INTERIM REPORT 2018
August 2018
BOE Technology Group Co., Ltd. Interim Report 2018
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referred
to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Mr. Wang Dongsheng, the Company’s legal representative, Mr. Chen Yanshun, president of
the Company’s Execution Committee (Chief Executive Officer), Ms. Sun Yun, the Company’s
Chief Financial Officer, and Ms. Yang Xiaoping, head of the Company’s financial department
(equivalent to financial manager) hereby guarantee that the Financial Statements carried in
this Report are factual, accurate and complete.
With the exception of following directors, all the other directors personally attended the board
meeting where this semi-annual report was reviewd.
Name of the director failed to
Offices taken by the directors
personally attend the Board Cause of the absence Name of the mandatary
absent from the Meeting
Meeting
Li Xuan Independent director Business Trip Hu XiaoLin
The Company has no interim dividend plan, either in the form of cash or stock.
Any plans for the future, development strategies and other forward-looking statements
mentioned in this Report and its summary shall NOT be considered as absolute promises of
the Company to investors. Therefore, investors are reminded to exercise caution when making
investment decisions. For further information, see “X Risks Facing the Company and
Countermeasures” in Part IV herein.
This Report has been prepared as per China’s Accounting Standards for Business Enterprises
and other relevant regulations.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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BOE Technology Group Co., Ltd. Interim Report 2018
Table of Contents
Interim Report 2018 .......................................................................................................................... 1
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 5
Part III Business Summary ............................................................................................................... 9
Part IV Operating Performance Discussion and Analysis ........................................................... 12
Part V Significant Events ................................................................................................................ 25
Part VI Share Changes and Shareholder Information ................................................................. 43
Part VII Preferred Shares ............................................................................................................... 49
Part VIII Directors, Supervisors and Senior Management.......................................................... 50
Part IX Corporate Bonds ................................................................................................................ 55
Part X Financial Report .................................................................................................................. 59
Part XI Documents Available for Reference ................................................................................ 210
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BOE Technology Group Co., Ltd. Interim Report 2018
Definitions
Term Definition
BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except
“BOE”, the “Company”, the “Group” or “we”
where the context otherwise requires
The cninfo website http://www.cninfo.com.cn/
CSRC The China Securities Regulatory Commission
SID The Society for Information Display
United Ratings United Credit Ratings Co., Ltd.
TFT- LCD Thin Film Transistor- Liquid Crystal Display
AMOLED Active-Matrix Organic Light Emitting Diode
OLED Organic Light Emitting Diode
VR/AR Virtual Reality /Augmented Reality
IoT Internet of things
AI Artificial Intelligence
IFI The IFI CLAIMS Patent Services
IEC The International Electro Technical Commission
The “Reporting Period” or “Current Period” The period from 1 January 2018 to 30 June 2018
Expressed in the Chinese currency of Renminbi, expressed in ten thousand
RMB, RMB’0,000
Renminbi
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BOE Technology Group Co., Ltd. Interim Report 2018
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name BOE-A, BOE-B Stock code 000725, 200725
Changed stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 京东方科技集团股份有限公司
Abbr. (if any) 京东方
Company name in English (if any) BOE TECHNOLOGY GROUP CO., LTD.
Abbr. (if any) BOE
Legal representative Wang Dongsheng
II Contact Information
Item Board Secretary Securities Representative
Name Liu Hongfeng --
12 Xihuan Middle Road, Beijing
Address Economic-Technological Development --
Area, P.R.China
Tel. 010－64318888 ext. --
Fax 010－64366264 --
Email address liuhongfeng@boe.com.cn --
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address and
email address of the Company in the Reporting Period.
□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2017 Annual Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
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BOE Technology Group Co., Ltd. Interim Report 2018
periodic reports in the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the
Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can
be found in the 2017 Annual Report.
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Item H1 2018 H1 2017 Change (%)
Operating revenue (RMB) 43,473,904,966.00 44,605,027,995.00 -2.54%
Net profit attributable to the listed
2,975,206,500.00 4,302,605,600.00 -30.85%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 978,868,759.00 4,017,844,109.00 -75.64%
items (RMB)
Net cash generated from/used in operating
11,439,605,846.00 10,638,591,266.00 7.53%
activities (RMB)
Basic earnings per share (RMB/share) 0.085 0.123 -30.89%
Diluted earnings per share (RMB/share) 0.085 0.123 -30.89%
Weighted average return on net assets (%) 3.45% 4.48% -1.03%
Item 30 June 2018 31 December 2017 Change (%)
Total assets (RMB) 276,232,247,578.00 256,108,741,849.00 7.86%
Net assets attributable to the listed
85,465,192,715.00 84,809,816,377.00 0.77%
company’s shareholders (RMB)
V Accounting Data Differences under China’s Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting
Standards
1. Net Profit and Net Asset Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
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BOE Technology Group Co., Ltd. Interim Report 2018
2. Net Profit and Net Asset Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
XI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) -3,451,236.00 N/A
Tax rebates, reductions and exemptions given with ultra vires approval or in lack of official
0.00 N/A
approval documents
Government subsidies charged to current profit or loss (exclusive of government subsidies
given in the Company’s ordinary course of business at fixed quotas or amounts as per 2,051,849,769.00 N/A
government’s uniform standards)
Capital occupation charges on non-financial enterprises that are charged to current profit or
0.00 N/A
loss
Gain equal to the amount by which investment costs for the Company to obtain subsidiaries,
associates and joint ventures are lower than the Company’s enjoyable fair value of 9,317,244.00 N/A
identifiable net asset value of investees when making investments
Gain or loss on non-monetary asset swaps 0.00 N/A
Gain or loss on investments or assets entrusted to other entities for management 0.00 N/A
Allowance for asset impairments due to acts of God such as natural disasters 0.00 N/A
Gain or loss on debt restructuring 0.00 N/A
Restructuring costs in staff arrangement, integration, etc. 0.00 N/A
Gain or loss on over-fair value amount as a result of transactions with distinctly unfair prices 0.00 N/A
Current profit or loss on subsidiaries obtained in business combinations involving enterprises
0.00 N/A
under common control from period-beginning to combination dates, net
Gain or loss on contingencies that do not arise in the Company’s ordinary course of business 0.00 N/A
Gain or loss on fair-value changes in trading financial assets and liabilities & investment
income from disposal of trading financial assets and liabilities and available-for-sale
180,450,008.00 N/A
financial assets (exclusive of effective portion of hedges that arise in the Company’s ordinary
course of business)
Reversed portion of impairment allowance for accounts receivable which are tested
153,235.00 N/A
individually for impairment
Gain or loss on loan entrustments 0.00 N/A
Gain or loss on fair-value changes in investment property of which subsequent measurement 0.00 N/A
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BOE Technology Group Co., Ltd. Interim Report 2018
is carried out using fair value method
Effects of all adjustments required by taxation, accounting and other applicable laws and
0.00 N/A
regulations on current profit or loss
Income from charges on entrusted management 0.00 N/A
Non-operating income and expense other than above 31,223,326.00 N/A
Other gains and losses that meet definition of exceptional gain/loss 0.00 N/A
Less: Income tax effects 182,968,012.00 N/A
Non-controlling interests effects (net of tax) 90,236,593.00 N/A
Total 1,996,337,741.00 --
Explanation of why the Company classifies a gain/loss item as exceptional according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items, or reclassifies any exceptional item listed in the said explanatory announcement as recurrent:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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BOE Technology Group Co., Ltd. Interim Report 2018
Part III Business Summary
I Core Business Scope of the Company in Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
Founded in April 1993, BOE Technology Group Co., Ltd. (“BOE”) is an IoT company providing intelligent interface products and
services for information interaction and human health. In order to further promote transformation, sharpen its competitive edges in
market segments and stimulate faster growth, BOE has restructured itself in June 2018 into three business divisions with seven
sub-divisions.
1. Display and Sensor Device
Division D consists of the display and sensor device sub-division, and the sensor and application solution sub-division. The display
and sensor device sub-division designs and manufactures related devices with a B2B model. The display device business offers
TFT-LCD, AMOLED, Micro Display and other intelligent interface devices for smartphones, tablet PCs, laptops, displayers, TVs,
VR/AR devices, vehicles, wearable devices, industrial control, medical care, tiled display screens, etc. And the sensor device
business provides thin film transistors for use in medical care, testing, communication, security, etc. The sensor and application
solution sub-division provides sensor system solutions for B2B customers of medical and household testing equipment,
communication and transportation and so on, with products including X-ray, ultrasonographic systems, gene sequencing chips,
molecular antenna, access control systems and liquid crystal lens.
2. IoT-Based Smart System
Division S is divided into the smart manufacturing service sub-division, the IoT solution sub-division and the digital art IoT platform
sub-division. The smart manufacturing service sub-division designs and manufactures, for its global B2B partners, the most
competitive ODM/OEM services and tailored smart manufacturing solutions of TVs, displayers, communication terminals, electronic
labels, commercial display products and backlight units, among others. The IoT solution sub-division offers software-and-hardware
integrated solutions like supermarket retail solutions, bank marketing solutions, remote diagnosis solutions, digital hospital
settlement solutions, traffic signal transmission solutions, multimedia interaction solutions, smart exhibition solutions, smart teaching
solutions, home entertainment solutions and smart micro-grid solutions, etc. for B2B customers in IoT market segments such as
smart retail, smart finance, digital hospitals, smart transportation, smart education, smart business offices, smart homes and smart
energy. The digital art IoT platform sub-division with a B2C model is committed to offering the best user experience, introducing art
to everyone and brightening everyday life with the beauty of art. The featured product, BOE iGallery, integrates information
technology with art, providing users with various services including artistic appreciation, art knowledge, art mall, custom artworks
and visual aesthetics.
3. Smart Healthcare Service Division (Division H)
Division H includes the mobile healthcare IoT platform sub-division and the smart healthcare service sub-division. The mobile
healthcare IoT platform sub-division with a B2C model is focused on biochips for testing and household testing equipment, as well
as the related products, providing individual and household customers with mobile health testing and online diagnosis services
including health management, online diagnosis, AI diagnosis and smart referral. The smart healthcare service sub-division covers
digital hospitals, regenerative medicine, healthcare parks, healthcare centres, etc. It offers B2C customers online-and-offline
integrated professional healthcare services focused on digital medical care and supplemented by smart nursing home and healthcare
park integrated solutions, as well as by industrial park operations and the like.
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BOE Technology Group Co., Ltd. Interim Report 2018
II Material Changes in Major Assets
1. Material Changes in Major Assets
Major assets Main reason for material changes
Equity assets N/A
Fixed assets N/A
Intangible assets N/A
Construction in progress Rise in expenditure on new construction in Reporting Period
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
Is the Company subject to any disclosure requirements for special industries?
No.
1. The Company firmly promoted and implemented innovation and transformation, and improved global competitiveness
BOE firmly promoted and implemented the development strategy of three major business divisions, namely smart interface devices
and solutions, smart systems and solutions as well as smart healthcare service. According to different business features and client
groups, it also optimized the classification of its business sub-divisions, consolidated its organization mechanism and improved
global market competitiveness.
Display and sensor device division: both the construction of new line and excellent creep speed for display and sensor business
group proceeded in order. In which, the product yield of the 6th Generation Flexible AMOLED Production Line (the fist in China
and the second in the world)-- the 6th BOE Chengdu Flexible AMOLED Production Line, as well as the first TFT-LCD Production
Line of the highest generation in the world-- the 10.5th Generation BOE Hefei TFT-LCD Production Line was improved steadily; the
main structure of the 6th Generation Mianyang Flexible AMOLED Production Line Project was capped in January; the pile
foundation project for both the 10.5th Generation BOE Wuhan TFT-LCD Production Line and Kunming OLED Microdisplay
Production Line was completed in June. As for the sensor and solution business group, the technical innovation and market
promotion have been further enhanced; the sales volume of photoelectric sensors has been increasing continuously, and other
products as gene sequencing devices start being shipped.
IoT-Based smart system division: the shipment of complete TV and displayer of smart manufacturing business group has enjoyed a
year-on-year growth of 20%. Specifically, Chongqing Smart Factory realized product highlighting in March, and BOE Suzhou Smart
Manufacturing Service Industry Park Project realized construction commencement in May; the sales volume, volume of works
transaction as well as the number of daily active APP users of BOE Painted Screen of digital art IoT platform business group have
been increased greatly; IoT solution business group has expanded brand owners of retail business, entered several dozens of stores,
and established strategic cooperation relation with several famous benchmarking retail enterprises. In addition, it has made
achievements in terms of client development and product shipment in some business segments as smart finance and commercial
office, etc.
Smart healthcare services: Hefei Digital Hospital of smart healthcare service business group realized equipment entrance in February;
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BOE Technology Group Co., Ltd. Interim Report 2018
Chengdu Digital Hospital has proceeded steadily as scheduled; regenerative medicine product R&D has developed in order;
healthcare centers have realized continuous income growth. In addition, the mobile healthcare IoT platform business group has
accelerated promoting new product R&D as well as construction of on-line/off-line sales channels, and steadily improved its
industrial competitiveness.
2. The Company stuck to client orientation and further increased its market shares
With the policy of “Deep cooperation, Collaborative development, and Value co-creation”, BOE has become the world top supplier
in semiconductor and display field. BOE has kept long-term and sustainable cooperation with well-known domestic and overseas
clients, ranking as the 1st supplier for plenty of international 1st class brands. While intensifying on enlarging and maintaining
strategic clients, the Company deeply ploughed and subdivided the markets, and realized stable increase in market share in
subdivided markets. According to IHS Markit (Information Handling Services, Inc. & Markit Ltd.) data, the shipment of BOE
display screens was nearly 0.4 billion in the first half year of 2018, enjoying a year-on-year growth surpassing 35% and ranking 1st
in the world, including 5 major display screens that ranks No. 1 respectively in terms of their market occupancy. Specifically, the
market occupancy of LCD display screen for smart phones, as well as the display screen for tablet PCs and laptops kept ranking the
first place in the world, and that for displayers and TV succeeded in ranking the world’s first position. In addition, the shipment of
complete mart TV and displayers enjoyed a year-on-year growth of 20%; where, the market occupancy of complete TVs and displays
ranked the 3rd and 4th place in the globe respectively.
3. The Company reinforced independent innovation and further promoted innovation ability
BOE firmly persisted in self-innovation, as well as innovation ideas of “leading technology, first release in the globe, and joint value
creation”, continued to strengthen construction of patent attack and defense system, and kept foresight and primacy of technologies
and products. In terms of the technology and product, various types of 5.45~6.3-inch mobile phones with free form and bezel-less
display realized mass production; 6.18-inch WQHD flexible products realized 1mm dynamic warping; full-color transparent model
machine of 8-inch waveguide displayer was highlighted; OGM Tilt active-pen-based 13.3-inch TPC product, namely the tablet PCs
that supports metal mesh integrated touch technology and uses active pen, realize initial release in the world; the thinnest 3.9mm
MNT semi-set product (semi-integrated complete displayer product) in the world succeeded in mass production; the technological
development of micro-fluidic chip with independent intellectual property was completed; the art Q&A, image filtering and other
technologies for the IoT AI platform reached product-level application. In terms of patent, BOE applied for more than 4,800 patents
and was authorized with more than 2,600 patents, including more than 900 patents granted by America in the first half year of 2018,
enjoying a year-on-year growth over 30%.
4. The Company further improved operational efficiency via strengthening lean management
BOE continuously optimized the procedure of production bottleneck, improved yield rate, strengthened quality control and
comprehensively reduced energy consumption, thus improving the efficiency of operation remarkably. Multiple production lines of
the Capacity reached a new high and its product yield rate was improved greatly. Specifically, the yield rate of 43-inch FHD
produced in the 8.5th Generation BOE Fuzhou TFT-LCD Production Line kept exceeding 98% for 3 consecutive months, reaching a
new high in the industry. The Company strengthened client-oriented mechanism so as to further improve client-side quality
performance, making the client-side quality of multiple brands rank the first and second place. With measures as energy saving and
emission reduction, management control of spare parts and optimization of personnel structure, etc., the operation cost of the
Company was reduced effectively.
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BOE Technology Group Co., Ltd. Interim Report 2018
Part IV Operating Performance Discussion and Analysis
I Overview
In the first half of 2018, the global economy was running steadily in a positive recovery. With a weakening display market, the
Company firmly upheld its strategy of “Ecoresystem: Open and Connected” and achieved good operating results in the industry. Also,
the Reporting Period saw improvements in the Company’s technological and product innovation with the Company applying for over
4,800 new patents in the period. Meanwhile, the Company has dominated all the markets of mainstream display products. Progress
has been made in expansion in the innovative application market, with output rising over 140% year-on-year. Unit sales of all the
“8425” high-definition products registered marked growth. With enhanced marketing, BOE iGallery saw improvements in both
market recognition and unit sales. Cooperation on electronic labels for smart retail has been established with supermarkets across the
globe. In the Internet of Vehicles (IoV) business, the Company strengthened cooperation with notable car makers and the TFT unit
sales went up. The AMOLED average yield rate has exceeded 70% as at the end of this June, with shipments continuously delivered
to well-known manufacturers. Additionally, the Company successfully held a suppliers’ meeting and the first Digital Art Forum, as
well as participating in various fairs and exhibitions at home and abroad (Japan, Europe, the U.S., etc.) to promote its advanced
products and technologies including flexible AMOLED, 8K, micro display, mini-LED and QLED, as well as commercial display
solutions and new retail solutions. These moves were aimed at boosting the Company’s brand recognition.
1. Display and Sensor Device
Various types of mobile phones with free form and bezel-less display realized mass production, 6.18-inch flexible products realized
1mm dynamic warping, and 5.99-inch flexible products realized dynamic floating appearance design. The OGM Tilt
active-pen-based TPC product (the tablet PCs that supports metal mesh integrated touch technology and uses active pen) that realized
initial release in the world achieved mass production in April; the 3.9mm MNT semi-set product, which is the thinnest in the world
and first semi-integrated complete displayer product of BOE, succeeded in mass production; several types of innovative products
were exhibited in domestic and overseas exhibitions, including the 7.56-inch QXGA Foldable (foldable product with resolution ratio
being 2048 x 1536) that won Innovative Product and Application Award in 2018 China Electronic Information Expo (CITE). The
construction of new production line was implemented as scheduled and realized phased target in advance; the 10.5 th Generation BOE
Hefei Production Line was completed in June; the pile foundation engineering of Kunming Microdisplay Project was completed on
Jun. 25; the first 0.39-inch product was highlighted and realized SID sample display on May 23. The production capacity of the 8.5 th
Generation Chongqing and Fuzhou Production Lines reached a high respectively, with comprehensive yield rate improved
continuously.
2. IoT-Based Smart System
The Company innovated its iGallery business, optimized contents of APP function, and increased business performance rapidly, thus
enjoying comparative growth of sales volume on moving base with 170%, newly developing 350,000 users, and increasing the
amount of works transactions by fivefold. The layout of Smart Retail Business in China started to show effects; the cumulative
number of brand owners and stores in market in regions as North China, Central China, Southern China and Sichuan, etc., reached 30
and 40 respectively. As for Smart Services, the Company optimized product structure, increased sales volume steadily, improved the
sales ratio of high-efficient products as TVs and displayers, and made its new application business develop rapidly. In addition, BOE
also promoted its project in progress steadily; for example, BOE Suzhou Industry Park Project was commenced successfully and
Chongqing Smart Manufacturing Factory realized mass production. Moreover, Smart Energy PV Project achieved stable and
high-efficient operation.
3. Smart Healthcare Service
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BOE Technology Group Co., Ltd. Interim Report 2018
The Company defined business development strategy, focused on mobile healthcare products on the basis of Internet of health and
life data, provided services as healthcare guidance, disease prevention and precision medicine through integrating digital hospitals,
regenerative medicine and healthcare centers by virtue of life data, AI technology and professional medical team, and built an overall
and full-life-circle healthcare service ecosystem. As for mobile healthcare, the Company focused on microfluidics, biological
detection method and other technologies to independently research and develop biochips and family doctor equipment products,
which form an integrated business development framework together with ecological chain products and APP service platform. For
regenerative medicine, the Company completed establishing a system for heart diaphragm clinical research to promote animal
experiment and clinical research. The operation preparation for Hefei BOE Hospital was in progress, and the Company continuously
carried out on-line/off-line market promotion to improve its brand popularity; Chengdu BOE Hospital completed conceptual plan.
For healthcare centers, the Company persisted in optimizing client structure continuously, and realized remarkable effect in project
expansion. In addition, the Company also firmly promoted project planning for life science and technology industry base.
II Analysis of Core Businesses
See “I Overview” above.
Year-on-year changes in key financial data:
Unit: RMB
Item H1 2018 H1 2017 Change (%) Main reason for change
Operating revenue 43,473,904,966.00 44,605,027,995.00 -2.54% --
Cost of sales 35,144,582,131.00 32,235,266,589.00 9.03% --
Selling expense 1,294,782,594.00 1,228,560,863.00 5.39% --
Administrative expense 3,743,903,273.00 3,052,661,575.00 22.64% --
Finance costs 1,201,173,655.00 1,099,113,182.00 9.29% --
Income tax expense 659,568,560.00 940,261,615.00 -29.85% --
R&D expense 3,645,381,340.00 3,169,248,290.00 15.02% R&D was strengthened
Net cash generated
from/used in operating 11,439,605,846.00 10,638,591,266.00 7.53% --
activities
Net cash generated
from/used in investing -23,807,637,169.00 -31,989,473,181.00 N/A --
activities
Net cash generated
Rise in cash repayment
from/used in financing 8,148,650,744.00 15,249,414,489.00 -46.56%
of borrowings
activities
Net increase in cash and
-4,823,287,992.00 -6,556,493,365.00 N/A --
cash equivalents
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes in the Reporting Period.
