Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />Stock code ：000413,200413     Abbreviation：Dongxu Optoelectronic, Dongxu B          Announcement：2014-034<br /><br />Dongxu Optoelectronic Technology Co., Ltd.<br /><br />The First Quarterly Report 2014<br /><br />1<br /><br />                                                Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />I. Important Notes<br /><br />The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company<br /><br />hereby guarantees that there are no misstatement, misleading representation or important omissions in this<br /><br />Quarterly report and shall assume joint and several liability for the authenticity, accuracy and completeness of the<br /><br />contents hereof.<br /><br />All the directors attended the board meeting for reviewing the Quarterly Report.<br /><br />Mr.Li Zhaoting, Person in charge of the Company, Mr. Li Quannian, Chief financial officer and the Mr..Li<br /><br />Zhiyong, the person in charge of the accounting department (the person in charge of the accounting )hereby<br /><br />confirm the authenticity and completeness of the financial report enclosed in this Quarterly report.<br /><br />2<br /><br />                                                        Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />II.Main financial data and changes of shareholders<br /><br />I.Main financial data and indices<br /><br />Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting<br /><br />error correction or not.<br /><br />□ Yes   √ No<br /><br />Changes of this period over<br /><br />                                                      This period               Same period of last year          same period of last year<br /><br />                                                                                                                          （％）<br /><br />Operating income（RMB）                                     577,399,306.04                    191,297,126.26                          201.83%<br /><br />Net profit attributable to the shareholders<br /><br />                                                          207,652,354.20                     61,882,386.28                          235.56%<br /><br />of the listed company（RMB）<br /><br />Net profit after deducting of non-recurring<br /><br />gain/loss attributable to the shareholders of             205,657,309.70                     48,999,246.25                          319.72%<br /><br />listed company（RMB）<br /><br />Cash flow generated by business operation,<br /><br />                                                         -698,231,680.50                   -168,678,601.14                          -313.94%<br /><br />net（RMB）<br /><br />Basic earning per share(RMB/Share)                                      0.23                             0.16                        43.75%<br /><br />Diluted gains per<br /><br />                                                                        0.23                             0.16                        43.75%<br /><br />share(RMB/Share)(RMB/Share)<br /><br />Weighted average return on equity（%）                                3.51%                           14.63%                           -11.12%<br /><br />Changes of this period-end<br /><br />                                                   End of this period               End of last period          over same period-end of last<br /><br />                                                                                                                          year(%)<br /><br />Gross assets（RMB）                                      10,021,779,562.86                  9,032,978,401.14                           10.95%<br /><br />Net profit attributable to the shareholders<br /><br />                                                        6,021,326,069.24                  5,813,673,715.04                            3.57%<br /><br />of the listed company（RMB）<br /><br />Items and amount of non-current gains and losses<br /><br />√ Applicable □ Not applicable<br /><br />                                                                                                                                     In RMB<br /><br />Amount (Year-beginning to<br /><br />                                Items                                                                                   Notes<br /><br />                                                                        the end of the report period.)<br /><br />Governmental Subsidy accounted as current gain/loss, except for<br /><br />those subsidies at with amount or quantity fixed by the national<br /><br />                                                                                           441,300.00<br /><br />government and closely related to the Company’s business<br /><br />operation.<br /><br />Custody fee income when entrusted with operation                                         1,500,000.00<br /><br />3<br /><br />                                                         Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />Other gain/loss items satisfying the definition of non -recurring<br /><br />                                                                                        54,630.00<br /><br />gain/loss account<br /><br />Less :Influenced amount of income tax                                                      690.00<br /><br />Influenced amount of minor shareholders’ equity（After tax ）                                195.50<br /><br />Total                                                                                1,995,044.50                 --<br /><br />For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for<br /><br />Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated<br /><br />in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public -non-recurring<br /><br />Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.