rewards on the asset ownership,
it shall, within the extent of its continuous involvement in the transferred financial asset and recognize the relevant
liability. The term "continuous involvement in the transferred financial asset" shall refer to the risk level that this
enterprise faces resulting from the change of the value of the financial asset.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference
between the amounts of the book value of the transferred financial asset and the sum of consideration received
from the transfer, and the accumulative amount of the changes of the fair value originally recorded in the owner's
equities of other comprehensive income, shall be recorded in the profits and losses of the current period.
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the book value of the
transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose
recognition has not been stopped, be apportioned according to their respective relative fair value, and the
difference between the amounts of the following 2 items shall be included into the profits and losses of the current
period: 1)sum of consideration the portion whose recognition has been stopped and the accumulative amount
changes in fair value originally recorded owner’s equities which is corresponding to stopped, the book value of
the portion whose recognition has been stopped; 2) the book value of the portion whose recognition has been
stopped.
For the financial asset sold with recourse attached, it is to transfer the financial asset held by endorsement,
prior to confirmation that nearly all of the risks and rewards related to the ownership of the financial asset has
been transferred to transferee. Where this enterprise has transferred nearly all of the risks and rewards related to
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the ownership of the financial asset to the transferee, it shall stop recognizing the financial asset. If it retained
nearly all of the risks and rewards related to the ownership of the financial asset, it shall not stop recognizing the
financial asset. Where this enterprise does not transfer or retain nearly all of the risks and rewards related to the
ownership of a financial asset, it shall deal with it according to principles stipulated above.
(4)Classification and Measurement of Financial Liability
Financial liabilities shall be classified into the two categories when they are initially recognized: the financial
liabilities which are measured at their fair values and of which the variation is included in the current profits and
losses; other financial liabilities. For the financial liabilities which are measured at their fair values and of which
the variation is included in the current profits and losses, the related transaction cost shall be included directly in
the current profits and losses; for other financial liabilities, the related transaction cost included in the initially
recognized amount.
1) The condition for classifying the financial liabilities which are measured at their fair values and of which
the variation is included in the current profits and losses
as transactional financial liabilities and the financial liabilities which are measured at their fair values at
initial recognition and of which the variation is included in the current profits and losses is the same as these for
classifying it as the transaction financial asset and the financial asset which are measured at their fair values and
of which the variation is included in the current profits and losses.
This enterprise shall make subsequent measurement on its financial liabilities according to their fair values.
The profits and losses, arising from the change in the fair value of the financial asset, and the dividends and
interests expenses associated with the financial asset, shall be recorded into the profits and losses of the current
period.
2) Other Financial Liability
And are not quoted in an active market,for which there is no quoted price in the active market and whose fair
value cannot be reliably measured, this enterprise shall make subsequent measurement according to its cost. For
other financial liabilities, this enterprise shall make subsequent measurement on the basis of the post-amortization
costs by adopting the actual interest rate method, with profits or losses resulting from stopping recognition or
amortization recorded into the profits and losses of the current period.
(5) Termination from Recognition of Financial Liability
Only when the prevailing obligations of a financial liability are relieved in 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
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(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.
11.Account receivable
（1）Provision for bad debts of account receivable that are individually significant
The judgment basis for significant single-item amount or The accounts receivable with single-item amount of RMB 5
standard for significant amount million and above
Impairment test shall be separately conducted. If the test proves
the occurrence of impairment, impairment loss shall be
determined and provision for bad debts shall be made according
to the difference between the present value of its future cash flow
and its book value. For the accounts receivable whose
The method of separate provision for bad debts for the accounts impairment is not proved by separate test, such accounts
receivable with significant single-item amount receivable, together with those with insignificant single-item
amount, are divided into some groups based on similar
characteristics of credit risks. For these groups of accounts
receivable, provision for bad debts shall be made according to
the regulation mentioned in "(2) provision for bad debts shall be
made for accounts receivable on group basis".
(2)The accounts receivable of bad debt provisions made by credit risk Group
Name Withdrawing Method
Aging Group Aging Analysis Method
Other Group Other method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Aging Rate for receivables(%) Rate for other receivables(%)
During the credit period
The credit period within 1 year 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
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3－4 years 50.00% 50.00%
4－5 years 70.00% 70.00%
Over 5 years 100.00% 100.00%
In Group, adopting balance percentage method for bad debt provision：
□ Applicable √ Not applicable
In Group ,adopting other method for bad debt provision：
□ Applicable √ Not applicable
(3) Accounts receivable that are individually insignificant but with bad debt provision provided on an
individual basis
The accounts receivable with single-item amount of less than
Reason for separate provision for bad debts RMB 5 million whose risk characteristics can’t be reflected by
provision for bad debts on basis of group.
Provision for bad debts is made according to the difference
Method of provision for bad debts between the present value of its future cash flow and its book
value.
12. Inventories
(1)Classification of Inventories
This enterprise's inventories is classified as raw materials, works in process, finished products, circulation
materials, low-value consumption goods, packing materials, supplies purchasing, engineering construction,
development cost,etc.
(2) Obtaining and Measurement of Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be
measured by their actual cost when they are obtained. Raw materials, works in process, finished products, etc.
shall be measured with the weighted average method when they are being sent out. Low-value consumption goods
shall be written off by one-off write-off method when they are withdrawn for use. Circulation packaging materials
shall be recorded into cost according to the predicted usage times.
(3) Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period, this enterprise shall
make the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss on
decline in value of inventories on the ground of each item of inventories. If the factors causing any write-down of
the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision
for the loss on decline in value of inventories that has been made.
(4) Method for confirming the net realizable value of inventories
The net realizable value of inventories refers to the amount of the estimated selling price, less the estimated costs
of completion, the estimated selling costs and related tax payments.
(5) Cost of Development
Cost of development includes completed development product, development product under construction,
leasing development product and simulated development land.
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Completed development product means the estate which has been built and up for sale; Development product
under construction means the estate which hasn’t been built and in the purpose of sale; Leasing development
product means the estate which is temporarily leased under business mode for which the company’s intents to sell,
which the leasing development product amortizes by stages within the estimated available years; Simulated
development land means the land which has been purchased and determined to be developed as Sales or Leasing
Estate.
13.Held-for-sale assets
14. 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 the owner’s equity of the merged enterprise as the initial cost of the long-term equity investment. The total face
value of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of the
long-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the
capital reserve is insufficient to dilute, the retained earnings shall be adjusted. For the merger of enterprises under
the same control through gaining the shares of the combined enterprise by multiple steps of deals, it shall deal
with it in the following two ways depending on that if it belongs to "a package deal": if it belongs to "a package
deal", it shall deal with all the deals as one obtaining the control power; if it does not belong to "a package deal",
it shall, on the date of merger, regard the share of book value of the owner’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.
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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 the owner’s original equity of the merged enterprise and the newly increased investment
cost as the initial cost of the long-term equity investment. For the shares originally held by this enterprise
accounted for by weighted equity method, the relevant other comprehensive income shall not be accounted for
temporarily. For the equity investment accounted for as available-for-sale financial asset, the difference of its fair
value and its face value and the accumulated changes in its fair value originally recorded as other comprehensive
income shall be switched to the profits or losses of the current period.
The audit cost, law service cost, evaluation and consultation fees and agent commissions as well as other
related administration costs occurred and borne by the merging or purchasing enterprise for the purpose of merger,
shall be recorded into the profits or losses of current period at the time when the costs occurred.
Other equity investments except the long-term equity investment formed by merger of enterprises shall be
initially ascertained by their costs which, depending on the different ways in acquiring the long-term equity
investments, shall be recognized separately as cash purchasing prices actually paid by this enterprise, fair value of
the equity securities issued by this enterprise, agreed value of the investment contracts or agreements, fair value or
original book value of the assets obtained by exchange of no-monetary assets, the fair value of the long-term
equity investment itself, etc. The relevant expenses, tax payments as well as other necessary expenses directly
associated with obtaining the long-term equity investment shall be recorded into the investment costs as well. If
this enterprise is able to do joint control or significant influence, which does not constitute control, over the
invested entity as a result of additional investment, the long-term equity investment cost shall be the sum of the
fair value of the equity investment ascertained in accordance with the Accounting Standards for Enterprises No.
22 - Recognition and Measurement of Financial Instrument and the cost of the increased investment.
(2) Subsequent Measurement and Recognition Method
A long-term equity investment of this enterprise that does joint control (not including joint venture) or
significant influences over the invested entity shall be measured by employing the equity method. Besides, the
cost method is employed in this enterprise's financial reports to measure the long-term equity investment that
could form control over the invested entity.
(1)Long-term equity investment measured by employing the cost method
The price of a long-term equity investment measured by employing the cost method shall be included at its
initial investment cost. If there are additional investments, the cost of the long-term equity investment shall be
adjusted. Except the prices actually paid when obtaining the investment or cash dividends or profits being
approved in the consideration but not yet issued, the investment income of the current period shall be recognized
in accordance with the cash dividends or profits being approved by the invested entity.
(2)Long-term equity investment measured by employing the equity method
If the initial cost of a long-term equity investment is more than the investing enterprise's attributable share of
the fair value of the invested entity's identifiable net assets for the investment, the initial cost of the long-term
equity investment may not be adjusted. If the initial cost of a long-term equity investment is less than the investing
enterprise's attributable share of the fair value of the invested entity's identifiable net assets for the investment, the
difference shall be included in the current profits and losses and the cost of long-term equity investment shall be
adjusted simultaneously.
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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 the subsidiaries’ 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 in shareholders’ equity the difference between partial
disposals of its long-term equity investments in its subsidiaries and its share of the subsidiaries’ net assets if it
does not lose control of the subsidiaries; and if such partial disposals result in loss of its control of the subsidiaries,
the difference shall be treated in accordance with the accounting policies related and specified in “Compiling
Principles for Consolidated Financial Statements”, Note III.6.(2).
For disposals of long-term equity investments under other circumstances, the difference between the book value
and the actual received consideration is recorded in current profit and loss.
For the long-term equity investments calculated by equity method, the same method applies to the remaining
equity after disposal. Meanwhile, the other comprehensive gains originally recorded in shareholders’ equity is
treated pro rata by the same method how the invested businesses handle the accounts while directly disposing the
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related assets or liabilities. The investor recognizes the ownership interest due to equity changes except net profit
and loss, other comprehensive gains and profit distribution, and carries it over pro rata to current profit and loss.
For long-term equity investments calculated by costs method, the same method applies to the remaining equity
after disposal. Other comprehensive gains calculated and recognized by equity method or recognition and
measurement principles for financial instruments before the Company obtains control of the invested businesses
are treated on the same basis that the invested businesses directly dispose the related assets or liabilities, and it
will be carried over pro rata to current profit and loss; and among the invested businesses’ 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 invested businesses’ 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.
15. 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.
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The company’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.
16. Fixed assets
(1) Recognition criteria of fixed assets1
Fixed assets refer to tangible assets that are held for production, services, leases or operations and the useful life
of which are over one accounting year. Fixed assets are recognized if it produces economic benefit inflows and its
costs can be measured reliably. The Company makes initial measurements on fixed assets at the costs that they are
acquired.
（2）Depreciation method
Estimated useful Estimated residual value
Type Detail Depreciation rate(%)
rate
Life
Over the period of title
(the period specified on
the real estate title
House and Building Straight-line method certificate or land use 5% 3.17%
right certificate) or 30
years in case of no period
of title
Machinery equipment-
Straight-line method 5 5% 19%
Kiln
Machinery equipment-
Straight-line method 3 95.50% 1.5%
Platinum passage
Machinery equipment-
Glass flat-panel and other Straight-line method 15 5% 6.33%
equipment
Machinery equipment-
Other Production Straight-line method 10 5% 9.5%
equipment
Transportation
Straight-line method 5 5% 19%
equipment
Other equipment Straight-line method 5 5% 19%
（3）Cognizance evidence and pricing method of financial leasing fixed assets
Fixed assets from finance lease are depreciated during the useful life if it is reasonable to determine that the
ownership could be obtained upon lease expiration; otherwise, the Company chooses the shorter of the lease
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period and the remaining useful life to depreciate the assets.
17.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.
18. Borrowing expenses
Borrowing expenses include interest, amortization of discount or premium, auxiliary expenses, translation
differences arising from borrowings in foreign currency etc. The Company starts to capitalize the borrowing
expenses in direct connection to purchase, construction or production of the assets that meet capitalization
conditions when there are assets expenditures and borrowing expenses incurred and/or the Company starts all the
necessary events to purchase, construct or produce such assets till the assets can be used and sold. Other
borrowing expenses are recognized as costs when incurred.
The Company capitalizes the actual interest expense incurred by use of special borrowings, minus the interest
income from the remaining borrowing funds in bank or any investment income earned from the interim
investment of those borrowings; and for general borrowings, the amount to capitalize is the weighted average of
the accumulated assets expenditures in exceed of the special borrowings times the capitalization rate of the used
general borrowings, which is determined by the weighted average interest rate of the general borrowings.
During capitalization, all translation differences of special borrowings in foreign currency should be capitalized
while those of general borrowings in foreign currency are recorded in current profit and loss.
The assets to capitalize are fixed assets, investment properties, inventories etc., which can be used or sold after a
certain period of time to purchase, construct or produce.
The Company stops capitalization of borrowing costs if an abnormal interruption more than 3 consecutive months
occurs during purchase, construction or production of the assets that are eligible to capitalization till all those
restart.
If general borrowings are used to purchase, construct or produce the capitalization eligible assets, the borrowing
cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of the special
borrowings times the capitalization rate of the used general borrowings, which is determined by the weighted
average interest rate of the general borrowings.
19.Biological assets
20.Oil & Gas Assets
21.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) Valuation method, service life and impairment test
The Company makes initial measurements on intangible assets in terms of the costs and determines the useful life
when obtaining the assets. For intangible assets of a limited useful life, from the time the assets are available for
use, the Company adopts the amortization method that reflects realization of the expected economic benefits, or
the straight-line amortization method if unable reliably to determine how to realize the expected economic
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benefits; and no amortization are made for intangible assets of an unlimited useful life.
At the end of each year, the Company reviews the useful life and amortization methods of intangible assets of a
limited useful life and makes adjustments and accounting treatment if different from the previous estimates.
For the intangible assets that are estimated to produce no more economic benefits in the future, the Company
records the book value of such assets all in current profit and loss.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditures for internal research and development projects of an enterprise shall be classified into research
expenditures and development expenditures.
The research expenditures shall be recorded into the profit or loss for the current period.
Development expenses can only be capitalized when the following conditions are satisfied: the technology is
feasible for use or sales; there is the intention to use or sell the intangible assets; it can be proven that the product
generated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is used
internally, it can be proven that it is useful; with necessary technical and financial resources and other resources to
complete the development of the intangible assets and the intangible assets can be used or sold; the development
expense can be reliably measured. If not, the development expense is accounted into the current gain/loss account.
If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study,
the project will enter the development stage.
22. 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 the buyer’s offer; and if
no selling agreement and active assets market, the fair value can be estimated based on the best available
information. Disposal expenses include all related legal charges, taxes, delivery fees or the direct expenses
incurred to have the assets reach the usable or sellable status. To determine the present value of the estimated
future cash flows from the assets, the Company chooses an appropriate discount rate in the light of the continual
usage of the assets and the estimated future cash flows occurring upon final disposal. Impairment provisions of the
assets are calculated and recognized on the basis of individual assets. If unable to estimate the retrievable amount
of individual assets, the Company determines the amount by reference to the asset group that includes the
individual assets. Asset groups are the minimum assets combination that independently produces cash inflows.
For the goodwill separately listed in financial statements, while an impairment test being conducted, the book
value is apportioned to the asset groups or combination of asset groups expected to benefit from the synergy
effects arising from business combinations. The Company recognizes impairment losses when the test result
shows that the retrievable amount of the asset groups or combination of asset groups is lower than their book
values. The impairment loss will be first used to write down the book values of the asset groups or combination of
asset groups and then those of other assets pro rata.
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Once the aforesaid impairment losses are recognized, they cannot be reinstated in the future.
23.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.
24. Remuneration
(1) Accounting methods for short-term compensation
Employee remuneration refers to all kinds of rewards or compensations given in return for employees’ 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 to employees’ spouses, children,
dependents, deceased employees’ 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.
25. Estimated Liabilities
The Company recognizes as estimated liabilities the obligations that meet the following conditions:
A. Current obligations being undertaken by the Company;
B. Fulfillment of the obligations that lead to cash flow out of the Company;
C. The amount of the obligations that can be measured reliably.
If it is expected that a third party can compensate for all or partial expenditures to pay off the recognized
estimated liabilities, the compensation can be recognized separately as assets only when the Company is sure to
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receive it. The amount to recognize cannot exceed the book value of the recognized liabilities.
26. 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 Equity Instruments’ 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.
27.Other financial instruments including senior shares and perpetual bonds
28.Revenues
Income, is an enterprise formed in daily activities, will lead to an increase in shareholders' equity, the total inflow
of capital has nothing to do with the economic interests of the owner of investment. The company involved in inco
me, including revenue from selling goods, income of labor ,transferring assets use right and real estate
development income..
（1）Recognition time for sales of goods
After transferring the significant risks and compensation of the merchandise ownership to the buyer, the Company
no longer holds the rights to manage and have control over the merchandise, and recognizes the revenue if the
economic benefits arising from the related transactions can flow into the Company and all the costs and revenues
related to such product sales can be measured reliably.
(2) Services
Service transaction can be estimated reliably, meaning the following conditions are satisfied: amount of revenue c
an be measured reliably; the relevant economic benefits are likely to flow into the enterprise; completion of the tra
nsaction can be measured reliably; transactions that have occurred and will occur costs can be reliably measured
For the services that start and end during the same accounting year, the revenue shall be recognized upon
completion; if the services end in a different accounting year and the service transaction results can be measured
reliably, the Company adopts the completion percentage method to recognize the revenue on balance sheet dates;
if not measurable reliably, the Company recognizes the revenue at the amount of the service costs that are incurred
and can be compensated expectedly; otherwise, the service costs incurred are recognized as current expenses.
The Company adopts the following methods to determine the completion progress of service transactions: ①
measurement of the completed jobs; ②the proportion of the completed services to all; ③the proportion of the
costs incurred to the total.
The company provides services at the balance sheet date, the transaction can not be reliably estimated, it shall be t
reated as follows: the costs incurred are expected to be compensated, according to the amount of labor costs that h
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
ave occurred service revenue is recognized, and the same amount knot turn labor costs; the costs incurred are not e
xpected to be compensated, labor costs should be recognized in profit or loss has occurred, no service revenue is r
ecognized.