Breakdown of core businesses:
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BOE Technology Group Co., Ltd. Interim Report 2018
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Item Operating revenue Cost of sales operating revenue gross profit
margin cost of sales (%)
(%) margin (%)
By operating division
Display and
39,168,994,378.00 32,151,300,891.00 17.92% -5.15% 8.34% -10.22%
Sensor Device
IoT-Based Smart
7,347,282,083.00 6,738,168,128.00 8.29% 4.01% 2.38% 1.47%
System
Smart healthcare
526,401,626.00 245,030,759.00 53.45% 7.45% -0.51% 3.72%
service
Other 2,536,686,461.00 5,086,300.00 99.80% 473.69% -40.08% 1.72%
Offset -6,105,459,582.00 -3,995,003,947.00 34.57% 30.26% -6.61% 25.83%
By product category
Display and
39,168,994,378.00 32,151,300,891.00 17.92% -5.15% 8.34% -10.22%
Sensor Device
IoT-Based Smart
7,347,282,083.00 6,738,168,128.00 8.29% 4.01% 2.38% 1.47%
System
Smart healthcare
526,401,626.00 245,030,759.00 53.45% 7.45% -0.51% 3.72%
services
Other 2,536,686,461.00 5,086,300.00 99.80% 473.69% -40.08% 1.72%
Offset -6,105,459,582.00 -3,995,003,947.00 34.57% 30.26% -6.61% 25.83%
By operating segment
Mainland China 20,103,929,842.00 16,190,889,704.00 19.46% -6.63% -2.21% -3.64%
Other Asian
countries and 19,536,476,173.00 15,631,279,906.00 19.99% -6.48% 12.28% -13.37%
regions
Americas 2,235,667,679.00 1,932,772,478.00 13.55% 115.96% 132.80% -6.25%
Europe 1,530,317,118.00 1,336,718,515.00 12.65% 37.50% 49.00% -6.74%
Other countries
67,514,154.00 52,921,528.00 21.61% 87.55% 82.22% 2.29%
and regions
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
As % of profit before Exceptional or
Item Amount Source/Reason
taxation recurrent
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BOE Technology Group Co., Ltd. Interim Report 2018
Income from wealth management product
Investment income 166,924,013.00 4.78% Exceptional
investments
Gain/loss on changes in
0.00 0.00% N/A Exceptional
fair value
Inventory valuation allowances established
Asset impairments 458,149,260.00 13.13% Exceptional
according to market conditions
Governmental subsidies received in
Non-operating income 96,641,868.00 2.77% Exceptional
Reporting Period
Non-operating expense 7,653,811.00 0.22% Loss on disposal of non-current assets Exceptional
IV Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2018 30 June 2017 Change in
Reason for
Item As % of total As % of total percentage
Amount Amount material change
assets assets (%)
Monetary assets 50,581,910,423.00 18.31% 50,760,400,727.00 22.51% -4.20% N/A
Accounts
17,356,033,029.00 6.28% 16,863,534,739.00 7.48% -1.20% N/A
receivable
Inventories 10,933,542,222.00 3.96% 9,759,164,036.00 4.33% -0.37% N/A
Investment
1,278,070,770.00 0.46% 1,271,764,715.00 0.56% -0.10% N/A
property
Long-term equity
3,443,815,633.00 1.25% 1,981,030,454.00 0.88% 0.37% N/A
investments
Fixed assets 84,979,890,697.00 30.76% 78,898,829,994.00 34.99% -4.23% N/A
Higher
expenditures on
new
Construction in
73,903,155,311.00 26.75% 44,127,069,216.00 19.57% 7.18% construction,
progress
equipment
installation and
renovations
Repayment of
Short-term
2,213,431,454.00 0.80% 6,088,832,994.00 2.70% -1.90% some bank
borrowings
loans
Rise in
Long-term
83,261,644,214.00 30.14% 53,462,402,931.00 23.71% 6.43% borrowings for
borrowings
new
15
BOE Technology Group Co., Ltd. Interim Report 2018
construction
Rise in wealth
Other current management
18,930,028,377.00 6.85% 9,773,604,550.00 4.33% 2.52%
assets product
investments
Accounts payable 19,003,618,742.00 6.88% 15,215,611,240.00 6.75% 0.13% N/A
Other payables 15,925,444,403.00 5.77% 15,003,435,170.00 6.65% -0.88% N/A
Repayment of
Current portion of
bank loans and
non-current 6,402,772,896.00 2.32% 9,749,188,493.00 4.32% -2.00%
amounts under
liabilities
finance leases
16
BOE Technology Group Co., Ltd. Interim Report 2018
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on fair-value Cumulative fair-value
Impairment allowance Purchased in Reporting Sold in Reporting
Item Beginning amount changes in Reporting changes charged to Ending amount
for Reporting Period Period Period
Period equity
Financial assets
1. Financial assets at
fair value through
profit or loss 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(exclusive of
derivatives)
2. Derivative financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00
assets
3. Available-for-sale
527,750,536.00 0.00 11,433,970.00 0.00 0.00 4,666,723.00 428,940,048.00
financial assets
Subtotal of financial
527,750,536.00 0.00 11,433,970.00 0.00 0.00 4,666,723.00 428,940,048.00
assets
Investment property 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Productive living
0.00 0.00 0.00 0.00 0.00 0.00 0.00
assets
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of above 527,750,536.00 0.00 11,433,970.00 0.00 0.00 4,666,723.00 428,940,048.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Material changes in the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
17
BOE Technology Group Co., Ltd. Interim Report 2018
3. Restricted Asset Rights as of End of the Reporting Period
Item Ending carrying value Reason for restriction
Monetary funds 7,491,910,832.00 Guarantee and security deposits
Discounted and transferred with right of recourse, endorsed and
Notes receivable 337,614,015.00 transferred with right of recourse, as pledge for opening notes
payable
Inventories 0.00 Naught
Fixed assets 58,386,289,547.00 Mortgage
Intangible assets 919,408,714.00 Mortgage
Investment property 202,627,706.00 Mortgage
Construction in progress 8,516,973,161.00 Mortgage
Total 75,854,823,975.00 --
V Investments Made
1. Total Investments Made
√ Applicable □ Not applicable
Investments made in this Reporting Period
Investments made in the prior year (RMB) +/-%
(RMB)
914,421,769.00 787,439,623.00 16.13%
2. Significant Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
18
BOE Technology Group Co., Ltd. Interim Report 2018
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Profit/loss
on fair Source of
Cumulative fair Purchased
Variety of Code of Name of Initial investment Accounting value Sold in this Profit/loss in
Beginning value changes in this Ending carrying Accounting
measurement changes in Reporting this Reporting investment
securities securities securities cost carrying value charged to Reporting value title
model this Period Period
equity Period funds
Reporting
Period
Available-for
Domestic/overse TPV Fair value -sale Self-owned
HK00903 134,658,158.00 21,584,703.00 0.00 -10,380,561.00 0.00 0.00 196,070.00 17,662,746.00
as stock Technology method financial funds
asset
Available-for
Domestic/overse Electronic Fair value -sale Self-owned
SH600658 90,160,428.00 108,996,372.00 0.00 25,222,704.00 0.00 0.00 1,875,523.00 71,898,328.00
as stock Zone method financial funds
asset
Available-for
Domestic/overse Bank of Fair value -sale Self-owned
HK01963 120,084,375.00 130,968,760.00 0.00 -14,105,522.00 0.00 0.00 2,973,103.00 105,978,853.00
as stock Chongqing method financial funds
asset
BlackRock
Available-for
Global
Fair value -sale Self-owned
Funds BLK Allocation 0.00 6,347,799.00 0.00 2,081,841.00 0.00 6,179,429.00 2,519,561.00 0.00
method financial funds
Fund (USD)
asset
A2
Domestic/overse China Fair value Available-for Self-owned
HK06066 70,041,364.00 65,856,319.00 0.00 -16,478,117.00 0.00 0.00 0.00 53,563,247.00
as stock Securities method -sale funds
19
BOE Technology Group Co., Ltd. Interim Report 2018
financial
asset
Available-for
New century
Domestic/overse Fair value -sale Self-owned
HK01518 medical 140,895,855.00 178,837,871.00 0.00 27,387,438.00 0.00 662,426.00 1,105,194.00 168,283,293.00
as stock method financial funds
treatment
asset
Available-for
Domestic/overse Z-Obee Fair value -sale Self-owned
HK00948 0.00 246,566.00 0.00 305,200.00 0.00 290,658.00 293,867.00 0.00
as stock Holdings Ltd. method financial funds
asset
Other securities investments held at the
0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
period-end
Total 555,840,180.00 -- 512,838,390.00 0.00 14,032,983.00 0.00 7,132,513.00 8,963,318.00 417,386,467.00 -- --
Disclosure date of the announcement about
the board’s consent for the securities N/A
investment
Disclosure date of the announcement about
the general meeting’s consent for the N/A
securities investment (if any)
Note: During the Reporting Period, the Group disposed its investments in the BlackRock Global Allocation Fund and Z-Obee Holdings Limited, and the corresponding initial investment costs
are zero as a result. It also disposed some shares in New Century Healthcare, reducing the corresponding initial investment cost by RMB662,426.00 from the beginning amount.
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
20
BOE Technology Group Co., Ltd. Interim Report 2018
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
VII Main Controlled and Joint Stock Companies
√Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
Relationship
Main business scope Operating
Company name with the Registered capital Total assets Net assets Operating profit Net profit
revenues
Company
Chengdu BOE R&D, design, production, and
Optoelectronics Subsidiary sales of the new type display 20,000,000,000.00 36,431,072,202.00 18,057,579,935.00 1,633,816,945.00 459,016,102.00 463,054,338.00
Technology Co., Ltd. devices and the components
Investment, construction, R&D,
Hefei BOE production and sales of the
Optoelectronics Subsidiary relevant products of thin film 9,000,000,000.00 15,529,942,441.00 11,104,422,788.00 6,391,886,535.00 970,527,137.00 830,300,581.00
Technology Co., Ltd. transistor LCD and its auxiliary
products
21
BOE Technology Group Co., Ltd. Interim Report 2018
Beijing BOE Display Development and production of
Subsidiary 17,882,913,500.00 31,361,554,717.00 20,999,627,381.00 13,996,549,715.00 405,473,811.00 352,160,749.00
Technology Co., Ltd. TFT-LCD
Investment, construction, R&D,
Chongqing BOE production and sales of the
Optoelectronics Subsidiary relevant products of thin film 19,226,000,000.00 39,681,055,534.00 24,601,144,758.00 8,549,888,630.00 1,284,048,337.00 1,092,672,322.00
Technology Co., Ltd. transistor LCD and its auxiliary
products
Subsidiaries obtained or disposed in this Reporting Period
√ Applicable □ Not applicable
22
BOE Technology Group Co., Ltd. Interim Report 2018
How the subsidiary was obtained or Effect on overall production and operation
Subsidiary
disposed in this Reporting Period results
Subsidiary incorporated to build the 6th
Mianyang BOE Optoelectronics Business combination not under the same generation AMOLED (flexible) production
Technology Co., Ltd. control line, which is expected to produce positive
effects on the Company.
In order to promote fast development of
the sensor business, a sensor technology
subsidiary has been set up to provide
sensor system solutions for B2B customers
Beijing BOE Sensor Technology Co., Ltd. Invest to establish
of medical and household testing
equipment, communication and
transportation and so on.
The combination of SES Imagotag SA is
an important strategic opportunity to
Business combination not under common
SES Imagotag SA capitalize on the “new retail” trend at home
control
and abroad to launch the Company’s new
retail business for strategic transformation.
Information about the main controlled and joint stock companies
Naught
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Performance Forecast for January-September 2018
Warning of possible loss or considerable YoY change in the accumulative net profit made during the period-beginning to the end of
the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
1. Risk of Macroeconomic Fluctuation
The first half of 2018 saw a stable global economy but with complexities and changes, and frequent trade frictions led to mounting
downward pressure. China’s economy was also in a stable and positive state with remarkable supply-side reform results, but the
external environment affected the domestic economy to some degree. With respect to the display device market, lower-than-expected
growth was seen with oversupply and falling market prices. The five major mainstream markets in this industry were almost
saturated, indicating limited space for growth, while certain market segments saw fast growth and there were promising prospects for
innovative products. Under this background, the Company persisted in transformation and upgrading driven by innovation, continued
strengthening lean management, optimized product structure, improved efficiency of product operation, accelerated improving
23
BOE Technology Group Co., Ltd. Interim Report 2018
AMOLED global competitiveness, promoted the rapid development of sensor business, consolidated the basis for software and
hardware technology integration, accelerate core capacity building of information and healthcare, and comprehensively promoted the
improvement of profitability.
2. Management Risk Caused by Transformation and Upgrading
At present, the Company has established standard management system and its business management has been in excellent situation;
however, the Company’s development has also brought in production scale growth and business scope expansion, thus putting
forward higher requirements on operation and management level of the Company.
Under this background, the Company has optimized and adjusted its organization structure to provide strong organizational guarantee
for innovative transformation and development, as well as core capacity building. Meanwhile, the Company has optimized its
management mode, reduced organizational hierarchies, improved efficiency of operation, strengthened professional service
organization and ability by adhering to “objective-oriented, client-oriented, question-oriented and people-oriented” policies and the
principles of “marketization, internationalization and professionalization” according to business features and development stages of
market segment, thus making its business team focus more on the market segment, inspiring entrepreneurial enthusiasm continuously,
as well as realizing long-time, stable and high-quality growth.
24
BOE Technology Group Co., Ltd. Interim Report 2018
Part V Significant Events
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
The 1st Extraordinary
Extraordinary
General Meeting of 35.21% 30 March 2018 31 March 2018 www.cninfo.com.cn
General Meeting
2018
The 2017 Annual Annual General
34.31% 28 May 2018 29 May 2018 www.cninfo.com.cn
General Meeting Meeting
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
II Interim Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
The Company has no interim dividend plan.
III Commitments of the Company’s Actual Controller, Shareholders, Connected Parties and
Acquirer, as well as the Company and Other Commitment Makers, Fulfilled in the Reporting
Period or still Ongoing at Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of CPAs Firm
Has the Interim financial report been audited?
□Yes √ No
This Interim Report is unaudited.
25
BOE Technology Group Co., Ltd. Interim Report 2018
V Explanations Given by Board of Directors and Supervisory Committee Regarding
“Modified Auditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by Board of Directors Regarding “Modified Auditor’s Report” Issued
for Last Year
□ Applicable √ Not applicable
VII Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits or arbitrations:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Other legal matters:
√ Applicable □Not applicable
Situation
of
Trial
executio
Lawsuit Whether results and
n of
Basic situation of amount form into influences Disclosure
Process of lawsuit (arbitration) judgment Disclosure index
lawsuit (arbitration) (RMB estimated of lawsuit date
of
‘0,000) liabilities (arbitratio
lawsuit
n)
(arbitrati
on)
Disputes case of sales Jurisdiction objection put For details, see
contract that BOE forward by LeTV Mobile to Annual Report
Technology (HK) Beijing High People’s Court of 2017 of BOE
Limited sued LeTV was rejected, and LeTV Mobile Technology
Mobile Intelligent 28,471.43 No had filed a lawsuit before Unknown N/A 24 April 2018 Group Co., Ltd.
Information Technology supreme people’s court on disclosed on
(Beijing) Co., Ltd, jurisdiction objection. At www.cninfo.co
LeTV Holdings present, the final verdict is m.cn. on 24
(Beijing) Co., Ltd., Le waiting to be to be made by April 2018
26
BOE Technology Group Co., Ltd. Interim Report 2018
Sai Mobile Technology supreme people’s court.
(Beijing) Co., Ltd. and
Mr. JiaYueting
Litigations for the first
half year of 2018
(including 7,066.06 No N/A N/A N/A N/A N/A
carryforwards in
previous years )
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Conditions of the Company as well as its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Significant Connected Transactions
1. Connected Transactions Relevant to Routine Operations
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Connected Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Connected Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
27
BOE Technology Group Co., Ltd. Interim Report 2018
No such cases in the Reporting Period.
4. Credits and Liabilities with Connected Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Significant Connected Transactions
√ Applicable □Not applicable
Naught
Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on Investment and Construction of Project of the
6th generation AMOLED (flexible) production line in Chongqing 9 March 2018 www.cninfo.com.cn
and Connected Transactions
Announcement on the Prediction of 2018 Annual Routine
24 April 2018 www.cninfo.com.cn
Connected Transaction
XIII. Particulars about the Non-operating Occupation of Funds by the Controlling
Shareholder and Other Connected Parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other connected parties
during the Reporting Period.
XIV. Significant Contracts and Execution
1. Entrustment, Contracting and Leasing
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
28
BOE Technology Group Co., Ltd. Interim Report 2018
(3) Leasing
□ Applicable √ Not applicable
No such cases in the Reporting Period.
29
BOE Technology Group Co., Ltd. Interim Report 2018
2. Significant Guarantees
√ Applicable □Not applicable
(1) Guarantees
Unit: RMB'0,000
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Guarantee
Disclosure date of Actual occurrence date Actual for a
Line of
Guaranteed party the guarantee line (date of agreement guarantee Type of guarantee Term of guarantee Due or not connected
guarantee
announcement signing) amount party or
not
N/A
Total guarantee line for external parties approved Total actual guarantee amount for external
0 0
during the Reporting Period (A1) parties during the Reporting Period (A2)
Total actual guarantee balance for
Total approved guarantee line for external parties
0 external parties at the end of the 0
at the end of the Reporting Period (A3)
Reporting Period (A4)
Guarantees provided by the Company for subsidiaries
Guarantee
Disclosure date of Actual occurrence date Actual for a
Line of
Guaranteed party the guarantee line (date of agreement guarantee Type of guarantee Term of guarantee Due or not connected
guarantee
announcement signing) amount party or
not
Hefei BOE Photoelectric
14 August 2014 731,955 12 March 2015 104,140 Joint liability guarantee 23 July 2010 to 23 July 2019 No No
Technology Co., Ltd.
30
BOE Technology Group Co., Ltd. Interim Report 2018
Hefei XinSheng
Photoelectric Technology 14 August 2014 1,208,827 15 January 2015 767,526 Joint liability guarantee 6 January 2014 to 6 January 2022 No No
Co., Ltd.
Ordos YuanSheng
2 April 2013 463,642 22 May 2013 246,788 Joint liability guarantee 17 June 2013 to 9 June 2021 No No
Photoelectric Co., Ltd.
Ordos YuanSheng
14 August 2014 463,642 30 September 2014 246,788 Pledge 17 June 2013 to 9 June 2021 No No
Photoelectric Co., Ltd.
Ordos YuanSheng
30 November 2016 544,746 15 March 2017 413,444 Joint liability guarantee 17 March 2017 to 17 March 2025 No No
Photoelectric Co., Ltd.
Chengdu BOE Photoelectric 6 September 2017 to 6 September
25 April 2017 2,244,479 30 August 2017 1,398,692 Joint liability guarantee No No
Technology Co., Ltd. 2027
Chengdu BOE Photoelectric Opening date of the letter of
25 April 2017 450,000 30 August 2017 248,900 Joint liability guarantee No No
Technology Co., Ltd. guarantee to 31 July 2023
Chongqing BOE
5 November 2014 to 5 November
Photoelectric Technology 14 August 2014 1,390,897 29 September 2014 1,074,402 Joint liability guarantee No No
2022
Co., Ltd.
Chongqing BOE
Opening date of the letter of
Photoelectric Technology 14 August 2014 300,000 25 May 2015 15,000 Joint liability guarantee No No
guarantee to 31 December 2020
Co., Ltd.
Hefei BOE Display 7 September 2017 to 7 September
1 December 2016 1,625,361 30 August 2017 1,563,749 Joint liability guarantee No No
Technology Co., Ltd. 2025
Hefei BOE Display Opening date of the letter of
1 December 2016 450,000 21 December 2017 352,000 Joint liability guarantee No No
Technology Co., Ltd. guarantee to 31 March 2024
Fuzhou BOE Photoelectric 19 December 2016 to 19 December
10 December 2015 1,303,256 8 November 2016 1,092,839 Joint liability guarantee No No
Technology Co., Ltd. 2024
Fuzhou BOE Photoelectric Opening date of the letter of
10 December 2015 300,000 8 November 2016 204,000 Joint liability guarantee No No
Technology Co., Ltd. guarantee to 28 December 2023
31
BOE Technology Group Co., Ltd. Interim Report 2018
Mianyang BOE
Photoelectric Technology 18 May 2018 2,050,000 N/A N/A Joint liability guarantee Not signing the contract yet No No
Co., Ltd.
Mianyang BOE
Opening date of the letter of
Photoelectric Technology 18 May 2018 460,000 22 June 2018 68,000 Joint liability guarantee No No
guarantee to 31 October 2027
Co., Ltd.
Total actual guarantee amount for
Total guarantee line for subsidiaries approved
2,510,000 subsidiaries during the Reporting Period 412,262
during the Reporting Period(B1)
(B2)
Total actual guarantee balance for
Total approved guarantee line for subsidiaries at
13,618,162 subsidiaries at the end of the Reporting 7,549,479
the end of the Reporting Period (B3)
Period (B4)
Guarantees between subsidiaries
Guarantee
Disclosure date of Actual occurrence date Actual for a
Line of
Guaranteed party the guarantee line (date of agreement guarantee Type of guarantee Term of guarantee Due or not connected
guarantee
announcement signing) amount party or
not
Ordos YuanSheng
2 April 2013 463,642 22 May 2013 246,788 Pledge 17 June 2013 to 9 June 2021 No No
Photoelectric Co., Ltd.
Huanda Trading (Hebei)
N/A 14,600 24 May 2017 14,550 Joint liability guarantee 15 June 2017 to 16 January 2029 No No
Co., Ltd.
