Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
Dongxu Optoelectronic Technology Co., Ltd.
The Summary of 2017 Semi-annual Report
August 2017
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
I. Important Notices
The summary is abstract from full-text of annual report, for more details information , investors should found in
the full-text of annual report that published on website of Shenzhen Stock Exchange and other website appointed
by CSRC.
Non-standard audit opinion tips
□ Applicable √ Not applicable
The board discussed reporting period ordinary shares profit distribution plan or provident fund to share capital
plan
□ Applicable √ Not applicable
The board approved this reporting period preferred shares profit distribution plan
□ Applicable √ Not applicable
Ⅱ Company Information
1.Company Profile
Dongxu Optoelectronic,
Stock abbreviation Stock code 000413、200413
Dongxu B
Stock exchange for listing Shenzhen Stock Exchange
Contact person and contact manner Board secretary Securities affairs Representative
Name Gong Xin Wang Qingfei
Lin 5 Yard,No.23 A Fuxing Road, Haidian Lin 5 Yard,No.23 A Fuxing Road, Haidian
Add
District, Beijing ,China. District, Beijing ,China.
Tel 010-68297016 010-68297016
Fax 010-68297016 010-68297016
E-mail gongxin_dx@126.com wangqingfei@dong-xu.com
2.Main financial data and financial Index
Retroactive adjustment or restate previous years accounting data
□ Necessary √ Not necessary
Reporting period Same period of last year YoY+/-
Operating income（RMB） 4,641,285,527.91 2,882,059,154.41 61.04%
Net profit attributable to the shareholders 635,855,750.37 545,963,710.72 16.46%
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 559,990,548.41 459,894,653.13 21.76%
listed company（RMB）
Cash flow generated by business operation,
-1,414,361,686.97 1,281,108,942.94 -210.40%
net（RMB）
Basic earning per share(RMB/Share) 0.13 0.14 -7.14%
Diluted gains per
0.13 0.14 -7.14%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 2.84% 3.79% -0.95%
As at the end of the
As at the end of last year YoY+/-
reporting period
Gross assets (RMB) 47,746,487,539.58 46,826,319,570.41 1.97%
Net assets attributable to shareholders of
22,506,905,931.67 22,216,300,365.86 1.31%
the listed Company（RMB）
3. Statement of shares held by top 10 shareholders
Total Number of common
391,573（Including 373,915 shareholders holding A shares and 17,658 shareholders holding B
shareholders at the end of the
shares）
reporting period
Shareholdings of the top 10 common shareholders
Amount of Frozen or pledged
Name of the Properties of Share Conditional shares held at end of
common Status of
shareholder shareholder proportion % period Amount
shares held shares
Domestic Non
Dongxu Group -State-owned 11.32% 558,968,800 439,882,697 Pledge 558,962,697
legal person
Shijiazhuang
Domestic Non
Baoshi
-State-owned 6.73% 332,382,171 0 Pledge 153,520,000
Electronic
legal person
Group Co., Ltd.
Zhongxin
construction
fund-Huaxia
bank-Xizang Other 4.51% 222,575,516 222,575,516
Trust –Shunjing
5#-Single
capital trust
Shenwanlingxin Other 2.25% 111,287,758 111,287,758
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
capital-Merchan
ts
bank-huarunshe
nguotou
trust-ruihua
fixed hedge
fund 2# pooled
funds trust plan
Penghua
fund-ningbo
bank-daye
trust-daye trust
dongxu 0ther 2.25% 111,287,758 111,287,758
optoelectronic
fixed hedge
2#single capital
trust
Zhong’ou
shengshi asset
–ningbo
bank-minsheng
trust-zhongguo
minsheng trust
Other 2.25% 111,287,758 111,287,758
zhixin
28#dongxu
optoelectronic
fixed hedge
pooled capital
trust plan
Shenzhen
antaier Domestic Non
information -State-owned 2.24% 110,492,845 110,492,845 Pledge 110,492,845
techonology legal person
co.,ltd.