Contract or agreement entered into with other companies, including the sale of goods when providing services, the
sale of goods and rendering of services can be measured in part to distinguish and separate, should be part of the s
ale of goods as sale of goods, the provision of services and as part of the provision of services deal with. Sales of
goods and rendering of services can not be distinguished, or can be distinguished but can not be measured separat
ely, should be part of the sale of goods and provision of services as part of the total sales of goods.
(3) Use Rights of Assets on Alienation
Transfer of right to Use Rights of Assets on Alienation consists of interest income, fee income etc.
If the related economic benefits can flow into the Company and the revenue can be measured reliably, the amount
of usage revenue will be calculated and determined according to the payment time and terms of the related
contract or agreement.
(4) Construction Contracts
A construction contract is a contract for the construction of one or more of the assets in terms of design, technolog
y and features, end-use and other closely related and approved.
Construction contracts are divided into fixed price contracts and cost-plus contracts.
A fixed price contract is to determine the price of a construction contract works in accordance with a fixed price o
r fixed unit price contract.
Cost-plus contracts, refers to the contract or otherwise agreed cost basis, plus the cost of a fixed fee or a percentag
e of the project to determine the price of a construction contract.
At the balance sheet date, shall be multiplied by the total contract revenue before completion less the cumulative a
mount of revenue recognized after the accounting period, recognized as the current contract revenue; at the same t
ime, according to the contract multiplied by the estimated total cost of completion less accumulated previous acco
unting period after the amount recognized as an expense is recognized as current contract costs.
Current period complete a construction contract, the contract shall be in accordance with the actual total income b
efore deducting the cumulative amount of revenue recognized after the accounting period, recognized as the curre
nt contract revenue; at the same time, according to the contract costs incurred for the deductible costs previously a
ccumulated recognized after the accounting period recognized as current contract costs.
If the results cannot be measured reliably but the costs can be retrieved, the revenue will be recognized at the
retrievable amount of the actual construction contract costs and the costs treated as expenses when incurred; if not
retrievable, the costs will also be treated as expenses and no revenue will be recognized.
（5）Income of Real Estate Development
The company’s real estate development products can confirm the income when meeting the follow conditions:
Both the buyer and seller sign the sales contract and the contract has been recorded ; Products of real estate
development have been completed and have passed the acceptance; The company receives all of the client’s.
29.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
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
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.
30. Deferred income tax assets/Deferred income tax liability
The balance between the book value and the tax basis of some items of assets and liabilities, as well as the
temporary differences issued as the balance between the book value and the tax basis of the tax basis items that
unrecognized as assets and liabilities but can be determined as per the provisions of tax law, which shall be
determined as the deferred income tax assets and the deferred income tax liabilities in accordance with the balance
sheet debt law.
Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of an
asset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profit
and taxable income (or deductible loss) when it happens, the relevant deferred income tax liabilities shall not be
recognized. In addition, as for taxable temporary differences associated with investments in subsidiaries,
associates and joint ventures, if the Company could control the reverse time of such differences and such
differences cannot be reversed in the foreseeable future, the relevant deferred income tax liabilities also shall not
be recognized. Apart from the above-mentioned exceptional cases, the Company recognizes all other deferred
income tax liabilities caused by taxable temporary differences.
Deductible temporary differences related to the initial recognition of an asset or liability in a transaction that
neither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductible
loss) when it happens, the relevant deferred income tax assets shall not be recognized. In addition, as for
deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, if such
differences cannot be reversed in the foreseeable future or are not likely to obtain the taxable income to deduct the
deductible temporary differences of the taxable income, the relevant deferred income tax liabilities shall not be
recognized. Apart from the above-mentioned exceptional cases, the Company recognizes other deferred income
tax liabilities caused by deductible temporary differences within the limit of likely obtained taxable income that
can be used to deduct the deductible temporary differences of the taxable income.
The corresponding deferred tax assets of deductible loss and tax reduction that can be carried forward during
subsequent years shall be recognized within the limit of likely obtained future taxable income that can be used to
deduct the deductible loss and tax reduction.
As per the provisions of tax law, the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates used during the period of expectation recovery of relevant assets or pay-off
relevant liabilities at the balance sheet date.
The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of
the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in the
future to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it is
likely to obtain sufficient taxable income.
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31.Operational leasing
（1）Accounting of operational leasing
The Company will transfer substantially all the risks and rewards of ownership of an asset lease is recognized as a
finance lease.Other forms of lease besides financial leasing are considered as operating leasing.
Lease payments under an operating lease shall be accounted into the relevant asset cost or current profit or loss
over the lease term on a straight-line basis.
(2) Accounting Method for Financing Leases
At the commencement of the lease term, an amount equal to the lower of the fair value of the leased asset and the
present value of the minimum lease payments shall be regarded as the recorded value of the leased assets and an
amount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leased
assets of payables. The balance between the recorded amount of the leased asset and the recorded amount of the
payable shall be accounted for as unrecognized finance charge.
32. Other significant accounting policies and estimates
1. Share Repurchase
Share repurchase refers to the behavior of repurchasing a certain sum of Company's outstanding stocks from the
stock market by cash and other methods; and the behavior that the incentive objects of restricted stocks fail to
submit a written application to the Board in the prescribed period shall be deemed as voluntarily give up the
unlocking, the corresponding restricted stocks shall no longer be unlocked and shall be logged out after the
repurchase at the awarded price by the Company. If any period fails to meet the unlocking conditions within the
unlocking period, the restricted stock with the unlocking application qualification in the current period cannot be
unlocked and shall be logged out after the repurchase by the Company.
Upon the legal procedures and reporting approval and through repurchasing the Company’s stocks, the
Company’s reduction of capital is conducted according to the total nominal value of written-off stocks. The part
of price paid to stock repurchase (including transaction expenses) that excesses the total nominal amount shall
offset the capital reserve (share premium), earned surplus and undistributed profits in sequence; The part of price
paid to stock repurchase (including transaction expenses) that less than the total nominal amount shall increase the
capital reserve (share premium).
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable √Not applicable
(2) Change of main accounting estimations
□ Applicable √ Not applicable
□Applicable √Not applicable
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
34．Other
VI.Taxation
1.Main categories and rates of taxes
Taxes Tax references Applicable tax rates
Sales revenue and
VAT Technical services revenue 17%、6%
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%
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
15%
（Subsidiary）
Shijiazhuang Dongxu Optoelectronic Equipment Technology
15%
Co., Ltd（Sub-subsidiary）
Zhengzhou Xufei Optoelectronic Technology Co., Ltd
15%
（Subsidiary）
Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd
15%
（Subsidiary）
Hebei Xubao Construction Installation Engineering Co., Ltd
25%
（Subsidiary）
Shijiazhuang Baoshi Color Bulb Co., Ltd（Subsidiary） 25%
Wuhan Dongxu Optoelectronic Technology Co., Ltd
25%
（Subsidiary）
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.
25%
（Sub-subsidiary）
Wuhu Ruiyi Labor Co., Ltd（Sub-subsidiary） 25%
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Jiangsu Jixing New Material Co., Ltd. （Subsidiary） 15%
Beijing Xutan New Material Co., Ltd. （Subsidiary） 25%
Beijing Dongxu Huuaqing Investment Co., Ltd. （Subsidiary） 25%
Jiangsu Dongxu Yitai Intelligent Equipment Co., Ltd.
25%
（Sub-subsidiary）
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 adopts 15% 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 adopts 15%
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
adopts 15% 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 adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2013.
⑤ On December 3, 2013, Jiangsu Jixing New Material Co., Ltd. was rated as the national high-tech enterprise
with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15%
enterprise tax rate applicable for high-tech enterprises for three years since 2013.
⑥ In 2013, Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. was rated as the national high-tech
enterprise. December 2014 for the record, As per the provisions of enterprise income tax law, the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2014.
⑦ In the first half of 2012,Zhengzhou Xufei Optoelectronic Technology Co., Ltd. was rated as the national
high-tech enterprise. As per the provisions of enterprise income tax law, the Company adopts 15% enterprise
tax rate applicable for high-tech enterprises for three years since 2012.
On Aug 3, 2015, from the notice of Public Display of the List of 2015 Fist-batch High-tech Enterprises Intended Passed by
Reviewing on Henan science and technology website, and according to No.8-2015-Yu High-tech Enterprises issued by Evaluation
and Management team of Henan high-tech enterprise, Zhenzhou Xufei Optoelectronic Technology is in the list.
3.Other
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash 245,781.01 244,928.44
Bank deposit 12,181,847,699.04 3,368,927,758.02
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Other 227,416,690.21 170,719,697.58
Total 12,409,510,170.26 3,539,892,384.04
Other notes
Notes 1：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.
Notes 2：The amount of restricted monetary capital of the total monetary capital in the end of the period is RMB
444,740,765.53. Mainly for the draft earnest money and the fixed deposit receipt.
2.Bills receivable
（1）Classification bill receivable
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 51,014,152.00 108,214,644.05
Trade acceptance 141,296,034.45
Total 51,014,152.00 249,510,678.50
（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 amount unterminate
Items End of the period amounts derecognizing
d
Bank acceptance 394,876,876.65
Trade acceptance 128,928,708.30
Total 523,805,584.95
（4）Bills transferred to accounts receivable because drawer of the Bills fails to execute the contract or agreement
In RMB
Items Amount
Other notes
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
3. Account receivable
(1).Classification account receivables.
In RMB
Amount in year-end Amount in year- begin
Bad debt
Book Balance Book Balance Bad debt provision
Classification 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, 14,009,35
1.80% 100.00%
receivables with 355.59 5.59
major individual
amount and bad debt
provision provided
individually
Account receivable
with minor individual 1,055,39 12,853,9 1,042,538 765,172 13,688,79 751,483,74
100.00% 1.22% 98.20% 1.79%
amount but bad debt 2,294.94 82.43 ,312.51 ,530.71 0.44 0.27
provision is provided
1,055,39 12,853,9 1,042,538 779,181 27,698,14 751,483,74
Total 100.00% 1.22% 100.00% 3.55%
2,294.94 82.43 ,312.51 ,886.30 6.03 0.27
Receivable accounts with large amount individually and bad debt provisions were provided
□ Applicable √ Not applicable
Account receivable on which bad debt provisions are provided on age basis in the group
√ Applicable □ Not applicable
In RMB
Balance in year-end
Aging
Receivable accounts Bad debt provision Proportion
Subitem within 1 year
Within credit period 834,456,113.29
Within 1 year after credit period 162,778,746.80 8,138,937.34 5.00%
1-2 years 30,585,660.03 3,058,566.00 10.00%
2-3 years 2,673,258.08 801,977.43 30.00%
Over 3 years 1,179,813.91 589,906.95 50.00%
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
3-4 years 264,594.71 264,594.71 100.00%
Over 5 years 1,031,938,186.82 12,853,982.43 1.25%
Notes：
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision
Group Name 2015.12.31 Bad debt provision
Related party group 23,454,108.12
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is 0; recovery or payback for bad debts Amount is 0.
Where the current bad debts back or recover significant amounts:
In RMB
Name Back or withdraw money Method
Baoshi TV Plant 14,009,355.59 Cash payback
Total 14,009,355.59 --
（3）The current accounts receivable write-offs situation
In RMB
Items Amount of written off
Account receivables actually written-off during the reporting period：
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:
（4）The ending balance of other receivables owed by the imputation of the top five parties
Information about the top5 of accounts receivable of ending balance sorted by borrower by Dec, 31, 2015
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is
RMB 613,577,784.57, which accounts for 58.14% of the total receivables. The total amount of closing balance for
corresponding accrued bad-debt provision is RMB 6,260,105.00.
(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
Other notes：
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
4. Payment in advance
（1）Payment in advance:
In RMB
Amount in year-end Amount in year- begin
Aging
Amount Proportion(%) Amount Proportion(%)
Within 1 year 144,188,241.68 34.42% 2,685,024,959.19 89.27%
1-2 years 261,349,437.53 62.39% 259,989,965.76 8.64%
2-3 years 6,788,329.79 1.62% 60,635,498.41 2.02%
Over 3 years 6,584,578.57 1.57% 2,183,632.85 0.07%
Total 418,910,587.57 -- 3,007,834,056.21 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
The total prepayment amount of top five closing balances collected by the objects of prepayment in the current
reporting period is RMB 281,596,091.59, which accounts for 59.67% of the total closing prepayment balance.
5. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Amount in year-end Amount in year- begin
Bad debt
Book Balance Book Balance Bad debt provision
Category provision Book
Book value
Proportio Proportio value Proportio Proportion(
Amount Amount Amount Amount
n(%) n(%) n(%) %)
Other accounts
receivable that is
individually
57,070,2 1,872,37 55,197,87 55,327, 2,921,124 52,406,728.
significant for which 100.00% 3.28% 100.00% 5.28%
47.27 5.99 1.28 852.91 .88 03
provisions for bad
debts separately
accrued
57,070,2 1,872,37 55,197,87 55,327, 2,921,124 52,406,728.
Total 100.00% 3.28% 100.00% 5.28%
47.27 5.99 1.28 852.91 .88 03
Other 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
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Closing balance
Aging
Other receivable Bad debt provision Proportion
Subitem within 1 year
Within credit period
Within 1 year after credit period 485,541.91 24,277.10 5.00%
1-2 years 718,105.55 71,810.55 10.00%
Over 5 years 1,776,288.34 1,776,288.34 100.00%
Total 2,979,935.80 1,872,375.99 62.83%
Notes of the basis of recognizing the group:
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√Applicable□Not applicable
In Group, Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
Group Name 2015.12.31 Bad debt provision
Fund cexchange 299,905.00
Deposit 7,709,572.64
Individual retirement insurance 2,812,157.82
Personal official loans 9,287,709.26
Cash deposit 33,980,966.75
Total 54,090,311.47
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB483,366.10；the amount
of the reversed or collected part during the reporting period was of RMB 1,532,114.99.
Of which the significant amount of the reversed or collected part during the reporting period:
In RMB
Name of units Reversed or collected amount Method
(3) The actual write-off other accounts receivable
In RMB
Items Amount
Of which the significant write-off other accounts receivable
In RMB
Whether the amo
Amount of written
Name Nature Reason Procedure unt was generated
off
by the related par
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
ty transactions
Notes of write-off other accounts receivable:
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Amount in year-end Amount in year- begin
Capital intercourse 299,905.00 299,905.00
intercourse funds 1,205,904.65 1,580,870.75
Guarantee 33,980,966.75 20,207,097.50
Personal official borrowing 9,287,709.26 7,419,317.09
Deposit 7,709,572.64 21,237,660.36
Persona Returnable Insurance 2,812,157.82 767,164.60
Power cost 448,544.45
Export tax refunds 653,753.38
Other 1,774,031.15 2,713,539.78
Total a 57,070,247.27 55,327,852.91
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
The closing balance
Amount in
Name Nature Aging Proportion of bad debts
year-end
Wuhu Economic and
Technological Deve
Deposit 9,978,000.00 1-2 Years 17.48%
lopment Zone Finan
ce Bureau
Hebei Property
Rights Market Co., Cash deposit 6,120,000.00 Within 1 year 10.72%
Ltd.
Hebei Financial
Cash deposit 5,100,000.00 Within 1 year 8.94%
Leasing Co., ltd.
Kunshan Land and
Cash deposit 5,000,000.00 Within 1 year 8.76%
resources Bureau
CEIEC Deposit 3,902,067.00 1-2 years 6.84%
Total -- 30,100,067.00 -- 52.74%
(6) Accounts receivable involved with government subsidies
In RMB
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Project of government Estimated received time,
Name of units Closing balance Closing age
subsidies amount and basis
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
Other notes：
6．Inventory
（1）Inventory types
In RMB
Year-end balance Year-beginning balance
Items
Provision for bad Provision for bad
Book Balance Book value Book Balance Book value
debts debts
Raw materials 997,984,608.47 997,984,608.47 407,990,511.84 407,990,511.84
Processing
55,124,671.25 55,124,671.25 12,312,133.59 12,312,133.59
products
Stock goods 182,763,166.25 182,763,166.25 193,170,922.32 193,170,922.32
Construction cont
ract has been com
27,390,555.01 27,390,555.01 2,622,252.99 2,622,252.99
pleted unsettled a
ssets
Development cost 914,716,683.08 914,716,683.08
Total 2,177,979,684.06 2,177,979,684.06 616,095,820.74 616,095,820.74
(2) Completed unsettled assets formed from the construction contact at the period-end
In RMB
Items Amount
Accumulated Incurred Cost 632,341,077.84
Accumulated Confirmed Gross Profit 64,011,141.00
Settlement Amount 668,961,663.83
Unliquidated Completed Assets Formed in the Construction
27,390,555.01
Contract
Other notes：
Note1: The material reasons for the ending inventory largely changed comparing with the beginning balance
are the increase of development costs and raw material.
Note2: Detaile of product development
No. Project Name Start Estimated time of Estimated total Beginning Ending balance
completion of first
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Date(Planned) session investment balance
01 Dong xu 2015-12-29 2017-2-27 2.2billion 914,716,683.08
International
Center
7. Non-current assets due within 1 year
In RMB
Items Closing balance Opening balance
Hydropower installation dormitory
139,395.72 185,227.78
renovation project
Total 139,395.72 185,227.78
Other notes：
Non-current assets due within one year is the long-term unamortized assets
8. Other current assets
In RMB
Items Closing balance Opening balance
USD exchange 58,000,000.00 58,000,000.00
Prepaid or pending certified taxes 1,158,401,769.76 874,526,092.19
Total 1,216,401,769.76 932,526,092.19
Other notes：
In 1993,the Group signed the agreement on exchange of US dollars which agreed returning 10,000,000 US dollars
to the Exchange Unit and repossess the RMB 58,000,000 exchanged in November 1998, As of December 31,
2014, the Group still consults with the Exchange Unit on the returning of the exchange.
9. Long-term equity investment
In RMB
Increase/decrease
Closing
Adjustme
Cash Withdraw balance
nt of
Opening Add Changes bonus or al of Closing of
Investees other
balance investmen of other profits impairme Other balance impairme
comprehe
t equity announce nt nt
nsive
d to issue provision provision
income
II. Joint ventures
II. Associated enterprises
72,000,00 426,252.4 72,426,25
175
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Zhongda 0.00 1 2.41
Chengxi
n
Internati
onal
Commer
ce Co.,
Ltd.