<br /><br />□ Applicable√ Not applicable<br /><br />4<br /><br />                                                            Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />II.Total number of shareholders at the end of report period and Particular about shares held by top ten shareholders<br /><br />In Shares<br /><br />Total number of shareholders at the end 17,649（Including 11,255 shareholders holding A shares and 6,394 shareholders holding B<br /><br />of report period                             shares）<br /><br />Particular about shares held by top ten shareholders<br /><br />Amount of       Pledging or freezing<br /><br />                                                                                                tradable shares<br /><br />                                                                   Share<br /><br />       Shareholder name        Properties of shareholder                           Quantity            with       Status of<br /><br />                                                               proportion %                                                    Quantity<br /><br />                                                                                                    Conditional   the shares<br /><br />                                                                                                       held<br /><br />Domestic Non -State-owned<br /><br />Dongxu Group                                                            14.4%     130,031,000       130,031,000 Pledge         130,031,000<br /><br />                              legal person<br /><br />Huarong Secrities－ICBC<br /><br />－Huarong Fixed Growth<br /><br />No. 1 Limited-amount          Other                                    13.71%     123,839,000       123,839,000<br /><br />Specific Asset<br /><br />Management Program<br /><br />Shijiazhuang Baoshi<br /><br />                              Domestic Non-State-owned<br /><br />Electronic Group Co.,                                                  12.27%     110,785,500                     Pledge        40,000,000<br /><br />                              legal person<br /><br />Ltd.<br /><br />Yinmin Fund Company－<br /><br />Minsheng－Yinmin Fund<br /><br />                              Other                                        6.5%    58,700,000        58,700,000<br /><br />Non-Public Issuing Assets<br /><br />Management Plan<br /><br />Minsheng Jiayin Fund<br /><br /> Company－Minsheng－<br /><br /> Pingan Trust－Pingan          Other                                     5.83%      52,634,000        52,634,000<br /><br /> Wealth Huitai No.11<br /><br /> Collective fund trust plan<br /><br />Huitianfu Fund Company<br /><br /> －Agricultural Bank of<br /><br /> China－SDIC Trust<br /><br />                              Other                                     4.57%      41,279,000        41,279,000<br /><br /> Golden Eagle No.108<br /><br /> Collective Fund trust<br /><br /> plan<br /><br />Dacheng Fund Company<br /><br />－Agricultural Bank of<br /><br />                              Other                                     4.57%      41,279,000        41,279,000<br /><br />China－SDIC Tust<br /><br />Golden Eagle No.109<br /><br />5<br /><br />                                                           Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />Collective Fund trust plan<br /><br />Guangfa Fund Company<br /><br />－Agricultural Bank of<br /><br />China－SDIC Tust<br /><br />                             Other                                     4.57%      41,279,000       41,279,000<br /><br />Golden Eagle No.109<br /><br />Collective Fund trust<br /><br />plan<br /><br />International Finance －<br /><br />ICBC－Zhongjin Increase<br /><br />                             Other                                     3.43%      30,959,000       30,959,000<br /><br />No.1 Collective   Assets<br /><br />Management plan<br /><br />National Social Security<br /><br />                             Other                                     0.84%       7,599,619<br /><br />Fund Portfollio 108<br /><br />Shareholding of top 10 shareholders of unrestricted shares<br /><br />Quantity of                        Share type<br /><br />                                                                        unrestricted shares<br /><br />                      Name of the shareholder<br /><br />                                                                        held at the end of            Share type           Quantity<br /><br />                                                                       the reporting period<br /><br />Shijiazhuang Baoshi Electronic Group Co., Ltd.                                 110,785,500 RMB Common shares               110,785,500<br /><br />National Social Security Fund Portfollio 108                                     7,599,619 RMB Common shares                 7,599,619<br /><br />The special repurchase account openedat Huaan Securities Co.,<br /><br />                                                                                 7,400,000 RMB Common shares                 7,400,000<br /><br /> Ltd.<br /><br />Foreign shares placed in<br /><br />Taifook Securities Company Limited-Account Client                                6,620,310                                   6,620,310<br /><br />                                                                                              domestic exchange<br /><br />Foreign shares placed in<br /><br />China Merchants Securities(HK) Co., Ltd.                                         5,622,948                                   5,622,948<br /><br />                                                                                              domestic exchange<br /><br />Foreign shares placed in<br /><br />GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED                                        5,272,364                                   5,272,364<br /><br />                                                                                              domestic exchange<br /><br />ICBC－CCB Optimization Collocation Mixed Securities<br /><br />                                                                                 4,258,749 RMB Common shares                 4,258,749<br /><br />Investment Fund<br /><br />New Times Trust Co., Ltd.－Xiangtai One trust Securities<br /><br />                                                                                 3,699,452 RMB Common shares                 3,699,452<br /><br />  Investment Collective      fund plan<br /><br />Foreign shares placed in<br /><br />KGI ASIA LIMITED                                                                 3,655,545                                   3,655,545<br /><br />                                                                                              domestic exchange<br /><br />Yao Yanbin                                                                       3,422,800 MB Common shares                  3,422,800<br /><br />Among the top ten shareholders , Dongxu Group and Baoshi<br /><br />                                                                      Group have relationship and constitute persons taking concerted<br /><br />Notes to the related relationship between the top ten shareholders<br /><br />                                                                      action. The company does not know whether there is<br /><br />or their concerted action<br /><br />                                                                      relationship between other 8 shareholders or whether they are<br /><br />                                                                      persons taking concerted action defined in Administrative<br /><br />6<br /><br />                                                        Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />Measures Relating to Acquisitions of Listed Companies.