Qianhai share
Domestic Non
investment
-State-owned 2.24% 110,492,845 110,492,845 Pledge 48,492,845
fund(limited
legal person
partnership)
Nuoan
fund-xingye
security-nanjing Other 2.24% 110,492,845 110,492,845
chuang’an asset
management
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
co.,ltd.
Minshengjiayin
fund-ping’an
bank-ping’an
trust-ping’an Other 2.09% 103,146,380
finance huitai
163#single
capital trust
Among the top ten shareholders , Dongxu Group and Baoshi Group, Dongxu Optoelectronic – I
Explanation on associated Employee stock ownership plan have relationship and constitute persons taking concerted action.
relationship or concerted action The company does not know whether there is relationship between other 7 shareholders or
of the above shareholders whether they are persons taking concerted action defined in Administrative Measures Relating to
Acquisitions of Listed Companies.
The top 10 tradable common shareholders Xie xiantuan,Shen jufeng by Huatai Securities Co.,
Explanation on shareholders
Ltd. customer credit-backed securities trading account and Shanghai Securities Co., Ltd.
participating in the margin
customer credit-backed securities trading account were holding 17,044,700 shares,
trading business(if any )
9,469,500shares, accounting for 0.35% and 0.19% of the total shares respectively.
4.Changing of controlling shareholder and practical controller of the Company.
Change of holding shareholder
□ Applicable √ Not applicable
No change of holding shareholder in the report period.
Change of substantial controller
□ Applicable √ Not applicable
No change of substantial controller in the report period.
5. Statement of preffered shares held by top 10 shareholders
□ Applicable √ Not applicable
Report period has no preffered shares statement
6.About Bond
Having or not having public distributed and the bond which listed in the Stock Exchange,and semi-annual
report approved publish date is not arrived or can not cash at the ending
√Yes □No
(1). Bond Information
Name Abbreviation Code End-line Ending balance rate
Dongxu 15Dongxu bond 112243 May 19,2020 100,000 6.00%
Optoelectronic
Co.,Ltd. 2015
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
company bond
(2).Finance index by the ending of report
Item Report ending Last year Report ending YOY+/-
Asset debt ratio 50.52% 50.73% -0.21%
Item Report period The same period last ear Report ending YOY+/-
EBITDA interest coverage 2.8326 2.9984 -5.53%
ratio
3.Operation situation discussion and analysis
1.Operation situation profile in report period
Whether insist the request of special industry
□Yes √N(yùn)o
The year of 2017 is the year of strategic transformation for Dongxu Optoelectronic. When the previous glass
substrate and display materials investment enter into the harvest period, the company committed to put great effort
into the industry synergy of big manufacturing industry, and based on the breakthroughs in the field of graphene
and grapheme-based lithium-ion batteries, the company launched the acquisition matter of Sunlong Bus, striving
to shape a closed-loop industrial chain of \"high-end materials – grapheme-based lithium battery-new energy
vehicles\". In the first half of 2017, every business of the company has been steadily moved forward and has a
good operation status, thus further consolidated the company's industrial position and gained certain extent of
good economic results.
During the reporting period, the Company achieves an operating income of RMB4641.2855 million , an increase
of 61.04% over the same period in 2016; the net profit attributable to the parent Company of RMB 635.8558
million, an increase of 16.46 % over the same period in 2016.
The company's each business development status in the first half of 2017 and the industry planning of the
second half of 2017:
1.Conforming to the trend and speeding up the construction of high-generation glass substrate production line
In recent years, the large-size and high-generation panel and glass substrate have become the industry trend.
According to the research report by research company Witsvie, the average size of television panel worldwide
reached 44.7 inches in the first half of 2007, an increase of 1.7 inches from the previous year. The Fuzhou 8.5
generation TFT-LCD liquid crystal glass substrate project, as the company's project invested by the raised money
of RMB 6.95 billion by private placement, is an important project in the company's layout for coping with the
industrial changes. During the reporting period, the first line of the company's Fuzhou 8.5 generation glass
substrate production line has been put into operation and the second line has been under the steady construction.