72,000,00 426,252.4 72,426,25
Subtotal
0.00 1 2.41
72,000,00 426,252.4 72,426,25
Total
0.00 1 2.41
Other notes
10.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
I. Original price
1. Balance at
period-beginning
2.Increase in the current
6,509,180.37 6,509,180.37
period
(1) Purchase
（ 2 ） Inventory\Fixed
assets\ Transferred from 6,509,180.37 6,509,180.37
construction in progress
(3)Increased of
Enterprise Combination
3.Decreased amount of
6,509,180.37 6,509,180.37
the period
（1）Dispose
（2）Other out 6,509,180.37 6,509,180.37
4. Balance at period-end
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
II.Accumulated
amortization
1.Opening balance
2.Increased amount of
644,451.43 644,451.43
the period
(1) Withdrawal 160,300.42 160,300.42
（2）Fixed assets transfer 484,151.01 484,151.01
3.Decreased amount of
644,451.43 644,451.43
the period
（1）Dispose
（2）Other out 644,451.43 644,451.43
4. Balance at
period-end
III. Impairment provision
1. Balance at
period-beginning
2.Increased amount of
the period
(1) Withdrawal
3.Decreased amount of
the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV.Book value
1.Book value at period
-end
2.Book value at
period-beginning
11. Fixed assets
(1) List of fixed assets
In RMB
177
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Machinery
Items House, building Transportations Other equipment Total
eqiupment
I. Original price
1. Balance at
762,181,344.32 4,252,743,128.68 33,421,188.52 33,448,617.04 5,081,794,278.56
period-beginning
2.Increase in the
344,824,813.10 2,312,587,110.61 5,937,033.98 16,210,832.02 2,679,559,789.71
current period
(1) Purchase 10,125,859.00 19,538,013.61 5,564,216.47 14,435,959.92 49,664,049.00
（2）Inventory\Fixed
assets\ Transferred
246,431,374.88 2,038,213,498.83 2,284,644,873.71
from construction in
progress
(3)Increased of
80,602,662.25 254,835,598.17 372,817.51 1,774,872.10 337,585,950.03
Enterprise
Combination
（4）Transferred
from Investment real 6,509,180.37 6,509,180.37
estate
（5）Other Increases 1,155,736.60 1,155,736.60
3.Decreased amount
7,136,953.37 173,728.63 4,145.30 7,314,827.30
of the period
（1）Disposal 173,728.63 4,145.30 177,873.93
（2）Transferred
from Investment 6,509,180.37 6,509,180.37
real estate
（3）Other decreases 627,773.00 627,773.00
4. Balance at
1,099,869,204.05 6,565,156,510.66 39,358,222.50 49,655,303.76 7,754,039,240.97
period-end
II. Accumulated
depreciation
1.Opening balance 171,077,729.50 265,682,735.96 13,604,307.45 11,295,052.88 461,659,825.79
2.Increased amount
34,993,907.58 346,444,933.94 5,944,522.42 5,800,602.31 393,183,966.25
of the period
(1) Withdrawal 29,337,935.98 303,645,043.39 5,767,502.87 5,109,092.52 343,859,574.76
(2)Increased of
Enterprise 4,677,781.89 42,799,890.55 177,019.55 691,509.79 48,346,201.78
Combination
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
（3）Transferred
from Investment 644,451.43 644,451.43
real estate
（4）Other Increases 333,738.28 333,738.28
3.Decrease in the
903,242.23 124,878.27 2,803.17 1,030,923.67
reporting period
（1）Disposal 124,878.27 2,803.17 127,681.44
（2）Transferred
from Investment 484,151.01 484,151.01
real estate
（3）Other decreases 419,091.22 419,091.22
4.Closing balance 205,168,394.85 612,002,791.63 19,548,829.87 17,092,852.02 853,812,868.37
III. Impairment
provision
1.Opening balance 36,444.84 36,444.84
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance 36,444.84 36,444.84
IV. Book value
1.Book value of the
894,700,809.20 5,953,117,274.19 19,809,392.63 32,562,451.74 6,900,189,927.76
period-end
2.Book value of the
591,103,614.82 3,987,023,947.88 19,816,881.07 22,153,564.16 4,620,098,007.93
period-begin
(2) Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
108# Gas station 172,232.40 Processing
109#Oxygen gasification station 125,884.00 Processing
102#Workshop 39,686,976.35 Processing
Cullet warehouse 2,628,593.40 Processing
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Main entrance Guard room 165,039.71 Processing
Bathroom 84,690.40 Processing
East entrance Guard room 90,335.53 Processing
Compressed air station, circulating water
847,862.22 Processing
pump house, refrigeration station
Dangerous goods warehouse 368,530.67 Processing
Wastewater treatment plant 872,878.15 Processing
Substation 361,198.48 Processing
Boiler room 4,846,656.63 Processing
Total 50,250,877.94
Other notes
Note1: The other increase of the original value of fixed assets is the adjustment of the fixed asset category; the
consolidation increase is due to the increase of the company’s subsidiary-Jiangsu Jixing New Materials Co.,Ltd in
the period.
Note2: The material reasons for the increase of the ending balance of fixed assets comparing with the beginning
balance are the production line of the liquid crystal glass substrate transferred into fixed asset and purchasing the
subsidiary of Jiangsu Jixing Company.
12. Project under construction
(1)Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
LCD glass
substrate
1,874,688,280.97 1,874,688,280.97 2,008,412,102.91 2,008,412,102.91
production line
project
Plant 37,317,530.31 37,317,530.31
Xufei LCD glass
substrate
1,013,527,351.59 1,013,527,351.59 750,407,611.00 750,407,611.00
production line II
and supporting
Xufei LCD glass
substrate
389,076,631.08 389,076,631.08
production line I
Upgrading
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Xuxin LCD glass
substrate 485,548,460.69 485,548,460.69 884,508,229.24 884,508,229.24
production line
Kunshan Color
16,309,892.75 16,309,892.75
film project
Sapphire crystal
sultivation and
processing of 42,942,402.90 42,942,402.90
production line
equipment
Total 3,433,016,388.90 3,433,016,388.90 4,069,722,104.54 4,069,722,104.54
(2) Changes of significant construction in progress
In RMB
Includin
g:
Transferr Capitaliz
Capitaliz capitaliz Source
Name of Opening ed to Other End Proporti Project ation of
Budget Increase ation of ation of of
project balance fixed decrease balance on % process interest
interest interest funding
assets rate (%)
this
period
Xuxin
LCD
glass
2,700,00 884,508, 174,470, 573,430, 485,548, 219,493, 58,395,9
substrate 90.91% 90.91% Other
0,000.00 229.24 537.38 305.93 460.69 294.19 40.88
producti
on line
project
Xufei
LCD
glass
substrate
2,500,00 764,434, 379,393, 21,647,3 108,652, 1,013,52 172,707, 74,990,6
producti 100.00% Other
0,000.00 026.10 435.55 25.05 785.01 7,351.59 038.42 42.69
on line II
and
supporti
ng
Xufei
LCD
glass 8,450,00 375,050, 2,416,75 377,466,
95.00% 95% Other
substrate 0.00 215.98 5.47 971.45
producti
on line I
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Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Upgradi
ng
Kunshan
Color 3,115,50 16,309,8 16,309,8 Raise
0.10% 0.1%
film 0,000.00 92.75 92.75 funds
project
Worksho 40,000,0 37,317,5 2,095,59 39,413,1
98.81% 98.81% Other
p 00.00 30.31 0.04 20.35
LCD
glass
substrate 7,576,52 2,008,41 1,137,27 1,271,00 1,874,68 450,382, 185,456,
65.30% 65.3% Other
producti 0,000.00 2,102.91 8,414.53 2,236.47 8,280.97 101.57 804.22
on line
project
Sapphire
crystal
sultivatio
n and
processi 44,630,0 44,156,8 1,214,49 42,942,4
43.20% 43.2% Other
ng of 00.00 99.56 6.66 02.90
producti
on line
equipme
nt
15,985,1
4,069,72 1,756,12 2,284,17 108,652, 3,433,01 842,582, 318,843,
Total 00,000.0 -- -- --
2,104.54 1,525.28 4,455.91 785.01 6,388.90 434.18 387.79
0
(3) List of the withdrawal of the impairment provision of the construction in progress
In RMB
Items Withdrawn amount Reason
Other notes：
Note1: The material reason of the ending balance lessened than the beginning balance is the production line
transferred into fixed asset.
Note2: Other decrease is the sale-leaseback of the Platinum channel by Zhenzhou Xufei Optoelectronic
Technology Co.,Ltd.
13. Engineering Material
In RMB
Items Closing balance Opening balance
Special Equipment 31,267.87 22,086,763.66
182
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Special material 6,947.12 8,322.76
Total 38,214.99 22,095,086.42
Other notes
14. Intangible assets
（1）Information
In RMB
Non patent Financial
Items Land use right Patent right Patent technology Total
technology technology
I. Original price
1. Balance at
341,833,267.40 26,789,286.53 1,266,932.90 369,889,486.83
period-beginning
2.Increase in the
111,062,636.91 20,195,381.45 291,910.34 4,500,000.00 136,049,928.70
current period
(1) Purchase 46,143,954.68 12,930.77 141,482.98 46,298,368.43
(2)Internal
18,520,903.08 18,520,903.08
Development
(3)Increased of
Enterprise 64,918,682.23 1,661,547.60 150,427.36 66,730,657.19
Combination
(4)Investors 4,500,000.00 4,500,000.00
3.Decreased
amount of the
period
（1）Disposal
4. Balance at
452,895,904.31 46,984,667.98 1,558,843.24 4,500,000.00 505,939,415.53
period-end
II.Accumulated
amortization
1. Balance at
21,353,604.83 3,546,715.35 182,026.96 25,082,347.14
period-beginning
2. Increase in the
12,648,962.08 5,453,406.11 294,663.70 168,750.00 18,565,781.89
current period
(1) Withdrawal 8,374,073.88 3,930,320.81 205,632.30 168,750.00 12,678,776.99
（2）(Increased of
4,274,888.20 1,523,085.30 89,031.40 5,887,004.90
Enterprise
183
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Combination
3.Decreased
amount of the
period
（1）Disposal
4. Balance at
34,002,566.91 9,000,121.46 476,690.66 168,750.00 43,648,129.03
period-end
III. Impairment
provision
1. Balance at
period-beginning
2. Increase in the
current period
(1) Withdrawal
3.Decreased
amount of the
period
（1）Disposal
4. Balance at
period-end
4. Book value
1.Book value at
418,893,337.40 37,984,546.52 1,082,152.58 4,331,250.00 462,291,286.50
period -end
2.Book value at
320,479,662.57 23,242,571.18 1,084,905.94 344,807,139.69
period-beginning
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets
at the period-end
15. R&D expenses
In RMB
Opening Closing
Items Increase Decrease
balance balance
Developme
3,281,670.89 97,509.45 3,379,180.34
nt of high
184
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
intensity
and
chemical
resistance
liquid
crystal
glass
R&D of
key
technology
of 0.3mm
1,607,589.99 2,853,019.42 4,460,609.41
thick
TFT-LCD
glass
substrate
Technologi
cal research
of
prolonging
the life of
liquid 841,913.11 386,014.95 1,227,928.06
crystal
glass
melting and
forming
equipment
Design and
application
of the split
type
traction
roller for 538,765.53 876,708.53 1,415,474.06
the
overflow
method of
glass
forming
Optimizatio
n design of
CDA
823,249.14 923,732.09 1,746,981.23
system for
TFT-LCD
glass
185
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
processing
System
optimizatio
n design for
TFT-LCD 1,222,797.22 709,882.65 1,932,679.87
glass
inspection
machine
Research
on
thickness
range
reduction
of the 1,059,017.74 88,882.76 1,147,900.50
0.5mm
thick
TFT-LCD
glass
substrate
Research
on
formation
mechanism
and
elimination 821,232.40 1,783,463.60 2,604,696.00
of bubbles
of
TFT-LCD
glass
platinum
Optimizatio
n design
and
application
of
534,705.03 70,748.58 605,453.61
TFT-LCD
broken
glass
processing
system
10,730,941.0 18,520,903.0
Total 7,789,962.03
5 8
186
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
16.Long-term amortization expenses
In RMB
Balance in Increase at this Amortization at
Items Decrease Balance in year-end
year-begin period this period
Building renovation 14,106,796.67 7,747,540.94 5,293,950.22 16,560,387.39
Zhonghang
975,769.20 836,373.48 139,395.72
Transformation
Total 15,082,565.87 7,747,540.94 6,130,323.70 139,395.72 16,560,387.39
Other notes
The other reason for reduction is the transferring-in of the non current assets due within one year for the next
accounting period.
17. 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
14,651,027.92 2,394,366.85 23,196,284.82 3,548,327.01
provision
Not realized the internal
1,942,130,426.59 291,319,564.00 1,623,886,215.35 243,582,932.31
profit
Deductible loss 3,065,869.27 459,880.39 57,465,552.78 8,619,832.91
Deferred income
33,039,111.11 4,955,866.67
difference
Total 1,992,886,434.89 299,129,677.91 1,704,548,052.95 255,751,092.23
（2）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 299,129,677.91 255,751,092.23
(3) List of unrecognized deferred income tax assets
In RMB
187
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Items Closing amount Opening amount
Deductible losses 5,928,841.93 4,260,364.76
Bad debt provision 75,330.50 7,422,986.09
Impairment of fixed assets 36,444.84 36,444.84
Total 6,040,617.27 11,719,795.69
(4) Deductible losses of unrecognized deferred income tax assets will due the following years
In RMB
Year Closing amount Opening amount Notes
2015
2016
2017 918,382.44 1,360,570.52
2018 15,649.80 15,649.80
2019 544,310.34 2,884,144.44
2020 4,450,499.35
Total 5,928,841.93 4,260,364.76 --
Other notes
18. Other non-current assets
In RMB
Items Closing balance Opening balance
Prepaid engineering equipment 243,279,174.31
Total 243,279,174.31
Other notes：
19. Short-term loan
（1）Categories of short-term loans
Items Closing balance Opening balance
Pledge loan 265,000,000.00 48,900,000.00
Mortgage loan 53,300,000.00
Guarantee loan 3,465,000,000.00 1,539,000,000.00
Total 3,783,300,000.00 1,587,900,000.00
Notes:
1. There is no mature but unredeemed short-term borrowing in the company during the accounting period.
2. The increase of short-term borrowings at the end compared to the beginning is mainly due to the production,
188
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
business operation and property investment, which jointly cause borrowing increase.
3. The mortgage loan at the end is 53.3 million yuan, in which 30 million yuan is used as mortgage and guarantee,
and the pledge is the land usage right of Yangguoyong (2011) No. 10482 Land owned by the subsidiary Jeshine
New Material Co., Ltd. and the guarantor is Zhenjiang Huantai Silicon Technology Co., Ltd. and Dongxu
Photo-electricity Technology Co., Ltd. The pledge for the 9.3 million yuan is the land usage right of
Yangguoyong (2011) No. 10487 Land owned by the subsidiary Jeshine New Material Co., Ltd.; the pledge for the
14 million yuan is the self-owned house property and the land usage right owned by Gaozhao Solar Energy
Science and Technology Co., Ltd. and Jiangsu Secco Silicon Energy Co., Ltd. The certificate numbers are:
Yangfangzi No. 81801320 and No. 81801321 of Gaozhao Property Ownership Certificate, No. (2014) 1508 of
Yangguoyong Industrial Land and No. (2013) 3231 of Yangguoyong Meike Land Use Right.
4.The guaranteed loan amount at the end of the period is RMB 2165 million, of which: Dongxu Group Co., Ltd.
provides joint guarantee of RMB195 million to the subsidiary Zhengzhou Xufei Optoelectronic Technology Co.,
Ltd.; Dongxu Group Co., Ltd. provides joint guarantee of RMB80 million to the company; Li Zhaoting provides
guarantee of RMB 100 million to company; Dongxu Group and Li Zhaoting provides guarantee of RMB 750
million to company; Dongxu Group , Li Zhaoting and Li Qing provides guarantee of RMB 400 million to
company; meanwhilie, the company’s shareholder Shijiazhuang Baoshi Electronics Group Co., Ltd. provides
pledge of RMB 33.5 million of its holding shares; The company provides guarantee of RMB 200 million to the
subsidiary Wuhu Dongxu Optoelectronic Technology Co., Ltd.; The company provides guarantee of RMB 200
million to the subsidiary Wuhu Dongxu Optoelectronic Technology Co., Ltd.; At the same time, Dongxu Group
provides full joint liability guarantee for the borrowing; the actual controller of the company Li Zhaoting provides
joint liability guarantee valuing 40 million yuan for the subsidiary Wuhu Dongxu Photo-electricity Technology
Co., Ltd.,The company provides guarantee of RMB50 million to the subsidiary Wuhu Dongxu Optoelectronic
Equipment Technology Co., Ltd.; Wuhu Economic and Technological Development Zone Construction
Investment Co., Ltd provides guarantee of RMB 75 million to the subsidiary Wuhu Dongxu Optoelectronic
Technology Co., Ltd.; Wuhu Economic and Technological Development Zone Construction Investment Co., Ltd
provides guarantee of RMB 75 million to the subsidiary Wuhu Dongxu Optoelectronic Equipment Technology
Co., Ltd.
5.The pledge of the pledge loan is RMB 250 milllion ofthe fixed deposit receipts.
6. The pledge for the secured borrowings valuing 265 million is the fixed deposit receipt valuing 280 million
yuan.
20. Bills payable
In RMB
Type At end of term At beginning of term
Commercial acceptance 69,458,800.00
Bank acceptance 341,136,129.94 280,000,000.00
Total 410,594,929.94 280,000,000.00
Amount due in next fiscal period is RMB 0.00.
21.Account payable
（1）Account payable
189
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
In RMB
Items Closing balance Opening balance
Engineering fund 253,090,961.95 203,890,931.26
Material fund 388,295,104.60 65,452,461.97
Transportation expenses 4,086,308.99
Other 30,263,851.08 5,978,910.66
Total 675,736,226.62 275,322,303.89
（2）Significant accounts payable that aged over one year
In RMB
The reason for not repaid or carried f
Items Balance in year-end
orward
Sichuan Yilong Construction Co., Ltd. Not reached the agreed payment terms and
10,780,000.00
Kezhou Branch deadlines
Ningxia Tianshun Electric Power Not reached the agreed payment terms and
6,281,753.22
Engineering Co., Ltd. deadlines
Shijiazhuang Baoshi VacuumGlass Co., Not reached the agreed payment terms and
5,533,363.79
Ltd. deadlines
Total 22,595,117.01 --
Other notes：The other reason for reduction is the transferring-in of the non current assets due within one year for
the next accounting period.
22.Advance account
（1）Advance account
In RMB
Items Closing balance Opening balance
Goods 70,046,067.70 90,225.70
Engineering fund 27,874,621.71 22,292,047.77
Total 97,920,689.41 22,382,273.47
（2）Significant .Advance account that aged over one year
In RMB
The reason for not repaid or carried f
Items Balance in year-end
orward
(3) Information of unliquidated completed assets formed in the construction contract at the end of the period
In RMB
Items Amount
190
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Accumulated Incurred Cost 632,341,077.84
Accumulated Confirmed Gross Profit 64,011,141.00
Settlement Amount 668,961,663.83
Unliquidated Completed Assets Formed in the Construction
27,390,555.01
Contract
Other notes：
Note: No significant advances with aging over 1 year at the end of the period.