<br /><br />Did any shareholder of the Company carry out an agreed buy-back in the reporting period?<br /><br />√Yes □ No<br /><br />In the report period, Yao Yanbin, one of the top 10 shareholders holding unrestricted shares, carried out agreed repurchase<br /><br />transaction through the special repurchase account opened at Hua&#039;an Securities Co., Ltd. The agreed repurchase transaction in volved<br /><br />7,400,000 shares, which account for 0.82% of the total shares of the Company. As of the end of the report period, Yao Yanbin held<br /><br />3,422,800 shares, which account for 0.38% of total shares of the Company.<br /><br />7<br /><br />                                                      Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />III Significant Events<br /><br />I. Particular about large-margin change of main accounting statement item and financial index and its<br /><br />reason.<br /><br />Same period of Increased/D<br /><br />     Financial Index         This period(RMB)                                                  Main reason for change<br /><br />                                                   last year(RMB) ecreased(%)<br /><br />Consolidated Balance sheet index<br /><br />Monetary capital               1,779,602,504.61 2,586,660,951.04          -31.20 Mainly due to the increase of daily operations and<br /><br />                                                                                 capital expenditure in current period<br /><br />Accounts receivable            1,611,448,868.73     943,285,462.11         70.83 Mainly due to the increase of accounts receivable<br /><br />                                                                                 from substantial business growth<br /><br />Short-term loan                  340,000,000.00     580,000,000.00        -41.38 Due to loans due to return<br /><br />Bill payable                     882,820,000.00     150,000,000.00       488.55 Due to the increase of purchase expense using the<br /><br />                                                                                 financing bank acceptances<br /><br />Account payable                    77,593,581.37    134,665,580.06        -42.38 Due to the company paid the due payment<br /><br />Advance account                     1,912,376.49       3,451,630.20       -44.59 Due to the confirmation of the advance income in<br /><br />                                                                                 current period<br /><br />Consolidated Profit statement index<br /><br />Business income                  577,399,306.04     191,297,126.26       201.83 Mainly due to the increase of revenue growth of<br /><br />                                                                                 Wuhu equipment company affiliated Xuxin<br /><br />                                                                                 Optoelectronic launched a new glass substrate<br /><br />                                                                                 equipment manufacturing business<br /><br />Business cost                    260,675,002.58      64,628,503.35       303.34 Due to the increase of cost expenditure resulted<br /><br />                                                                                 from operation revenue growth<br /><br />Business tax and attach             9,136,064.55       2,075,428.17      340.20 Due to substantial increase of taxes resulted from<br /><br />                                                                                 substantial growth in operating income<br /><br />                                    1,647,610.56       1,186,023.55        38.92 Due to the increase of glass substrate sales<br /><br /> Sales expenses<br /><br />                                                                                 promotion expenditure<br /><br />                                   32,665,154.25     19,483,842.27         67.65 Due to the significant increase in labor costs, office<br /><br /> Administration expenses                                                         expenses and other administrative expenses resulted<br /><br />                                                                                 from substantial growth in business scale<br /><br />Financial expenses                 22,195,570.09       2,265,777.60      879.60 Mainly due to the increase of interest, discount<br /><br />                                                                                 interest etc. resulted from the increase of variety of<br /><br />                                                                                 financing receivables<br /><br />Consolidated Cash flow statement index<br /><br />Net Cash flow generated by      -698,231,680.50     -168,678,601.14      -313.94 Due to the increased expenditure of stocking for<br /><br />business operation                                                               Wuhu equipment company for the construction of a<br /><br />                                                                                 glass substrate production line<br /><br />Net cash flow generated by         13,150,101.15    655,523,944.45        -97.99 Necessary funds for Wuhu optoelectronic glass<br /><br />financing                                                                        substrate production line construction was raised in<br /><br />8<br /><br />                                                            Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />the early phase, due to the decrease of raised funds<br /><br />                                                                                              in current period<br /><br />II. The commitments of the Company and its shareholders holding over 5% of the Company’s total shares<br /><br />in the report year of extending to the report year from previous year.<br /><br />Time of<br /><br />                                                                                                                   Period of<br /><br />      Commitment            Commitment maker                     Contents                         making                          Fulfillment<br /><br />                                                                                                                  commitment<br /><br />                                                                                               commitment<br /><br />If plans to sell tradable stocks of<br /><br />                                                  Dongxu Optoelectronic through the<br /><br />                                                  bid trading system of Shenzhen<br /><br />                                                  Stock Exchange and sell greater<br /><br />                                                  than 5% of shares within six months<br /><br />                            Shijiazhuang Baoshi after the first sales, will disclose the<br /><br />Commitment on share                                                                                           Long-term          Under<br /><br />                            Electronics Group     contents specified by the Form              July 23, 2009<br /><br />reform                                                                                                        effective          Fulfillment<br /><br />                            Co., Ltd.             