The successful launch of the company's 8.5 generation product into the market had an important impact to
consolidate the company's industrial position and balance the rising of the new-generation AMOLED display
technology. In the future, the company will, according to the downstream market demand, constantly optimize the
LTPS technology and other new glass substrate production technology, thus to better fit the new development
trend of the market.
2. Advance shoulder to shoulder, many achievements of optoelectronic display materials
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
The company has been engaged in the optoelectronic display industry for more than a decade, starting with
the glass substrate industry, closely following-up the world trend of display technology and the innovation trend,
thus grasped the historical opportunity of home-manufacturing materials replacing the core display materials,
continuously rolled out new products and horizontally expanded, and constructed the core competiveness based
on the opportunity of the high-tech optoelectronic display materials. On the basis of the company's constant
consolidation and enhancement of the main business of LCD glass substrate, combined with the main business,
the company continuously expanded the new business area, and currently the company has successfully been
engaged in the three high-end display materials namely sapphire, color filter and polarizer, thus realized
achievements in many aspects.
During the reporting period, the company has made a new progress in the lateral extension of core display
material. The company's color film project has been speeding up the progress, and it's expected there will be new
product line completed in the second half of the year. Fuzhou Xuyou polarizer project has been put into operation
in a relatively fast speed, marking that the company officially entered the field of polarizer manufacturing. The
polarizer industry will be one of the core pillar industries of the company's optoelectronic display business after
the production of glass substrate, and that will shape an industrial synergy effect of the company's existing
optoelectronic business that has the industry of glass substrate, color filters and sapphire, thus further enhancing
the company's comprehensive strength.
3. Preliminary achievement, the optimized layout of graphene business accelerated
During the reporting period, the monolayer grapheme and the grapheme-based lithium ion battery fabricated
by Shanghai Tanyuan Graphene has gained the market attention and recognition, and the subsequent single
product and the technological upgrading have been actively promoted. The company's Taizhou grapheme-based
lithium ion battery project, which has successfully completed the land bidding and auction, project filing, EIA
publicity and other procedures, is currently under the communication with the design and construction unit about
the design and construction plan under the company's full efforts, and it's carrying out the multi-round
demonstration and striving to realize the commencement of project construction as soon as possible.
Meanwhile, the company together with Taizhou graphene industry fund, through the means of acquisition and
capital increase, obtained the 51% stake of Ming Shuo Technology Company, which has the reversible liquid
crystal phase-change graphene composite heat dissipation material as the core technology and it is specializing in
providing high-power LED lighting equipment and integrated lighting solutions, with its related graphene lighting
products have been actually applied in Beijing and other places and that has gained some extent of economic
benefits. In addition, the company's industrial application of heat-dissipation graphene film technology has
achieved stage achievement, and the company has signed a \"strategic cooperation agreement\" with Shanxi Energy
Investment and Shanxi Jian Bang Group in connection to the project cooperation of the Graphene electric heating
replacing loose coal combustion heating project of Shanxi Provincial rural area.
4. Regular development but with novelty thoughts and innovation, acquired SUNLONG Bus to enter the new
energy automotive industry
With the company's smooth progress and putting-into operation of each project of optoelectronic display
materials, the company’s main business will tend to become mature and steady. In order to give full play to the
industrial synergies of big manufacturing industries and find new profit growth points, the company has decided
to enter the field of new energy passenger cars and logistics vehicles. During the reporting period, the Company
launched the restructuring project that planned to acquire 100% equity of Sunlong Bus through the way to buy
assets by issuing shares and paying cash. The company has been engaged in the high-end equipment
manufacturing industry for nearly 20 years, possessing a strong ability in technology, management, funds and
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
talents. Sulong Bus has the mature technology, rich-experience industrial management team and excellent product
design ability. Meanwhile, upon more than ten years accumulated experience in new energy passenger car, Sulong
Bus possessed the good market channels and the excellent overseas market development capabilities. The
company acquired Sulong Bus to formally enter the field of new energy passenger car, so as to enrich the
company’s existed industrial structure. By utilizing the advantage of each other, the company can snatch the good
industrial opportunity in the field of new energy passenger bus and logistics vehicles, thus to better provide more
opportunities for the company’s rapid growth in the next few years.