Note: The material reason for the increase of advances in the end compared from the beginning of the period
is the increase of advances from customers.
23. Payroll payable
(1) List of Payroll payable
In RMB
Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end
I.
27,640,365.29 484,488,017.46 475,496,872.76 36,631,509.99
Short-term remuneration
II.
Post-employment benefit
1,825,221.14 38,775,602.73 40,376,076.00 224,747.87
s - defined contribution p
lans
Total 29,465,586.43 523,263,620.19 515,872,948.76 36,856,257.86
（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,
16,387,517.28 395,774,060.03 388,999,681.55 23,161,895.76
allowances and subsidies
2.Employee welfare 202,729.95 44,204,622.07 44,407,352.02
3. Social insurance
1,071,665.94 19,608,648.49 20,670,791.22 9,523.21
premiums
Including：Medical
694,843.17 17,382,317.24 18,076,816.01 344.40
insurance
Work injury insurance 311,961.18 1,065,874.79 1,368,705.16 9,130.81
Maternity insurance 64,861.59 1,160,456.46 1,225,270.05 48.00
4. Public reserves for
2,261,759.63 16,117,854.10 18,061,509.68 318,104.05
housing
5.Union funds and staff 6,518,853.59 8,452,645.49 1,904,284.51 13,067,214.57
191
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
education fee
Other 1,197,838.90 330,187.28 1,453,253.78 74,772.40
Total 27,640,365.29 484,488,017.46 475,496,872.76 36,631,509.99
（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
1,645,968.31 37,037,535.88 38,458,816.32 224,687.87
insurance premiums
2.Unemployment
179,252.83 1,738,066.85 1,917,259.68 60.00
insurance
Total 1,825,221.14 38,775,602.73 40,376,076.00 224,747.87
Other notes:
24. Taxes payable
In RMB
Items Closing balance Opening balance
VAT 4,699,249.82 9,247,682.59
Business Tax 11,761,731.75 7,087,533.44
Enterprise Income tax 67,526,265.91 91,146,472.17
Individual income tax 13,798,236.93 1,404,356.81
City Construction tax 1,179,317.86 1,017,698.80
House property tax 4,088,234.58 2,489,262.10
Land use tax 1,273,515.66 1,460,201.25
Educational surtax 767,574.48 621,001.26
Stamp Tax 70,532.82 204,847.64
Other 286,763.86 30,500.99
Total 105,451,423.67 114,709,557.05
Other notes：
25. Interest payable
In RMB
Items Closing balance Opening balance
Interest on long-term borrowings payable 18,738,942.09
Enterprise bond interest 36,666,666.67
Total 55,405,608.76
192
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Particulars of significant overdue unpaid interest:
In RMB
Name Overdue amount Overdue reason
Other notes：
Note: The material reason for the increase of advances in the end compared from the beginning of the period
is the increase of advances from customers.
26. Dividends payable
In RMB
Items Closing balance Opening balance
Common stock dividend 20,000,000.00 30,000,000.00
Total 20,000,000.00 30,000,000.00
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
27. Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Current account 414,964,454.37 217,000,997.87
Deposit 19,010,735.95 10,112,118.72
Individual official borrowing 786,231.71 1,658,466.88
official borrowing 15,000,000.00 15,000,000.00
Deposit 605,520.16 816,230.00
Social security withholding 778,586.04 1,906,771.96
Engineering fund 1,829,473.81 1,617,175.91
Equipment fund 6,065,857.97 6,065,857.97
Material fund 685,725.31 564,774.31
Petty cash 3,272,874.81 1,240,108.67
Equity section 58,889,712.93
Restricted stock repurchase obligations 9,011,520.00
Other 8,895,420.72 11,014,735.20
Total 539,796,113.78 266,997,237.49
28.Non-current liabilities due within 1 year
In RMB
193
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Items Closing balance Opening balance
Long-term loans due 1 year 848,987,200.00 720,238,000.00
Long-term payable due 1 year 28,000,000.00
Total 876,987,200.00 720,238,000.00
Other explanation ：
29.Other current liabilities
In RMB
Items Closing balance Opening balance
USD exchange 64,936,000.00 61,190,000.00
Deferred income
Including：Government grants projects 20,457,266.66 17,301,266.66
Not realized after sale rental return 8,009,696.42 10,679,595.23
Total 93,402,963.08 89,170,861.89
Increase or decrease in short-term bonds payable：
In RMB
Premium
Amount This
and Balance
Issuing Issuing in period for
Name Par value Term This issue Interest discount Other in
date amount year-beg repaymen
amortiatio year-end
in t
n
Other explanation ：
Notes ：In 1993,the Group signed the agreement on exchange of US dollars which agreed returning 10,000,000
US dollars to the Exchange Unit and repossess the RMB 58,000,000 exchanged in November 1998, As of
December 31, 2014, the Group still consults with the Exchange Unit on the returning of the exchange.
30. Long-term loan
(1) Category of long-term loan
In RMB
Items Closing balance Opening balance
Mortagage loans 6,638,384,500.00 6,094,547,000.00
Guarantee loans 60,000,000.00 130,000,000.00
Credit loans 400,000,000.00
Less ：Long-term loan due 1 year -848,987,200.00 -720,238,000.00
Total 6,249,397,300.00 5,504,309,000.00
194
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Notes：
Notes 1：Mortgage loan of RMB 6,698,384,500.00 is both mortgage loan and guaranteed loan and the amount of
transferred non-current liability payable within one year is RMB848,987,200.00. Of which:
（1）Within the borrowing valuing 612 million yuan, 136 million yuan is mature in a year.The mortgage and guarantor of loan
are：a. Mortgage of state-owned land employment right covering 202 mu (0.1346667 km and workshops after
the project is completed by Wuhu Dongxu Optoelectronic Technology Co., Ltd., and mortgage guarantee is
provided by 2 precious metal platinum channels; b. the loan guarantor is Wuhu Construction Investment Co., Ltd.
(2) Within the borrowing valuing 2,060,000,000.00 yuan, 280,000,000.00 yuan is mature in a year.，The mortgage and
guarantor of loan are：a. 8 precious metal platinum channels owned by Wuhu Dongxu Optoelectronic Technology
Co., Ltd. as mortgage guarantee; b. the entire joint liability guarantee provided by Dongxu Optoelectronic
Technology Co., Ltd. to its subsidiary Wuhu Dongxu Optoelectronic Technology Co., Ltd.
(3) （3）The collateral and guarantor for the loan valuing 500,000,000.00 yuan are: a. mortgage of land-use right
of Wuhu Development (Industrial) State-owned Land Employment Right 2013 No. 020, Wuhu Development
(Industrial) State-owned Land Employment Right 2013 No. 021 and Wuhu Development (Industrial) State-owned
Land Employment Right 2014 No. 008 owned by Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.;
b. the entire joint liability guarantee provided by Dongxu Optoelectronic Technology Co., Ltd. to its subsidiary
Wuhu Dongxu Optoelectronic Technology Co., Ltd.
(4)The collateral, hostage and guarantor for the loan valuing 240,000,000.00 yuan are: a. the pledger is Beijing
Xufeng Real Estate Co., Ltd. and the collateral is the land use rights covering 21,137.723 m2 owned by Beijing
Xufeng Prperty Co., Ltd.; b. the pledgor is Dongxu Optoelectronic Technology Co., Ltd., and the hostage is the
100% equity of Beijing Xufeng Real Estate Co., Ltd. which is the wholly-owned subsidiaries of the company; c.
Dongxu Group, Li Zhaoting and Li Qing provide guarantee for Dongxu Optoelectronic Technology Co., Ltd.
Notes 2: The company has no overdue long-term loans.
（5）Within the borrowing valuing 1,036,384,500.00, 172,987,200.00 yuan is mature in a year. The pledges and
guarantors of the borrowing: a. the pledges cover the land use rights, above-ground structures, machinery
equipment (including 4 channels for precious metals and platinum) and others of Zhengzhou Xufei Optoelectronic
Technology Co., Ltd.; the guarantors are Henan Coal Chemical Industry Group Co., Ltd. and Dongxu Group.
Henan Coal Chemical offers principal and the caused interests, penalty rate, compound interest, compensatory
payment, liquidated damages, aggravated damages, the realized expenses of creditor's rights and the joint liability
guaranty valuing 200 million yuan. Dongxu Group offers the borrowing and the caused interests, penalty rate,
compound interest, compensatory payment, liquidated damages, aggravated damages, the realized expenses of
creditor's rights and the joint liability guaranty valuing 450 million yuan.
（6）Within the borrowing valuing 990,000,000.00 yuan, 200,000,000.00 yuan is mature in a year. This borrowing
is mortgage loan as well as guaranteed loan. The pledger Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd.
possesses assets for the pledge, including land use rights, plants, machinery equipment (including 3 channels for
precious metals and platinum)and etc. The couple Mr. Li Zhaoting and Mrs Li Qing of Dongxu Group provide a
guarantee.
（7）As to the borrowing valuing 1.2 billion yuan, the guarantor is Dongxu Optoelectronic Technology Co., Ltd.
and the pledge is the land use right of Beijing No. (2015) 0000016 Land of Real Estate Right in Fengtai District.
Notes 2: As to the guaranteed loan valuing 60 million yuan, the total amount is mature in a year and it is guaranteed with joint
liability by Henan Coal Chemical Industry Group Co., Ltd.
Notes 3: The company has no overdue long-term loans.
Other notes including interest rate range:
195
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
31. Bonds payable
(1) Bonds payable
In RMB
Items Closing balance Opening balance
15 Dongxu Bonds 988,400,388.00
Total 988,400,388.00
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and
perpetual capital securities of financial liabilities)
In RMB
15
1,000,000 1,000,000 1,000,000 36,666,66 -11,599,6 988,400,3
Dongxu 2015.5.19 5 years
,000.00 ,000.00 ,000.00 6.67 12.00 88.00
Bonds
(3) Note to conditions and time of share transfer of convertible bonds
Note: Deliberated and approved by the 21st Meeting of the 7th Board of Directors of Dongxu Optoelectronic and
the 3rd Extraordinary General Meeting in 2014 and authorized by Document No. [2015] 635 approved by China
Securities Regulatory Commission (CSRC), the company issued public bonds valuing 1 billion yuan on May 19,
2015 at the price of 100 yuan per share. The issuance was carried out in the way of online issuing to the social
public investors and offline inquiry and sales to the institutional investors. The final issuing result is 1 billion yuan
for 5 years and the bond duration is 5 years. The issuers’ option of increasing nominal interest rate and investors’
option of resale have been provided in the end of 3rd year at the rate of 6%. The nominal interest rate of bonds
issued this time will remain the same in the first 3 years within the duration. When the company exercises the
option of increasing nominal interest rate, the nominal interest rate of bonds which have not been resold in the
final 2 years of the duration will be the nominal interest rate in the first 3 years added with increased points, and
the interest rate in the final 2 years of the duration will remain the same. If the company does not exercise the
option of increasing nominal interest rate, the nominal interest rate of bonds which have not been resold in the
final 2 years of the duration will remain the same, the total amount of raised funds is 1 billion yuan and the
payment of interest will be carried out once per year.
32. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Long-term payable 93,426,666.67
Less：Unconfirmed financing costs 8,426,666.67
Less：Port due Within 1 year 28,000,000.00
Total 57,000,000.00
196
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Other notes：
Note: Zhengzhou Xufei Optoelectronic Technology Co., Ltd. has transferred the platinum channel valuing 108,603,068.05 yuan at
the price of 85 million yuan on October 25, 2015. On the same day, the channel has been rent back as financial lease at the price of
85 million yuan. The mortgage transaction of the platinum channel has been finished and guarantee has been provided by Dongxu
Group.
33.Accrued liabilities
In RMB
Items Balance in year-end Balance in year-beginning Reason
Pending litigation 53,046.23 Failure
Total 53,046.23 --
Other notes, including related important assumptions and estimates of accrued liabilities:
34.Deferred income
In RMB
Balance in Increase at this Decrease at this
Items Balance in year-end Reason
year-begin period period
Govemment Subsidy 249,374,722.30 42,400,000.00 21,246,266.61 270,528,455.69
Not realized after
8,009,696.39 -23,603,068.08
sale rental return
Titak 257,384,418.69 42,400,000.00 52,859,031.08 246,925,387.61 --
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
Associated with
Government 29,928,000.00 2,244,600.00 27,683,400.00
the asset
Infrastructure
Grant of
Glass-tube
Associated with
Secondary 25,000.00 20,000.00 5,000.00
the asset
Environmental
Protection
Grant of Industry
Associated with
Revitalization 3,111,111.11 233,333.28 2,877,777.83
the asset
and Technology
197
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Reconstruction
Project
Investment and
Subsidies of
“Double
Hundred Plan” Associated with
2,183,333.33 200,000.00 1,983,333.33
Project granted the asset
by the People's
Government of
Henan Province
TFTglass
substrate
technology Associated with
109,166.67 10,000.00 99,166.67
research and the asset
development
funds
TFT glass
Associated with
substrate Project 7,277,777.77 666,666.67 6,611,111.10
the asset
Subsidy
Investment and
Subsidies within
Budget for
Technological
Transformation
Project by
National Associated with
10,188,888.90 933,333.33 9,255,555.57
Development and the asset
Reform
Commission and
the Ministry of
Industry and
Information
Technology
TFT glass
Associated with
substrate Project 14,555,555.56 1,333,333.33 13,222,222.23
the asset
Subsidy
Special Funds for
Major Scientific
and Technical Associated with
727,777.77 66,666.67 661,111.10
Projects by the asset
Finance Bureau
of Zhengzhou
198
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
City
Financial
Supports for
National Key
Industry and
Associated with
Technical 10,188,888.90 933,333.33 9,255,555.57
the asset
Transformation
Projects Granted
by the Municipal
Finance Bureau
Financial
Supports for
Industrial
Development
Granted by the
Associated with
Finance Bureau 5,094,444.44 466,666.67 4,627,777.77
the asset
of the Economic
and
Technological
Development
Zone
Funds for
Independent
Innovation of Associated with
4,366,666.67 400,000.00 3,966,666.67
Provincially the asset
Supported
Enterprises
Supporting Funds
Associated with
on Finance 1,455,555.56 133,333.33 1,322,222.23
the asset
Discounts
Funds for
Education,
Science and Associated with
1,091,666.67 100,000.00 991,666.67
Culture Granted the asset
by the Finance
Bureau
Supporting Funds
for Industrial
Structure Associated with
2,115,555.55 186,666.67 1,928,888.88
-adjusting the asset
Projects Granted
by the Regional
199
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Finance Bureau
Industrial and Associated with
1,217,777.77 106,666.67 1,111,111.10
financial discount the asset
Associated with
Finance discount 3,861,111.19 333,333.33 3,527,777.86
the asset
Financial
capitalof
industrial Associated with
4,133,333.33 320,000.00 3,813,333.33
structure the asset
adjustment
project
Special Funds for
High-end
Information
Industry Chain
Granted by the
Associated with
Finance Bureau 4,527,777.78 333,333.33 4,194,444.45
the asset
of the Economic
and
Technological
Development
Zone
Technology Associated with
3,199,999.99 266,666.67 2,933,333.32
Reform the asset
Glass substrate
Associated with
project subsidy 12,000,000.00 1,000,000.00 11,000,000.00
the asset
funds
Industry
Associated with
Development 5,599,999.99 466,666.67 5,133,333.32
the asset
Fund
Finance discount Associated with
376,000.01 31,333.33 344,666.68
interest the asset v
Production line te
chnology researc Associated with
84,699,333.34 6,515,333.33 78,184,000.01
h and developme the asset
nt granted funds
Special funds
grant of 2013
Associated with
provincial 5,000,000.00 83,333.33 333,333.33 4,583,333.34
the asset
strategic new
industries
200
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Special funds
Associated with
for technical 32,340,000.00 205,666.67 822,666.67 31,311,666.66
the asset
transformation
Strategic new
industry Associated with
30,000,000.00 500,000.00 2,000,000.00 27,500,000.00
development the asset
project funds
High-tech
Zone
Associated with
appropriated 6,400,000.00 6,400,000.00
the asset
substrate
project
Special funds
for 2015
scientific and
Associated with
technological 6,000,000.00 6,000,000.00
the asset
achievements
transform
project
Total 249,374,722.30 42,400,000.00 789,000.00 20,457,266.61 270,528,455.69 --
Other notes：
35.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 2,662,080,001. 1,173,020,525. 1,172,920,525. 3,835,000,526.
-100,000.00
shares 00 00 00 00
Other notes：The non public issuance of shares in the period, with amount of RMB1,173,020,525.00; the capital
stock decreased 100,000.00 due to the buy-back of 100 thousand shares of personnel left the company in the
incentive plan.
36. Capital reserves
In RMB
Items Year-beginning balance Increase in current Decrease in current Year-end balance
Share premium 4,941,444,542.98 6,536,687,661.34 2,167,793,079.09 9,312,058,288.34
Other 31,522,375.26 31,522,375.26
201
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Total 4,972,966,918.24 6,536,687,661.34 2,167,793,079.09 9,341,861,500.49
Other notes, including changes and reason of change:
Notes ： Change of capital reserve: Owning to the equity incentive, the amortized expense increased
RMB5,975,200.00 of capital reserve；Capital reserve decreased RMB278,000 for purchasing the 100 thousands
shares of the personnel left the company in the incentive plan; increased RMB22,460.81 for increasing the capital
to Dongxu Display Materials Co.,Ltd(Kunshan), which is one of the company’s subsidiaries; increased
RMB6,761,505,058.68 due to the non-public issuance of shares in the period; decreased RMB2,805,458.52 due to
investment to Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd and Zhenzhou Xufei Optoelectronic
Technology Co., Ltd both are company’s subsidiaries and decreased RMB2,348,802,731.84 for consolidating the
two companies in the period; decreased RMB2,169,512,242.19 for consolidating under common control.
37.Treasury stock
In RMB
Decrease in the current
Items Year-beginning balance Increase in the current Year-end balance
period
Share repurchases
9,011,520.00 9,011,520.00
obligations
Total 9,011,520.00 9,011,520.00
Other notes, including changes and reason of change:
38. Surplus reserve
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 82,025,280.68 50,698,247.74 132,723,528.42
Total 82,025,280.68 50,698,247.74 132,723,528.42
Other note, including changes and reason of change
39. Retained profits
In RMB
Items
Amount of current period Amount of previous period
Before adjustments: Retained profits at the period
-39,946,925.56 -53,394,384.81
end
Adjustment opening: Total retained earnings -409,441,900.51
After adjustments: Retained profits at the period
-39,946,925.56 -462,836,285.32
beginning
202
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Add：Net profit belonging to the owner of the
1,326,233,674.37 468,902,701.44
parent company
Less: Withdrawal Statutory surplus reserve 50,698,247.74 46,013,341.68
Dividend of common stock payable 266,208,000.10
Other
Retained profits at the period end 969,380,500.97 -39,946,925.56
As regards the details of adjusted the beginning undistributed profits
(1) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB -409,411,900.5.
40. Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 4,493,964,265.82 2,735,826,361.71 1,463,181,805.77 952,849,136.64
Other business 156,244,182.28 64,527,156.33 137,568,939.92 93,173,473.76
Total 4,650,208,448.10 2,800,353,518.04 1,600,750,745.69 1,046,022,610.40
41. Business tax and subjoin
In RMB
Items Amount of current period Amount of previous period
Business tax 9,473,064.36 4,487,139.19
Urban construction tax 15,207,933.71 13,099,106.65
Education surcharg 10,866,794.71 9,091,853.24
Other 1,472.01 4,698.39
Total 35,549,264.79 26,682,797.47
Other notes：
42.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage and welfare insurance 9,577,304.17 7,787,738.76
203
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Shipment 15,029,206.52 8,970,258.49
Travel 2,537,857.51 1,995,827.93
Business expenses 2,400,435.65 2,217,663.27
Consumables and repairs 872,295.58 18,430.59
Office fee 1,380,825.27 1,065,152.65
Depreciation 299,452.46 333,225.97
Advertising 7,406,776.38 1,029,214.72
Other 5,440,087.33 2,871,784.15
Total 44,944,240.87 26,289,296.53
Other notes：
43. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage and welfare 120,695,243.98 91,657,063.78
Business expenses 5,801,409.26 4,024,078.17
Labor protect fee 6,362,151.05 1,424,433.50
Office fees 24,301,594.73 6,486,123.90
Travel fees 6,781,275.98 7,858,521.32
Publicize Fees 6,795,381.48 582,241.50
Miscellaneous charges 2,187,603.33 1,011,246.56
Tax 27,453,898.17 21,496,366.40
Depreciation accumulative 29,571,273.02 22,676,351.27
Consumables and repairs 5,224,169.65 460,648.53
Research expenses 64,450,967.01 18,894,621.65
Consultation fees 23,013,499.24 10,882,113.62
Rental fees 38,532,218.78 26,734,924.72
Communication fees 2,564,574.20 194,734.53
Transportation feed 7,358,972.61 752,014.04
Equity incentive cost 5,975,200.00 1,062,300.00
Amortization of long-term expenses 44,719,642.82 24,796,037.04
Recruitment fees 421,789,075.31 240,993,820.53
Insurance 2,731,056.92
Other 31,460,203.46 24,796,037.04
204
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Total 421,789,075.32 240,993,820.53
Other notes：
44. Financial expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 347,894,592.83 56,892,773.66
Less：Interest income 55,904,591.07 13,023,572.01
Net interest expenses 291,990,001.76 43,869,201.65
Exchange gains and losses -5,299,549.89 2,168,241.30
Financial institution 1,410,194.60 6,026,227.72
Bill discount rate 6,309,273.36 24,385,701.61
Other 6,480.29 14,532.34
Total 294,416,400.12 76,463,904.62
Other notes：
45. Asset impairment loss
In RMB
Items Amount of current period Amount of previous period
1. Bad debt loss -15,905,706.47 9,435,655.61
Total -15,905,706.47 9,435,655.61
Other notes：
46.Investment income
In RMB
Items Amount of current period Amount of previous period
Long-term equity investment income by equity
426,252.41
method
Other investment income 3,720,986.32
Total 4,147,238.73
Other notes：
47. Non-operating income
In RMB
205
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
The amount of non-operating
Items Amount of current period Amount of previous period
gains & losses
Non-current assets disposal
12,738.05
gains in total
Including：Income from
12,738.05
liquidation of fixed asset
Govemment Subsidy 535,584,924.37 463,616,423.71 535,584,924.37
The deductible input tax income 2,439,717.82 2,439,717.82
Enterprise merger 18,763,137.14 18,763,137.14
Other 966,032.09 306,403.71 966,032.09
Total 557,753,811.42 463,935,565.47 557,753,811.42
Government subsidy reckoned into current gains/losses
In RMB
Whether the
impact of Amount of Amount of
Whhether Assets-relate
Issuing subsidies on
Items Issuing body Nature special current previous d/income
Reason the current
subsidies -related
profit and period period
loss
Grants
obtained
due to
conforming
to the local
Wuhu Economic
supporting
Grant of and Technologi
policies Related
Government cal Developmen Subsidy No No 2,244,600.00 1,496,400.00
such as to assets
Infrastructure t Zone Finance
local
Bureau
government
’s
investment
attraction
policy
Grant of Grants
Wuhu Economic
Industry obtained
and Technologi
Revitalizatio due to Related to
cal Developmen Subsidy No No 233,333.28 155,555.55
n and research assets
t Zone Finance
Technology and
Bureau
Reconstructio developme
206
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
n Project nt,
technical
renovation
and
transformat
ion, etc.
Grants
obtained
due to
conforming
to the local
Grant of
supporting
Glass-tube Shiijiazhuang
policies Related
Secondary Municipal Subsidy No No 20,000.00 20,000.00
such as to assets
Environment Finance Bureau
local
al Protection
government
’s
investment
attraction
policy
Grants
obtained
due to
research
Shijiazhuang
and
Technical Municipal
developme Related to
reconstructi Development Subsidy No No 266,666.67 266,666.67
nt, assets
on and deform
technical
Commission
renovation
and
transformat
ion, etc.
Grants
obtained
due to
conforming
Grant of Shijiazhuang
to the local
Glass High-tech Related
Subsidy supporting No No 1,000,000.00 1,000,000.00
Substrate Management to assets
policies
Project Committee
such as
local
government
’s
207
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
investment
attraction
policy
Grants
obtained
due to
conforming
to the local
Shijiazhuang supporting
Industry
High-tech policies Related to
Development Subsidy No No 466,666.67 466,666.67
Management such as assets
Fund
Committee local
government
’s
investment
attraction
policy
Grants
obtained
due to
research
and
Project Shiijiazhuang
developme Related
finance Municipal Subsidy No No 31,333.33 31,333.33
nt, to assets
discount Finance Bureau
technical
renovation
and
transformat
ion, etc.
Grants
obtained
due to
Production li research
ne technolog and
Shiijiazhuang
y research an developme Related to
Municipal Subsidy No No 6,515,333.33 6,515,333.33
d developme nt, assets
Finance Bureau
nt granted fu technical
nds renovation
and
transformat
ion, etc.
2013 Shijiazhuang Grants Related
Subsidy No No 83,333.33
Provincial Municipal obtained to assets
208
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
strategic Development due to
emerging and deform conforming
industries of Commission to the local
special grant supporting
funds policies
such as
local
government
’s
investment
attraction
policy
Grants
obtained
due to
research
Technology and
Shiijiazhuang
reconstructi developme Related to
Municipal No No 205,666.67
on Special nt, assets
Finance Bureau
funds technical
renovation
and
transformat
ion, etc.
Grants
obtained
Investment
due to
and Subsidies
conforming
of “Double
to the local
Hundred
Henan supporting
Plan”
Provincial policies Related
Project Subsidy No No 200,000.00 200,000.00
People’s such as to assets
granted by
Government local
the People's
government
Government
’s
of Henan
investment
Province
attraction
policy
Grants
TFT glass
Zhengzhou obtained
substrate Related to
Municipal Subsidy due to No No 10,000.00 10,000.00
technology assets
Finance Bureau research
R& D fund
and
209
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
developme
nt,
technical
renovation
and
transformat
ion, etc.
Grants
obtained
due to
conforming
to the local
TFT glass supporting
Zhengzhou
substrate policies Related
Municipal Subsidy No No 666,666.67 666,666.67
project such as to assets
Finance Bureau
Subsidy local
government
’s
investment
attraction
policy
Investment
and Subsidies
within
Grants
Budget for
obtained
Technologica
due to
l
Zhengzhou research
Transformati
Economic and and
on Project by
Technology developme Related to
National Subsidy No No 933,333.33 933,333.33
Development nt, assets
Development
Zone Finance technical
and Reform
Bureau renovation
Commission
and
and the
transformat
Ministry of
ion, etc.
Industry and
Information
Technology
Grants
TFT glass
Zhengzhou obtained
substrate
Municipal Subsidy due to No No 1,333,333.33 1,333,333.33
project
Finance Bureau conforming
Subsidy
to the local
210
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
supporting
policies
such as
local
government
’s
investment
attraction
policy
Grants
obtained
Special due to
Funds for conforming
Major to the local
Scientific and supporting
Zhengzhou
Technical policies Related
Municipal Subsidy No No 66,666.67 66,666.67
Projects by such as to assets
Finance Bureau
Finance local
Bureau of government
Zhengzhou ’s
City investment
attraction
policy
Grants
obtained
due to the
Financial
country
Supports for
encourage
National Key
Zhengzhou and support
Industry and
Economic and specific
Technical
Technology industries Related to
Transformati Subsidy No No 933,333.33 933,333.33
Development (Obtained assets
on Projects
Zone Finance in
Granted by
Bureau accordance
the Municipal
with the
Finance
national
Bureau
policies
and
regulations)
Financial Grants
Zhengzhou
Supports for obtained Related
Municipal Subsidy No No 466,666.67 466,666.67
Industrial due to to assets
Finance Bureau
Development conforming
211
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Granted by to the local
the Finance supporting
Bureau of the policies
Economic such as
and local
Technologica government
l ’s
Development investment
Zone attraction
policy
Grants
obtained
due to
conforming
Funds for Zhengzhou to the local
Independent Economic and supporting
Innovation of Technology policies Related to
Subsidy No No 400,000.00 400,000.00
Provincially Development such as assets
Supported Zone Finance local
Enterprises Bureau government
’s
investment
attraction
policy
Grants
obtained
due to
conforming
to the local
Supporting supporting
Zhengzhou
Funds on policies
Municipal Subsidy No No 133,333.33 133,333.33
Finance such as
Finance Bureau
Discounts local
government
’s
investment
attraction
policy
Funds for Grants
Education, Zhengzhou obtained
Related
Science and Municipal Subsidy due to No No 100,000.00 100,000.00
to assets
Culture Finance Bureau conforming
Granted by to the local
212
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
the Finance supporting
Bureau policies
such as
local
government
’s
investment
attraction
policy
Grants
obtained
Supporting due to
Funds for conforming
Industrial Zhengzhou to the local
Structure Economic and supporting
-adjusting Technology policies Related to
Subsidy No No 186,666.67 186,666.67
Projects Development such as assets
Granted by Zone Finance local
the Regional Bureau government
Finance ’s
Bureau investment
attraction
policy
Grants
obtained
due to
conforming
to the local
supporting
Industry Zhengzhou
policies Related
discount and Municipal Subsidy No No 106,666.67 106,666.67
such as to assets
expenses Finance Bureau
local
government
’s
investment
attraction
policy
Zhengzhou Grants
Economic and obtained
Financial Technology due to Related to
Subsidy No No 333,333.33 333,333.33
discount Development conforming assets
Zone Finance to the local
Bureau supporting
213
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
policies
such as
local
government
’s
investment
attraction
policy
Grants
obtained
due to
conforming
to the local
Industrial
supporting
restructuting Zhengzhou
policies Related
project Municipal Subsidy No No 320,000.00 320,000.00
such as to assets
financial Finance Bureau
local
funds
government
’s
investment
attraction
policy
Grants
Special
obtained
Funds for
due to the
High-end
country
Information
encourage
Industry
Zhengzhou and support
Chain
Economic and specific
Granted by
Technology industries Related
the Finance Subsidy No No 333,333.33 138,888.90
Development (Obtained to assets
Bureau of the
Zone Finance in
Economic
Bureau accordance
and
with the
Technologica
national
l
policies
Development
and
Zone
regulations)
Strategic
emerging
Related to
industry Subsidy No No 500,000.00
assets
Development
project funds
214
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Grants
Financial
obtained
Grant of
Exconomic and due to
Bureau of
trade research
Finance in
development and
Wuhu
Bureau of Wuhu developme 60,000,000.0 Related to
Economic Subsidy No No
Economic and nt, 0 income
and
technology technical
Technologica
Development renovation
l
Zone and
Development
transformat
Zone
ion, etc.
Grants
obtained
due to
conforming
Grant of fifth
to the local
G6TFT-LCD Wuhu Economic
supporting
glass and Technology
policies 30,000,000.0 Related to
substrate Development Subsidy No No
such as 0 income
production Zone Finance
local
line Ignition Bureau
government
operation
’s
investment
attraction
policy
Grants
obtained
due to
conforming
to the local
Wuhu Economic
Production supporting
and Technology
line policies 60,000,000.0 Related to
Development Subsidy No No
instrallation such as 0 income
Zone Finance
grant funds local
Bureau
government
’s
investment
attraction
policy
Anhui Jiangbei Grants
138,420,000. 172,162,470. Related to
Tax Returns Industrial Subsidy obtained No No
00 80 income
Concentration due to
215
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Zone conforming
Administrative to the local
Committee supporting
policies
such as
local
government
’s
investment
attraction
policy
Grants
obtained
due to
conforming
to the local
supporting
Stable job Wuhu Social policies Related to
Subsidy No No 1,512,391.00
subsidy Security Center such as income
local
government
’s
investment
attraction
policy
Grants
obtained
Economic and due to
Innovative trade research
province the Development and
first batch of Bureau of Wuhu developme Related to
Subsidy No No 533,300.00
cash grants Economic and nt, income
supporting Technology technical
policies Development renovation
Zone and
transformat
ion, etc.
Innovative Grants
province the Wuhu Municipal obtained
first batch of Secience and due to Related to
Subsidy No No 533,300.00
cash grants technology research income
supporting Bureau and
policies developme
216
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
nt,
technical
renovation
and
transformat
ion, etc.
Grants
obtained
due to
conforming
to the local
Wuhu Municipal supporting
Science and
Secience and policies Related to
technology Subsidy No No 350,000.00
technology such as income
Project funds
Bureau local
government
’s
investment
attraction
policy
Grants
obtained
due to
research
Provincial and
Hebei Province
Department developme Related to
Finance Subsidy No No 500,000.00
of finance nt, income
Department.
grants technical
renovation
and
transformat
ion, etc.
Grants
obtained
Wuhu
due to
Finance
conforming
treasury
Wuhu Fiscal to the local
payment Related to
treasury Subsidy supporting No No 100,000.00
center income
payment center policies
innovation
such as
team support
local
fund
government
’s
217
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
investment
attraction
policy
Grants
obtained
due to
Wuhu Human conforming
Resources to the local
Service supporting
Wuhu Human
Center policies Related to
Resources Subsidy No No 99,200.00
College such as income
service center
Graduates local
trainee government
subsidies ’s
investment
attraction
policy
Grants
Wuhu obtained
economic and Economic and due to
technology Trade research
development Development and
zone Bureau of Wuhu developme Related to
Award No No 43,000.00
economic and economic and nt, income
trade Technological technical
development Development renovation
councial Zone and
patent award transformat
ion, etc.
Grants
obtained
Economic and due to
Trade research
Development and
Science and
Bureau of Wuhu developme Related to
technology Award No No 200,000.00
economic and nt, income
project funds
Technological technical
Development renovation
Zone and
transformat
ion, etc.
Economic Economic and Grants Related to
Award No No 47,400.00
and trade Trade obtained income
218
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
development Development due to
council Bureau of Wuhu conforming
export economic and to the local
incremental Technological supporting
incentives Development policies
Zone such as
local
government
’s
investment
attraction
policy
atent Award
Grants
Granted by
obtained
Economic
Economic and due to
and Trade
Trade research
Development
Development and
Bureau of
Bureau of Wuhu developme Related to
Wuhu Subsidy No No 42,000.00
economic and nt, income
Economic
Technological technical
and
Development renovation
Technologica
Zone and
l
transformat
Development
ion, etc.
Area
Grants
obtained
due to
conforming
Transaction to the local
Fees for supporting
Zhengzhou
Individual policies Related to
Municipal Local Subsidy No No 7,500.00
Income Tax such as income
Taxation Bureau
Repaid by local
Tax Bureau government
’s
investment
attraction
policy
Grants
Government Wuhu Municipal obtained Related to
Subsidy No No 90,000.00
Support Fund Finance Bureau due to income
conforming
219
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
to the local
supporting
policies
such as
local
government
’s
investment
attraction
policy
Grants
obtained
due to
conforming
to the local
supporting
Industrial
Wuhu Municipal policies Related to
Development Subsidy No No 5,945,613.86
Finance Bureau such as income
Funds
local
government
’s
investment
attraction
policy
Grants
obtained
due to
Subsidy conforming
Funds for to the local
Single supporting
Device Wuhu Municipal policies Related to
Subsidy No No 435,100.00
Granted by Finance Bureau such as income
the Finance local
Bureau of government
Wuhu City ’s
investment
attraction
policy
Production Finance Bureau Grants
line of Wuhu obtained
200,000,000. 200,000,000. Related to
technology R Economic Subsidy due to No No
00 00 income
& D grant Development research
funds Zone and
220
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
developme
nt,
technical
renovation
and
transformat
ion, etc.
Grants
obtained
due to
conforming
Funds for
to the local
Major
Wuhu Municipal supporting
Projects of
Science and policies Related to
Science and Subsidy No No 700,000.00
Technology such as income
Technology
Bureau local
Program in
government
Wuhu City
’s
investment
attraction
policy
Grants
obtained
due to
conforming
The 1st Batch to the local
of Funds for supporting
Zhengzhou
Science and policies Related to
Municipal Subsidy No No 4,000,000.00
Technology such as income
Finance Bureau
Projects in local
2013 government
’s
investment
attraction
policy
Grants
Zhengzhou obtained
Municipal due to
Student Human conforming Related to
Subsidy No No 300,000.00
subsidy Resources and to the local income
social security supporting
Bureau policies
such as
221
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
local
government
’s
investment
attraction
policy
Grants
obtained
due to
research
and
Zhengzhou
Patent developme Related to
Municipal Subsidy No No 78,200.00
subsidy nt, income
Finance Bureau
technical
renovation
and
transformat
ion, etc.