Guangtai Solar Energy
Technology (Suzhou) Co., N/A 5,450 20 December 2017 5,240 Joint liability guarantee 20 December 2017 to 6 April 2027 No No
Ltd
Yangyuan Photovoltaic 11 September 2017 to 11 September
N/A 4,552 11 September 2017 4,552 Joint liability guarantee No No
Power Generation 2027
32
BOE Technology Group Co., Ltd. Interim Report 2018
(Huanggang) Co., Ltd
Yaoguang New Energy 31 October 2017 to 31 October
N/A 4,192 31 October 2017 4,192 Joint liability guarantee No No
(Shouguang) Co., Ltd 2027
Suzhou Industrial Park
1 December 2017 to 1 December
Taijing Photovoltaic Co., N/A 3,484 1 December 2017 3,484 Joint liability guarantee No No
2027
Ltd
Qingmei Solar Energy
21 December 2017 to 21 December
Technology (Lishui) Co., N/A 4,678 21 December 2017 4,678 Joint liability guarantee No No
2027
Ltd
Qinghong Solar Energy
21 December 2017 to 21 December
Technology (Jinhua) Co., N/A 2,374 21 December 2017 2,374 Joint liability guarantee No No
2027
Ltd
Qinghui Solar Energy
15 December 2017 to 15 December
Technology (Jinhua) Co., N/A 3,666 15 December 2017 3,666 Joint liability guarantee No No
2027
Ltd
Rongke New Energy (Hefei) 18 December 2017 to 18 December
N/A 1,400 18 December 2017 1,396 Joint liability guarantee No No
Co., Ltd 2029
Tianchi New Energy (Hefei) 18 December 2017 to 18 December
N/A 1,100 18 December 2017 1,096 Joint liability guarantee No No
Co., Ltd 2029
Qinghao Solar Energy
18 December 2017 to 18 December
Technology (Jinhua) Co., N/A 890 18 December 2017 886 Joint liability guarantee No No
2029
Ltd
Xiangqing Solar Energy
18 December 2017 to 18 December
Technology (Dongyang) N/A 3,476 18 December 2017 3,331 Joint liability guarantee No No
2029
Co., Ltd
Qingyue Solar Energy 18 December 2017 to 18 December
N/A 960 18 December 2017 920 Joint liability guarantee No No
Technology (Wuyi) Co., Ltd 2029
33
BOE Technology Group Co., Ltd. Interim Report 2018
Qingyou Solar Energy
18 December 2017 to 18 December
Technology (Longyou) Co., N/A 2,210 18 December 2017 2,206 Joint liability guarantee No No
2029
Ltd
Qingfan Solar Energy
18 December 2017 to 18 December
Technology (Quzhou) Co., N/A 1,855 18 December 2017 1,777 Joint liability guarantee No No
2029
Ltd
Anhui BOE Energy 27 December 2017 to 27 December
N/A 13,575 27 December 2017 13,515 Joint liability guarantee No No
Investment Co., Ltd 2029
Taihang Electric Power
19 December 2017 to 18 December
Technology (Ningbo) Co., N/A 600 19 December 2017 563 Joint liability guarantee No No
2025
Ltd
Guoji Energy (Ningbo) Co., 19 December 2017 to 18 December
N/A 2,740 19 December 2017 2,652 Joint liability guarantee No No
Ltd 2025
Hexu Technology (Hefei)
N/A 538 18 May 2018 538 Joint liability guarantee 18 May 2018 to 10 May 2028 No No
Co., Ltd
Chenneng Technology
N/A 1,068 18 May 2018 1,068 Joint liability guarantee 18 May 2018 to 10 May 2028 No No
(Hefei) Co., Ltd
Hongyang Solar Energy
14 December 2017 to 13 December
Power Generation (Anji) N/A 3,500 14 December 2017 3,500 Joint liability guarantee No No
2025
Co., Ltd
Ke’enSolar Energy Power
14 December 2017 to 13 December
Generation (Pingyang) Co., N/A 2,400 14 December 2017 2,323 Joint liability guarantee No No
2025
Ltd
Dongze Photovoltaic Power
14 December 2017 to 13 December
Generation (Wenzhou) Co., N/A 2,100 14 December 2017 2,032 Joint liability guarantee No No
2025
Ltd
Aifeisheng Investment and N/A 1,400 14 December 2017 1,355 Joint liability guarantee 14 December 2017 to 13 December No No
34
BOE Technology Group Co., Ltd. Interim Report 2018
Management (Wenzhou) Co, 2025
Ltd
Junlong New Energy
Technology (Huaibin) Co., N/A 8,459 25 April 2018 8,451 Joint liability guarantee 25 April 2018 to 10 March 2030 No No
Ltd
Hengchuan New Energy
Technology (Hong’an) Co., N/A 6,892 31 January 2018 6,851 Joint liability guarantee 31 January 2018 to 31 January 2030 No No
Ltd
Anhui BOE Energy
N/A 2,060 25 April 2018 2,058 Joint liability guarantee 25 April 2018 to 10 March 2030 No No
Investment Co., Ltd
Hefei BOE Hospital Co.,
27 April 2018 130,000 27 April 2018 17,000 Joint liability guarantee 27 April 2018 to 26 April 2033 No No
Ltd
BOE Technology (HK) 12 December 2017 to 7 December
N/A 107,886 31 October 2017 107,886 Pledge No No
Limited 2020
Total actual guarantee amount for
Total guarantee line for subsidiaries approved
130,000 subsidiaries during the Reporting Period 114,253
during the Reporting Period (C1)
(C2)
Total actual guarantee balance for
Total approved guarantee line for subsidiaries at
240,020 subsidiaries at the end of the Reporting 224,138
the end of the Reporting Period (C3)
Period (C4)
Total guarantee amount (total of the above-mentioned three kinds of guarantees)
Total guarantee line approved during the Total actual guarantee amount during the
2,640,000 526,515
Reporting Period (A1+B1+C1) Reporting Period (A2+B2+C2)
Total approved guarantee line at the end of the Total actual guarantee balance at the end
13,858,182 7,773,617
Reporting Period (A3+B3+C3) of the Reporting Period (A4+B4+C4)
Proportion of the total actual guarantee amount (A4+B4+C4) in net assets of the
90.96%
Company
35
BOE Technology Group Co., Ltd. Interim Report 2018
Of which:
Amount of guarantees provided for shareholders, the actual controller and their related parties
0
(D)
Amount of debt guarantees provided directly or indirectly for entities with a 190,269
liability-to-asset ratio over 70% (E)
Portion of the total guarantee amount in excess of 50% of net assets (F) 3,500,452
Total amount of the three kinds of guarantees above (D+E+F) 3,500,452
Joint responsibilities possibly borne or already borne in the Reporting Period for undue
N/A
guarantees (if any)
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Notes for details about guarantee by complex method
(2) Illegal Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
36
BOE Technology Group Co., Ltd. Interim Report 2018
XV. Social Responsibilities
1. Significant Environment Protection
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental protection authorities of China
Name of Main Quantity Distribution
Executed Excessive
Name of Company Pollutant and Discharge of Information of Emission Total Weight of Approved Total Weight
Emission Standard Emission
or subsidiary Distinctive Method Emission Emission Concentration Emission (t) of Emission (t)
of Pollutant Condition
Pollutant Outlet Outlet
South gate of
factory
COD 38mg/L 500mg/L 1.664t None
Standard (sanitary
emission wastewater)
after being
treated by Northwest 835.002t
sewage
treatment corner of
COD system factory 66mg/L 500mg/L 147.37t None
(industrial
Beijing BOE
waste water)
Optoelectronics
2
Technology Co.,
Northwest
Ltd.
corner of
Ammonia
Standard factory 30.62 mg/L 45 mg/L 29.53t
nitrogen
emission (industrial
after being
treated by waste water) 97.4169t None
sewage
treatment South gate of
Ammonia system factory
10.1 mg/L 45 mg/L 0.442t
nitrogen (sanitary
wastewater)
The 4.5th COD Standard 1 North side of 144.09mg/L 500mg/L 71.20t 490.51t None
37
BOE Technology Group Co., Ltd. Interim Report 2018
generation emission factory
after being
TFT-LCD treated by
production line of sewage
Ammonia treatment
Chengdu BOE system 20.34mg/L 45 mg/L 10.26t 25.249t
nitrogen
Optoelectronics
Technology Co.,
Ltd.
Standard
COD emission 59.37mg/L 380mg/L 110.77t 1059t None
Hefei BOE Northwest
after being
Optoelectronics
Ammonia treated by 1 corner of
Technology Co.,
sewage 8.17mg/L 30mg/L 15.60t 99.2t None
Ltd. nitrogen factory
treatment
system
Standard
COD emission 155.07mg/L 500mg/L 467.13t 1618.8t None
Beijing BOE
after being East gate of
Display
Ammonia treated by 1
Technology Co., factory
sewage 12.74mg/L 45 mg/L 34.16t 134.4t None
Ltd. nitrogen treatment
system
Standard
COD 80 mg/L 380mg/L 240.92t 1621.97t None
emission
Hefei Xinsheng
after being Northeast gate
Optoelectronics
Ammonia treated by 1
Technology Co., of factory
sewage 14.1 mg/L 30mg/L 43.22t 128.08t None
Ltd. nitrogen treatment
system
Standard
COD 40.41 mg/L 500mg/L 62.8t 713.81t None
emission
Erdos Yuansheng after being North side of
Optoelectronics Ammonia treated by 1
Co., Ltd. sewage factory 3.6 mg/L 45mg/L 5.6t 76.82t None
nitrogen treatment
system
The 6th generation Standard North side of
COD emission 10.89 mg/L 16.28t
flexible AMOLED factory
after being
3 500mg/L 2004.15t None
production line of treated by
Southwest side
COD sewage 77.50 mg/L 6.40t
Chengdu BOE treatment of factory
38
BOE Technology Group Co., Ltd. Interim Report 2018
Optoelectronics system
West side of
COD Standard 70.67 mg/L 2.32t
Technology Co., emission factory
Ltd. after being
Ammonia treated by North side of
sewage 1.10 mg/L 1.64t
nitrogen factory
treatment
Ammonia system Southwest side
Standard 10.35 mg/L 0.85t
nitrogen emission of factory 45 mg/L 216.81t None
after being
treated by
Ammonia West side of
sewage 11.45 mg/L 0.38t
nitrogen treatment factory
system
1
Standard emission
Chongqing BOE COD emission 94.15 mg/L 400mg/L 259.773t 2281.158t None
Outlet
Optoelectronics after being South side of
treated by for
Technology Co., sewage factory
industrial
Ltd. treatment
Ammonia
system waste 3.92 mg/L 30mg/L 10.926t 252.885t None
nitrogen
water
Standard
Fuzhou BOE COD emission 85.77 mg/L 500mg/L 240.67t 510.35t None
Optoelectronics after being Northeast side
Ammonia treated by 1
Technology Co., sewage of factory 6.01 mg/L 45mg/L 16.86t 68.05t None
nitrogen treatment
Ltd.
system
39
BOE Technology Group Co., Ltd. Interim Report 2018
Construction of pollution prevention equipment and operation condition
During report period, the Company did not have important environmental problem. The Company built strict environmental
management system, and established internal organizational structure to supervise overall environmental performance of the
Company, formulated environmental management regulations and targets, carried out regular supervision for the environmental
management condition of subordinate enterprises to promote the implementation of environmental management work.
Currently, the waste water which is generated by each subordinate enterprise of the Company can be divided in to industrial waste
water and household waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separately
according to different natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water is
collected by rain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory,
industrial waste water is discharged into sewage treatment factory through municipal pipe network for intense treatment. Household
waste water comprises household fecal waste water and canteen oily waste water etc, after pretreatment, the waste water is
discharged into municipal sewage treatment factory. All industrial and household waste water is not discharged directly, and the
concentration and total amount of drainage satisfy the requirements of national and local relevant standards.
In additional, the exhaust gas which is emitted by each subordinate enterprise mainly comes from technology exhaust gas during
production process, including general exhaust gas, acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas
etc. Various exhaust gas can be emitted after being treated by independent emission treatment system. The emission concentration
and total amount satisfy the national and local relevant standards.
“4R concept” for the use of materials has been used by the Company since 2007, that is recycle (Recycle), reduction (Reduce),
renewal (Renew) and responsibility (responsibly). The Company promises that the used materials are all in accordance with
requirements of national relevant environmental regulations and the registration, assessment, permission and restriction system of
chemicals. In additional, the Company promotes the recycle of package materials constantly. The waste materials which are
generated by each subordinate enterprise can be divided into general industrial solid waste, hazardous waste materials and household
waste materials, and they all handed over to qualified recycler for regular treatment.
The Company focuses on the recycle of water resource and advanced cleaning methods such as adverse cleaning etc are adopted for
processing equipment. Most high purity water and chemicals are recycled, reducing the consumption of high purity water, chemical
and other materials maximally and reducing the discharge of waste water and waste materials.
At present, each subordinate enterprise formulates various management methods such as water pollution management, air pollution
management standard, hazardous waste materials management standard, energy management standard etc. The methods specify the
operation and maintenance regulations and requirements of pollutant treatment system, establish regular monitoring and supervising
mechanism, in order to ensure the continuous stable operation of each system.
In recent years, the environmental emission index of the Company is up to national standards such as Sewage Comprehensive
Discharge Standard (GB8979-1996), Air Pollutant Comprehensive Emission Standard (GB89879-1996), Industrial Enterprise
Environmental Noise Emission Standard within Factory Boundary (GB12348-2008) etc and local standards. The Company will
continue to promote the environmental management, devote to forging green factory and improve environmental management level
constantly.
Environmental Impact Assessment on Construction Project and Other Administrative Licenses for Environmental Protection
At present, corresponding environmental impact assessments have been conducted for all construction projects under the control of
the company in conformity with applicable national and local laws and regulations, and corresponding administrative licenses have
also been obtained.
Contingency Plan for Emergent Environmental Incidents
The company has formulated and filed corresponding contingency plan for emergent environmental incidents in the environmental
40
BOE Technology Group Co., Ltd. Interim Report 2018
protection agency according to relevant local requirements. However, such contingency plan consists of comprehensive plan, special
plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardous wastes and dangerous
chemicals etc. Meanwhile, drills must be conducted regularly.
Self-monitoring Plan
Currently, major pollutant-discharging units subordinated to the company have worked out corresponding self-monitoring plan
according to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectively
formulated by BOE Technology Group Co., Ltd, Beijing BOE Display Technology Co., Ltd. and Beijing BOE Photoelectric
Technology Co., Ltd. have been published via the company’s official website.
Other environment information that should be disclosed
On 28 March 2018, Beijing Environmental Protection Bureau listed BOE Technology Group Co., Ltd. as an enterprise with pollution
sources controlled by the City. The main control objects of this Company under the control of Beijing Economic and Technological
Development Zone are our experiment lines and core competence building. For experiment lines, there is no data on industrial
wastewater discharge since industrial wastewater is discharged into the wastewater treatment station of Beijing BOE Optoelectronics
Technology Co., Ltd. without being discharged outside; the domestic wastewater is monitored manually and daily without any target
on total amount of discharge. For the core competence building, only domestic wastewater is discharged without the requirement on
total amount of discharge.
Other related environment protection information
Naught
2. Targeted Measures Taken to Help People Lift Themselves Out of Poverty
There is no precise poverty alleviation work in this period, nor any follow-up precise poverty alleviation plan.
XVI. Other Significant Events
√ Applicable □Not applicable
1. The Company issued Pre-disclosure Announcement on Stock Reduction of Shareholders with More than 5% Stocks
(Announcement No.: 2017-061) and Pre-disclosure Announcement on Stock Reduction of Shareholders with More than 5% Stocks
(Announcement No.: 2017-062) on 22 November 2017 and 25 November 2017 respectively; shareholders of the Company as Hefei
Jianxiang Investment Co., Ltd. and Chongqing Yufu Photovoltaic Industry Investment Co., Ltd. planned to reduce no more than 1.00%
of general capital of the Company by means of centralized competitive bidding within 3 months after 15 working days since the
issuance of each Announcement. Aforementioned stock reduction plans were completed by 15 January 2018 and 19 January 2018
respectively.
2. The Company issued the Announcement on Acquisition of SES-imagotag Stocks (Announcement No.: 2017-036) on 17 June 2017.
The Company proposed to purchase more than 50.01% of SES stocks and realize consolidation of financial statements with SES by
virtue of BOE SPV, which is a joint venture invested and established by BOE’s wholly-owned subsidiary and investment platform
designated by SES management layer. By 16 March 2018, BOE SPV acquired 10,789,186 shares of SES stock in total by means of
block transactions and general offer, occupying 79.94% of SES’ outstanding capital stocks with total consideration of 323,675,580
Euros. For more information, please refer to the Announcement on Completing Acquisition of SES-imagotag Stocks (Announcement
No.: 2018-017) issued by the Company on 17 March 2018.
41
BOE Technology Group Co., Ltd. Interim Report 2018
3. The wholly-owned subsidiary, BOE Technology (Hong Kong) Co., Ltd., filed lawsuits to Beijing Municipal Higher People's Court
against following Defendants: Letv Mobile Intelligent Information Technology (Beijing) Co., Ltd. (referred to as “Letv Mobile
hereinafter”) , TV Plus Holdings (Beijing) Limited, Leseil Mobile Technology (Beijing) Co., Ltd. and JiaYueting, with the total
amount of claims being about US$41.84 million. Beijing Municipal Higher People's Court issued Notice of Case Acceptance and
Civil Ruling Paper for property preservation on 6 July 2017 and 31 July 2017 respectively. Letv Mobile raised the jurisdiction
objection to Beijing Municipal Higher People's Court, which was rejected, and also instituted an appeal to the Supreme People's
Court for verdict on jurisdiction objection. At present, it has been waiting for final verdict of the Supreme People's Court. For
receivables corresponding to aforementioned amount of claims, the Company has counted provision for bad debts as per regulations
in accounting standard accordingly; therefore, it has uncertain influences on the Company.
4. The corporate bonds (Phase I) of BOE Technology Group Co., Ltd. issued to public qualified investors from 21 March 2016 to 22
March 2016 reached one full year by 21 March 2017. According to regulations, the interest should be paid once per year during the
interest-bearing period. The Company issued Announcement on Payment “16BOE01” Interest 2017 (Announcement No.: 2018-016)
on 16 March 2018, in which the interest should be paid as per the standard of RMB31.5 (tax-inclusive) for every 10 bonds.
5. The Company issued Announcement on 2017 Implementation of Annual Interest Distribution on 20 June 2018. The annual interest
distribution plan 2017 was reviewed and adopted in 2017 Annual General Meeting held on 28 May 2018. According to the
distribution plan, the Company shall allocated annual corporate benefits in 2017 by means of RMB0.5 for every 10 shares (where,
the B-share benefit distribution shall be completed with Hong Kong dollar as per conversion rate from RMB to HKD published by
People’s Bank of China on the first working day after Shareholders Meeting of the Company) without distributing bonus share or
transferring shares in the name of public reserve funds.
index to disclosure website
Overview of significant events Disclosure date
for interim report
Announcement on Investment and Construction of Project of the 6th generation
9 March 2018 www.cninfo.com.cn
AMOLED (flexible) production line in Chongqing and Connected Transactions
Announcement on Investment and Construction of Project of Wuhan Gaoshidai
9 March 2018 www.cninfo.com.cn
Production Line of Thin Film Transistor LCD and its Auxiliary Products
Announcement on Project of Investment into BOE (Suzhou) Industrial Park 9 March 2018 www.cninfo.com.cn
XVII. Significant Events of Subsidiaries
□ Applicable √ Not applicable
42
BOE Technology Group Co., Ltd. Interim Report 2018
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: Share
Before Increase/decrease (+/-) After
Item Bonus issue
Number Percentage (%) New issues Bonus shares Other Subtotal Number Percentage (%)
from profit
I. Restricted shares 1,789,918 0.01% 0 0 0 747,223 747,223 2,537,141 0.01%
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-owned
0 0.00% 0 0 0 0 0 0 0.00%
corporations
3. Shares held by other domestic
1,789,918 0.01% 0 0 0 747,223 747,223 2,537,141 0.01%
investors
Among which: shares held by domestic
0 0.00% 0 0 0 0 0 0 0.00%
corporations
Shares held by domestic individuals 1,789,918 0.01% 0 0 0 747,223 747,223 2,537,141 0.01%
4. Shares held by foreign investors 0 0.00% 0 0 0 0 0 0 0.00%
Among which: Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
corporations
Shares held by foreign individuals 0 0.00% 0 0 0 0 0 0 0.00%
II. Non-restricted shares 34,796,608,845 99.99% 0 0 0 -747,223 -747,223 34,795,861,622 99.99%
43
BOE Technology Group Co., Ltd. Interim Report 2018
1. RMB ordinary shares 33,860,495,357 97.30% 0 0 0 -747,223 -747,223 33,859,748,134 97.30%
2. Domestically listed foreign shares 936,113,488 2.69% 936,113,488 2.69%
3. Overseas listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 34,798,398,763 100.00% 0 0 0 0 0 34,798,398,763 100.00%
Reasons for the share changes
□ Applicable √ Not applicable
Approval of share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of share changes on the basic EPS, diluted EPS, net assets per share attributable to ordinary shareholders of the Company and other financial indexes over the prior year and the prior
period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: Share
Restricted shares amount Restricted shares relieved Restricted shares Restricted shares amount Restricted shares
Name of the shareholders Restricted reasons
at the period-begin of the period increased of the period at the period-end relieved date
44
BOE Technology Group Co., Ltd. Interim Report 2018
Capital increase by senior Capital increase by senior
1,789,918 0 747,223 2,537,141 --
executives executives
Total 1,789,918 0 747,223 2,537,141 -- --
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: Share
Total number of ordinary shareholders at the
1,423,193 (including 1,383,999 A-shareholders and 39,194 B-shareholders)
period-end
5% or greater ordinary shareholders or the top 10 ordinary shareholders
Total shares Increase/decrease Number of Number of Pledged or frozen shares
Shareholding
Name of shareholder Nature of shareholder held at the during the restricted non-restricted
percentage (%) Status Number
period-end Reporting Period shares held shares held
Beijing State-owned 0
Capital Operation and State-owned legal person 11.68% 4,063,333,333 0 4,063,333,333 N/A 0
Management Center
Chongqing Ezcapital 0
Opto-electronics
State-owned legal person 7.62% 2,653,000,041 -173,500,029 2,653,000,041 N/A 0
Industry Investment
Co., Ltd.
Hefei Jianxiang 0
State-owned legal person 7.21% 2,510,142,953 -173,500,000 2,510,142,953 N/A 0
Investment Co., Ltd.
Beijing Yizhuang State-owned legal person 3.57% 1,241,423,641 0 0 1,241,423,641 N/A 0
45
BOE Technology Group Co., Ltd. Interim Report 2018
Investment Holdings
Co., Ltd
Beijing BOE 0
Investment & State-owned legal person 2.36% 822,092,180 0 822,092,180 N/A 0
Development Co., Ltd.
National Social Security 0
Other 1.24% 429,993,527 254,993,381 429,993,527 N/A 0
Fund Portfolio 108
Hong Kong Securities 0
Foreign legal person 1.20% 416,179,024 -26,348,228 416,179,024 N/A 0
Clearing Company Ltd.
National Social Security 0
Other 0.96% 335,271,500 111,900,000 335,271,500 N/A 0
Fund Portfolio 101
Beijing Electronics 0
State-owned legal person 0.79% 273,735,583 0 273,735,583 N/A 0
Holdings Co., Ltd.
Central Huijin Assets 0
State-owned legal person 0.71% 248,305,300 0 248,305,300 N/A 0
Management Co., Ltd
Strategic investors or general corporations becoming
top-ten shareholders due to placing of new shares (if Naught
any)
1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd.
2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its
controlling shareholder.
3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment
Connected or acting-in-concert parties among the Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them
shareholders above respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders.
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70%
of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and
Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of
which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to
46
BOE Technology Group Co., Ltd. Interim Report 2018
Implementation Protocol of Voting Right.
5. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10
shareholders.
Shareholdings of the top ten non-restricted ordinary shareholders
Type of shares
Name of shareholder Number of non-restricted shares held at the period-end
Type Number
Beijing State-owned Capital Operation and
4,063,333,333 RMB ordinary share 4,063,333,333
Management Center
Chongqing Ezcapital Opto-electronics Industry
2,653,000,041 RMB ordinary share 2,653,000,041
Investment Co., Ltd.
Hefei Jianxiang Investment Co., Ltd. 2,510,142,953 RMB ordinary share 2,510,142,953
Beijing Yizhuang Investment Holdings Co., Ltd 1,241,423,641 RMB ordinary share 1,241,423,641
Beijing BOE Investment & Development Co., Ltd. 822,092,180 RMB ordinary share 822,092,180
National Social Security Fund Portfolio 108 429,993,527 RMB ordinary share 429,993,527
Hong Kong Securities Clearing Company Ltd. 416,179,024 RMB ordinary share 416,179,024
National Social Security Fund Portfolio 101 335,271,500 RMB ordinary share 335,271,500
Beijing Electronics Holdings Co., Ltd. 273,735,583 RMB ordinary share 273,735,583
Central Huijin Assets Management Co., Ltd 248,305,300 RMB ordinary share 248,305,300
1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd.
2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its
Connected or acting-in-concert parties among the top controlling shareholder.
ten non-restrictedly tradable share holders and 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment
between the top ten non-restrictedly tradable share Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them
holders and the top ten shareholders respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders.