Furthermore, during the reporting period, the Company invested RMB 100 million to subscribe the new
shares of Yi Huatong issued by directional added share-issuance. Yi Huatong is a high-tech company that
specialized in hydrogen fuel cell engine research and development and the industrialization. For one hand, the
company's subscription is based on the optimistic future development and the profitability of Yi Huatong, and for
the other hand, the company can utilize this to build strategic partnership with Yi Huatong, thus speeding up
bringing the advanced hydrogen fuel cell engine technology of Yi Huatong into the company's layout of new
energy automotive projects, further accelerating the market-launch speed of the company's hydrogen fuel cell
vehicle, so as to consolidate the company's industrial position in the new energy automotive market and to bring
the new profit growth point for the company.
5. Fulfilling the commitment, injecting the cover-glass business to enrich the company's profit growth point
Cover glass belongs to the windows protective screen industry of panel display, and the industry is high
technological and has large market scale, large industrial radiation and the obvious stimulation effect. Xuhong
Optoelectronic mainly engaged in high aluminum cover glass production and sales, and the high aluminum cover
glass possesses the characteristics of high transmittance, high impact resistance, high scratch resistance, high
bending toughness, ultra thin and other technical characteristics. In order to solve the horizontal competition, in
2011, Tunghsu Group entrusted the company to carry out the management of Xuhong Optoelectronic and
promised to inject its equity into the company. Currently, Xuhong Optoelectronic has a large-scale ultra-thin touch
screen glass production line, with the annual production scale of 7 million pieces, and the company had won the
first prize award of science and technology progress of Sichuan province and the National Invention Exhibition
Gold Award. Xuhong Optoelectronic is one of the domestic companies that take the lead in the research and mass
production of high aluminum cover glass, and the Panda Glass, which was rolled out in 2014 by Xuhong,
successfully broke the situation of the foreign enterprises' long-term absolute monopoly in the domestic market.
Currently, its business covered the area and regions of East China, North China, Southwest China and Southern
China.
With the approaching of mobile phone wireless charging and 5G and other new transmission mode, the wide
use of flexible OLED brings a vast market space for 3D curve glass. During the reporting period, the company has
officially launched the acquisition of Xuhong Optoelectronic equity and will use the raised match funds to
construct \"Curve Surface display Cover-glass production project\". After the completion of the acquisition, the
company will have the new income from cover glass, and the flat display glass business layout will be more
perfect, which will be conducive to consolidate the company's domestic leading position in the panel glass display.
2.related to fianance report item
(1)The explain about accounting policies, accounting evaluation and accounting checking methods
compared the last accounting year
□ Applicable √ Not applicable
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
The report period has no change about accounting policies, accounting evaluation and accounting checking
methods.
(2). The explain about having main accounting mistake and need retrospective restatement in report period
□ Applicable √ Not applicable
(3). The explain about the change of combined statements range compared the last accounting year
□ Applicable √ Not applicable
1.Not the same controlled company merge
(1) Not the same controlled company merge in this year
In RMB’0000
Method Income of Acquire Net Profit of
Ratio of
Time-point Obtained of Determination from the Acquire from the
Obtained
Name of Obtained Cost of Obtaine Purchasing Date Basis on the Purchasing Date Purchasing Date
Equity
Equity Equity d Purchasing Date to the End of the to the End of the
(100%)
Equity Period Period
Mingshuo May 31,2017 5,714.29 36.36 Purchas May 31,2017 Obtain 9.40 -37.59
(Beijing) Electroic e a business
Technology Co., license
Ltd.
Chuanglianhuatai Jan 1,2017 100.00 Purchas Jan 1,2017 Obtain a
(Hongkong) e business license 38,664.40 604.68
Co.,Ltd.
Tianlonghuatai Jan 1,2017 100.00 Purchas Jan 1,2017 Obtain a
Industry e business license
(Hongkong)
Co.,ltd.