Companies Grants
Declaration obtained
Reward due to
Stated on the conforming
Plan for 2012 to the local
Finance Bureau
by the supporting
of Zhengzhou
Finance policies Related to
Economic Award No No 40,000.00
Bureau of the such as income
Development
Economic local
Zone
and government
Technologica ’s
l investment
Development attraction
Zone policy
Grants
obtained
Special due to
Zhengzhou
Funds for conforming
Municipal
Intelligence to the local
Human Related to
Introduction Subsidy supporting No No 50,000.00
Resources and income
by policies
social security
Zhengzhou such as
Bureau
City local
government
’s
222
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
investment
attraction
policy
Grants
obtained
Subsidies for
due to
Postdoctoral
conforming
Science
Zhengzhou to the local
Research
Municipal supporting
Workstation
Human policies Related to
Granted by Subsidy No No 20,000.00
Resources and such as income
the Human
social security local
Resource and
Bureau government
Social
’s
Security
investment
Bureau
attraction
policy
Grants
obtained
due to
Provincial
conforming
Construction
to the local
Funds for
supporting
Education Zhengzhou
policies Related to
and Other Municipal Subsidy No No 1,400,000.00
such as income
Projects in Finance Bureau
local
2014 by
government
Zhengzhou
’s
City
investment
attraction
policy
Grants
Subsidies for
obtained
Postdoctoral
due to
Science
Zhengzhou conforming
Research
municipal to the local
Workstation
construction and supporting Related to
Granted by Subsidy No No 300,000.00
Environmental policies income
the Human
Protection such as
Resource and
Bureau local
Social
government
Security
’s
Bureau
investment
223
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
attraction
policy
Grants
obtained
due to
conforming
to the local
Shijiazhuang supporting
high tech policies Related to
Tax Returns Subsidy No No 884,694.60
District Local such as income
Taxation Bureau local
government
’s
investment
attraction
policy
Grants
obtained
due to
Funds research
Granted by and
Hebei Province
the Finance developme Related to
Finance Subsidy No No 400,000.00
Bureau of nt, income
Department
High-tech technical
Zone renovation
and
transformat
ion, etc.
Grants
obtained
due to
Job
conforming
Attachment
Zhengzhou to the local
Subsidies for
Municipal supporting
College
Human policies Related to
Graduates by Subsidy No No 226,800.00
Resources and such as income
the Finance
social security local
Bureau of
Bureau government
Zhengzhou
’s
City
investment
attraction
policy
The 1st Batch Zhengzhou Subsidy Grants No No 1,000,000.00 Related to
224
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
of Funds for Municipal obtained income
Science and Finance Bureau due to
Technology conforming
Projects in to the local
2015 Granted supporting
by the policies
Finance such as
Bureau of local
Zhengzhou government
City ’s
investment
attraction
policy
Grants
obtained
Subsidies for due to
the 1st Batch conforming
of Major to the local
Investment supporting
Henan Province
Projects in policies Related to
Finance Subsidy No No 750,000.00
2014 Granted such as income
Department
by the local
Provincial government
Finance ’s
Department investment
attraction
policy
Grants
obtained
The 2nd Batch
due to
of Funds for
conforming
Science and
to the local
Technology
supporting
Projects in Zhengzhou
policies Related to
2015 Granted Municipal Subsidy No No 1,500,000.00
such as income
by the Finance Bureau
local
Finance
government
Bureau of
’s
Zhengzhou
investment
City
attraction
policy
The 1st Batch Zhengzhou Grants Related to
Subsidy No No 4,400.00
of Funds for Municipal obtained income
225
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Science and Finance Bureau due to
Technology research
Projects in and
2015 Granted developme
by the nt,
Finance technical
Bureau of renovation
Zhengzhou and
City transformat
ion, etc.
Funds for
Grants
Independent
obtained
Innovation in
due to
2014 Granted
Zhengzhou research
by the
Economic and
Management
Development developme Related to
Committee of Award No No 16,500.00
Zone nt, income
the Economic
Adiministrative technical
and
Committee renovation
Technologica
and
l
transformat
Development
ion, etc.
Zone
Grants
Funds for obtained
Occupational due to
Injury conforming
Prevention to the local
Granted by supporting
Zhengzhou City
Human policies Related to
Social Security Subsidy No No 50,000.00
Resource and such as income
Bureau
Social local
Security government
Bureau of ’s
Zhengzhou investment
City attraction
policy
Subsidies for Zhengzhou Grants
Postdoctoral municipal obtained
Science construction and due to Related to
Subsidy No No 200,000.00
Research Environmental conforming income
Workstation Protection to the local
Granted by Bureau supporting
226
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Human policies
Resource and such as
Social local
Security government
Bureau of ’s
Zhengzhou investment
City attraction
policy
Funds for
Emissions
Reduction
Grants
Award in
obtained
2015 Granted
due to
by the
conforming
Construction
Zhengzhou to the local
and
municipal supporting
Environment
construction and policies Related to
al Protection Award No No 20,000.00
Environmental such as income
Bureau of the
Protection local
Economic
Bureau government
and
’s
Technologica
investment
l
attraction
Development
policy
Zone of
Zhengzhou
City
Grants
obtained
due to
The Digitized conforming
Construction to the local
Projects of supporting
Shijiazhuang
Digital policies 30,000,000.0 Related to
Municipal Subsidy No No
Boards with such as 0 income
Finance Bureau
TFT-LCD local
Glass government
Substrates ’s
investment
attraction
policy
Subsidies for Yangzhong Grants Related to
Subsidy No No 25,000.00
Appraisal on Municipal obtained income
227
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Science and Scence and due to
Technology technology research
Promotion Bureau and
Expenses developme
Granted by nt,
the Science technical
and renovation
Technology and
Bureau transformat
ion, etc.
Grants
obtained
due to
conforming
to the local
Subsidies for
supporting
Talent Project Yangzhong
policies Related to
Granted by Municipal Subsidy No No 50,000.00
such as income
the Finance Finance Bureau
local
Bureau
government
’s
investment
attraction
policy
Grants
obtained
due to
research
Finance and
Yangzhong
Bureau developme Related to
Municipal Award No No 70,000.00
Innovation nt, income
Finance Bureau
award Fund technical
renovation
and
transformat
ion, etc.
Grants
obtained
Yangzhong due to
Finance Related to
Municipal Subsidy research No No 39,000.00
funds income
Finance Bureau and
developme
nt,
228
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
technical
renovation
and
transformat
ion, etc.
Grants
obtained
due to
Economic and conforming
Trade to the local
Foreign trade Development supporting
promotion Bureau of Wuhu policies Related to
Award No No 40,000.00
innovation economic and such as income
award fund Trade local
Development government
Zone ’s
investment
attraction
policy
Grants
obtained
Financial
due to
Grant of
conforming
Bureau of
Wuhu economic to the local
Finance in
and supporting
Wuhu
Technological policies 50,000,000.0 Related to
Economic Subsidy No No
Development such as 0 income
and
Zone Finance local
Technologica
Bureau government
l
’s
Development
investment
Zone
attraction
policy
Grants
obtained
TFT-LCD due to
Display Wuhu Municipal research
equipment Science and and Related to
Award No No 60,000.00
development Technology developme income
and Bureau nt,
apploication technical
renovation
and
229
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
transformat
ion, etc.
Grants
obtained
due to the
country
encourage
and support
Wuhu specific
Equipment Wuhu Municipal industries Related to
Subsidy No No 73,500.00
other Finance Bureau (Obtained income
subsidiy in
accordance
with the
national
policies
and
regulations)
Grants
obtained
due to
conforming
to the local
supporting
Shijiazhuang
High-tech policies Related to
Municipal Award No No 20,000.00
Zone prizes such as income
Finance Bureau
local
government
’s
investment
attraction
policy
Grants
obtained
due to
conforming
High-tech Shijiazhuang to the local
Related to
Finance Municipal Award supporting No No 1,421,626.76
income
Bureau grants Finance Bureau policies
such as
local
government
’s
230
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
investment
attraction
policy
Grants
obtained
due to
conforming
Zhongguancun to the local
Awards for
Science and supporting
Development
technology Park policies Related to
Supporting Subsidy No No 15,000.00
Fengtai such as income
Funds in
Management local
2014
Committee government
’s
investment
attraction
policy
Grants
obtained
due to
Suqian
conforming
economic and Suqian
to the local
Technologica economic and
supporting
l Technological
policies Related to
Development Development Subsidy No No 54,240.00
such as income
Zone, the Zone
local
introduction Administrative
government
of Talent Committee
’ s
Awards
investment
attraction
policy
535,584,924. 463,616,423.
Total -- -- -- -- --
37 71
Other notes：
48.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
43,425.70 209,323.84 43,425.70
Disposition
231
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Including：Disposal of fixed
43,425.70 209,323.84 43,425.70
assets
Other 612,586.84 268,078.45 612,586.84
Total 656,012.54 477,402.29 656,012.54
Other notes：
49.Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Income tax at current period 281,156,931.10 278,178,924.82
Deferred income tax -43,373,924.23 -163,282,692.00
Total 237,783,006.87 114,896,232.82
（2）Accounting profit and income tax expense adjustment process
In RMB
Items Amount of current period
Total profit 1,630,306,693.05
Income tax expense at statutory / applicable tax rates 244,005,258.56
Effect of different tax rates applicable to subsidiaries 1,002,434.19
Income tax adjustments on prior periods 3,968,630.12
Effect of non-taxable income -4,071,969.20
Impact of non-deductible costs, expenses and losses 1,352,212.41
Affect the use of deferred tax assets early unconfirmed
-5,475,878.07
deductible losses
The current period does not affect the deferred tax assets
667,574.90
recognized deductible temporary differences or deductible loss
Due to the impact of the revaluation profits 2,993,958.27
Due to depreciation policy impact profits -6,598,927.57
Infuence of R & D expenses deduction -3,665,256.04
Income tax expense 237,783,006.87
Other notes
50. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
232
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
In RMB
Items Amount of current period Amount of previous period
Interest income 1,972,658.94 988,687.82
Government subsidy 421,474,657.76 274,288,413.90
Deposits income 20,701,950.00 10,813,140.15
Fine income 6,766.95 64,739.10
Current account 2,271,838.62 322,589,049.97
Other 6,022,822.17 26,481,313.65
Total 452,450,694.44 635,225,344.59
（2）Other cash paid related to oprating activities
In RMB
Items Amount of current period Amount of previous period
Consultation Services fee 23,013,411.24 14,976,417.35
Business expenses 8,179,216.91 4,665,270.47
Current account 120,839,492.34 109,171,094.10
Labour insurance expenses 1,413,458.02 1,293,443.40
Transporation fees 510,470.81 5,103,276.25
Advertising fees 17,260,303.83 5,830,298.20
Water and electricity expense 26,127,241.57 27,986,550.08
Travel expenses 9,124,005.99 10,023,136.79
Petty cash 1,111,823.10 2,352,071.54
Office expenses 24,412,506.00 9,010,997.60
Deposit 9,429,817.52 12,660,000.00
Meeting expenses 1,732,562.40 29,520.00
Communication fees 4,830,018.48 231,635.68
Traffic fees 16,594,445.04 5,536,979.32
R& D 10,536,569.04 315,729.40
Auto Fees 8,121,331.91 1,019,249.30
Other 30,851,887.48 13,800,437.66
Total 314,088,561.68 224,006,107.14
Notes：
233
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
（3）Other Cash received related to investment activities
In RMB
Items Amount of current period Amount of previous period
The post-money balance of the cash and
cash equivalents of Jiangsu Jixing’s
59,574,268.94
acquisition date which deducted the
currency paid for the acquisition.
Govemment subsidy 40,840,000.00
Total 59,574,268.94 40,840,000.00
（4）Other Cash payable related to investment activities
In RMB
Items Amount of current period Amount of previous period
Investment 6,120,000.00
Total 6,120,000.00
（5）Other Cash received related to Financing activities
In RMB
Items Amount of current period Amount of previous period
Interest income 53,931,932.13 14,811,738.30
Finance lease 85,000,000.00
Bill finance 162,731,028.00
Total 301,662,960.13 14,811,738.30
（6）Other Cash payable related to Financing activities
In RMB
Items Amount of current period Amount of previous period
Bank charges 1,374,512.49 6,026,123.91
Payment of share repurchase 378,000.00 268,024,375.60
Cash deposit 3,500,000.00
Bill financing 265,000,000.00
Finance lease 96,067,400.00
Issue costs 24,517,302.50
234
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Total 270,252,512.49 370,117,899.51
51. 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 1,392,523,686.18 523,424,590.89
Add: Impairment loss provision of assets -15,905,706.47 9,435,655.61
Depreciation of fixed assets, oil and gas
339,608,348.67 218,481,729.10
assets and consumable biological assets
Amortization of intangible assets 12,293,674.61 8,230,422.59
Amortization of long-term deferred
6,130,323.70 3,398,169.91
fexpenses
Loss on disposals of fixed assets, intangible
assets and other long-term assets ("-" for 43,425.70 140,299.02
gains)
loss on retirement of fixed assets 56,286.77
Financial expenses 303,754,658.76 50,844,058.43
Investment loss -4,147,238.73
Decrease of deferred income tax assets -43,373,924.23 -163,278,752.92
Decrease of inventories -1,533,411,151.57 -251,125,028.54
Decease of operating receivables 2,444,394,493.59 4,080,238,705.79
Increased of operating Payable -1,121,781,627.27 -5,497,400,325.30
Net cash flows arising from operating
1,780,128,962.94 -1,017,554,188.65
activities
2.Significant investment and financing
-- --
activities that without cash flows:
Fixed assets acquired under finance leases 93,426,666.67
3．Changes Balance of cash and cash
-- --
equivalents
Ending balance of cash 11,952,516,261.39 3,349,892,384.04
235
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Less: Beginning balance of cash 3,349,892,384.04 3,165,005,386.56
Net increase of cash and cash equivalents 8,602,623,877.35 184,886,997.48
(2) Net Cash paid of obtaining the subsidiary
In RMB
Amount
Cash or Cash Equivalent of Enterprise consolidation that Occurred
3,808,297,294.94
in the Current Period Paid in the Current Period
Including： --
Jiangsu Jixing New Marterial Co., Ltd 167,345,300.00
ShijiazhuangXuxin Optoelectronic Equipment Technology Co., Ltd 1,895,849,840.00
Zhengzhou Xufei Optoelectronic Equipment Technology Co., Ltd. 1,745,102,154.94
Less：Cash or Cash Equivalent Owned by Subsidiary on the
560,995,811.33
Purchasing Date
Including： --
Jiangsu Jixing New Marterial Co., Ltd 226,919,568.94
ShijiazhuangXuxin Optoelectronic Equipment Technology Co., Ltd 217,519,691.15
Zhengzhou Xufei Optoelectronic Equipment Technology Co., Ltd. 116,556,551.24
Including --
Received Net Cash Paid by Subsidiary 3,247,301,483.61
（3）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
11,964,769,404.73 3,349,892,384.04
I. Cash
245,781.01 244,928.44
Of which: Cash in stock
Bank savings could be used at any time 11,897,196,843.45 3,318,927,758.02
Other monetary capital could be used at any
67,326,780.27 30,719,697.58
time
III. Balance of cash and cash equivalents at
11,964,769,404.73 3,349,892,384.04
the period end
236
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
52. The assets with the ownership or use right restricted
In RMB
Items Book value in year-end Reason
Monetary funds 444,740,765.54 Pledge of collateral
Inventory 914,716,683.08 Pledge loans
Fixed assets 5,853,008,739.24 Pledge loans
Intangible asset 244,542,726.48
Construction in progress 2,721,402,063.43
Total 10,178,410,977.77 --
Other notes：
53. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exclange rate
balance balance
Including：USD 3,021,138.38 6.4936 19,618,040.36
Euro 1,000,555.35 7.0952 7,099,140.32
HKD 4,666.70 0.8377 3,909.67
JPY 243,319,365.00 0.053875 13,108,830.79
GBP 2,277.81 9.6159 21,903.19
Including：USD 4,999,315.30 6.4936 32,463,588.59
JPY 1,388,800,750.24 0.053875 74,822,443.56
Including：USD 11,000,000.00 6.4936 71,429,600.00
Account payable
Including：JPY 27,292,000.00 0.053875 1,470,475.56
USD 240,880.00 6.4936 1,564,178.37
Euro 923,325.00 7.0952 6,551,175.54
237
Dongxu Optoelectronic Technology Co., Ltd. 2015 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
Jiangsu
Obtain a
Jixing New February 167,345,300. Purchase and February 281,152,806. 30,297,257.3
50.50% business
Material Co., 28,2015 00 add share 28,2015 99 6
license
Ltd.
Other notes：
(2) Consolidation Cost and Goodwill
In RMB
Combined cost
--Cash 167,345,300.00
Total Consolidation cost 167,345,300.00
Less：Reduction: Obtained Definable Net Assets Fair Proportion 186,108,437.14
Goodwill/ The Consolidation Cost is Less Than the Obtained
18,763,137.14
Definable Net Assets Fair Proportion
Notes to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes:
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Fair value on purchase date Book value on purchase date
Monetary fund 259,007,478.19 259,007,478.19
Account receivable 47,264,960.80 47,264,960.80
Inventories 28,472,711.75 28,472,711.75
238
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Fixed assets 287,064,516.90 256,317,009.13
Intangible assets 60,810,554.47 58,497,844.31
Bill payable 3,753,250.00 3,753,250.00
Prepayments 12,885,701.67 12,885,701.67
Other receivable 18,625,745.67 18,625,745.67
Construction in progress 13,625,131.74 13,625,131.74
Deferral income tax asset 4,661.45 4,661.45
Loan 106,257,500.00 106,257,500.00
Account payable 17,956,318.31 17,956,318.31
Bill payable 203,000,000.00 203,000,000.00
Account payable 30,936.29 30,936.29
Employees’ wage payable 1,420,363.53 1,420,363.53
Tax payable -9,484,406.23 -9,484,406.23
Interest payable 614,166.00 614,166.00
Other payable 43,188,276.05 43,188,276.05
Net assets 368,531,558.69 335,471,340.76
Acquire net assets 368,531,558.69 335,471,340.76
Notes to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes:
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the controlduring the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
(6) Other notes:
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
Recognition Income from Net profits Income Net profits
Combined Proportion of Combination
Basis basis of the from the during the during the
party the profits date
combination period-begin reporting period of period of
239
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
date to the period to the comparison compairsion
combination combination
date of the date of the
combination combination
Zhengzhou Payment of
Xufei the price and
Optoelectroni Controlled by December complete 547,067,663. 49,644,713.4 361,113,003. 45,391,421.5
100.00%
c Equipment Li Zhaoting 19,2015 change of 63 0 53 5
Technology business
Co., Ltd. registration
Shijiazhuang
Payment of
Xuxin
the price and
Optoelectr
Controlled by December complete 162,453,972. 39,230,345.1 64,300,670.0
onic 100.00% -1,150,663.39
Li Zhaoting 31,2015 change of 34 2 0
Equipment
business
Technolog
registration
y Co., Ltd
Other notes：
(2) Combination cost
In RMB
Combination cost Zhengzhou Xufei Optoelectronic Shijiazhuang Xuxin Optoelectronic
Technology Co., Ltd. Technology Co., Ltd.