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70%
of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and
47
BOE Technology Group Co., Ltd. Interim Report 2018
Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of
which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to
Implementation Protocol of Voting Right.
5. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10
shareholders.
Top ten ordinary shareholders conducting securities
Naught
margin trading (if any)
Indicate by tick mark whether any of the top ten ordinary shareholders or the top ten non-restricted ordinary shareholders of the Company conducted any promissory repo during the Reporting
Period.
□ Yea √ No
No such cases in the Reporting Period.
IV. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
There was no any change of the controlling shareholder of the Company in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the Reporting Period.
48
BOE Technology Group Co., Ltd. Interim Report 2018
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
49
BOE Technology Group Co., Ltd. Interim Report 2018
Part VIII Directors, Supervisors and Senior Management
I Changes in Shareholdings of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
Number of the
Number of the
Beginning Increase in the Decrease in the Ending restricted shares Number of the restricted
restricted shares
Name Office title Incumbent/former shareholding Reporting Reporting shareholding granted during the shares granted at the
granted at the
(share) Period (share) Period (share) (share) Reporting Period period-end (share)
period-begin (share)
(share)
Wang Chairman of the
Current 299,905 0 0 299,905 0 0 0
Dongsheng Board
Vice Chairman
Xie Xiaoming Current 7,680 0 0 7,680 0 0 0
of the Board
Vice Chairman
of the Board,
Chief of
Chen Yanshun Executive Current 260,000 340,000 0 600,000 0 0 0
Committee,
Chief Executive
Officer
Wang Chenyang Director Current 0 0 0 0 0 0 0
Director, Vice
Chief of
Liu Xiaodong Current 250,000 0 0 250,000 0 0 0
Executive
Committee,
50
BOE Technology Group Co., Ltd. Interim Report 2018
President and
COO
Song Jie Director Current 0 0 0 0 0 0 0
Director,
Sun Yun Executive Vice Current 155,981 68,000 0 223,981 0 0 0
President, CFO
Li Yantao Director Current 0 0 0 0 0 0 0
Independent
Lv Tingjie Current 0 0 0 0 0 0 0
Director
Independent
Wang Huacheng Current 0 0 0 0 0 0 0
Director
Independent
Hu Xiaolin Current 0 0 0 0 0 0 0
Director
Independent
Li Xuan Current 0 0 0 0 0 0 0
Director
Chairman of
Yang Xiangdong Supervisory Current 0 0 0 0 0 0 0
Committee
Xu Tao Supervisor Current 0 0 0 0 0 0 0
Chen Zhaozhen Supervisor Current 900 0 900 0 0 0
Zhao Wei Supervisor Current 0 0 0 0 0 0 0
Shi Hong Supervisor Current 0 0 0 0 0 0 0
Zhuang Haoyu Supervisor Current 0 0 0 0 0 0 0
Employee
Miao Chuanbin Current 0 1,800 0 1,800 0 0 0
Supervisor
Xu Yangping Employee Current 0 0 0 0 0 0 0
51
BOE Technology Group Co., Ltd. Interim Report 2018
Supervisor
Employee
He Daopin Current 0 0 0 0 0 0 0
Supervisor
Executive Vice
Dong Youmei Current 200,000 26,400 0 226,400 0 0 0
President
Executive Vice
Yao Xiangjun President, Current 100,000 0 0 100,000 0 0 0
Co-COO
Executive Vice
Zhang Zhaohong President, Current 150,000 178,700 0 328,700 0 0 0
Co-COO
Executive Vice
Zhong Huifeng President, Current 150,000 0 0 150,000 0 0 0
Co-CHO
Executive Vice
Feng Liqiong Current 150,000 50,000 0 200,000 0 0 0
President, CLO
Senior Vice
President, Chief
Yue Zhanqiu Current 150,000 70,000 0 220,000 0 0 0
Information
Officer
Senior Vice
President, CRO
Xie Zhongdong Current 110,000 90,000 0 200,000 0 0 0
and Auditor
General
Senior Vice
Feng Qiang Current 100,000 20,000 0 120,000 0 0 0
President
Yang Anle Senior Vice Current 100,000 50,000 0 150,000 0 0 0
52
BOE Technology Group Co., Ltd. Interim Report 2018
President, Chief
Investment
Officer
Senior Vice
Tong Guanshan Current 0 0 0 0 0 0 0
President
Senior Vice
Jing Linfeng Current 100,000 45,000 0 145,000 0 0 0
President
Vice President,
Liu Hongfeng Secretary of the Current 100,000 54,500 0 154,500 0 0 0
Board
Wang Jing Director Former 0 0 0 0 0 0 0
Zhang Jinsong Director Former 0 0 0 0 0 0 0
Chairman of
Chen Ming Supervisory Former 0 0 0 0 0 0 0
Committee
Supervisor,
Secretary of
Mu Chengyuan Former 2,991 0 0 2,991 0 0 0
Supervisory
Committee
Total -- -- 2,386,557 995,300 0 3,381,857 0 0 0
53
BOE Technology Group Co., Ltd. Interim Report 2018
II Changes in Directors, Supervisors and Executive Officers
√ Applicable □ Not applicable
Name Office title Type of change Date Reason
Chen Ming Chairman of Supervisory Committee Left 1 March 2018 Voluntary turnover
Zhang Jinsong Director Left 30 March 2018 Voluntary turnover
Mu Chengyuan Supervisor Left 30 March 2018 Voluntary turnover
Yang Xiangdong Chairman of Supervisory Committee Elected 30 March 2018 Elected
Wang jing Director Left 11 May 2018 Voluntary turnover
Li Yantao Director Elected 28 May 2018 Elected
Chen Zhaozhen Supervisor Elected 28 May 2018 Elected
Wang Chenyang Director Elected 28 May 2018 Elected
54
BOE Technology Group Co., Ltd. Interim Report 2018
Part IX Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this
Report or were due but could not be redeemed in full?
Yes
I. Bond Profile
Balance Way of
Bond name Abbr. Bond code Release date Due date Coupon rate
(RMB’0,000) redemption
The 2016
public offering
of corporate
Paid for the
bonds by BOE
interests by
Technology
16BOE01 112358 21 March 2016 31 March 2021 1,000,000 3.15% year and the
Group Co.,
principals once
Ltd. for
when expired.
qualified
investors
(Phase I)
Listed or transferred trading
List on the SZSE.
place of the Company bonds
Appropriate arrangement of the
the qualified investors
investors
List of the interests payment of
On 21 March 2018, the Company completed the 2017 annual interest payout for the qualified
the Company bonds during the
investors of its 2016 corporate bonds.
Reporting Period
Execution of the relevant
regulations during the
Reporting Period such as the
There was affiliated issuers’ up-regulation nominal interest rate option and the investors’ sell-back
affiliated option clause of the
option at the year-end of the third year of the current bond duration; and up to the approval
issuers or investors, special
quotation date of the Interim Report, the bonds were not yet needed to be executed.
clauses such as the
exchangeable regulations of the
Company bonds (if applicable)
II. List of the Bond Trustee and the Rating Organization
Bond trustee:
55
BOE Technology Group Co., Ltd. Interim Report 2018
Rm. 2203,
North Tower,
Shanghai Zhu
China
Securities Mingqiang, Contact
Name Securities Co., Office address Contact 021-68801565
Plaza, 528 Han Yong, number
Ltd.
Pudong Road Sheng Cheng
South,
Shanghai
Rating organization executed the tracking rating of the Company bonds of the Reporting Period:
12/F, PICC Building, No.2 Jianwai Street,
Name United Ratings Co., Ltd. Office address
Chaoyang District, Beijing
Alternation reasons, execution process and
influences on the investors’ interests etc. if
there was alternation of the bond trustees
Naught
and the credit rating agencies engaged by
the Company during the Reporting Period
(if applicable)
III. List of the Usage of the Raised Funds of the Company Bonds
List of the usage of the raised funds and The Company executed the internal decision-making process strictly according to the
the execution process of the Company applications committed by the prospectus as well as the review regulations of the
bonds Board of Directors and Annual General Meeting of the Company.
Ending balance (RMB’0,000) 2.58
The Company signed the Agreement on the 2016 Public Offering of the Corporation
Bonds Account for the Qualified Investors and the Funds Tripartite Authorities of BOE
Operating situation of the raised funds Technology Group Co., Ltd. with the Beijing Olympic Branch of Ping An Bank Co,
special account Beijing Hepingli Branch of China CITIC Bank Corporation Limited and Beijing
Branch of China Merchants Bank Co., Ltd., which set up the raise funds account that
ensure the exclusive use of the special fund of the raise funds.
Whether the usage of the raised funds met
with the usage, using plan and other Yes
agreements committed on the prospectus
IV. Rating Situation of the Company Bonds Information
On 23 June 2017, United Ratings issued the Tracking Rating Report of the 2017 Corporate Bonds Credit Rating of BOE Technology
Group Co., Ltd., with the issuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. On
24 June 2017, the tracking rating report was disclosed on www.cninfo.com.cn and www.unitedratings.com.cn.
On 20 June 2018, United Ratings issued the Tracking Rating Report of the 2018 Corporate Bonds Credit Rating of BOE Technology
Group Co., Ltd., with the issuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. On
22 June 2018, the tracking rating report was disclosed on www.cninfo.com.cn and www.unitedratings.com.cn.
56
BOE Technology Group Co., Ltd. Interim Report 2018
V. Credit-adding Mechanism, Repayment Plan and Other Repayment Guarantee Measures of
the Company Bonds
There was no guarantee of the corporate bonds of the Reporting Period.
The profits of the main business of the issuers ware the main resources of the debt service fund of the bonds of the Reporting Period.
The debt repayment plan was as follows: during the duration period of the bonds of the Reporting Period, every March 21st of each
year from Y2017 to Y2021 is the interest date of the last interest accrual year (if met with the legal holidays or rest days, should
postpone which to the subsequent 1st working day); if the investors executed the put-back right, the interest date of the part of the
put-back bonds is every March 21st of each year from Y2017 to Y2019 is the interest date of the last interest accrual year (if met with
the legal holidays or rest days, should postpone which to the subsequent 1st working day). The principal of the current bonds should
be paid at one time when expired. The payment date of the current bonds would be 21 March 2021 (if met with the legal holidays or
rest days, should postpone which to the subsequent 1st working day); if the investors executed the put-back right, the payment date of
the part of the put-back bonds would be 21 March 2019 (if met with the legal holidays or rest days, should postpone which to the
subsequent 1st working day).
The repayment guarantee measures of the corporate bonds of the Reporting Period: to formulate the Meeting Regulations of the
Bondholders and the repayment guarantee measures; to formulate and strictly carry out the funds management plans; to fully exert
the functions of the bond trustees; to strictly disclose the information; at the same time, when expected to fail to repay the principals
and interest of the bonds on time or failed to repay the principals and interest of the bonds when expired, the Company will at least
adopt the measures of the execution of the capital expenditures projects such as to postpone the significant external investment and
the purchase as well as merger and so on that guarantee the repayment of the debts.
During the Reporting Period, there was no alternation of the credit-adding mechanism, debt repayment plan and other repayment
guarantee measures of the corporate bonds.
VI. Convene Situation of the Bonds Holders Meeting during the Reporting Period
No such cases during the Reporting Period.
VII. List of the Duty Execution of the Bonds Trustee during the Reporting Period
As the bond trustee of the Reporting Period, China Securities Co., Ltd. constantly paid attention on the operating, finance and credit
situation of the Company strictly according to the relevant laws and regulations such as the Regulations of the Offering and Trading
of the Corporate Bonds, Professional Code of Conduct of the Bond Trustee of the Corporate Bonds and vigorously executed the
responsibilities as a trustee as well as maintained the legal interests of the bondholders; there was no any situation conflicted to the
Company’s interests when executing the relevant responsibilities of the trustee.
VIII. The Major Accounting Data and the Financial Indicators of the Company up the
Period-end and the End of Last Year (or the Reporting Period and Same Period of Last Year)
Unit: RMB'0,000
Item Period-end End of last year Increase/decrease
Current ratio 2.04 2.01 0.03
Gearing ratio 59.31% 59.28% 0.03%
Quick ratio 1.81 1.83 -0.02
57
BOE Technology Group Co., Ltd. Interim Report 2018
Item Reporting Period Same period of last year Increase/decrease
EBITDA-to-interest coverage (times) 5.66 8.43 -32.86%
Loan repayment ratio 100.00% 100.00% 0.00%
Interest coverage ratio 100.00% 100.00% 0.00%
Main reason of the above accounting data and the financial indicators with the YoY change exceeded 30%
√ Applicable □ Not applicable
EBITDA has a YOY decrease of 2.77due to the largely decreasing total profit in the first half year from the year earlier.
IX. Overdue Unpaid Debts of the Company
□ Applicable √ Not applicable
No such cases during the Reporting Period.
X. List of the Interest Payment of Other Bonds and Bonds Financing Instruments during the
Reporting Period
No such situation of the Company during the Reporting Period.
XI. List of the Acquired Bank Credit Lines, Usage and the Repayment of the Bank Loans
The operation and reputation of the Company was favorable and the profitability as well as the debt payment ability of the Company
was strong as well as the Company maintained the long-term cooperative partnerships with main cooperative banks. Up to 30 June
2018, the total amount of the credit line of the major cooperative banks with the Company was of RMB47.6 billion with the used
credit line of RMB18.4 billion and the unused amount of which was of RMB29.2 billion. The principal and interest of bank loans
have been paid back on time. No default in bank loans during the Reporting Period.
XII. List of the Execution of the Agreements or the Commitments Related to the Company
Bonds Raising Specification during the Reporting Period
During the Reporting Period., the Company strictly carried out each agreement and commitment of the current bond prospectus, and
there was no any situation of the inefficient execution of the relevant agreements or commitments according to the bond prospectus
by the Company that caused the negative influences on the bonds investors.
XIII. Significant Events Occurred during the Reporting Period
There were no occurred significant events listed in Article 45 of Corporate Bonds Issuance and Trading Management Methods during
the Reporting Period.
XIV. Whether there was guarantor of the Company bonds
□ Yes √ No
58
BOE Technology Group Co., Ltd. Interim Report 2018
Part X Financial Report
I. Auditor’s Report
Whether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.
II. Financial Statements
The unit of the financial statements attached: RMB
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
30 June 2018
Unit: RMB
Item 30 June 2018 31 December 2017
Current assets:
Monetary assets 50,581,910,423.00 57,128,659,576.00
Settlement reserve 0.00 0.00
Interbank loans granted 0.00 0.00
Financial assets at fair value through profit or loss 0.00 0.00
Derivative financial assets 0.00 0.00
Notes receivable 540,151,648.00 833,268,127.00
Accounts receivable 17,356,033,029.00 15,513,763,252.00
Prepayments 755,433,430.00 587,126,751.00
Premiums receivable 0.00 0.00
Reinsurance receivables 0.00 0.00
Receivable reinsurance contract reserve 0.00 0.00
Interest receivable 127,018,762.00 89,628,559.00
Dividends receivable 5,950,240.00 0.00
Other receivables 608,318,659.00 728,395,573.00
Financial assets purchased under resale agreements 0.00 0.00
Inventories 10,933,542,222.00 8,957,719,381.00
59
BOE Technology Group Co., Ltd. Interim Report 2018
Assets classified as held for sale 0.00 0.00
Current portion of non-current assets 0.00 17,303,152.00
Other current assets 18,930,028,377.00 15,924,433,978.00
Total current assets 99,838,386,790.00 99,780,298,349.00
Non-current assets:
Loans and advances to customers 0.00 0.00
Available-for-sale financial assets 777,023,613.00 859,899,356.00
Held-to-maturity investments 0.00 0.00
Long-term receivables 0.00 0.00
Long-term equity investments 3,443,815,633.00 6,928,854,415.00
Investment property 1,278,070,770.00 1,296,662,205.00
Fixed assets 84,979,890,697.00 88,625,296,761.00
Construction in progress 73,903,155,311.00 50,761,250,426.00
Engineering materials 0.00 0.00
Proceeds from disposal of fixed assets 0.00 0.00
Productive living assets 0.00 0.00
Oil and gas assets 0.00 0.00
Intangible assets 5,490,324,217.00 2,982,664,308.00
R&D expense 0.00 0.00
Goodwill 841,479,045.00 197,963,688.00
Long-term prepaid expense 383,215,107.00 379,829,430.00
Deferred income tax assets 176,341,669.00 106,255,657.00
Other non-current assets 5,120,544,726.00 4,189,767,254.00
Total non-current assets 176,393,860,788.00 156,328,443,500.00
Total assets 276,232,247,578.00 256,108,741,849.00
Current liabilities:
Short-term borrowings 2,213,431,454.00 3,249,736,430.00
Borrowings from central bank 0.00 0.00
Customer deposits and deposits from banks and other
0.00 0.00
financial institutions
Interbank loans obtained 0.00 0.00
Financial liabilities at fair value through profit or loss 0.00 0.00
Derivative financial liabilities 0.00 0.00
Notes payable 838,808,117.00 543,798,835.00
Accounts payable 19,003,618,742.00 16,205,788,698.00
60
BOE Technology Group Co., Ltd. Interim Report 2018
Advances from customers 991,348,534.00 781,324,522.00
Financial assets sold under repurchase agreements 0.00 0.00
Handling charges and commissions payable 0.00 0.00
Payroll payable 1,220,668,515.00 2,217,066,944.00
Taxes payable 538,406,225.00 775,621,146.00
Interest payable 822,004,488.00 847,955,186.00
Dividends payable 12,477,033.00 9,651,170.00
Other payables 15,925,444,403.00 15,264,806,774.00
Reinsurance payables 0.00 0.00
Insurance contract reserve 0.00 0.00
Payables for acting trading of securities 0.00 0.00
Payables for underwriting of securities 0.00 0.00
Liabilities directly associated with assets classified as
0.00 0.00
held for sale
Current portion of non-current liabilities 6,402,772,896.00 9,109,708,511.00
Other current liabilities 1,029,526,302.00 730,709,590.00
Total current liabilities 48,998,506,709.00 49,736,167,806.00
Non-current liabilities:
Long-term borrowings 83,261,644,214.00 78,973,633,010.00
Bonds payable 9,971,424,165.00 9,966,467,496.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Long-term payables 1,427,376,178.00 1,176,250,982.00
Long-term payroll payable 0.00 0.00
Specific payables 0.00 0.00
Provisions 16,457,010.00 16,457,010.00
Deferred income 8,177,403,504.00 2,261,955,307.00
Deferred income tax liabilities 1,287,125,895.00 563,302,910.00
Other non-current liabilities 10,698,441,824.00 9,130,244,495.00
Total non-current liabilities 114,839,872,790.00 102,088,311,210.00
Total liabilities 163,838,379,499.00 151,824,479,016.00
Owners’ equity:
Share capital 34,798,398,763.00 34,798,398,763.00
Other equity instruments 0.00 0.00
Including: Preferred shares 0.00 0.00
61
BOE Technology Group Co., Ltd. Interim Report 2018
Perpetual bonds 0.00 0.00
Capital reserves 38,244,761,356.00 38,585,515,122.00
Less: Treasury shares 0.00 0.00
Other comprehensive income -87,683,584.00 150,602,933.00
Specific reserve 0.00 0.00
Surplus reserves 889,640,475.00 889,640,475.00
General reserve 0.00 0.00
Retained profits 11,620,075,705.00 10,385,659,084.00
Total equity attributable to owners of the Company as the 85,465,192,715.00
84,809,816,377.00
parent
Non-controlling interests 26,928,675,364.00 19,474,446,456.00
Total owners’ equity 112,393,868,079.00 104,284,262,833.00
Total liabilities and owners’ equity 276,232,247,578.00 256,108,741,849.00
Legal representative: Wang Dongsheng Chief Financial Officer: Sun Yun Financial Officer: Yang Xiaoping
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2018 31 December 2017
Current assets:
Monetary assets 3,862,839,767.00 2,990,801,501.00
Financial assets at fair value through profit or loss 0.00 0.00
Derivative financial assets 0.00 0.00
Notes receivable 800,000.00 0.00
Accounts receivable 41,070,568.00 39,897,385.00
Prepayments 24,558,561.00 10,315,083.00
Interest receivable 6,002,673.00 0.00
Dividends receivable 312,475,740.00 10,404,147.00
Other receivables 1,565,138,570.00 1,824,727,573.00
Inventories 11,756,668.00 12,751,847.00
Assets classified as held for sale 0.00 0.00
Current portion of non-current assets 587,000,000.00 3,648,840,000.00
Other current assets 45,861,505.00 61,082,075.00
Total current assets 6,457,504,052.00 8,598,819,611.00
Non-current assets:
62
BOE Technology Group Co., Ltd. Interim Report 2018
Available-for-sale financial assets 108,249,106.00 149,269,107.00
Held-to-maturity investments 0.00 0.00
Long-term receivables 0.00 0.00
Long-term equity investments 131,040,361,626.00 121,193,680,391.00
Investment property 291,882,469.00 292,544,063.00
Fixed assets 980,480,600.00 982,985,346.00
Construction in progress 243,332,835.00 274,400,649.00
Engineering materials 0.00 0.00
Proceeds from disposal of fixed assets 0.00 0.00
Productive living assets 0.00 0.00
Oil and gas assets 0.00 0.00
Intangible assets 512,709,485.00 530,490,988.00
R&D expense 0.00 0.00
Goodwill 0.00 0.00
Long-term prepaid expense 116,659,975.00 112,776,691.00
Deferred income tax assets 118,288,416.00 150,206,185.00
Other non-current assets 401,161,107.00 480,909,226.00
Total non-current assets 133,813,125,619.00 124,167,262,646.00
Total assets 140,270,629,671.00 132,766,082,257.00
Current liabilities:
Short-term borrowings 0.00 0.00
Financial liabilities at fair value through profit or loss 0.00 0.00
Derivative financial liabilities 0.00 0.00
Notes payable 0.00 0.00
Accounts payable 24,239,349.00 50,152,503.00
Advances from customers 2,004,607,023.00 1,375,022,585.00
Payroll payable 126,202,194.00 283,000,193.00
Taxes payable 57,108,752.00 119,584,927.00
Interest payable 120,871,893.00 312,029,252.00
Dividends payable 6,451,170.00 6,451,170.00
Other payables 13,852,647,546.00 9,713,912,548.00
Liabilities directly associated with assets classified as
0.00 0.00
held for sale
Current portion of non-current liabilities 3,040,000,000.00 4,031,840,000.00
Other current liabilities 0.00 0.00
63
BOE Technology Group Co., Ltd. Interim Report 2018
Total current liabilities 19,232,127,927.00 15,891,993,178.00
Non-current liabilities:
Long-term borrowings 20,020,000,000.00 23,943,000,000.00
Bonds payable 9,971,424,165.00 9,966,467,496.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Long-term payables 0.00 0.00
Long-term payroll payable 0.00 0.00
Specific payables 0.00 0.00
Provisions 0.00 0.00
Deferred income 5,970,717,701.00 130,652,127.00
Deferred income tax liabilities 0.00 0.00
Other non-current liabilities 9,500,000,000.00 7,600,000,000.00
Total non-current liabilities 45,462,141,866.00 41,640,119,623.00
Total liabilities 64,694,269,793.00 57,532,112,801.00
Owners’ equity:
Share capital 34,798,398,763.00 34,798,398,763.00
Other equity instruments 0.00 0.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Capital reserves 37,590,966,191.00 37,588,541,593.00
Less: Treasury shares 0.00 0.00
Other comprehensive income 157,230,488.00 192,097,489.00
Specific reserve 0.00 0.00
Surplus reserves 889,640,475.00 889,640,475.00
Retained profits 2,140,123,961.00 1,765,291,136.00
Total owners’ equity 75,576,359,878.00 75,233,969,456.00
Total liabilities and owners’ equity 140,270,629,671.00 132,766,082,257.00
3. Consolidated Income Statement
Unit: RMB
Item H1 2018 H1 2017
1. Revenue 43,473,904,966.00 44,605,027,995.00
Including: Operating revenue 43,473,904,966.00 44,605,027,995.00
64
BOE Technology Group Co., Ltd. Interim Report 2018
Interest income 0.00 0.00
Premium income 0.00 0.00
Handling charge and commission income 0.00 0.00
2. Operating costs and expenses 42,145,156,667.00 39,394,749,331.00
Including: Cost of sales 35,144,582,131.00 32,235,266,589.00
Interest expense 0.00 0.00
Handling charge and commission expense 0.00 0.00
Surrenders 0.00 0.00
Net claims paid 0.00 0.00
Net amount provided as insurance contract reserve 0.00 0.00
Expenditure on policy dividends 0.00 0.00
Reinsurance premium expense 0.00 0.00
Taxes and surtaxes 302,565,754.00 355,700,992.00
Selling expense 1,294,782,594.00 1,228,560,863.00
Administrative expense 3,743,903,273.00 3,052,661,575.00
Finance costs 1,201,173,655.00 1,099,113,182.00
Asset impairment loss 458,149,260.00 1,423,446,130.00
Add: Gain on changes in fair value (“-” for loss) 0.00 0.00
Investment income (“-” for loss) 166,924,013.00 19,162,151.00
Including: Share of profit or loss of joint ventures and
-29,578,579.00 -13,690,554.00
associates
Foreign exchange gain (“-” for loss) 0.00 0.00
Asset disposal income (“-” for loss) -158,511.00 -3,120,539.00
Other income 1,904,160,159.00 275,302,864.00
3. Operating profit (“-” for loss) 3,399,673,960.00 5,501,623,140.00
Add: Non-operating income 96,641,868.00 53,530,983.00
Less: Non-operating expense 7,653,811.00 20,330,503.00
4. Profit before taxation (“-” for loss) 3,488,662,017.00 5,534,823,620.00
Less: Income tax expense 659,568,560.00 940,261,615.00
5. Net profit (“-” for net loss) 2,829,093,457.00 4,594,562,005.00
5.1 Net profit from continuing operations (“-” for net 2,829,093,457.00
4,594,562,005.00
loss)
5.2 Net profit from discontinued operations (“-” for net
0.00 0.00
loss)
Net profit attributable to owners of the Company as the 2,975,206,500.00 4,302,605,600.00
65
BOE Technology Group Co., Ltd. Interim Report 2018
parent
Net profit attributable to non-controlling interests -146,113,043.00 291,956,405.00
6. Other comprehensive income, net of tax -223,269,396.00 -14,001,966.00
Attributable to owners of the Company as the parent -238,286,517.00 9,368,196.00
6.1 Items that will not be reclassified to profit or loss 0.00 0.00
6.1.1 Changes in net liabilities or assets caused by
0.00 0.00
remeasurements on defined benefit pension schemes
6.1.2 Share of other comprehensive income of
investees that will not be reclassified to profit or loss under 0.00 0.00
equity method
6.2 Items that may subsequently be reclassified to
-238,286,517.00 9,368,196.00
profit or loss
6.2.1 Share of other comprehensive income of
investees that will be reclassified to profit or loss under 0.00 0.00
equity method
6.2.2 Gain/Loss on changes in fair value of
-91,055,052.00 -2,155,092.00
available-for-sale financial assets
6.2.3 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale financial 0.00 0.00
assets
6.2.4 Effective gain/loss on cash flow hedges 0.00 0.00
6.2.5 Differences arising from translation of foreign
-147,231,465.00 11,523,288.00
currency-denominated financial statements
6.2.6 Other 0.00 0.00
Attributable to non-controlling interests 15,017,121.00 -23,370,162.00
7. Total comprehensive income 2,605,824,061.00 4,580,560,039.00
Attributable to owners of the Company as the parent 2,736,919,983.00 4,311,973,796.00
Attributable to non-controlling interests -131,095,922.00 268,586,243.00
8. Earnings per share
8.1 Basic earnings per share 0.085 0.123
8.2 Diluted earnings per share 0.085 0.123
Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged parties
before the business mergers was RMB0.00, with the corresponding amount for the last period being RMB 0.00.