Guide to Prompt Announcement of<br /><br />                                                  Removing Restriction on Sales of<br /><br />                                                  Non-tradable Stocks of Listed<br /><br />                                                  Companies through the prompt<br /><br />                                                  announcement of disclosing sales of<br /><br />                                                  listed companies.<br /><br />Commitment in the<br /><br />acquisition report or the<br /><br />report on equity changes<br /><br />Commitment made<br /><br />upon the assets<br /><br />replacement<br /><br />1.From the date of commitment<br /><br />                                                  letter issued, except the managed<br /><br />                                                  hosting    company      for   Dongxu<br /><br />                                                  Optoelectronic ， this company and<br /><br />                                                  majority-owned subsidiaries do not<br /><br />                            Dongxu Group,         in any way, directly or indirectly<br /><br />Commitments made             Shijiazhuang         engaged in business and Dongxu                              Long-term          Under<br /><br />                                                                                              April 1, 2012<br /><br />upon issuance                Baoshi Electronics Optoelectronic        shares    and     its                   effective          Fulfillment<br /><br />                             Group Co., Ltd.      subsidiaries are the same, or similar,<br /><br />                                                  future     Dongxu      Optoelectronic<br /><br />                                                  shares and its subsidiaries are not<br /><br />                                                  engaged in the same or similar<br /><br />                                                  businesses.<br /><br />                                                  2.The company assurances against<br /><br />9<br /><br />                                 Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />the use of precious stones share any<br /><br />                      act    prejudicial         to    the     control<br /><br />                      relationship of stones share interests<br /><br />                      and its wholly-owned subsidiaries,<br /><br />                      holding,        or     causing          Dongxu<br /><br />                      Optoelectronic             shares      and    its<br /><br />                      wholly-owned subsidiaries, holding<br /><br />                      form         business               competition<br /><br />                      decisions.<br /><br />                      3. The company will not directly<br /><br />                      invest,     purchase            and     Dongxu<br /><br />                      Optoelectronic         identical or similar<br /><br />                      business enterprises and projects.<br /><br />                      4.If the assets owned by the<br /><br />                      company compete with Dongxu<br /><br />                      Optoelectronic, the company will<br /><br />                      adopt effective measures and give<br /><br />                      up the same business.<br /><br />                      5. If the company has                 horizontal<br /><br />                      competition                 with        Dongxu<br /><br />                      Optoelectronic and lead to lose to it,<br /><br />                      the company will bear all the<br /><br />                      responsibilities.<br /><br />                      6.According to relevant conditions<br /><br />                      of the securities regulators, the<br /><br />                      company promised to put all the<br /><br />                      shares managed by Dongxu<br /><br />                      Optoelectronic into Dongxu<br /><br />                      Optoelectronic. In the period of the<br /><br />                      company acts as the holding<br /><br />                      company, the promise is valid.<br /><br />Dongxu Group Co., Ltd. subscribed<br /><br />                      for 25.01% of the shares privately<br /><br />                                                                                         From April 18,<br /><br />Dongxu Group Co., issued         by        the     Company         and                                    Under<br /><br />                                                                          April 17, 2013 2013 to April<br /><br />Ltd.                  promised that the period of sale                                                    Fulfillment<br /><br />                                                                                         17, 2016.<br /><br />                      restriction of such shares was 36<br /><br />                      months from the first day of listing.<br /><br />Huarong Secruities<br /><br />                      Promised that the period of sale<br /><br />Co., Ltd., Yimin<br /><br />                      restriction of such non-public                                     From April 18,<br /><br />Fund Management                                                                                           Under<br /><br />                      offering of stock of Baoshi group                   April 17, 2013 2013 to April<br /><br />Co., Ltd., Minsheng                                                                                       Fulfillment<br /><br />                      was 12 months from the first day of                                17, 2014.<br /><br />Jiayin Fund<br /><br />                      listing.<br /><br />Management , Co.,<br /><br />10<br /><br />                                                        Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />Ltd.