--Cash 1,927,626,856.67 2,072,061,491.20
Notes to contingent consideration or other changes:
Other notes:
(3) The book value of the assets and liabilities of the combined party at combining date
In RMB
Zhengzhou Xufei Optoelectronic Technology Co., Shijiazhuang Xuxin Optoelectronic Technology
Ltd. Co., ltd.
Consollidation date December 31, 2014 Consollidation date December 31, 2014
Monetary fund 217,646,461.18 15,694,203.60 217,519,691.15 327,927,096.51
Account receivable 159,462,635.78 206,889,744.90 181,471,618.22 134,192,379.79
Inventories 31,403,438.27 99,272,537.67 13,106,022.42 15,600,814.54
Fixed assets 2,416,811,450.24 2,112,857,821.52 1,677,395,718.92 830,897,597.83
Intangible assets 81,156,396.70 67,431,592.26 55,476,435.85 56,729,790.37
Prepayments 591,118.29 157,454,654.53 53,496,782.82 112,807,748.28
Other receivable 7,439,692.87 7,152,056.69 1,944,985.00 1,952,555.46
240
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Non-current assets due to
139,395.72 185,227.78
1 Year
Other current assets 228,226,969.12 208,104,721.49 251,226,714.56 213,850,153.36
Construction in progress 1,143,107,800.76 1,269,064,691.25 752,348,179.42 1,455,797,213.20
Development and
10,730,941.05
expenditure
Deferral income tax asset 532,237.00 462,761.15
Other non-current
132,425,529.20 41,212,433.48
liability
Long-term deferred
975,769.20
expenses
Loan 272,000,000.00 299,000,000.00
Account payable 354,001,621.02 265,771,687.83 96,718,278.38 16,915,882.14
Bill payable 27,275,319.94 200,000,000.00
Advance payments 332,100.88
Employees’ wage
1,383,570.40 3,826,044.71 2,092,597.69 1,893,777.23
payable
Tax payable 2,613,146.19 5,296,432.21 4,668,435.03 492,665.68
Interest payable 2,159,442.82 1,486,741.66
Other payable 722,319,436.46 196,696,473.40 4,505,484.95 1,566,379.93
Non-current liability due
260,987,200.00 242,238,000.00 200,000,000.00 210,000,000.00
to 1 year
Other current liability 14,533,029.75 17,202,928.56 11,436,000.00 8,280,000.00
Long-term loans 863,397,300.00 1,092,309,000.00 790,000,000.00 840,000,000.00
Long-term payable 57,000,000.00
Accrued liabilities 53,046.23
Deferred income 42,968,876.45 81,104,974.25 167,390,333.33 143,215,333.33
Net assets 1,798,304,182.10 1,752,831,182.13 1,966,568,609.92 1,927,338,264.80
Acquire net assets 1,798,304,182.10 1,752,831,182.13 1,966,568,609.92 1,927,338,264.80
The recognition method of the fair value of identifiable assets and liabilities Contingent liability of acquiree
undertaken by business merger
Other notes:
Examined and adopted by the 32th meeting of the 7th board of directors of the Company, “Proposal on Jointly Establishing the
Holding Subsidiary with Beijing Institute of Technology” agreed the Company to jointly establish the holding subsidiary Beijing
Xutan New Material Technology Co., Ltd. with Beijing Institute of Technology.
On January 22, 2015, the Company jointly established Beijing Dongxu Huaqing Investment Co., Ltd. with Beijing Modern
241
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Huaqing Material Technology Development Center. The registered capital of the new company was RMB 5 million , of which the
Company invested RMB 3.5 million and Beijing Modern Huaqing Material Technology Development Center invested RMB 1.5
million.
On July 9, 2015, Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd., the subsidiary of the Company, 100.00%
invested in establishing Jiangxu Dongxu Yitai Intelligent Equipment Co., Ltd., of which the registered capital was 10 million RMB.
On December 25, 2015, the Company established Fuzhou Dongxu Optoelectronic Technology Co., Ltd. with sole proprietorship,
of which the registered capital was 10 million RMB.
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Name of Main Places of Registration Nature of Shareholding Ratio (%) Obtaining
Subsidiary Operation Place Business direct indirect Method
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
No.36, Daowei 2
Road, Wanchun
Wuhu Dongxu
Street , Wuhu
Optoelectronic
Wuhu Economy Manufacturing 100.00% Establish
Technology Co.,
Technology
Ltd.
Development
Zone
242
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
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 Non control
Sichuan Manufacturing 100.00%
Engineering Co., ion,Jinniu District combination
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
66,No 3
Zhengzhou Xufei Jingnan Road,
Optoelectronic Econornic & Non control
Zhengzhou Manufacturing 100.00%
Technology Co., Technology combination
Ltd. Development
Zone, Zhengzhou
No.69,Tianshan
Shijiazhuang
Street,
Xuxin
High-tech Non control
Optoelectronic Shijiazhuang Manufacturing 100.00%
Area, combination
Technology
Shijiazhuang,
Co.,Ltd.
Hebei
Beijing Xutan Beijing N0.1198, 689 Technology 70.00% Establish
243
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
New Material Builing, No.5, Service
Technology Co., Zhongguan
Ltd. Village South
Street, Haiding
District, Beijing
New Material
Jiangsu Jixing
Industry Zone, Non control
New Material Jiangsu Manufacturing 50.50%
Youfang Town, combination
Co., Ltd.
Yangzhong City
1201-E18(Area)1
2/F,No.1, 6-3
Beijing Dongxu
Building,
Huaqing Investment
Beijng Autornobile 70.00% Establish
Investment Co., Management
Museum East
Ltd.
Road, Fengtai
District, Beijing
Notes: holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been
controlled investee:
Significant structure entities and controlling basis in the scope of combination:
Basis of determine whether the Company is the agent or the principal:
Other notes:
(2) Significant not wholly owned subsidiary
In RMB
Dividends
Profit or Loss Owned Equity Balance of the
Shareholding Ratio of Distributed to the
by the Minority Minority
Name of Subsidiary Minority Minority
Shareholders in the Shareholders in the
Shareholders (%) Shareholders in the
Current Period End of the Period
Current Period
Wuhu Dongxu
Optoelectronic 5.00% 57,037,546.64 81,454,828.43
Technology Co., Ltd.
Jiangsu Jixing New
49.50% 14,997,142.39 197,420,263.94
Material Co., Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes:
(3) The main financial information of significant not wholly owned subsidiary
In RMB
244
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Year-end balance Year-beginning balance
Non Current Non Non Current Non
Name Current Total Total Current Total Total
current Liabilitie current current Liabilitie current
assets assets liabilities assets assets liabilities
assets s liabilities assets s liabilities
Wuhu
Dongxu
Optoelec
504,742. 19,195.3 523,937. 325,474. 50,000.0 375,474. 449,309. 18,103.0 467,412. 339,240. 50,000.0 389,240.
tronic
34 5 68 89 0 89 45 6 51 48 0 48
Technolo
gy Co.,
Ltd.
Jiangsu
Jixing
25,057.2 36,602.6 61,659.9 21,177.0 21,777.0
New 600.00
8 5 3 5 5
Material
Co., Ltd.
In RMB
Amount of current period Amount of previous period
Cash flows Cash flows
Total Total
Name Business from Business from
Net profit Comprehensi Net profit Comprehensi
income operating income operating
ve income ve income
activities activities
Wuhu
Dongxu
Optoelectroni 270,663.37 110,290.77 110,290.77 -3,790.77 225,268.05 106,106.14 106,106.14 -34,763.76
c Technology
Co., Ltd.
Jiangsu
Jixing New
28,115.28 3,029.73 3,029.73 4,290.91
Material Co.,
Ltd.
Other notes:
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Other notes:
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Summary financial information of insignificant joint venture or associated enterprise
In RMB
245
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Amount of current period/ Amount of previous period/
Joint venture: -- --
Total investment book value 72,426,252.41
The total of following items according to
-- --
theshareholding proportions
Net profit 426,252.41
Total comprehensive income 426,252.41
Associated enterprise： -- --
The total of following items according to
-- --
theshareholding proportions
Other notes:
X. The risk related financial instruments
The Company faces a variety of financial risks in the course of operation: credit risk, market risk and liquidity risk.
The Business Management Department of the Company management is fully responsible for the determination of
risk management objectives and policies, and assumes the ultimate responsibility for the risk management
objectives and policies. The Business Management Department of the Company reviews the effectiveness of the
performed programs as well as the rationality of risk management objectives and policies through monthly work
statement submitted by the Functional Department.
The objective of the Company’s engagement in risk management is to obtain a proper balance between the risks
and benefits, reduce the risks’ 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 new customers’ 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.
246
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
(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 2015.
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 f Exchange rate End balance of Beginning balanve Beginning balance of
oreign currency RMB Conversion of foreign currency Exchange rate RMB Conversion
Monetary fund
Including：USD 3,021,138.38 6.4936 19,618,040.36 51,544.36 6.119 315,399.94
Euro 1,000,555.35 7.0952 7,099,140.32 11,540.00 7.4556 86,037.62
HKD 4,666.70 0.8377 3,909.67 4,666.70 0.7889 3,688.85
JPY 243,319,365.00 0.0539 13,108,830.79 910,469.00 0.05137 46,771.69
GBP 2,277.81 9.6159 21,903.19 2,277.81 9.5437 21,738.74
Account
receivable
Including：USD 4,999,315.30 6.4936 32,463,588.59 1,522,055.00 6.119 9,313,454.55
JPY 1,388,800,750.2 0.053875 74,822,443.56 327,815,034.00 0.05137 16,839,858.30
4
Account payable
Including: JPY 27,292,000.00 0.053875 1,470,475.56
USD 240,880.00 6.4936 1,564,178.37
Euro 923,325.00 7.0952 6,551,175.54
Long-term loans
Including：USD 11,000,000.00 6.49 71,429,600.00 13,000,000.00 6.119 79,547,000.00
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 11.07 billion 21.64% 21.64%
Zone, Shijiazhuang
247
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
City
Notes
In the report period, The parent company paid in capital is as follows:
Items January 1, 2015 Increase Decrease December 31, 2015
Share capital 4,150,000,000.00 6,920,000,000.00 11,070,000,000.00
Other notes：
2. Subsidiaries of the Company
See details to Notes .
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name Relationship
Zhongda Xincheng International Business factoring Co., Ltd. Associated enterprises
Other notes
4.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.,
Controlled by the same actual controller
Ltd.
Shijiazhuang Baoshi Xuming Tube Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baodong Electronic Co.,Ltd. Controlled by the same actual controller
Hebei Baoshi Lighting Co., Ltd. Controlled by the same actual controller
Dongxu（Yingkou）Optoelectronic Display Co., Ltd. Controlled by the same actual controller
Jinhou Xulong Solar energy Technology Co., Ltd. Controlled by the same actual controller
Sichuan Xuhong Optoelectrnic Technology Co., Ltd Controlled by the same actual controller
Shijiazhuang Bofa 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
248
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Chengdu Taiyisi Technology Co., Ltd. Controlled by the same actual controller
Li Qing The spouse of the actual controller
Other notes
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Content of related Amount of current Amount of previous Over the trading limit
Related parties Amount of last period
transaction or not?
period period
Shijiazhuang
Baoshi Electronics Energy 874,346.02 3,000,000.00 NO 2,450,586.42
Group Co., Ltd.
Shijiazhuang
Baoshi Electronics Security fees 1,000,000.00 0.00 Yes
Group Co., Ltd.
Chengdu Dongxu
Energy Saving
ESL 156,577.78 100,000.00 Yes 93,400.00
Technology Co.,
Ltd.
Shijiazhuang
Baoshi Zhonghe
Door 1,631,207.16
Steel Plastic
Shape Co., Ltd.
Shijiazhuang
Dongxu Mechanical Machining parts 7,661,848.71 834,400.00 Yes 1,112,148.72
Equipment Co., Ltd.
Shijiazhuang
Dongxu Mechanical Raw material 319,194.85 0.00 Yes
Equipment Co., Ltd.
Shijiazhuang
Processing
Dongxu Mechanical 1,449,230.79 0.00 Yes
charges
Equipment Co., Ltd.
Shijiazhuang
Xuling Electrinic
Part 255,942.90
Technology Co.,
Ltd.
Sichuan Xuhong Part 719,858.03 0.00 Yes
249
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Optoelectronic
Technology Co.,
Ltd.
Chengdu Zhong
Optoelectronic
Material 15,384.62 0.00 Yes
Technology Co.,
Ltd.
Shijiazhuang
Xuling Electrinic Monitoring
445,238.07 0.00 Yes 3,636,526.13
Technology Co., system
Ltd.
Processing
Dongxu Group 3,573,094.84
charges
Dongxu Group Packing 16,399,514.24
Shijiazhuang
Dongxu Mechanical A-frame 10,516,183.42
Equipment Co., Ltd
Hebei Baoshi
Lamps 13,470.09 0.00 Yes 55,490.60
Lighting Co., Ltd.
Related transactions on sale goods and receiving services
In RMB
Related parties Content of related transaction Amount of current period Amount of previous period
Dongxu （Yingkou）
High-Display production line
Optoelectronic Display Co., 6,360,752.23
Equipment Construction
Ltd.
Baoshi Group Lead tube 3,521,605.78
Shijiazhuang Dongxu
Mechanical Equipment Co., A-frame 5,544,871.80 8,854,273.50
Ltd.
Shijiazhuang Dongxu
Glass substrate defect
Mechanical Equipment Co., 36,412,136.75
detection eqiupment
Ltd.
Sichuan Xuhong
Line technological
Optoelectronic Technology 150,471,698.11
transformation
Co., Ltd.
Jinzhou Xulong Solar energy Tester 223,076.93
Chengdu Taiyisi Technology
Equipment and technology 45,792,614.10
Co., Ltd.
250
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Chengdu Zhong Optoelectronic
Glass Substrate 2,685,888.56 1,401,923.08
Technology Co., Ltd.
Dongxu Group Construction and installation 56,550,283.94
Dongxu Group Materal 657,008.55
National Engineering
Dongxu Group 82,115,384.62
laboratory test equipment
Hebei Baoshi Energy saving
Construction and installation 74,270.00
lighting technology co., LTD
Shijiazhuang Baodong
Hydrogen 259,857.69
Electronic Co.,Ltd.
Chengdu Zhong Optoelectronic
Semi-manufacture 39,978,059.66
Technology Co., Ltd.
Sichuan Xuhong Optoelectronic
Technology Service 11,909,433.96 2,958,490.57
Technology Co., Ltd.
Dongxu （ Yingkou ）
Technology Service
Optoelectronic Display Co., 9,135,849.06 1,015,094.34
Ltd.
（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertake
In RMB
Gains from the
Name of the Name of the Asset situation of
Start date Terminating date Pricing basis deal in report
employer undertaker the undertaker
period
The trustee fee
includes share
right trustee
Dongxu Group, fee(500 thousand
Yingkou Coastal RMB/year) and
Development operation trustee
Dongxu Dongxu
Construction Co., fee. The
Optoelectronic (Yingkou)
ltd., Wukuang January 1, 2012 operation trustee 1,500,000.00
Technology Co., Optoelectronic
(Yingkou ) fee is basic
Ltd. Display Co., Ltd.
Industrial Park management fee
Development and incentive
Co., Ltd. management fee,
of which the
basic
management fee
251
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
is 1 million
RMB/year, the
incentive
management fee
is counted by 5%
of the after-tax
net profit yearly
achieved by the
trustee
company(the base
of the incentive
management fee
deducts the loss
of the previous
year.).
The trustee fee
includes share
right trustee
fee(500 thousand
RMB/year) and
operation trustee
fee. The
Dongxu operation trustee
Optoelectronic fee is basic
Investment Co., The right to management fee
Ltd.Henan Dongxu operate of and incentive
State-owned Optoelectronic Dongxu management fee,
March 1, 2012 500,000.00
Assets Technology Co., Optoelectronic of which the
Management Co., ltd. Technology Co., basic
Ltd.,Zhengzhou ltd. management fee
Investment is 1 million
Holding Co., Ltd. RMB/year, the
incentive
management fee
is counted by 5%
of the after-tax
net profit yearly
achieved by the
trustee company
Dongxu Group, The trustee fee
Dongxu The right to
Mianyang includes share
Optoelectronic operate of
Investment City March 1, 2012 right trustee 1,500,000.00
Technology Co., Sichuan Xuhong
Development fee(500 thousand
Ltd. Optoelectronic
(Group) Co., Ltd., RMB/year) and
252
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Sichuan Co., Ltd. operation trustee
Changhong fee. The
Electric Co., Ltd. operation trustee
fee is basic
management fee
and incentive
management fee,
of which the
basic
management fee
is 1 million
RMB/year, the
incentive
management fee
is counted by 5%
of the after-tax
net profit yearly
achieved by the
trustee company
The trustee fee
includes share
right trustee
fee(500 thousand
RMB/year) and
operation trustee
fee. The
operation trustee
Baoshi Group , fee is basic
The right to
Shijiazhuang management fee
operate of
High –tech Lanhu and incentive
Shijiazhuang
Investment Co., Dongxu management fee,
Xuxin March 1, 2012 500,000.00
Ltd.,Shijiazhuang Optoelectronic of which the
Optoelectronic
State Holding basic
Technology Co.,
Group Investment management fee
Ltd.