Legal representative: Wang Dongsheng Chief Financial Officer: Sun Yun Financial Officer: Yang Xiaoping
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2018 H1 2017
66
BOE Technology Group Co., Ltd. Interim Report 2018
1. Operating revenue 2,146,860,956.00 705,463,015.00
Less: Cost of sales 12,786,733.00 5,670,598.00
Taxes and surtaxes 24,031,851.00 18,569,385.00
Selling expense 433,606.00 1,021,144.00
Administrative expense 820,273,111.00 684,340,188.00
Finance costs 378,937,888.00 205,355,880.00
Asset impairment loss 0.00 0.00
Add: Gain on changes in fair value (“-” for loss) 0.00 0.00
Investment income (“-” for loss) 884,469,030.00 594,517,970.00
Including: Share of profit or loss of joint ventures
-17,602,562.00 -13,690,554.00
and associates
Asset disposal income (“-” for loss) 0.00 -182,599.00
Other income 532,427,665.00 9,628,783.00
2. Operating profit (“-” for loss) 2,327,294,462.00 394,469,974.00
Add: Non-operating income 3,317,848.00 2,306,707.00
Less: Non-operating expense 576,343.00 679,940.00
3. Profit before taxation (“-” for loss) 2,330,035,967.00 396,096,741.00
Less: Income tax expense 214,413,263.00 7,327,135.00
4. Net profit (“-” for net loss) 2,115,622,704.00 388,769,606.00
4.1 Net profit from continuing operations (“-” for net
2,115,622,704.00 388,769,606.00
loss)
4.2 Net profit from discontinued operations (“-” for net
0.00 0.00
loss)
5. Other comprehensive income, net of tax -34,867,001.00 6,030,946.00
5.1 Items that will not be reclassified to profit or loss 0.00 0.00
5.1.1 Changes in net liabilities or assets caused by
0.00 0.00
remeasurements on defined benefit pension schemes
5.1.2 Share of other comprehensive income of
investees that will not be reclassified into profit or loss 0.00 0.00
under equity method
5.2 Items that may subsequently be reclassified to profit
-34,867,001.00 6,030,946.00
or loss
5.2.1 Share of other comprehensive income of
investees that will be reclassified into profit or loss under 0.00 0.00
equity method
5.2.2 Gain/Loss on changes in fair value of
-34,867,001.00 6,030,946.00
available-for-sale financial assets
5.2.3 Gain/Loss arising from reclassification of 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2018
held-to-maturity investments to available-for-sale financial
assets
5.2.4 Effective gain/loss on cash flow hedges 0.00 0.00
5.2.5 Differences arising from translation of foreign
0.00 0.00
currency-denominated financial statements
5.2.6 Other 0.00 0.00
6. Total comprehensive income 2,080,755,703.00 394,800,552.00
7. Earnings per share
7.1 Basic earnings per share 0.0608 0.0111
7.2 Diluted earnings per share 0.0608 0.0111
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2018 H1 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
46,919,613,472.00 43,665,151,353.00
services
Net increase in customer deposits and deposits from
0.00 0.00
banks and other financial institutions
Net increase in loans from central bank 0.00 0.00
Net increase in loans from other financial institutions 0.00 0.00
Premiums received on original insurance contracts 0.00 0.00
Net proceeds from reinsurance 0.00 0.00
Net increase in deposits and investments of policy
0.00 0.00
holders
Net increase in proceeds from disposal of financial
0.00 0.00
assets at fair value through profit or loss
Interest, handling charges and commissions received 0.00 0.00
Net increase in interbank loans obtained 0.00 0.00
Net increase in proceeds from repurchase transactions 0.00 0.00
Tax rebates 3,252,910,154.00 3,662,030,436.00
Cash generated from other operating activities 2,892,613,722.00 768,953,070.00
Subtotal of cash generated from operating activities 53,065,137,348.00 48,096,134,859.00
Payments for commodities and services 31,789,388,744.00 28,313,641,143.00
Net increase in loans and advances to customers 0.00 0.00
Net increase in deposits in central bank and in interbank
0.00 0.00
loans granted
68
BOE Technology Group Co., Ltd. Interim Report 2018
Payments for claims on original insurance contracts 0.00 0.00
Interest, handling charges and commissions paid 0.00 0.00
Policy dividends paid 0.00 0.00
Cash paid to and for employees 5,206,850,022.00 4,183,675,298.00
Taxes paid 1,826,914,249.00 2,139,357,844.00
Cash used in other operating activities 2,802,378,487.00 2,820,869,308.00
Subtotal of cash used in operating activities 41,625,531,502.00 37,457,543,593.00
Net cash generated from/used in operating activities 11,439,605,846.00 10,638,591,266.00
2. Cash flows from investing activities:
Proceeds from disinvestments 42,727,697,470.00 8,594,039,173.00
Investment income 225,460,451.00 34,325,731.00
Net proceeds from disposal of fixed assets, intangible
6,071,367.00 58,574,338.00
assets and other long-lived assets
Net proceeds from disposal of subsidiaries or other
0.00 0.00
business units
Cash generated from other investing activities 4,020,095,013.00 1,651,837,600.00
Subtotal of cash generated from investing activities 46,979,324,301.00 10,338,776,842.00
Payments for acquisition of fixed assets, intangible
22,369,952,658.00 24,969,365,239.00
assets and other long-lived assets
Payments for investments 46,687,262,053.00 16,940,890,821.00
Net increase in pledged loans granted 0.00 0.00
Net payments for acquisition of subsidiaries and other
0.00 0.00
business units
Cash used in other investing activities 1,729,746,759.00 417,993,963.00
Subtotal of cash used in investing activities 70,786,961,470.00 42,328,250,023.00
Net cash generated from/used in investing activities -23,807,637,169.00 -31,989,473,181.00
3. Cash flows from financing activities:
Capital contributions received 4,211,130,000.00 6,105,150,000.00
Including: Capital contributions by non-controlling
4,211,130,000.00 6,105,150,000.00
interests to subsidiaries
Increase in borrowings obtained 16,019,313,696.00 17,478,499,523.00
Net proceeds from issuance of bonds 0.00 0.00
Cash generated from other financing activities 1,736,188,263.00 98,452,479.00
Subtotal of cash generated from financing activities 21,966,631,959.00 23,682,102,002.00
Repayment of borrowings 9,708,459,433.00 5,752,923,590.00
Payments for interest and dividends 3,920,842,959.00 2,030,450,605.00
69
BOE Technology Group Co., Ltd. Interim Report 2018
Including: Dividends paid by subsidiaries to
0.00 0.00
non-controlling interests
Cash used in other financing activities 188,678,823.00 649,313,318.00
Subtotal of cash used in financing activities 13,817,981,215.00 8,432,687,513.00
Net cash generated from/used in financing activities 8,148,650,744.00 15,249,414,489.00
4. Effect of foreign exchange rate changes on cash and cash -603,907,413.00
-455,025,939.00
equivalents
5. Net increase in cash and cash equivalents -4,823,287,992.00 -6,556,493,365.00
Add: Cash and cash equivalents, beginning of the period 47,913,287,583.00 49,354,810,388.00
6. Cash and cash equivalents, end of the period 43,089,999,591.00 42,798,317,023.00
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2018 H1 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
3,175,402,626.00 710,405,975.00
services
Tax rebates 2,294,981.00 0.00
Cash generated from other operating activities 431,273,788.00 304,429,662.00
Subtotal of cash generated from operating activities 3,608,971,395.00 1,014,835,637.00
Payments for commodities and services 242,669,705.00 198,978,019.00
Cash paid to and for employees 495,217,910.00 380,998,757.00
Taxes paid 388,375,276.00 175,285,708.00
Cash used in other operating activities 49,861,076.00 2,690,735,937.00
Subtotal of cash used in operating activities 1,176,123,967.00 3,445,998,421.00
Net cash generated from/used in operating activities 2,432,847,428.00 -2,431,162,784.00
2. Cash flows from investing activities:
Proceeds from disinvestments 506,475,341.00 0.00
Investment income 614,938,715.00 1,434,763,684.00
Net proceeds from disposal of fixed assets, intangible
5,330.00 2,096.00
assets and other long-lived assets
Net proceeds from disposal of subsidiaries or other
0.00 0.00
business units
Cash generated from other investing activities 3,464,350,013.00 1,122,010,303.00
Subtotal of cash generated from investing activities 4,585,769,399.00 2,556,776,083.00
Payments for acquisition of fixed assets, intangible
139,310,504.00 98,591,704.00
assets and other long-lived assets
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BOE Technology Group Co., Ltd. Interim Report 2018
Payments for investments 9,916,742,439.00 14,153,939,400.00
Net payments for acquisition of subsidiaries and other
0.00 0.00
business units
Cash used in other investing activities 200,000,000.00 700,914,519.00
Subtotal of cash used in investing activities 10,256,052,943.00 14,953,445,623.00
Net cash generated from/used in investing activities -5,670,283,544.00 -12,396,669,540.00
3. Cash flows from financing activities:
Capital contributions received 0.00 0.00
Increase in borrowings obtained 3,567,000,000.00 12,533,000,000.00
Net proceeds from issuance of bonds 0.00 0.00
Cash generated from other financing activities 7,306,322,534.00 19.00
Subtotal of cash generated from financing activities 10,873,322,534.00 12,533,000,019.00
Repayment of borrowings 3,882,732,992.00 0.00
Payments for interest and dividends 2,224,217,165.00 459,582,730.00
Cash used in other financing activities 700,000,000.00 351,381,074.00
Sub-total of cash used in financing activities 6,806,950,157.00 810,963,804.00
Net cash generated from/used in financing activities 4,066,372,377.00 11,722,036,215.00
4. Effect of foreign exchange rate changes on cash and cash
43,102,003.00 -4,955,113.00
equivalents
5. Net increase in cash and cash equivalents 872,038,264.00 -3,110,751,222.00
Add: Cash and cash equivalents, beginning of the period 2,990,801,501.00 7,548,700,412.00
6. Cash and cash equivalents, end of the period 3,862,839,765.00 4,437,949,190.00
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BOE Technology Group Co., Ltd. Interim Report 2018
7. Consolidated Statements of Changes in Owners’ Equity
H1 2018
Unit: RMB
H1 2018
Equity attributable to owners of the Company as the parent
Item Other equity instruments Non-controlling Total owners’
Less: Other
Specific Surplus General
Share capital Capital reserves Treasury comprehensive Retained profits interests equity
Preferred Perpetual
Other reserve reserves reserve
shares bonds shares income
1. Balances as
of end of prior 34,798,398,763.00 0.00 0.00 0.00 38,585,515,122.00 0.00 150,602,933.00 0.00 889,640,475.00 0.00 10,385,659,084.00 19,474,446,456.00 104,284,262,833.00
year
Add:
Adjustments
for changed 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
accounting
policies
Adjustments
for corrections 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
of previous
errors
Adjustments
for business
combinations 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
involving
enterprises
under common
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BOE Technology Group Co., Ltd. Interim Report 2018
control
Other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
adjustments
2. Balances as
of beginning 34,798,398,763.00 0.00 0.00 0.00 38,585,515,122.00 0.00 150,602,933.00 0.00 889,640,475.00 0.00 10,385,659,084.00 19,474,446,456.00 104,284,262,833.00
of the year
3. Increase/
decrease in the
0.00 0.00 0.00 0.00 -340,753,766.00 0.00 -238,286,517.00 0.00 0.00 0.00 1,234,416,621.00 7,454,228,908.00 8,109,605,246.00
period (“-” for
decrease)
3.1 Total
comprehensive 0.00 0.00 0.00 0.00 0.00 0.00 -238,286,517.00 0.00 0.00 0.00 2,975,206,500.00 -131,095,922.00 2,605,824,061.00
income
3.2 Capital
increased and
0.00 0.00 0.00 0.00 -343,178,364.00 0.00 0.00 0.00 0.00 0.00 0.00 7,588,004,608.00 7,244,826,244.00
reduced by
owners
3.2.1
Ordinary
shares 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
increased by
shareholders
3.2.2
Capital
increased by
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
holders of
other equity
instruments
3.2.3
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Share-based
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BOE Technology Group Co., Ltd. Interim Report 2018
payments
included in
owners’ equity
3.2.4
0.00 0.00 0.00 0.00 -343,178,364.00 0.00 0.00 0.00 0.00 0.00 0.00 7,588,004,608.00 7,244,826,244.00
Other
3.3 Profit
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,740,789,879.00 -2,679,778.00 -1,743,469,657.00
distribution
3.3.1
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to surplus
reserves
3.3.2
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to general
reserve
3.3.3
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,740,789,879.00 -2,679,778.00 -1,743,469,657.00
to owners (or
shareholders)
3.3.4
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.4
Carryforwards
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
within owners’
equity
3.4.1
Increase in
capital (or 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
from capital
74
BOE Technology Group Co., Ltd. Interim Report 2018
reserves
3.4.2
Increase in
capital (or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
from surplus
reserves
3.4.3
Surplus
reserves used 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to make up
losses
3.4.4
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.5 Specific
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.5.1
Withdrawn for 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.5.2
Used during 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.6 Other 0.00 0.00 0.00 0.00 2,424,598.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,424,598.00
4. Balances as
of end of the 34,798,398,763.00 0.00 0.00 0.00 38,244,761,356.00 0.00 -87,683,584.00 0.00 889,640,475.00 0.00 11,620,075,705.00 26,928,675,364.00 112,393,868,079.00
period
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BOE Technology Group Co., Ltd. Interim Report 2018
H1 2017
Unit: RMB
H1 2017
Equity attributable to owners of the Company as the parent
Item Other equity instruments Other Non-controlling Total owners’
Less: Treasury Specific Surplus General
Share capital Capital reserves comprehensive Retained profits interests equity
Preferred Perpetual
Other shares reserve reserves reserve
shares bonds income
1. Balances as
of end of prior 35,153,067,743.00 0.00 0.00 0.00 39,031,357,529.00 314,350,824.00 75,718,703.00 0.00 743,139,855.00 0.00 4,011,055,487.00 13,316,066,667.00 92,016,055,160.00
year
Add:
Adjustments
for changed 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
accounting
policies
Adjustments
for corrections 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
of previous
errors
Adjustments
for business
combinations
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
involving
enterprises
under common
control
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2018
adjustments
2. Balances as
of beginning 35,153,067,743.00 0.00 0.00 0.00 39,031,357,529.00 314,350,824.00 75,718,703.00 0.00 743,139,855.00 0.00 4,011,055,487.00 13,316,066,667.00 92,016,055,160.00
of the year
3. Increase/
decrease in the
-354,668,980.00 0.00 0.00 0.00 -445,842,407.00 -314,350,824.00 74,884,230.00 0.00 146,500,620.00 0.00 6,374,603,597.00 6,158,379,789.00 12,268,207,673.00
period (“-” for
decrease)
3.1 Total
comprehensive 0.00 0.00 0.00 0.00 0.00 0.00 74,884,230.00 0.00 0.00 0.00 7,567,682,493.00 262,231,919.00 7,904,798,642.00
income
3.2 Capital
increased and
-354,668,980.00 0.00 0.00 0.00 -445,842,407.00 -314,350,824.00 0.00 0.00 0.00 0.00 0.00 5,903,507,090.00 5,417,346,527.00
reduced by
owners
3.2.1
Ordinary
shares 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
increased by
shareholders
3.2.2
Capital
increased by
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
holders of
other equity
instruments
3.2.3
Share-based
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
payments
included in
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BOE Technology Group Co., Ltd. Interim Report 2018
owners’ equity
3.2.4
-354,668,980.00 0.00 0.00 0.00 -445,842,407.00 -314,350,824.00 0.00 0.00 0.00 0.00 0.00 5,903,507,090.00 5,417,346,527.00
Other
3.3 Profit
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 146,500,620.00 0.00 -1,193,078,896.00 -7,359,220.00 -1,053,937,496.00
distribution
3.3.1
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 146,500,620.00 0.00 -146,500,620.00 0.00 0.00
to surplus
reserves
3.3.2
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to general
reserve
3.3.3
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,046,578,276.00 -7,359,220.00 -1,053,937,496.00
to owners (or
shareholders)
3.3.4
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.4
Carryforwards
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
within owners’
equity
3.4.1
Increase in
capital (or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
from capital
reserves
3.4.2 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2018
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Surplus
reserves used 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to make up
losses
3.4.4
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.5 Specific
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.5.1
Withdrawn for 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.5.2
Used during 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Balances as
of end of the 34,798,398,763.00 0.00 0.00 0.00 38,585,515,122.00 0.00 150,602,933.00 0.00 889,640,475.00 0.00 10,385,659,084.00 19,474,446,456.00 104,284,262,833.00
period
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BOE Technology Group Co., Ltd. Interim Report 2018
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2018
Unit: RMB
H1 2018
Other equity instruments Less: Other
Item Specific Surplus Total owners’
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Retained profits
Other reserve reserves equity
shares bonds shares income
1. Balances as of end of
34,798,398,763.00 0.00 0.00 0.00 37,588,541,593.00 0.00 192,097,489.00 0.00 889,640,475.00 1,765,291,136.00 75,233,969,456.00
prior year
Add: Adjustments for
changed accounting 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
policies
Adjustments for
corrections of previous 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
errors
Other adjustments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Balances as of
34,798,398,763.00 0.00 0.00 0.00 37,588,541,593.00 0.00 192,097,489.00 0.00 889,640,475.00 1,765,291,136.00 75,233,969,456.00
beginning of the year
3. Increase/ decrease in
the period (“-” for 0.00 0.00 0.00 0.00 2,424,598.00 0.00 -34,867,001.00 0.00 0.00 374,832,825.00 342,390,422.00
decrease)
3.1 Total
0.00 0.00 0.00 0.00 0.00 0.00 -34,867,001.00 0.00 0.00 2,115,622,704.00 2,080,755,703.00
comprehensive income
3.2 Capital increased
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
and reduced by owners
3.2.1 Ordinary
shares increased by 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
shareholders
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BOE Technology Group Co., Ltd. Interim Report 2018
3.2.2 Capital
increased by holders of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
other equity instruments
3.2.3 Share-based
payments included in 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
3.2.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.3 Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,740,789,879.00 -1,740,789,879.00
3.3.1 Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to surplus reserves
3.3.2 Appropriation
to owners (or 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,740,789,879.00 -1,740,789,879.00
shareholders)
3.3.3 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.4 Carryforwards
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
within owners’ equity
3.4.1 Increase in
capital (or share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from capital reserves
3.4.2 Increase in
capital (or share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from surplus reserves
3.4.3 Surplus
reserves used to make up 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
losses
3.4.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5 Specific reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5.1 Withdrawn for 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2018
the period
3.5.2 Used during
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.6 Other 0.00 0.00 0.00 0.00 2,424,598.00 0.00 0.00 0.00 0.00 0.00 2,424,598.00
4. Balances as of end of
34,798,398,763.00 0.00 0.00 0.00 37,590,966,191.00 0.00 157,230,488.00 0.00 889,640,475.00 2,140,123,961.00 75,576,359,878.00
the period
H1 2017
Unit: RMB
H1 2017
Other equity instruments Other
Item Less: Treasury Specific Surplus Total owners’
Share capital Preferred Perpetual Capital reserves comprehensive Retained profits
Other shares reserve reserves equity
shares bonds income
1. Balances as of end of
35,153,067,743.00 0.00 0.00 0.00 38,157,600,408.00 314,350,824.00 152,323,461.00 0.00 743,139,855.00 1,493,363,829.00 75,385,144,472.00
prior year
Add: Adjustments for
changed accounting 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
policies
Adjustments for
corrections of previous 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
errors
Other adjustments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Balances as of
35,153,067,743.00 0.00 0.00 0.00 38,157,600,408.00 314,350,824.00 152,323,461.00 0.00 743,139,855.00 1,493,363,829.00 75,385,144,472.00
beginning of the year
3. Increase/ decrease in
the period (“-” for -354,668,980.00 0.00 0.00 0.00 -569,058,815.00 -314,350,824.00 39,774,028.00 0.00 146,500,620.00 271,927,307.00 -151,175,016.00
decrease)
3.1 Total
0.00 0.00 0.00 0.00 0.00 0.00 39,774,028.00 0.00 0.00 1,465,006,203.00 1,504,780,231.00
comprehensive income
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BOE Technology Group Co., Ltd. Interim Report 2018
3.2 Capital increased
-354,668,980.00 0.00 0.00 0.00 -569,058,815.00 -314,350,824.00 0.00 0.00 0.00 0.00 -609,376,971.00
and reduced by owners
3.2.1 Ordinary
shares increased by 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
shareholders
3.2.2 Capital
increased by holders of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
other equity instruments
3.2.3 Share-based
payments included in 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
3.2.4 Other -354,668,980.00 0.00 0.00 0.00 -569,058,815.00 -314,350,824.00 0.00 0.00 0.00 0.00 -609,376,971.00
3.3 Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 146,500,620.00 -1,193,078,896.00 -1,046,578,276.00
3.3.1
Appropriation to 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 146,500,620.00 -146,500,620.00 0.00
surplus reserves
3.3.2
Appropriation to
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,046,578,276.00 -1,046,578,276.00
owners (or
shareholders)
3.3.3 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.4 Carryforwards
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
within owners’ equity
3.4.1 Increase in
capital (or share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from capital reserves
3.4.2 Increase in
capital (or share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from surplus reserves
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BOE Technology Group Co., Ltd. Interim Report 2018
3.4.3 Surplus
reserves used to make 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
up losses
3.4.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5 Specific reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5.1 Withdrawn
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
for the period
3.5.2 Used during
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Balances as of end of
34,798,398,763.00 0.00 0.00 0.00 37,588,541,593.00 0.00 192,097,489.00 0.00 889,640,475.00 1,765,291,136.00 75,233,969,456.00
the period
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BOE Technology Group Co., Ltd. Interim Report 2018
III. Company Profile
Founded in Beijing on 9 April 1993 and headquartered in the city, BOE Technology Group Co., Ltd. (hereinafter referred to as the
“Company”) is a company limited by shares. Its parent and ultimate controller is Beijing Electronics Holding Co., Ltd. (“Electronics
Holding”). The Company and its affiliated subsidiaries (hereinafter jointly referred to as the “Group”) are divided into three major
business divisions, namely, Display and Sensor Device, IoT-Based Smart System and the smart healthcare service division. For
information about the Company’s subsidiaries, see item XII, 2 herein. During the Reporting Period, three new subsidiaries were
added to the Group, namely, Beijing BOE Sensor Technology Co., Ltd., Mianyang BOE Optoelectronics Co., Ltd. and SESImagotag
SA, with the Company holding a stake of 100%, 61.54% and 79.94%, respectively. For further information on the new and reduced
subsidiaries, see “VIII Changes to Consolidation Scope” and “IX Interests in Other Entities” herein.