Dongxu(Xuhua)Int Jan 1,2017 10.02 55.00 Purchas Jan 1,2017 Obtain a -32.00
ernational e business license
Equipment
Co.,Ltd.
(2) Consolidation Cost and Goodwill
Items Mingshuo (Beijing) Chuanglianhuatai Tianlonghuatai Dongxu(Xuhua)Internationa
Electroic (Hongkong) Industry (Hongkong) l Equipment Co.,Ltd.
Technology Co., Co.,Ltd. Co.,ltd.
Ltd.
Consolidation cost
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
—Cash 57,142,857.00 100,208.63 57,142,857.00
Total Consolidation cost 57,142,857.00 100,208.63 57,142,857.00
Less：Reduction: Obtained 23,823,179.29 -722,450.89 100,208.63 23,823,179.29
Definable Net Assets Fair
Proportion
Goodwill/ The 33,319,677.71 722,450.89 33,319,677.71
Consolidation Cost is Less
Than the Obtained
Definable Net Assets Fair
Proportion
(3).Identifiable asset and debt brought by the purchaser at purchase day
Mingshuo (Beijing) Electronic Technology Co., Ltd ChuanglianHuatai (Hongkong ) Co., Ltd.
Book value on purchase Fair value on purchase Book value on purchase
Fair value on purchase date
date date date
Assets：
Monetary fund 54,255,862.44 54,255,862.44 108,530.20 108,530.20
Account receivable 3,237,093.72 3,237,093.72 33,330,248.60 33,330,248.60
Prepayments 337,280.70 337,280.70
Other receivable 6,017,888.47 6,017,888.47
Inventories 3,410,416.00 3,410,416.00
Other current assets 3,855,435.58 3,855,435.58
Fixed assets 1,760,577.41 1,760,577.41
Long-term deferred 11,000.00 11,000.00
expenses
Intangible assets 16,381.78 16,381.78
Other Non-current 2,200.00 2,200.00
assets
Liability
Short-term loans 33,328,948.60 33,328,948.60
Bill payable 2,337,681.38 2,337,681.38 690,688.59 690,688.59
Advance receipts 202,015.40 202,015.40
Employees’ wage 332,415.27 332,415.27
payable
Tax payable 59,542.45 59,542.45
Other account payable 2,647,520.16 2,647,520.16 141,592.50 141,592.50
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
Deferred income tax 1,811,333.04 1,811,333.04
liability
Net assets 65,513,628.40 65,513,628.40 -722,450.89 -722,450.89
Less：Minority interest 41,690,449.11 41,690,449.11
Acquire net assets 23,823,179.29 23,823,179.29 -722,450.89 -722,450.89
Dongxu(Xuhua)International Equipment Co.,Ltd.
Book value on purchase date
Fair value on purchase date
Assets：
Monetary fund 182,640.92 182,640.92
Other receivable 4,294.43 4,294.43
Liability
Bill payable 4.737.84 4.737.84
Net assets 182,197.51 182,197.51
Less：Minority interest 81,988.88 81,988.88
Acquire net assets 100,208.63 100,208.63
2. Due to new subsidiaries set up in the current period
On April 26, 2017, Wuhu Dongxu Optoelectronic Equipment Technology Co.,Ltd and Shangsha Shunyan
management company(limited partnership) and Liu Xuehua set up Huan Dongxu Weisheng Smart Technology
Co., Ltd.,the total amount of capital contribution agreed in the agreement was RMB 5,000.00 million and,the
paid-in capital of Wuhu Dongxu Optoelectronic Equipment Technology Co.,Ltd was RMB 2,550.00 million
and,the paid-in capital of Shangsha Shunyan management company(limited partnership) was RMB 1,700.00
million and,the paid-in capital of Liu Xuehua was 750.00 million and the paid-in capital was RMB 5,000.00
million.