Co., Ltd. is 1 million
RMB/year, the
incentive
management fee
is counted by 5%
of the after-tax
net profit yearly
achieved by the
trustee company
253
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
The trustee fee
includes share
right trustee
fee(500 thousand
RMB/year) and
operation trustee
fee. The
operation trustee
fee is basic
management fee
The right to and incentive
Dongxu operate of December 1, management fee,
Dongxu Group 500,000.00
Optoelectronic Chengdu Taiyisi 2014 of which the
Technology Co., basic
Ltd. management fee
is 1 million
RMB/year, the
incentive
management fee
is counted by 5%
of the after-tax
net profit yearly
achieved by the
trustee company
(3) Information of related lease
The company eas lessor:
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
Dongxu Group House 4,538,268.00 6,051,024.00
（4）Related guarantee condition
The Company as a guarantor
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The Company was secured party
In RMB
Guarantor Guarantee Amount Starting date Stop date If completed or not
The pledge of accounts
20,000,000.00 September 18, August 22, Yes
receivable of Dongxu
254
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Group and Zhengzhou 2014 2015
Xufei
The pledge of accounts
receivable of Dongxu August 27, August 22,
20,000,000.00 Yes
Group and Zhengzhou 2014 2015
Xufei
Dongxu Group, Li September 11, September 11,
200,000,000.00 No
Zhaoting 2015 2016
Dongxu Group, Li August 31, August 16,
350,000,000.00 No
Zhaoting 2015 2016
Dongxu Group, Li October 23, October 23,
200,000,000.00 No
Zhaoting 2015 2016
Dongxu Group, Li December 30, December 30,
200,000,000.00 No
Zhaoting 2015 2016
Dongxu Group, Li December 22, December 31,
400,000,000.00 Yes
Zhaoting, Li Qing 2014 2015
Dongxu Group, Li May 12, Maty 12,
20,000,000.00 No
Zhaoting, Li Qing 2015 2017
Dongxu Group, Li April 23, April 22,
30,000,000.00 No
Zhaoting, Li Qing 2015 2017
December 30, September 30,
Li Zhaoting 50,000,000.00 Yes
2014 2015
Dongxu Group, Li May 4, May 4,
50,000,000.00 No
Zhaoting, Li Qing 2015 2017
The pledge of accounts
receivable of Dongxu September 24, August 22,
60,000,000.00 No
Group and Zhengzhou 2014 2015
Xufei
Dongxu Group, Li June 24, June 24,
60,000,000.00 No
Zhaoting, Li Qing 2015 2017
Dongxu Group, Li March 25, March 24,
80,000,000.00 No
Zhaoting, Li Qing 2015 2017
January 23, January 23,
Dongxu Group 80,000,000.00 No
2015 2016
The pledge of accounts
receivable of Dongxu May 27,
100,000,000.00 May 26, 2015 Yes
Group and Zhengzhou 2014
Xufei
255
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Dongxu Group 100,000,000.00 January 22, 2015 November 11, 2015 Yes
Dongxu Group 100,000,000.00 April 23, 2015 March 22, 2016 No
Dongxu Group 200,000,000.00 September 23, 2015 September 23, 2016 No
Dongxu Group 100,000,000.00 January 22, 2015 Januaryp 22, 2016 No
Dongxu Group 200,000,000.00 July 22, 2015 July 22, 2016 No
The pledge of accounts
receivable of Dongxu
100,000,000.00 August 22, 2014 August 22, 2015 Yes
Group and Zhengzhou
Xufei
Li Zhaoting 40,000,000.00 December 22, 2015 December 22, 2016 No
Dongxu Group 200,000,000.00 September 29, 2015 September 29, 2016 No
Dongxu Group 200,000,000.00 May 15, 2014 May 14, 2015 Yes
Dongxu Group 450,000,000.00 January 28, 2013 January 27, 2021 No
Dongxu Group 50,000,000.00 December 8, 2014 December 4, 2015 Yes
Dongxu Group 49,000,000.00 December 29, 2014 December 4, 2015 No
Dongxu Group 45,000,000.00 November 30,2015 November 30,2016 No
Dongxu Group 50,000,000.00 April 23, 2015 March 22, 2016 No
Dongxu Group, Li
20,000,000.00 December 22, 2015 June 22, 2016 No
Zhaoting
Dongxu Optoelectronic
Investment Co., Ltd.,
80,000,000.00 July 24, 2015 July 24, 2016 No
Baoshi Group, Li
Zhaoting
Hold shares in the
company of Dong Group,
200,000,000.00 January 4, 2015 January 4, 2016 No
Li Zhaoting, Li Qing,
Baoshi Group
Dongxu Group, Li
200,000,000.00 January 4, 2015 January 4, 2016 No
Zhaoting, Li Qing
Dongxu Group, Li
100,000,000.00 April 12, 2013 May 20, 2016 No
Zhaoting, Li Qing
Dongxu Group, Li
100,000,000.00 April 12, 2013 October 20,2016 No
Zhaoting, Li Qing
Dongxu Group, Li
90,000,000.00 April 12, 2013 April 11, 20221 日 No
Zhaoting, Li Qing
Dongxu Group, Li
150,000,000.00 May 2, 2013 April 11, 2022 No
Zhaoting, Li Qing
Dongxu Group, Li 100,000,000.00 September 26, 2013 April 11, 2022 No
256
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Zhaoting, Li Qing
Dongxu Group, Li
300,000,000.00 April 1, 2014 April 11, 2022 No
Zhaoting, Li Qing
Dongxu Group, Li
150,000,000.00 April 10,2015 April 12, 2022 No
Zhaoting, Li Qing
Dongxu Group 200,000,000.00 August 21, 2014 August 9, 2015 Yes
Li Zhaoting 250,000,000.00 December 2, 2014 October 2, 2015 Yes
Li Zhaoting 200,000,000.00 May 9, 2015 May 9, 2016 No
Li Zhaoting 100,000,000.00 February 13, 2015 February 13, 2016 No
Li Zhaoting 300,000,000.00 February 13, 2015 February 13, 2016 No
Dongxu Group, Li
85,000,000.00 No
Zhaoting
(5) Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
4,609,100.00 3,916,700.00
personnel
6.Payables and receivables of the related party
（1）Receivable
In RMB
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Shijiazhuang
Account receivable Dongxu Mechanical 3,756,250.00 88,000.00
Equipment Co., Ltd.
Chengdu Taiyisi
Account receivable 83,333.33
Technology Co., ltd.
Chengdu Zhong
Account receivable Optoelectronic 13,872,414.13 44,338,623.05
Technology Co., Ltd
Dongxu （Yingkou）
Account receivable Optoelectronic 25,212,000.00
Display Co., Ltd.
257
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Hebei Baoshi
Energy saving
Account receivable 10,000.00 10,000.00
lighting technology
Co., Ltd.
Sichuan Xuhong
Account receivable Optoelectronic 914,000.00 4,050,000.00
Technology Co., Ltd.
Dongxu （Yingkou）
Bill receivable Optoelectronic 80,000,000.00
Display Co., Ltd.
Sichuan Xuhong
Bill receivable Optoelectronic 21,500,000.00
Technology Co., Ltd.
Hebei Baoshi
Energy saving
Prepayments 60,000.00 60,000.00
lighting technology
Co., Ltd.
Prepayments Dongxu Group 203,171,278.25
Hebei Decoration
Prepayments Printing Machinery 775,680.87 655,680.87
Co., Ltd.
Shijiazhuang
Prepayments XumingTube Co., 335,052.00 335,052.00
Ltd.
Shijiazhuang
Prepayments Dongxu Mechanical 8,521,569.97 18,751,434.08
Equipment Co., Ltd.
Shijiazhuang
Other receivable Baodong Electronic 299,905.00 299,905.00
Co., Ltd.
Other non-current
Dongxu Group 155,505,869.52
assets
（2）Payables
In RMB
Name Related party Book balance at year end Book balanc at year beginning
Chengdu Dongxu Energy 649,745.00
Account payable
Technology Co., Ltd.
Account payable Shijiazhuang Baoshi Electronic 5,755,158.95 5,533,363.79
258
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
vacuum Glass Co., Ltd.
Shijiazhuang Baoshi 533,942.80 533,942.80
Account payable Large-diameter plastic tube Co.,
ltd
Shijiazhuang Baoshi 152,978.40 152,978.40
Account payable Zhonghe Steel Plastic Shape
Co., Ltd.
Shijiazhuang Xuling Electronic 1,335,136.31 1,008,852.78
Account payable
Technology Co., Ltd.
Advance revenue Dongxu Group 73,125,716.06
Chengdu Dongxu Energy 50,000.00
Other payable
Technology Co., Ltd.
Jinzhou Xulong Solar energy 1,500,000.00 1,500,000.00
Other payable
Technology Co., Ltd.
Other payable Baoshi Group 165,815,170.48 5,892,565.56
Shijiazhuang XumingTube Co., 97,031.00
Other payable
Ltd.
Other payable Dongxu Group 88,910,757.77 217,447,613.15
Dongxu Optoelectronic 146,229,180.00
Other payable
Investment Co., Ltd.
Shijiazhuang Baoshi Electronic 264,000.00
Other payable
vacuum Glass Co., Ltd.
Sichuan Xuhong Optoelectronic 100,000.00
Other payable
Technology Co., Ltd.
XII. Stock payment
1. The Stock payment overall situation
√ Applicable □Not applicable
In RMB
The current total equity instruments granted to the company 0.00
Amount of the equity instruments company right of this line 596,000.00
Company current total failure of the equity instruments 0.00
2. The Stock payment settled by equity
√ Applicable □Not applicable
In RMB
259
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
The determined methods of the fair value of the equity instruments The 20 trading days prior to the announcement of the stock
granted to date incentive plan average stock trading company
《Unlock the first phase of the company restricted stock
Determine the number of vested equity instruments
incentive plan period can unlock the object list》
This estimate and it is estimated that there are significant
Without
differences of the previous period
Equity-settled share-based payment included in the total amount of
7,037,400.00
capital reserves
This period of equity-settled share-based payment confirmation
5,975,200.00
total costs
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Without
XIII. Commitments
1. Significant commitments
(1) Significant contingency at balance sheet date
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
XVI. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification accojunt receivables.
In RMB
Amount in year-end Amount in year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Receivables with
major individual 6,661,7 6,661,700
30.20% 100.00%
amount and bad debt 00.00 .00
provision provided
260
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
individually
receivables with
major individual
amount and bad debt
provision provided
individually
Account receivable
with minor individual 26,294,3 365,561. 25,928,80 15,395, 2,899,932 12,495,493.
100.00% 28.69% 69.80% 68.72%
amount but bad debt 70.18 55 8.63 425.47 .18 29
provision is provided
26,294,3 365,561. 25,928,80 22,057, 9,561,632 12,495,493.
Total 100.00% 28.69% 100.00% 168.72%
70.18 55 8.63 125.47 .18 29
Accounts receivable of individual significance and subject to individual impairment assessment.
□ Applicable√ Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ Not applicable
In RMB
Year-end balance
Aging
Account receivable Bad debt provision Proportion
Withitem 1 year
Credit external within 1 year
1-2 years 1,009,668.39 100,966.84 10.00%
Over 5 years 264,594.71 264,594.71 100.00%
Total 1,274,263.10 365,561.55 28.69%
Notes：
Receivable account in Group on which bad debt provisions were provided on percentage basis：
□ Applicable √ Not applicable
Receivable account in Group on which bad debt provisions were provided on other basis：
Name 2015.12.31 Bad debt provision
Related party Group 25,020,107.08
Notes ：
N/A
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The current amount of provision for bad debts is RMB31,483.42; recovery or payback for bad debts Amount is
RMB9,227,554.05.
Significant amount of reversed or recovered bad debt profision：
In RMB
261
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Name Amount Method
(3) Particulars of the actual verification of accounts receivable during the reporting period
In RMB
Itmes Amount
Of which: significant actual verification of accounts receivable：
In RMB
Whether occurredc
Name Nature Amount Reason Procedure bacause of related
party transaction
Notes ：
(4) Top five of account receivable of closing balance collected by arrears party
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is
RMB 24,106,107.08, which accounts for 91.68% of the total other receivables. The total amount of balances in
the end of the period for corresponding accrued bad-debt provision is RMB 0.00.
2.Other receivable
（1）．Category of Other receivable
In RMB
Amount in year-end Amount in year-beginng
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Account receivable
with minor individual 1,259,14 1,797,04 1,257,350 319,713 2,845,794 316,867,75
100.00% 0.14% 100.00% 0.89%
amount but bad debt 7,144.18 5.49 ,098.69 ,549.26 .38 4.88
provision is provided
1,259,14 1,797,04 1,257,350 319,713 2,845,794 316,867,75
Total 100.00% 0.14% 100.00% 0.89%
7,144.18 5.49 ,098.69 ,549.26 .38 4.88
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
√ Applicable □Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
262
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Subitem within 1 year
Credit external within 1 year 485,541.91 24,277.10 5.00%
Subtotal within 1 year 485,541.91 24,277.10 5.00%
1-2 years 718,105.55 71,810.55 10.00%
Over 5 years 1,700,957.84 1,700,957.84 100.00%
Total 2,904,605.30 1,797,045.49 61.87%
Notes:
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√Applicable □Not applicable
Name 2015.12.31 Bad debt provision
Current fund 1,246,010,916.22
Personal insurance returned 455,012.80
Personal loans 156,609.86
Deposit 9,620,000.00
Total 1,256,242,538.88
Continue：
Name 2014.12.31 Bad debt provision
Deposit 10,000,000.00
Petty cash 1,910,852.12
Current fund 303,156,899.22
Export rebate 43,522.96
Personal insurance returned 1,104,926.88
Total 316,216,201.18
（2）Bad debt provision withdrawal, reversed or recovered in the report period.
The amount of bad debt provision was RMB45,584.45, The amount of reversed or recovered bad debt provision in
the report period RMB1,094,333.29.
Significant amount of reversed or recovered bad debt provision：
In RMB
Name Amount Method
263
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
（3）Particulars of the actual verification of other accounts receivable during the reporting period.
In RMB
Items Amount
Of which : Significant actual verification of other account receivable：
In RMB
Whether occurred
Name Nature Amount Reason Procedure because of related
party transactions
Notes：
（4）Other account receivable classified by account nature
In RMB
Nature Closing book value Opening book value
Deposit 9,620,000.00 10,000,000.00
Pretty cash 156,609.86 1,910,852.12
Current fund 1,248,135,068.38 305,301,689.86
Export rebate 43,522.96
Personal insurance and provident fund 455,012.80 1,104,926.88
Other 780,453.14 1,352,557.44
Total 1,259,147,144.18 319,713,549.26
(5) The top five other account receivable classified by debtor at period end
In RMB
Closing balance of
Name Nature Closing balance Aging Proportion %
bad debt prof=vision
Zhengzhou Xufei
Optoelectronic Related party 633,336,950.00 Credit period 50.30%
Technology Co., Ltd.
Beijing Xufeng
Related party 561,652,495.89 Credit period 44.61%
Property Co., Ltd.
Shijiazhuang Dongxu
Optoelectronic
Related party 29,630,448.10 Credit period 2.35%
Equipment
Technology Co., Ltd.
Wuhan Dongxu
Optoelectronic Related party 11,000,000.00 Credit period 0.87%
Technology Co., Ltd.
Dongxu （Kunshan） Related party 8,000,000.00 Credit period 0.64%
264
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Display Material
Co., Ltd.
Total -- 1,243,619,893.99 -- 98.77%
3.Long-term equity investment
In RMB
Year-end balance Year-beginning balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Investment to the 10,143,802,777.3
378,172,649.84 9,765,630,127.51 5,475,084,685.33 378,172,649.84 5,096,912,035.49
subsidiary 5
Investment to
joint ventures and
72,426,252.41 72,426,252.41
associated
enterprises
10,216,229,029.7
Total 378,172,649.84 9,838,056,379.92 5,475,084,685.33 378,172,649.84 5,096,912,035.49
6
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Shijiazhuang
Baoshi Color Bulb 439,341,956.80 439,341,956.80
Co., Ltd.
Hebei Xubao
Construction
Engineering 100,000,000.00 100,000,000.00
Installation Co.,
Ltd.
Wuhu Dongxu
Optoelectronic
Equipment 93,100,000.00 93,100,000.00
Technology Co.,
Ltd.
Wuhu Dongxu
4,711,064,000.00 4,711,064,000.00
Optoelectronic
265
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
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., 20,000,000.00 450,000,000.00 470,000,000.00
Ltd.
Dongxu
（Kunshan）
8,000,000.00 272,500,000.00 280,500,000.00
Display Material
Co., Ltd.
Jiangsu Jixing
New Material Co., 167,345,300.00 167,345,300.00
Ltd.
Beijing Xutan
New Material
10,500,000.00 10,500,000.00
Technology Co.,
Ltd.
Beijing Dongxu
Huaqing
3,500,000.00 3,500,000.00
Investment Co.,
Ltd.
Shijiazhuang
Xuxin
Optoelectronic 1,966,568,609.92 1,966,568,609.92
Technology Co.,
Ltd.
Zhengzhou Xufei
Optoelectronic
1,798,304,182.10 1,798,304,182.10
Technology Co.,
Ltd.
Long-terminvestm
ent depreciation 378,172,649.84
reserves
Total 5,475,084,685.33 4,668,718,092.02 0.00 10,143,802,777.3 378,172,649.84
266
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
5
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Adjustme
Withdraw balance
Decrease Gain/loss nt of Declarati
Opening Add Other n Closing of
Name d of other on of cash
balance investmen equity impairme Other balance impairme
investmen Investme comprehe dividends
t changes nt nt
t nt nsive or profit
provision provision
income
I. Joint ventures
II. Associated enterprises
Zhongda
Chengx
in
Internat
ional 72,000,00 426,252.4 72,426,25
Comm 0.00 1 2.41
ercial
Factori
ng Co.,
Ltd.
72,000,00 426,252.4 72,426,25
Subtotal
0.00 1 2.41
72,000,00 426,252.4 72,426,25
Total
0.00 1 2.41
（3）Other
4.Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Income Cost Income Cost
Main business 704,155,982.26 388,287,892.82 31,543,226.87 30,310,753.30
Other business 17,006,514.07 1,136,943.48 28,722,583.81 7,364,606.56
Total 721,162,496.33 389,424,836.30 60,265,810.68 37,675,359.86
Other Notes：
267
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
5. Investment income
In RMB
Items Amount of current period Amount of previous period
Income from long-term equity investment
380,000,000.00 950,000,000.00
measured by adopting the cost method
Income from long-term equity investment
426,252.41
measured by adopting the Equity method
Investment income received from holding of
0.00 0.00
available-for –sale financial assets
Total 380,426,252.41 950,000,000.00
XVII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of non-current
-42,342.96
assets
Government grants recognized in the current
period, except forthose acquired in the
ordinary course of business or granted at 514,763,264.28
certain 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
18,763,137.14
enjoyable fair value of the identifiable net
assets of the investees when making the
investments
Net profit or loss of subsidiaries from the
beginning of the period up to the business
combination date recognized as a result of 84,703,345.09
business combination of enterprises under
common control
Separate impairment test of the impairment
14,009,355.59
of receivables back
Gain/loss on loans obtained by entrusting
4,500,000.00
others
268
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
Other non-operating income and expenditure
2,588,776.63
beside for the above items
Less: Influenced amount of income tax 82,348,493.83
Amount of influence of minority interests 53,402,758.27
Total 503,534,283.67 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
2 Return on net assets and earnings per share
Earnings per share
Profit of the report period Return on net assets . Weighted（%）
Basic earnings per share Diluted gains per share
Net profit attributable to the
Common stock shareholders of 14.99% 0.48 0.48
Company.
Net profit attributable to the
Common stock shareholders of
10.93% 0.30 0.30
Company after deducting of
non-recurring gain/loss.
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √ Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
XI. 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
269
Dongxu Optoelectronic Technology Co., Ltd. 2015 Annual Report
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 of Directors：February 5,2016
270
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