IV. Basis for the Preparation of Financial Statements
1. Preparation Basis
The financial statements have been prepared on the basis of going concern.
2. Continuing Operations
The Company had the continuing operations ability within 12 months since the end of the Reporting Period.
V. Significant Accounting Policies and Estimates
Reminder of the specific accounting policies and estimates:
Naught
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of Accounting Standards for Business Enterprises
issued by the Ministry of Finance (hereinafter referred to as MOF). These financial statements present truly and completely the
consolidated financial position and financial position as of 30 June 2018, the consolidated results of operations and results of
operations and the consolidated cash flows and cash flows in the first half year of 2018 of the Company.
These financial statements also comply with the disclosure requirements of “Regulation on the Preparation of Information
Disclosures of Companies Issuing Public Shares, No. 15: General Requirements for Financial Reports” as revised by the China
Securities Regulatory Commission (hereinafter referred to as “CSRC”) in 2014.
2. Accounting period
The accounting year of the Group is from January 1st to December 31st.
3. Operating Cycle
The Company regarded the period from purchasing the assets for processing to realizing the cash or cash equivalents as the normal
operating cycle. The operating cycle of the main business of the Company usually is less than 12 months.
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BOE Technology Group Co., Ltd. Interim Report 2018
4. Recording Currency
The Company’s functional currency is Renminbi. These financial statements are presented in Renminbi. The basis of choosing the
functional currency for the Company and its subsidiaries is that it’s the pricing and settlement currency for the main business. Some
subsidiaries of the Company adopt the currency other than RMB as the recording currency. The Company translates the foreign
currency financial statement of subsidiaries when compiling the financial statement.
5. Accounting Treatments for a Business Combination Involving Entities Under and those not Under
Common Control
(1) Business combination involving entities under common control
A business combination involving enterprises under common control is a business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the business combination, and that control is
not transitory. The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combined
at the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of
consideration paid for the combination (or the total face value of shares issued) is adjusted to share premium in the capital reserve. If
the balance of share premium is insufficient, any excess is adjusted to retained earnings. Other direct expenses occur when the Group
conducting business combinations is recognized in current profit and loss. The combination date is the date on which one combining
enterprise effectively obtains control of the other combining enterprises.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business combination in which all of the combining entities
are not ultimately controlled by the same party or parties both before and after the business combination. When the Group acts as the
combination party, the cost of a business combination paid by the acquirer is the aggregate of the fair value at the acquisition date of
assets given (including share equity of the acquiree held before the combination date), liabilities incurred or assumed, and equity
securities issued by the acquirer. Any excess of the cost of a business combination over the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets is recognized as goodwill, while any excess of the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets over the cost of a business combination is recognized in profit or loss. The cost of equity securities
or liability securities as on combination consideration offering is recognized in initial recording capital on equity securities or liability
securities. Other direct expenses occur when the Group conducting business combinations is recognized in current profit and loss.
The difference between the fair value and the carrying amount of the assets given is recognized in profit or loss. The Group, at the
acquisition date, recognized the acquiree’s identifiable asset, liabilities and contingent liabilities at their fair value at that date. The
acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
In a business combination not under same control realized by two or more transactions of exchange, for the equities of the purchasees
held before the purchase date, the Group will execute the remeasurement according to the fair value of the equity on the purchase
date with the difference between the fair value and its book value be recorded in the current investment income. The other
comprehensive income which could be reclassified in the gains and losses afterwards and the changes of the equities of the other
owners under the measurement of the equity method that involved with the afterwards equity of the purchasees held before the
purchase date should be transferred in the current investment income.
6. Preparation Methods for Consolidated Financial Statements
(1) General principle
The scope of consolidated financial statements is determined on the base of control, which comprise the Company and its
subsidiaries. The term “control” is the power of the Group upon an investee, with which it can take part in relevant activities of the
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BOE Technology Group Co., Ltd. Interim Report 2018
investee to obtain variable returns and is able to influence the amount of returns. When judging whether the Group owns the right on
the investees or not, the Group only considers the substantive rights related to the investees (including the substantive rights enjoyed
by the Group itself and by the other parties). The financial status, operating results and cash flow of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
Equity, profit or loss attributable to minority shareholders is presented separately under the item of shareholders’ equity in
consolidated income statement and the net profits in the consolidated income statement.
If current loss shoulder by minority shareholders of a subsidy over the proportion enjoyed by minority shareholders in a subsidy at
owners’ equity at period-begin, its balance still offset minority shareholders’ equity.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the Company makes
necessary adjustments to the financial statements of the subsidiary based on the Company’s own accounting period or accounting
policies. Intra-group balances and transactions, and any unrealized profit or loss arising from intra-group transactions, are eliminated
in preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in the
same way as unrealized gains but only to the extent that there is no evidence of impairment.
(2) Acquiring the subsidiaries from merger
Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities under common
control, the financial statements of the subsidiary are included in the consolidated financial statements based on book value in the
consolidated balance sheet of the subsidiary’s assets, liabilities and results of operations as if the combination had occurred at the
date that common control was established. Therefore the opening balances and the comparative figures of the consolidated financial
statements are restated.
Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities not under common
control, when prepared the consolidated financial statements, the Company shall included the acquired subsidiaries into the
consolidated scope from the acquisition date basing on the fair value of the identifiable assets, liabilities at the acquisition date.
(3) Disposing the subsidiaries
Where the control of former subsidiary was lost, any disposal profit or loss occurred shall be recorded into the investment income
during the period of losing control right. As for remaining equity investment, the Group will re-account it according to the fair value
at the date the control was lost. Any profit or loss occurred shall be recorded into the investment income during the period of losing
control right.
Where the Group losses control on its original subsidiaries due to step by step disposal of equity investments through multiple
transactions, should judge whether is the package deal according to the following principles:
- These deals are at the same time or under the condition of considering the influence of each other to concluded;
- These transactions only when be regarded as a whole could achieve a complete business result;
- The occurrence of a deal depends on at least one other transactions；
- A deal alone is not economical, it is economical with other trading together.
If each deal not belongs to a package deal, as for each deal before losing the control right on the subsidiaries, should be disposed
according to the accounting policies of partly disposing the equity investment of the subsidiaries under the situation not losing the
control right.
If each deal belongs to a package deal, considered as a transaction and conduct accounting treatment, however, before losing control,
the differences between every disposal cost and the shares of the book value of the corresponding net assets continuously calculated
since the purchase date of the subsidiary of disposal investment are confirmed as other comprehensive income in consolidated
financial statements, which together transferred into the current profits and losses in the loss of control , when the Group losing
control on its subsidiary.
(4) Changes of non-controlling interests
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BOE Technology Group Co., Ltd. Interim Report 2018
Where the Company acquires a minority interest from a subsidiary’s minority shareholders or disposes of a portion of an interest in a
subsidiary without a change in control, the difference between the amount by which the minority interests are adjusted and the
amount of the consideration paid or received is adjusted to the capital reserve (share premium) in the consolidated balance sheet. If
the credit balance of capital reserve (share premium) is insufficient, any excess is adjusted to retained earnings.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and all the participants are both
restricted by the arrangement; and two or more participants execute the jointly control on the arrangement. Any of the participant
should not individually control the arrangement, while any of the participant that owns the jointly control could stop other
participants or the participants group from individually control the arrangement.
Joint arrangements divided into joint operations and joint ventures. A joint operation refers to a joint arrangement where the
participant party enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to a joint arrangement
where the participant party is only entitled to the net assets of the arrangement.
The participant party should confirm the following items related to the interests portion among the jointly operation and execute the
accounting treatment according to the regulations of the relevant ASBE: recognizes the assets and liabilities that it holds and bears in
the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according to the Group’s stake in the joint
operation; recognizes the income from sale of the Group’s share in the output of the joint operation; recognizes the income from sale
of the joint operation’s outputs according to the Group’s stake in it; and recognizes the expense solely incurred to the Group and the
expense incurred to the joint operation according to the Group’s stake in it.
8. Recognition Standard for Cash and Cash Equivalents
In the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and short-term
and high circulating investments, which are easily convertible into known amount of cash and whose risks in change of value are
minimal.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
When the Group receives capital in foreign currencies from investors, the capital is translated to Renminbi at the spot exchange rate
at the date of the receipt. Other foreign currency transactions are, on initial recognition, translated to Renminbi at the spot exchange
rates at the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at the balance sheet date. The
resulting exchange differences are recognized in profit or loss, except those arising from the principals and interests on foreign
currency borrowings specifically for the purpose of acquisition, construction of qualifying assets. Non-monetary items denominated
in foreign currencies that are measured at historical cost are translated to Renminbi using the foreign exchange rate at the transaction
date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchange
rate at the date the fair value is determined; the exchange differences, if it’s the difference arising from the non-monetary item of
available-for-sale financial assets, which shall be considered as other comprehensive income and recognized in capital reserve; other
differences shall be recognized in current profit or loss.
The assets and liabilities of foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. The
equity items, excluding “Retained earning”, are translated to Renminbi at the spot exchange rates at the transaction dates. The
income and expenses of foreign operation are translated to Renminbi at rates that approximate the spot exchange rates at the
transaction dates. The resulting exchange differences are listed in other comprehensive income. Upon disposal of a foreign operation,
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BOE Technology Group Co., Ltd. Interim Report 2018
the cumulative amount of the exchange differences recognized in equity which relates to that foreign operation is transferred to profit
or loss in the period in which the disposal occurs.
10. Financial Instruments
Financial instruments comprise monetary funds, bonds investment, equity investment other than long-term equity investment,
receivables, payables, borrowings and share capital, etc.
(1) Recognition and measurement of the financial assets and financial liabilities
A financial asset or financial liability is recognized in the balance sheet when the Group becomes a party to the contractual
provisions of a financial instrument.
The Group classifies financial assets and liabilities into different categories at initial recognition based on the purpose of acquiring
assets or assuming liabilities: financial assets and financial liabilities at fair value through profit or loss, loans and receivables,
held-to-maturity investments, available-for-sale financial assets and other financial liabilities.
Financial assets and liabilities are measured initially at fair value. For financial assets and liabilities at fair value through profit or loss,
any directly attributable transaction costs are charged to profit or loss; for other categories of financial assets and financial liabilities,
any attributed transaction costs are included in their initial costs. Subsequent to initial recognition financial assets and liabilities are
measured as follows:
– Financial assets and financial liabilities at fair value through profit or loss (including financial assets or financial liabilities held for
trading)
Subsequent to initial recognition, financial assets and financial liabilities at fair value through profit or loss are measured at fair value,
and changes therein are recognized in profit or loss.
– Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
Subsequent to initial recognition, receivables are subsequently stated at amortized cost using the effective interest method.
– Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that the
Group has the positive intention and ability to hold to maturity.
Subsequent to initial recognition, held-to-maturity investments are stated at amortized cost using the effective interest method.
– Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated upon initial recognition as available for
sale and other financial assets which do not fall into any of the above categories.
As for the available-for-sale financial assets whose fair value cannot be reliably measured is measured at cost subsequent to initial
recognition; except that, subsequent to initial recognition, other available-for-sale financial assets are measured at fair value and
changes therein, except for impairment losses and foreign exchange gains and losses from monetary financial assets, which are
recognized directly in profit or loss, are considered as other comprehensive income to be recognized directly in capital reserves.
When an investment is derecognized, the cumulative gain or loss in equity is removed from equity and recognized in profit or loss.
Dividend income from these equity instruments is recognized in profit or loss when the investee declares the dividends. Interest on
available-for-sale financial assets calculated using the effective interest method is recognized in profit or loss.
– Other financial liabilities
Financial liabilities other than the financial liabilities at fair value through profit or loss are classified as other financial liabilities.
Other financial liabilities include the liabilities arising from financial guarantee contracts. Financial guarantees are contracts that
require the issuer (i.e. the guarantor) to make specified payments to reimburse the beneficiary of the guarantee (the holder) for a loss
the holder incurs because a specified debtor fails to make payment when due, in accordance with the terms of a debt instrument.
Where the Group issues a financial guarantee, subsequent to initial recognition, the guarantee is measured at the higher of the amount
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BOE Technology Group Co., Ltd. Interim Report 2018
initially recognized less accumulated amortization and the amount of a provision determined in accordance with the principles of
contingent liabilities.
Except for the liabilities arising from financial guarantee contracts described above, subsequent to initial recognition, other financial
liabilities are measured at amortized cost using the effective interest method.
(2) Presentation of financial assets and financial liabilities
The financial assets and financial liabilities are respectively presented in the balance sheet without mutual offset. However, for those
simultaneously meet with the following conditions, should be presented in the balance sheet by the net amount after mutual offset:
-The Group owns the legal right of neutralizing the recognized amount and the right is executable at present:
-The Group plans to settle by the net amount or to realize the financial assets and to clear off the financial liabilities at the same time.
(3) Derecognition of financial assets and financial liabilities
A financial asset is derecognized if the Group’s contractual rights to the cash flows from the financial asset expire or if the Group
transfers substantially all the risks and rewards of ownership of the financial asset to another party.
Where a transfer of a financial asset in its entirety meets the criteria of derecognition, the difference between the two amounts below
is recognized in profit or loss:
– Carrying amount of the financial asset transferred
– The sum of the consideration received from the transfer and any cumulative gain or loss that has been recognized directly in equity.
The Group derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged.
(4) Impairment of financial assets
The carrying amounts of financial assets (other than those at fair value through profit or loss) are reviewed at each balance sheet date
to determine whether there is objective evidence of impairment.
Objective evidence of impairment includes but not is limited to the followings:
(a) A serious financial difficulty occurs to the issuer or debtor;
(b) The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the payment of interests or the
principal, etc.;
(c) The debtor will probably become bankrupt or carry out other financial reorganizations;
(d) The financial asset can no longer continue to be traded in the active market due to serious financial difficulties of the issuer;
(e) Any seriously disadvantageous change has occurred to technical, market, economic or legal environment, etc. wherein the issuer
of instruments operates its business, which makes the investor of an equity instrument unable to take back its investment;
(f) Where the fair value of the equity instrument investment drops significantly or not contemporarily (which the fair value declined
of 50%) or not contemporarily (which the fair value constantly declined over than 9 months) etc.
For the methods of the impairment of the relevant accounts receivable, please refer to Notes V. 11. The methods of the impairment of
other financial assets are as follows:
– Held-to-maturity investments
Held-to-maturity investments are assessed for impairment on an individual basis.
An impairment loss in respect of a held-to-maturity investment is calculated as the excess of its carrying amount over the present
value of the estimated future cash flows (exclusive of future credit losses that have not been incurred) discounted at the original
effective interest rate. All impairment losses are recognized in profit or loss.
If, after an impairment loss has been recognized on held-to-maturity investments, there is objective evidence of a recovery in value of
the financial asset which can be related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss is reversed through profit or loss. The reversed carrying amount shall not be any more than the
post-amortization costs of the said financial asset on the day of reverse under the assumption that no provision is made for the
impairment.
– Available-for-sale financial assets
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BOE Technology Group Co., Ltd. Interim Report 2018
Available-for-sale financial assets are assessed for impairment on an individual and combination basis. When an available-for-sale
financial asset is impaired, the cumulative loss arising from a decline in fair value that has been recognized directly in equity is
removed from equity and recognized in profit or loss even though the financial asset has not been derecognized.
If, after an impairment loss has been recognized on an available-for-sale debt instrument, the fair value of the debt instrument
increases in a subsequent period and the increase can be objectively related to an event occurring after the impairment loss was
recognized, the impairment loss is reversed through profit or loss. An impairment loss recognized for an investment in an equity
instrument classified as available-for-sale is not reversed through profit or loss. However, for the investment on the equity
instruments without any quoted price among the active market with the fair value could not be reliable measured, should not be
reversed.
(5) Equity investments
After the consideration received from issuing the equity instruments by the Company deducted the transaction expenses, should be
recorded in the shareholders’ equities. To repurchase the consideration and transaction expenses paid for the equity instruments and
to decrease the shareholders’ equities.
When repurchasing the shares of the Company, those repurchased shares should be managed as the treasury stocks, and the whole
expenses should be transferred as the treasury stocks cost and at the same time executes the future reference registration. The treasury
stocks would not participate in the profits distribution and would be represented as the allowance items of the shareholders’ equities
among the sheet balance.
When executing the written-off of the treasury stocks, should decrease the share capital according to the total amount of the face
value of the stocks and for the part that the cost of the treasury stocks exceeds the total amount of the face value, should successively
write down the capital surplus (capital stock premium), earned surplus and retained earnings; for the cost of the treasury stocks less
than the total amount of the face value, the part that lower than the total amount of the face value should increase the capital surplus
(capital stock premium).
When transferring the treasury stocks, for the part of the revenues of the transfer that higher than the cost of the treasury stocks,
should increase the capital surplus (capital stock premium); for the part that lower than the cost of the treasury stocks, should
successively write down the capital surplus (capital stock premium), earned surplus and retained earnings.
(6) Convertible instruments
– Convertible instruments
For the convertible instruments issued by the Group which could be converted as the equity shares and when converting, the shares
number and the amount of the consideration are fixed, the Group consider which as the compound instruments that includes the
components of liabilities and equities.
When executing the initial recognition, the Group splits the relevant liabilities and equities and firstly recognizes the fair value of the
liabilities (including the fair value of the non-equity embedded derivative possibly included) then deducts the fair value of the
liabilities component from the fair value of the compound instruments as the value of the equities component as well as record which
in the equities component. The transaction expenses occurred from issuing the compound instruments, should amortize which
according to each proportion of the total issuance price between the liabilities component and the equities component.
After the initial recognition, for the liabilities component without appointed to be measured by fair value and to be recorded in the
current gains and losses with the changes, should be measured by the effective interest method according to the amortized cost. And
the equities component would not be remeasured after the initial measurement.
When converting the convertible instruments, the Group transfers the liabilities component and the equities component to the
relevant subjects. When the convertible instruments are redeemed, the price paid and the occurred transaction expenses should be
distributed to the equities and liabilities component. The methods of the distribution price and the transaction expenses are
unanimous with the distribution methods adopt when issuing the instruments. After the distribution of the price and transaction
expenses, for the differences between which and the book value of the equities component and between the book value of the
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BOE Technology Group Co., Ltd. Interim Report 2018
liabilities component, the part related to the equities component should be recorded in the equity while the part related to the
liabilities component should be recorded in the gains and losses.