<br /><br />On September 18, 2006, the<br /><br />                                                Company provided guarantee,<br /><br />                                                together with Baoshi Group Co.,<br /><br />                                                Ltd., for the application of<br /><br />                                                Shijiazhuang Construction<br /><br />                                                Investment Co., Ltd. for loan of<br /><br />                                                RMB 70 million) with some land<br /><br />                                                and houses (with appraised value of<br /><br />                                                RMB 30.3018 million) (The valid<br /><br />                                                guarantee value for the Company is<br /><br />                                                RMB 18.80 million). The guarantee<br /><br />                                                                                                                      Has signed<br /><br />                                                period is one year. The type of<br /><br />                                                                                                                      an agreement<br /><br />                                                guarantee is mortgage guarantee. At<br /><br />                                                                                                                      with<br /><br />Other commitments         Shijiazhuang Baoshi present, the valid term of this<br /><br />                                                                                       March 28,    Long-term         creditors,<br /><br />made to minority          Electronics Group     guarantee has expired. The<br /><br />                                                                                       2009         effective         agreed to lift<br /><br />shareholders              Co., Ltd.             controlling shareholder has made<br /><br />                                                                                                                      the obligation<br /><br />                                                corresponding commitment in<br /><br />                                                                                                                      secured of<br /><br />                                                respect of the loss that may be<br /><br />                                                                                                                      the company.<br /><br />                                                incurred by this guarantee. On<br /><br />                                                October 15, 2012, Shijiazhuang<br /><br />                                                Baoshi Electronics Group Co., Ltd.<br /><br />                                                made the following notes to this<br /><br />                                                commitment: "The mode of<br /><br />                                                commitment fulfillment by Baoshi<br /><br />                                                Group: Where the Dongxu<br /><br />                                                Optoelectronic    is liable to make<br /><br />                                                compensation for this guarantee,<br /><br />                                                Baoshi Group shall be liable for<br /><br />                                                direct compensation in full amount."<br /><br />Executed timely or not? Yes<br /><br />III．Prediction of Business performance for January- June 2014<br /><br />Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the<br /><br />warning of its material change compared with the corresponding period of the last year and e xplanation of reason.<br /><br />□Applicable    √Not applicable<br /><br />IV. The registration form of acceptance of investigation, communication and interview in the report period<br /><br />Content of discussion and<br /><br />     Date            Place               Mode                Type                     Visitor<br /><br />                                                                                                             materials provided<br /><br />January 6,      The Company      Onsite investigation Organization       Fortune SG Fund Management Visit the company ‘s<br /><br />11<br /><br />                                                 Dongxu Optoelectronic Technology Co., Ltd.The First Quarterly Report 2014<br /><br />2014                                                            Co., Ltd., Boshi Fund           showroom, understand the<br /><br />                                                                Management Co., Ltd.            progress of the equity<br /><br />                                                                                                investment project and<br /><br />                                                                                                business scope and R&amp; D<br /><br />                                                                                                in 2014.<br /><br />Guangfa Securities,Xinhua<br /><br />                                                                  Assets, CCB Fund ,<br /><br />                                                                  Haifutong Fund, Huaxia<br /><br />                                                                                                Understand the progress<br /><br />                                                                  Fund, ICBC Credit Suisse<br /><br />                                                                                                 ofthe equity investment<br /><br />January 17,                                                       Asset Management Co., Ltd.,<br /><br />              The Company   Onsite investigation Organization                                    project of the company<br /><br />2014                                                              Manulife Teda Fund<br /><br />                                                                                                 and main business cases in<br /><br />                                                                  Management Co., Ltd.,<br /><br />                                                                                                 2014.<br /><br />                                                                  Huashang Fund, Invesco<br /><br />                                                                  Great Wall   and Dacheng<br /><br />                                                                  Fund .<br /><br />Dongxu Optoelectronic Technology Co., Ltd.<br /><br />                                                           Chairman of the Board：Li Zhaoting<br /><br />                                                Issue day approved by the Board of Directors: April 27,2014.<br /><br />12<br /><br />