On April 26, 2017, Wuhu Dongxu Optoelectronic Equipment Technology Co.,Ltd and Liu Haijun,Liao Xiaoye
together set up Hunan Dongxu Delai ElectronicTechnology Co.,Ltd ,with the total amount of capital contribution
agreed in the agreement was RMB 5,000.00 million, and the paid-in capital of Wuhu Dongxu Optoelectronic
Equipment Technology Co.,Ltd was RMB 2,550.00 million, the paid-in capital of Liu Haijun, was RMB 1,700.00
million, the paid-in capital of Liu Xuehua was 750.00 million and the paid-in capital was RMB 3,688.83815
million.
Dongxu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2017
On April 18, 2017, Wuhu Dongxu Optoelectronic Equipment Technology Co.,Ltd and Changsha Wenchao
Manaegment company((limited partnership) and Ning Yongchao together set up Wuhu Dongxu Weiyu Medical
Apparatus Technology Co.,Ltd.,with the total amount of capital contribution agreed in the agreement was RMB
10,000.00 million, and the paid-in capital of Wuhu Dongxu Optoelectronic Equipment Technology Co.,Ltd was
RMB 5,100.00 million, the paid-in capital of Changsha Wenchao Manaegment company((limited partnership),
was RMB 3,400.00 million, the paid-in capital of Ning Yongchao was 1,500.00 million and the paid-in capital
was RMB 10,000.00 million.
On April 26, 2017, Wuhu Dongxu Weiyu Medical Apparatus Technology Co.,Ltd set up sidiaries Hunan Dongxu
Weiyu Medical Apparatus Technology Co.,Ltd,,with the total amount of capital contribution agreed in the
agreement was RMB 2,000.00 million, and the paid-in capital was RMB 2,000.00 million.
On May 8, 2017, Shenzhen Xuhui Investment Co.,Ltd and Taizhou Dongxu Graphene investment fund
management centre together merged Mingshuo (Beijing) Electroic Technology Co., Ltd. and its subcompany part
shares of Huzhou Mingshuo Optoelectroic Technology Co., Ltd. the total amount of capital contribution agreed in
the agreement of Mingshuo (Beijing) Electroic Technology Co., Ltd.was 7,857.1429 million, and the paid-in
capital was RMB 4425.5429 million. the paid-in capital of Shenzhen Xuhui Investment Co.,Ltd was
RMB2,857.1429 million. the paid-in capital of Taizhou Dongxu Graphene investment fund management centre
was RMB1,150.00 million. the paid-in capital of Qian Xinming was RMB385.00 million. the paid-in capital of Jin
Xiuzhen was RMB 204.435 million. the paid-in capital of Qian Xinming was RMB385.00 million. the paid-in
capital of Chen Wei was RMB759.22 million. the paid-in capital of Wang Yingchao was RMB286.055million,
the paid-in capital of Beijing heyi investment partnership company (limited partnership) was RMB1,089.935
million. the paid-in capital of Jiang Wei was RMB143.605million, the paid-in capital of Li Hongleiwas
RMB563.255million. the paid-in capital of Zhu Lei was RMB418.495million.
On June 6, 2017, Wuhu Dongxu Weiyu Medical Apparatus Technology Co.,Ltd set up 100% held sidiaries
Shandong Qihui Weiyu Medical Apparatus Technology Co.,Ltd,,with the total amount of capital contribution
agreed in the agreement was RMB 2,000.00 million, and the paid-in capital was RMB 500.00 million.
On June 29, 2017, Wuhu Dongxu Weiyu Medical Apparatus Technology Co.,Ltd set up 100% held sidiaries
Guangdong Dongxu Weiyu Medical Apparatus Technology Co.,Ltd,,with the total amount of capital contribution
agreed in the agreement was RMB 2,000.00 million, and the paid-in capital was RMB 000.00 million.
Others
On April 13, 2017, Dongxu Construction group Co.,Ltd merged 100% held sidiaries Hebei Xubao building
project Co.,Ltd,,and becomed into subsidiaries.
Dongxu Optoelectronic Technology Co., Ltd.
Chairman: Li Zhaoting
Issue day approved by the Board of Directors：August , 2018