– Other convertible instruments excluding the equities component
For the other convertible instruments excluding the equities component issued by the Group, when executing the initial recognition,
the derivative instruments component of the convertible instruments should be measured by fair value while the remained part should
be regarded as the initial recognized amount of the main debt instruments.
After the initial recognition, for the derivative instruments component, should be measured by fair value, and the gains or losses
formed from the changes of the fair value should be recorded in the current gains and losses. As for the main debt instruments,
should be measured by the effective interest rate according to the amortized cost.
When converting the convertible instruments, the Group transfers the main debt instruments and derivative instruments to the
relevant subjects. When the convertible instruments are redeemed, the deference between the paid price and the book value of the
main debt instruments as well as the derivative instruments should be recorded in the gains and losses.
11. Receivables
(1) Accounts Receivable with Significant Single Amount for which the Bad Debt Provision is Made
Individually
Definition or amount criteria for an account receivable with a
The single amount is more than RMB50,000,000.00
significant single amount
Making individual bad-debt provisions for accounts receivable
Impairment test is made individually
with a significant single amount
(2) Accounts Receivable which the Bad Debt Provision is Withdrawn by Credit Risk Characteristics
Name of portfolios Bad debt provision method
Credit Risk Characteristics Other method
In the groups, those adopting aging analysis method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, those adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, those adopting other methods to withdraw bad debt provision:
□Applicable √Not applicable
(3) Accounts Receivable with an Insignificant Single Amount but for which the Bad Debt Provision is Made
Independently
Reason for bad debt provision Lawsuits or deteriorative customers’ credit status
The lower one of the expected future receivable amount and
Withdrawal method
carrying value
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12. Inventory
Is the Company subject to any disclosure requirements for special industry?
No
(1) Classification and cost of inventories
Inventories include raw materials, work in progress, finished goods and reusable materials. Reusable materials include low-value
consumables, packaging materials and other materials, which can be used repeatedly but do not meet the definition of fixed assets.
Inventories are initially measured by the cost. Cost of inventories comprises all costs of purchase, costs of conversion and other costs.
Inventories are initially measured at their actual cost. In addition to the purchasing cost of raw materials, work in progress and
finished goods include direct labor costs and an appropriate allocation of production overheads.
(2) Pricing method for outgoing inventories
Cost of inventories is calculated using the weighted average method.
Revolving materials such as the low priced and easily worn articles and the packing materials should be amortized by adopting
one-time amortization method and be recorded in the cost of the relevant assets or the current gains and losses.
(3) Recognition basis of net realizable value and withdrawal method of depreciation reserves for inventories
On the balance sheet day, inventories are carried at the lower of cost and net realizable value.
Net realizable value is the estimated selling price in the normal course of business less the estimated costs to completion and the
estimated expenses and related taxes necessary to make the sale. The net realizable value of materials held for use in the production
of inventories is measured based on the net realizable value of the finished goods in which they will be incorporated. The net
realizable value of the quantity of inventory held to satisfy sales or service contracts is based on the contract price. If the quantities of
inventories specified in sales contracts are less than the quantities held by the Group, the net realizable value of the excess portion of
inventories shall be based on general selling prices.
Any excess of the cost over the net realizable value of each class of inventories is recognized as a provision for diminution in the
value of inventories, and then recorded into current profit or loss.
(4) Inventory system for inventories:
The Group maintains a perpetual inventory system.
13. Assets Held for Sale
The Group should divide the non-current assets (or the disposal group, that is an asset group concurrently be disposed through selling
or other methods as an entirety in a transaction and the liabilities directly related to the assets from the transfer among the transaction,
the same below )which simultaneously meet with the following conditions as the assets held for sale.
– The assets could be immediately sold only according to the usual terms of selling this kind of assets under the current condition;
– The Group had made resolutions on disposing the assets;
– The Group had signed the irrevocable assignment agreement with the transferees; and the transfer will be completed within 1 year.
When the non-current assets be divided as assets held for sale, the Group measures the non-current assets held for sale, deferred
income tax assets and the investment properties be follow-up measured by the fair value mode according to the lower one between
the book value and the fair value after deducting the net amount of the disposal expenses, while the deference that the book value
higher than the fair value which deducted the disposal expenses should be recognized as the impairment losses of the assets.
The fixed assets and intangible assets be divided as assets held for sale and the investment properties be follow-up measured by the
cost mode would not be withdrawn, depreciated or amortized, while the long-term equity investment be divided as assets held for
sale that measured by equity method should cease the equity method measurement.
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14. Long-term Equity Investments
(1) Recognition of the investment cost of the long-term equity investment
(a) Investments in subsidiaries
– The initial investment cost of a long-term equity investment obtained through a business combination involving entities under
common control is the Company’s share of the subsidiary’s equity at the combination date. The difference between the initial
investment cost and the carrying amounts of the consideration given is adjusted to share premium in capital reserve. If the balance of
the share premium is insufficient, any excess is adjusted to retained earnings. For the long-term equity investment of the subsidiaries
formed from the enterprise merger under the same control that realized step by step of the multiple transaction not belong to package
deal, the Company would adjust the capital stock premium among the capital surplus according to the difference between the initial
investment cost of the long-term equity investment recognized according to the above principles and the sum of the book value of the
long-term equity investment before reaching the merger and the book value of the newly paid consideration which be further
received on the merger date, and if the balance of the share premium is insufficient, any excess is adjusted to retained earnings.
– For other long-term equity investment obtained through entities not under common control, the fair values, on the acquisition date,
of the assets given, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control on
the acquiree shall be recognized as initial investment cost of the long-term equity investment. For long-term equity investment
obtained through a business combination involving entities not under common control by two or more transactions and by several
steps, the initial investment cost is recognized as the aggregation of the carrying value of acquirees’ equity investment before the
acquisition date held by the Company and newly investment cost at the acquisition date.
(b) Long-term equity investments acquired otherwise than through a business combination
– An investment in a subsidiary acquired otherwise than through a business combination is initially recognized at initial investment
cost if the Group acquires the investment by cash, or at the fair value of the equity securities issued if an investment is acquired by
issuing equity securities, or at the value stipulated in the investment contract or agreement if an investment is contributed by
shareholders.
(2) Subsequent measurement and recognition of profits or losses of the long-term equity investment
(a) Investments in subsidiaries
In the Company’s financial statements, investments in subsidiaries are accounted for using the cost method, unless the investment is
classified as held for sale. Cash dividends or profit distributions declared by subsidiaries and attributed to the Company shall be
recognized as investment income, without dividing whether it’s the net profit realized by the investee before the investment or after
the investment, except those that have been declared but unpaid at the time of acquisition and therefore included in the price paid or
consideration.
The investment into the subsidiaries is stated at cost less impairment losses in the balance sheet.
In the Group’s consolidated financial statements, investments in subsidiaries are accounted for in accordance with the principles.
(b) Investment in jointly controlled enterprises and associates
The joint enterprise refers to an arrangement that the Group and other joint operation parties execute jointly control and only enjoy
the rights of their own net assets.
An associate is an enterprise over which the Group has significant influence.
Upon the subsequent measurement, an investment in a jointly controlled enterprise or an associate is accounted for using the equity
method, unless the investment is classified as held for sale.
The Group makes the following accounting treatments when using the equity method:
– Where the initial investment cost of a long-term equity investment exceeds the Group’s interest in the fair value of the investee’s
identifiable net assets at the date of acquisition, the investment is initially recognized at the initial investment cost. Where the initial
investment cost is less than the Group’s interest in the fair value of the investee’s identifiable net assets at the date of acquisition, the
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investment is initially recognized at the investor’s share of the fair value of the investee’s identifiable net assets, and the difference is
charged to profit or loss.
– After the acquisition of the investment, the Group recognizes its share of the investee’s net profits or losses after deducting the
amortization of the debit balance of equity investment difference, which was recognized by the Group before the first-time adoption
of CAS, as investment income or losses, and adjusts the carrying amount of the investment accordingly. The debit balance of the
equity investment difference is amortized using the straight-line method over a period which is determined in accordance with
previous accounting standards. Once the investee declares any cash dividends or profits distributions, the carrying amount of the
investment is reduced by that attributable to the Group. As for the other changes of the owners’ equities except for the net gains and
losses, other comprehensive income and profits distribution of the joint ventures or associated enterprises (hereinafter referred to as
“changes of other owners’ equities”), the Group included which in the shareholders’ equities according to the portion ought to be
enjoyed or shared, and at the same time adjust the book value of the long-term equity investment.
– The Group recognizes its share of the investee’s net profits or losses, other comprehensive income and changes of other owners’
equities after making appropriate adjustments to align the accounting policies or accounting periods with those of the Group based on
the fair values of the investee’s identifiable net assets at the date of acquisition. Unrealized profits and losses resulting from
transactions between the Group and its associates or jointly controlled enterprises are eliminated to the extent of the Group’s interest
in the associates or jointly controlled enterprises. Unrealized losses resulting from transactions between the Group and its associates
or jointly controlled enterprises are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of
impairment.
– The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equity
investment and any long-term interest that in substance forms part of the Group’s net investment in the associate or the jointly
controlled enterprise is reduced to zero, except to the extent that the Group has an obligation to assume additional losses. Where net
profits are subsequently made by the associate or jointly controlled enterprise, the Group resumes recognizing its share of those
profits only after its share of the profits equals the share of losses not recognized.
(3) The basis for determination of joint control or significant influence over investee enterprise
Joint control refers to the control jointly owned on certain arrangement according to relevant agreement and the relevant activities of
the arrangement (which are the activities cause significant influences on the arrangement) could only execute the decision-making
through the unanimous consent of the parties sharing control.
The following evidences shall be considered when determining whether the Group can exercise joint control over an investee:
No single venture is in a position to control the operating activities unilaterally;
Operating decisions relating to the investee’s economic activity require the unanimous consent of the parties sharing control.
Significant influence is the power to participate in the financial and operating policy decisions of an investee but is not control or
joint control over those policies.
15. Investment Real Estates
Measurement model of investment real estate
Measurement of cost method
Depreciation and amortization method
An investment property is a property held either to earn rental income or for capital appreciation or both. After deducting the
estimated net salvage and accumulative impairment provision of the cost by the Group, the investment property is depreciated or
amortized using the straight-line method over its estimated useful life, unless the investment property is classified as held for sale.
The useful lives and estimated residual values as well as annual depreciation rate of each class of investment property are as follows:
Useful life (years) Residual value rate (%) Annual depreciation rate (%)
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Land use rights 32 - 50 years 0.0% 2.0% - 3.1%
House and buildings 25 - 40 years 3.0% - 10.0% 2.3% - 3.9%
16. Fixed Assets
(1) Conditions for Recognition
Fixed assets represent the tangible assets held by the Group for use in the production of goods or supply of services for rental to
others or for operation and administrative purposes with useful lives over one year. The cost of a purchased fixed asset comprises the
purchase price, related taxes, and any directly attributable expenditure for bringing the asset to working condition for its intended use.
The cost of self-constructed assets is measured in accordance with the policy set out in Note V. 17. Where parts of an item of fixed
assets have different useful lives or provide benefits to the Group in different patterns thus necessitating use of different depreciation
rates or methods, each part is recognized as a separate fixed asset. The subsequent costs, including the cost of replacing part of an
item of fixed assets, are recorded into fixed asset cost when the economic interests related to costs may flow into the Group, and the
carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of fixed assets are recognized in profit or
loss as incurred. Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses.
(2) Depreciation Methods
Expected net salvage
Category of fixed assets Method Useful life Annual deprecation
value
Average method of
Workshops and buildings 10-50 years 3%-10% 1.8%-9.7%
useful life
Average method of
Equipments 2-20 years 0-10% 4.5%-50%
useful life
Average method of
Others 2-10 years 0-10% 9.0%-50%
useful life
The Group will made the provision for depreciation of fixed assets by average method of useful life within the useful life after
deducting the expected net salvage and accumulated impairment provision from fixed assets’ costs, unless the fixed asset is classified
into held for sale.
The Group rechecks the useful life, expected net salvage, and depreciation method of fixed assets at least the end of each year.
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
On the begin date of the lease term, the financing leased assets of the Group should be recorded in the entry value according to the
lower one between the fair value of the leasing assets and the net value of the minimum lease payment, and the minimum lease
payment should be regarded as the entry value of the long-term account payable with the difference be recognized as the
unrecognized financial charges. The Group records the initial direct costs of the financial lease in the leased assets value. If it is
reasonable to be certain that the lessee will obtain the ownership of the leased assets when the lease term expires, the leased assets
shall be fully depreciated within the available age limit. Otherwise, the leased assets shall be fully depreciated over the shorter one of
the lease term or its available age limit. The Group amortizes the unrecognized financial charges by the effective interest rate method
within each period during the lease term and manages according to the principles of the borrowing costs. On the balance sheet date,
the Group will respectively list the difference from the long-term account payable related to the finance lease minuses the
unrecognized financial charges as the long-term liabilities and the long-term liabilities due within 1 year.
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17. Construction in Progress
(1) Categories of construction in progress
The enterprise’s self-constructed fixed asset includes self construction and contract construction. The cost of the self-constructed
fixed asset including the engineering materials, direct labor, borrowing expenses met with the capitalization condition and the
necessary expenses happened before the assets reach the expected available state.。
(2) Standards and time of transferring construction in progress into fixed asset
When the self-constructed fixed asset reaches the available state, should transfer into the fixed assets, before which should be listed
among the construction in progress and not withdraw the depreciation.
(3) Impairment test method and withdrawal method for impairment provision of construction in progress
If any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of an
asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash
flows. An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash
inflows from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification
of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows
from other assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s
operations and how management makes decisions about continuing or disposing of the Group’s assets. An asset’s fair value less costs
to sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less the costs that are directly
attributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discounting
future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,
the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged
to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment
losses related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group
or set of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata
basis. However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs
to sell (if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
18. Borrowing Costs
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs of the Company incurred directly attributable to the acquisition, construction of a qualifying asset are capitalized as
part of the cost of the asset.
(2) Capitalization period of borrowing costs
The capitalizations period is the period from the date of commencement of capitalization of borrowing costs to the date of cessation
of capitalization, excluding any period over which capitalization is suspended. When the capital expenses and the borrowing
expenses had happened and the necessary purchasing and construction activity which was for leading the capital to reach the
expected available state had began, the borrowing expenses had began capitalization.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization of
the borrowing costs shall be ceased. If each part of the qualified asset under acquisition and construction or production is constructed
and completed respectively, the Group shall determine the time of ceasing capitalization of the borrowing costs according to different
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situation.
Where each part of a qualified asset under acquisition and construction or production is completed separately and is ready for use or
sale during the continuing construction of other parts, and if the acquisition and construction or production activities which are
necessary to prepare this part of the asset for the intended use or sale have already been completed substantially, the capitalization of
the borrowing costs in relation to this part of asset shall be ceased. Because such part of asset has reached the expected condition of
use or sale.
(3) Period for suspending capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lasts
for more than 3 months, the capitalization of the borrowing costs shall be suspended.
(4) Calculation method of capitalized amount of borrowing costs
As for specifically borrowed loans for the acquisition and construction or production of assets eligible for capitalization, the
to-be-capitalized amount of interests shall be determined in light of the actual cost incurred of the specially borrowed loan at the
present period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or as a temporary
investment.
Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the
enterprise shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the
weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the
capitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined in light of the weighted
average interest rate of the general borrowing.
During the period of capitalization, the amount of interest capitalized during each accounting period shall not exceed the amount of
interest actually incurred to the relevant borrowings in the current period.
When the Group recognizes the effective interest rate of the borrowings, that means to discount the future cash flow of the
borrowings during the expected duration or the applicable shorter period to be the interest rate used of the recognized amount during
the initial recognition of the borrowings.
During the capitalization period, should capitalize the exchange differences of the principal and the interests of the Foreign currency
specific borrowings and record which in the cost of the assets that meet with the conditions of the capitalization. As for the exchange
differences from the principal and the interests of the other foreign currency borrowings except for the foreign currency specific
borrowings, should be regarded as the financial expenses and included in the current gains and losses.
19. Intangible Assets
(1) Pricing Method, Useful life and Impairment test
(a) Pricing method of intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where the estimated useful life is finite) and
impairment losses. For an intangible asset with finite useful life, its cost less residual value and impairment losses are amortized on
the straight-line method over its estimated useful life, unless the intangible assets are classified as held for sale.
(b) Estimated useful life of intangible assets with limited useful life
As for the intangible assets with limited useful life, after deducting the salvage of the cost and the impairment provision, the Group
amortized the intangible assets through straight line method within the expected service life, unless the intangible assets are classified
as held for sale.
Item Estimated useful life Basis
Land use rights 40-50 years Period stipulated by the Land Use Right Certificate
Special technology 9-20 years Period agreed in the contract or estimated to bring economic benefits for the Company
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Computer software 3-10 years Period agreed in the contract or estimated to bring economic benefits for the Company
Patent and others 5-10 years Period agreed in the contract or estimated to bring economic benefits for the Company
(c) Judgment basis of intangible assets with uncertain useful life
An intangible asset is regarded as having an indefinite useful life and is not amortized when there is no foreseeable limit to the period
over which the asset is expected to generate economic benefits for the Group. At the balance sheet date, the Group doesn’t have any
intangible assets with indefinite useful lives.
(d) Withdrawal of impairment provision of intangible assets
If any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of an
asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash
flows. An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash
inflows from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification of
an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from
other assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s
operations and how management makes decisions about continuing or disposing of the Group’s assets. An asset’s fair value less costs
to sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less the costs that are directly
attributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discounting
future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,
the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged
to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses
related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set
of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.
However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell
(if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
(2) Accounting Policies of Internal R & D Expenses
(a) Criteria of dividing the research phase and development phase of internal R&D project
Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and
understanding. Development is the application of research findings or other knowledge to a plan or design for the production of new
or substantially improved materials, devices, or products before the start of commercial production or use.
(b) Calculation of the expenditures of internal R&D project
Expenditures of internal R&D project of the Group divides into expenditures on the research phase and expenditures on the
development phase.
Expenditures on the research phase are recognized in profit or loss when incurred. Expenditures on the development phase are
capitalized if development costs can be measured reliably, the product or process is technically and commercially feasible, and the
Group intends to and has sufficient resources to complete development. Capitalized development costs are stated at cost less
impairment losses in the balance sheet. Other development expenditures are recognized as expenses in the period in which they are
incurred.
20. Impairment of Long-term Assets
The Group executes the impairment test on the assets with impairment indication and evaluates the recoverable amount of the assets.
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Besides, whether there is impairment indication, the Group will evaluate the recoverable amount of the goodwill at the year-end. The
Group will amortize the book value of the good according to the benefit situation in the synergistic effect from the enterprise merger
by the relevant assets group or the combination of the assets group and based on which executes the impairment test of the goodwill.
The recoverable amount of an asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present
value of expected future cash flows. An asset group is the smallest identifiable group of assets that generates cash inflows that are
largely independent of the cash inflows from other assets or asset groups. Fair value refers to the price received from selling an asset
or paid for transferring a liability in the orderly transaction on the measurement date by the market participants. When the Group
evaluating the fair value, should consider the characteristics when executing pricing of the relevant assets or liabilities on the
measurement date of the market participants (including the assets conditions and the location, the restrictions of the sales or use of
the assets and so on) as well as adopt the evaluation technology that applicable under the current circumstance and owns adequate
available data and supported by other information. The evaluation technology used mainly including the market method, equity
method and cost method.
An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows
from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification of an asset
group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from other
assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s operations and
how management makes decisions about continuing or disposing of the Group’s assets.
The present value of expected future cash flows of an asset is determined by discounting future cash flows, estimated to be derived
from continuing use of the asset and from its ultimate disposal, to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,
the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged
to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses
related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set
of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.
However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell
(if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
21. Amortization Method of Long-term Deferred Expenses
Long-term deferred expenses are amortized on a straight-line method within the benefit period:
Item Amortization period (years)
Cost of construction and use of public facilities 10-15 years
Cost of operating lease assets improvement 3-10 years
Others 2-10 years
22. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period of an employee' providing services, the Group recognizes the actual occurred or withdrawn worker
wages, bonuses and the social insurance charges such as the medical insurance premiums, industrial injury insurance premium and
birth insurance premium according to the specified benchmark and proportion as well as the housing funds as the liabilities and
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records which in the current gains and losses or the relevant asset costs.
(2) Accounting Treatment of the Welfare after Demission
Welfare after demission refers to the various of the compensation and welfare provided after the retirement of the employees or after
the labor relation relieved by the enterprise owning to not receiving the service provided by the employees, except for the short-term
compensation and the demission welfare. Specifically divided as defined contribution plans and defined benefit plans. The defined
contribution plans participated by the Group including: the basic endowment insurance and unemployment insurance among the
social security system set up and managed by the government institutions according to the requirements of the relevant Chinese
regulations of the employees of the Group and the corporation pension plan approved and set up by the relevant departments
according to the relevant policies of the state enterprise annuity system. The payment amount of the basic endowment insurance and
the unemployment insurance should be calculated according to the benchmark and the proportion stipulated by the nation. The
enterprise annuity should be withdrawn according to the certain proportion of the total amount of the worker wages of the employees
voluntarily participated in the pension plan. During the accounting period of the employees providing the service, the Company
recognizes the deposited amount as the liabilities and records in the current gains and losses or the relevant asset costs. The Group
not involved with any defined benefit plans.
(3) Accounting Treatment of the Demission Welfare
The Group relieves the labor relations with the employees before the maturity of the labor contracts or puts forward the advice for
compensation for encouraging the employees voluntarily accept the reduction, and recognizes the liabilities caused from the
demission welfare on the earlier date of the followings and at the same time records which in the current gains and losses:
When the Group could not unilaterally withdraw the demission welfare provided owning to the termination of the labor relations or
the reduction advice:
The Group owns specific and formal reorganization plan that concerning the payment of the demission welfare; and the time when
the reorganization plan had been executed or had announced the main content of the plan to the parties influenced by which, then led
all parties formed the rational expectations about the Group is going to execute the reorganization.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
The welfare of other long-term staffs refers to the all the employees compensation except for the short-term compensation, welfare
after demission and demission welfare, which including the long-term compensated absences, long-term sociability benefits and
long-term profit sharing plan and so on. The Group not involved with any other long-term employee's welfare.
23. Estimated Liabilities
(1) Criteria of estimated liabilities
A provision is recognized for an obligation related to a contingency if the Group has a present obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
(2) Measurement of estimated liabilities
The estimated liabilities should be executed the initial measurement according to the best estimated number needed to be spent when
caring out the relevant current obligations. As for those with significant influences on the time value of money, the estimated
liabilities should be confirmed according to the amount after the discount of the estimated future cash flow. When recognizing the
best estimated number, the Group comprehensively considers the factors such as the risks, uncertainty and the time value of money
related to the contingencies. There is a contiguous range of the needed expenses and the possibility of various results within the range
is the same and the best estimated number should be recognized according to the mediant within the range; under other circumstance,
the best estimated number should be handled respectively according to the following situations:
If the contingencies involve with a single item, should be recognized according to the most likely happened amount.
If the contingencies involve with various items, should be recognized according to the calculation of various possible results and
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the relevant probabilities.
The Group executes the reexamination of the book value of the estimated liabilities on the balance sheet date and adjusts the book
value according to the current best estimated number.
24. Revenue
Is the Company subject to any disclosure requirements of special industry?
No
Revenue is the gross inflow of economic benefit arising in the course of the Group’s ordinary activities when the inflows result in
increase in shareholder’s equity, other than increase relating to contributions from shareholders. Revenue is recognized in profit or
loss when it is probable that the revenue and costs can be measured reliably and the economic benefits will flow to the Group, and
the following respective conditions are met.
(1) Selling commodities
Revenue from sale of goods is recognized when all of the general conditions stated above and following conditions are satisfied:
– The significant risks and rewards of ownership of goods have been transferred to the buyer;
– The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control
over the goods sold.
Revenue from the sale of goods is measured at the fair value of the considerations received or receivable under the sales contract or
agreement.
The Group appointed different trading methods with buyers in the sales contract. The Company judges the main risks and time-point
of remuneration transfer according to trading methods and recognizes the income correspondingly.
(2) Providing labor services
The Group confirms amount of rendering services according to received or receivable contract or treaty.
In balance sheet date, if the outcome of labor services can be reliably estimated, revenue from rendering services shall be confirmed
by percentage-of-completion method, progress of rendering services shall be affirmed by measurement of finished works.
As for the outcome of labor services cannot be reliably estimated, if labor services expenses estimated can receive compensation,
revenue from rendering services shall be confirmed by labor services costs and carried down by the same amount; if labor services
expenses estimated cannot receive compensation, services costs shall be reckoned into current loss and gain and revenue from
providing labor services shall not be confirmed.
(3) Construction contract revenue
On balance sheet date, if the results of the construction contract could be reliable evaluated, the contract income and the contract
expenditure should be recognized according to the completion percentage method.
The Group recognized the progress of the contract completion according to the percentage of the accumulative actual happened
contract cost among the expected total contract cost.
If the result of the construction contract couldn’t be reliable evaluated, the Group should dispose according to the following situations
respectively:
If the contract cost could be returned, the contract income should be recognized according to the actual contract cost which could
be returned, and the contract cost should be recognized as contract expenditure during the period when happened;
If the contract cost could not be returned, should be recognized as contract expenditure at the time when happened, and not be
recognized as contract income.
(4) Interest revenue
Interest revenue is recognized according to the calculation of the time of lending monetary capital and the effective interest rate.
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BOE Technology Group Co., Ltd. Interim Report 2018
(5) Royalty revenue of the intangible assets
Royalty revenue of the intangible assets is recognized according to the charging time and methods agreed by the contracts or the
protocol.
25. Government Subsidies
(1) Judgment Basis and Accounting Treatment of Government Subsidies Related to Assets
If the Group first obtains government grants related to assets and then recognises the long-term assets purchased and constructed,
deferred income is included in profit and loss based on a reasonable and systematic approach by stages when related assets are
initially depreciated or amortized; or the deferred income is written off against the carrying amount of the asset when the asset
becomes ready for its intended status or intended use. If the Group obtains government grants related to the assets after relevant
long-term assets are put into use, deferred income is included in profit and loss based on a reasonable and systematic approach by
stages within the remaining useful life of relevant assets, or the deferred income is written off against the carrying amount of relevant
asset when the grants are obtained; the assets shall be depreciated or amortized based on the carrying amount after being offset and
the remaining useful life of relevant assets.
(2) Judgment Basis and Accounting Treatment of Government Subsidies Related to Profits
If they are used to compensate for related costs or losses of the Group in the future period, it shall be recognized as deferred income,
and included in profit and loss or used to offset related costs; otherwise it shall be directly included in profit and loss or used to offset
related costs.
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if the interest subsidy is appropriated to the
lending bank which shall provide loans to the Group at the policy-based preferential interest rate, the actual loan amount is used as
the entry value and relevant borrowing costs are calculated on the basis of the loan principal and the preferential interest rate. If the
interest subsidy is directly appropriated to the Group, relevant borrowing costs shall be offset by corresponding interest subsidy.
26. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Recognition basis of deferred income tax assets
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a difference
between the carrying amount of an asset or liability and its tax base (temporary difference). For any deductible loss that can be
carried forward to the next year to deduct the income tax according to the stipulations of tax law, relevant deferred income tax assets
shall be recognized. The deferred income tax asset shall be determined to the extent that the amount of taxable income to be offset by
the deductible loss or tax deduction to be likely obtained. For the deductible temporary difference relating to the investments of the
subsidiary companies, associated enterprises and joint enterprises, the enterprise shall recognize the corresponding deferred income
tax assets for those that meet the following requirements: the temporary differences are likely to be reversed in the expected future;
and it is likely to acquire any amount of taxable income that may be used for deducting the deductible temporary differences.
(2) Recognition basis of deferred income tax liabilities
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a difference
between the carrying amount of an asset or liability and its tax base (temporary difference). As for the temporary difference from the
initial recognition of goodwill, no deferred income tax liabilities shall be recognized. The taxable temporary differences relating to
the investments of subsidiary companies, associated enterprises and joint enterprises shall recognized as corresponding deferred
income tax liabilities, however, excluding those that simultaneously satisfy the following conditions: the investing enterprise can
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BOE Technology Group Co., Ltd. Interim Report 2018
control the time of the reverse of temporary differences; and the temporary differences are unlikely to reverse in the excepted future.
27. Lease
(1) Accounting Treatment of Operating Lease
Rental payments under operating leases are recognized as costs or expenses on a straight-line basis over the lease term.
Fixed assets leased out under operating leases, except for investment property (see Notes V. 16), are depreciated in accordance with
the Group’s depreciation policies described in Notes V. 20. Impairment losses are provided for in accordance with the accounting
policy. Income derived from operating leases is recognized in the income statement using the straight-line method over the lease term.
If initial direct costs incurred in respect of the assets leased out are material, the costs are initially capitalized and subsequently
amortized in profit or loss over the lease term on the same basis as the lease income. Otherwise, the costs are charged to profit or loss
immediately.
(2) Accounting Treatments of Financial Lease
When the Group acquires an asset under a finance lease, the asset is measured at an amount equal to the lower of its faire values and
the present value of the minimum lease payments, each determined at the inception of the lease. The minimum lease payments are
recorded as long-term payables. The difference between the value of the leased assets and the minimum lease payments is recognized
as unrecognized finance charges. Initial direct costs that are attributable to a finance lease incurred by the Group are added to the
amounts recognized for the leased asset. Depreciation and impairment losses are accounted for in accordance with the accounting
policies described in Notes V. 16 and Notes V. 20, respectively.
If there is reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term, the leased asset is
depreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter of the lease term and its
estimated useful life.
Unrecognized finance charge under finance lease is amortized using an effective interest method over the lease term. The
amortization is accounted for in accordance with policies of borrowing costs. At the balance sheet date, long-term payables arising
from finance leases, net of the unrecognized finance charges, are presented into long-term payables and non-current liabilities due
within one year, respectively in the balance sheet.
The economic essence of leaseback formed financial lease is mortgage loan. The Company takes the received financing as
borrowings to report, and conducts subsequent measurements for long-term accounts payable according to amortized costs by
effective interest method.
28. Other Significant Accounting Policies and Estimates
(1) Related parties
If a party has the power to control, jointly control or exercise significant influence over another party, or vice versa, or where two or
more parties are subject to common control, joint control, or significant influence from another party, they are considered to be
related parties. Related parties may be individuals or enterprises. Enterprises with which the Company is under common control only
from the State and that have no other related party relationships are not regarded as related parties of the Group. Related parties of the
Group and the Company include, but are not limited to:
(a) the Company’s parent
(b) the Company’s subsidiaries
(c) enterprises that are controlled by the Company’s parent
(d) investors that have joint control or over exercise significant influence over the Group
(e) enterprise or individuals if a party has control, joint control or significant influence over both the enterprises or individuals and
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BOE Technology Group Co., Ltd. Interim Report 2018
the Group
(f) joint ventures of the Group, including subsidies of joint ventures
(g) associates of the Group, including subsidies of associates
(h) principal individual investors and close family members of such individuals
(i) key management personnel of the Group and close family members of such individuals
(j) key management personnel of the Company’s parent
(k) close family members of key management personnel of the Company’s parent; and
(l) other enterprises that are jointly controlled or significantly influenced by principal individual investors, key management
personnel of the Group, and close family members of such individuals.
Besides the related parties stated above determined in accordance with the requirements of CAS, the following enterprises and
individuals are considered as (but not restricted to) related parties based on the disclosure requirements of “Administrative
Procedures on the Information Disclosures of Listed Companies” issued by the CSRC:
(m) enterprises, or persons that act in concert, that hold 5% or more of the Company’s shares
(n) individuals and close family members of such individuals who directly or indirectly hold 5% or more of the Company’s shares
(o) enterprises that satisfy any of the aforesaid conditions in (a), (c) and (m) during the past 12 months or will satisfy them within the
next 12 months pursuant to a relevant agreement
(p) individuals who satisfy any of the aforesaid conditions in (i), (j) and (n) during the past 12 months or will satisfy them within the
next 12 months pursuant to a relevant agreement; and
(q) enterprises, other than the Company and subsidiaries controlled by the Company, which are controlled directly or indirectly by an
individual defined in (i), (j), (n) or (p), or in which such an individual assumes the position of a director or senior executive.
29. Changes in Critical Accounting Policies and Accounting Estimates
(1) Changes in Critical Accounting Policies
□ Applicable √ Not applicable
(2) Changes in Critical Accounting Estimates
□ Applicable √ Not applicable
30. Others
Naught
VI. Taxation
1. Main Taxes and Tax Rate
Category of taxes Tax basis Tax rate
Output VAT is calculated on product sales and
taxable services revenue, based on tax laws. The
VAT remaining balance of output VAT, after subtracting 6%, 10%, 11%, 16%, 17%
the deductible input VAT of the period, is VAT
payable.
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BOE Technology Group Co., Ltd. Interim Report 2018
Consumption tax No Naught
Based on VAT payable and the VAT tax free for the
City maintenance and construction tax 7%, 5%
Period
Enterprise income tax Based on taxable revenue 15%-25%
Education surcharge and local education Based on VAT payable and the VAT tax free for the
3%, 2%
surcharge Period
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
According to the new tax law, except for the following tax benefits for certain subsidiaries and local tax rates for overseas
subsidiaries, the tax rate for all the other entities within the Group is 25%.
Name Income tax rate
BOE Technology Group Co., Ltd. 15%
Beijing BOE Optoelectronics Technology Co., Ltd. 15%
Chengdu BOE Optoelectronics Technology Co., Ltd. 15%
Hefei BOE Optoelectronics Technology Co., Ltd. 15%
Beijing BOE Display Technology Co., Ltd. 15%
Hefei Xinsheng Optoelectronics Technology Co., Ltd. 15%
Erdos Yuansheng Optoelectronics Co., Ltd. 15%
Chongqing BOE Optoelectronics Technology Co., Ltd. 15%
BOE (Hebei) Mobile Display Technology Co., Ltd. 15%
BOE Optical Science and Technology Co., Ltd. 15%
Beijing BOE Tea Valley Electronic Co., Ltd. 15%
Xiamen BOE Electronic Co., Ltd. 15%
Hefei BOE Display Light Source Co., Ltd. 15%
Chongqing BOE Display Lighting Co., Ltd. 15%
Beijing BOE Dedicated Display Technology Co., Ltd. 15%
Beijing BOE Vacuum Electronics Co., Ltd. 15%
Beijing BOE Vacuum Technology Co., Ltd. 15%
Beijing BOE Semi-conductor Co., Ltd. 15%
Hefei BOE Semi-conductor Co., Ltd. 15%
Beijing Asahi Electron Material Co., Ltd. 15%
Beijing BOE Energy Technology Co., Ltd. 15%
Beijing BOE Multimedia Technology Co., Ltd. 15%
Varitronix (Heyuan) Display Technology Co., Ltd 15%
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BOE Technology Group Co., Ltd. Interim Report 2018
2. Tax Preference
Naught
3. Others
Naught
VII. Notes on Major Items in Consolidated Financial Statements of the Company
1. Monetary Funds
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 729,517.00 526,764.00
Bank deposits 43,048,946,319.00 47,912,760,611.00
Other monetary funds 7,532,234,587.00 9,215,372,201.00
Total 50,581,910,423.00 57,128,659,576.00
Of which: the total amount deposited in
4,359,724,940.00 3,341,984,398.00
overseas
Other notes
Of which: the total amount deposited in overseas was equivalent to RMB 4,359,724,940.
On 30 June 2018, the Company took RMB149,096,051 and US$49,729,540 (Y2017: RMB1,164,000,000 and US$ 60,159,875) of the
other monetary capital as the pledge for acquiring the short-term borrowings, and took RMB1,452,547,192 and US$18,500,000
(Y2017: RMB1,207,705,322 and USD$63,000,000) as the pledge for acquiring the long-term borrowings. The rest of the other
restricted monetary capital equivalent to RMB5,438,820,015, and they are mainly the margin deposits for security deposited in the
bank.
2. Derivative Financial Assets
□ Applicable √ Not applicable
3. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 533,255,633.00 824,873,475.00
Commercial acceptance bill 6,896,015.00 8,394,652.00
Total 540,151,648.00 833,268,127.00
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BOE Technology Group Co., Ltd. Interim Report 2018
(2) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Amount
Bank acceptance bill 77,761,441.00
Commercial acceptance bill 0.00
Total 77,761,441.00
(3) Notes Receivable which had Endorsed by the Company or had Discounted and had not Due on the
Balance Sheet Date at the Period-end
Unit: RMB
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
Bank acceptance bill 0.00 259,852,574.00
Commercial acceptance bill 0.00 0.00
Total 0.00 259,852,574.00
(4) Notes Transferred into Accounts Receivable by the Company Due to the Nonperformance of Drawer at
the Period-end
Unit: RMB
Item Amount
Commercial acceptance bill 0.00
Total 0.00
Other notes
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BOE Technology Group Co., Ltd. Interim Report 2018
4. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category
Withdrawal Carrying value Withdrawal Carrying value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts receivable with
significant single amount for
0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
which bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt provision
17,613,207,459.00 99.71% 265,952,428.00 1.51% 17,347,255,031.00 15,767,136,659.00 99.68% 262,640,383.00 1.67% 15,504,496,276.00
according to credit risks
characteristics
Accounts receivable with
insignificant single amount for
50,510,581.00 0.29% 41,732,583.00 82.62% 8,777,998.00 51,313,710.00 0.32% 42,046,734.00 81.94% 9,266,976.00
which bad debt provision
separately accrued
Total 17,663,718,040.00 100.00% 307,685,011.00 1.74% 17,356,033,029.00 15,818,450,369.00 100.00% 304,687,117.00 1.93% 15,513,763,252.00
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. Interim Report 2018
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
Name Accounts receivable Bad debt provision Withdrawal proportion
Credit risks characteristics 17,613,207,459.00 265,952,428.00 1.51%
(2) Accounts Receivable Withdrawn, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB510,083.00; the amount of the collected or reversed part during the Reporting Period was of
RMB153,235.00, among which the significant collected or reversed bad debt provision:
Unit: RMB
Name of the unit Amount Method
Naught
(3) The Actual Write-off Accounts Receivable
Unit: RMB
Item Amount
Customer 1 626,343.00
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BOE Technology Group Co., Ltd. Interim Report 2018
Among which the significant write-off accounts receivable:
Unit: RMB
Generated from
Performed write-off
Name of the unit Nature Amount Reasons connected
procedure
transactions or not
Naught
Notes for write-off accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected According to the Arrears Party
The total amount of the accounts receivable of the top 5 of the Group at the year-end was of RMB8,374,359,263.00 that covered
47.41%of the total amount of the closing balance of the accounts receivable at the year-end, which no need to withdraw the bad debt
provision after the assessment.
(5) Account Receivable which Terminate the Recognition owning to the Transfer of the Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continues Involvement of
Accounts Receivable
Naught
Other notes:
Naught
5. Prepayment
(1) List by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 699,829,606.00 92.64% 568,849,167.00 96.89%
1 to 2 years 53,019,337.00 7.02% 17,188,654.00 2.93%
2 to 3 years 1,651,885.00 0.22% 606,393.00 0.10%
Over 3 years 932,602.00 0.12% 482,537.00 0.08%
Total 755,433,430.00 -- 587,126,751.00 --
The reason why the prepayments with significant amount and aging over one year had not settled in time:
No such cases in the Reporting Period.
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BOE Technology Group Co., Ltd. Interim Report 2018
(2) Top 5 Prepayments in Ending Balance Collected according to the Prepayment Target
The total amount of the prepayment of the top 5 of the Group at the year-end was of RMB317,082,522.00 that covered 41.97%% of
the total amount of the closing balance of the prepayment at the year-end.
Other notes: Naught
6. Interest Receivable
(1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
Fixed time deposit 127,018,762.00 88,981,946.00
Entrusted loans 0.00 0.00
Bond investment 0.00 646,613.00
Total 127,018,762.00 89,628,559.00
(2) Significant Overdue Interest
Impairment occurred or
Borrowing unit Ending balance Time Reasons
not and its criterion
Naught
Other notes:
No such cases in the Reporting Period.
7. Dividend Receivable
(1) Dividend Receivable
Unit: RMB
Item (or investees) Ending balance Beginning balance
TPV Technology Co., Ltd 196,070.00 0.00
Beijing Electronic City Investment and
1,875,523.00 0.00
Development Group Co., Ltd.
Bank of Chongqing Co., Ltd. 2,973,010.00 0.00
New Century Medical Treatment Holdings
905,637.00 0.00
Co., Ltd
Total 5,950,240.00 0.00
112
BOE Technology Group Co., Ltd. Interim Report 2018
(2) Significant Dividend Receivable with Aging over 1 Year
Unit: RMB
Impairment occurred or not and its
Item (or investees) Ending balance Aging Reasons
criterion
Naught
Other notes:
No such cases in the Reporting Period.
8. Other Accounts Receivable
(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category
Withdrawal Carrying value Withdrawal Carrying value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Other accounts receivable with
significant single amount for
0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
which bad debt provision
separately accrued
Other accounts receivable
withdrawn bad debt provision
608,318,659.00 99.94% 0.00 0.00% 608,318,659.00 728,395,573.00 100.00% 0.00 0.00% 728,395,573.00
according to credit risks
characteristics
Other accounts receivable with
340,513.00 0.06% 340,513.00 100.00% 0.00 509,257.00 0.00% 509,257.00 100.00% 0.00
insignificant single amount for
113
BOE Technology Group Co., Ltd. Interim Report 2018
which bad debt provision
separately accrued
Total 608,659,172.00 100.00% 340,513.00 0.06% 608,318,659.00 728,904,830.00 100.00% 509,257.00 0.07% 728,395,573.00
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
√Applicable □ Not applicable
Name Other accounts receivable Bad debt provision Withdrawal proportion
Credit risks characteristics 608,318,659.00 0.00 0.00%
(2) Other Accounts Receivable Withdrawn, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB1,351.00; the amount of the collected or reversed part during the Reporting Period was of RMB0.00.
Among which the significant collected or reversed bad debt provision:
Unit: RMB
Name of the unit Amount Method
Naught
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BOE Technology Group Co., Ltd. Interim Report 2018
(3) Particulars of the Actual Write-off Other Accounts Receivable during the Reporting Period
Unit: RMB
Item Amount
Customer 170,097.00
Among which the significant write-off other accounts receivable:
Unit: RMB
Generated from
Performed write-off
Name of the unit Nature Amount Reasons connected
procedure
transactions or not
Naught
Notes for write-off other accounts receivable:
Naught
(4) Other Account Receivable Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
VAT refunds 5,501,516.00 179,152,619.00
Equity transfer fee of accounts receivable 200,000,000.00 200,000,000.00
Cash deposit and cash pledge 169,249,228.00 154,724,906.00
Others 233,908,428.00 195,027,305.00
Total 608,659,172.00 728,904,830.00
(5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of units Nature Ending balance Aging
other accounts bad debt provision
receivable
Equity transfer fee of
Customer 1 200,000,000.00 Over 3 years 32.86% 0.00
accounts receivable
Cash deposit and 2 to 3 years, over 3
Customer 2 47,500,000.00 7.80% 0.00
cash pledge years
Cash deposit and
Customer 3 42,951,050.63 Within one year 7.06% 0.00
cash pledge
Cash deposit and Within one year, 2 to
Customer 4 27,904,527.95 4.58% 0.00
cash pledge 3 years, over 3 years
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BOE Technology Group Co., Ltd. Interim Report 2018
Customer 5 Others 16,495,000.00 over 3 years 2.71% 0.00
Total -- 334,850,578.58 -- 55.01% 0.00
(6) Accounts Receivable Involved with Government Subsidies
Unit: RMB
Expected time, amount,
Name of units Name of the item Ending balance Ending aging
and basis
Naught
(7) Other Account Receivable which Terminate the Recognition owning to the Transfer of the Financial
Assets
Naught
(8) The Amount of the Assets and Liabilities Formed by the Transfer and the Continues Involvement of
Other Accounts Receivable
Naught
Other notes:
Naught
9. Inventory
(1) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Item Falling price Falling price
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Raw materials 3,925,352,967.00 326,185,834.00 3,599,167,133.00 3,663,568,064.00 312,167,170.00 3,351,400,894.00
Goods in process 1,248,534,575.00 102,717,184.00 1,145,817,391.00 1,442,250,856.00 130,466,876.00 1,311,783,980.00
Inventory goods 7,430,647,824.00 1,417,076,191.00 6,013,571,633.00 5,742,195,757.00 1,546,545,280.00 4,195,650,477.00
Turnover
175,081,350.00 95,285.00 174,986,065.00 99,620,537.00 736,507.00 98,884,030.00
materials
Consumptive
0.00 0.00 0.00 0.00 0.00 0.00
biological assets
Finished but
unsettled assets 0.00 0.00 0.00 0.00 0.00 0.00
generated from,
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BOE Technology Group Co., Ltd. Interim Report 2018
construction
contract
Total 12,779,616,716.00 1,846,074,494.00 10,933,542,222.00 10,947,635,214.00 1,989,915,833.00 8,957,719,381.00
Whether the Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information
Disclosure Guidelines No. 4 - Listed companies engaged in seed industry and planting business
No
(2) Falling Price Reserves of Inventory
Unit: RMB
Increased amount Decreased amount
Beginning
Item Reverse or Ending balance
balance Withdrawal Other Other
write-off
Raw materials 312,167,170.00 161,945,595.00 0.00 147,926,931.00 0.00 326,185,834.00
Goods in process 130,466,876.00 66,657,744.00 0.00 94,407,436.00 0.00 102,717,184.00
Inventory goods 1,546,545,280.00 618,491,746.00 0.00 747,960,835.00 0.00 1,417,076,191.00
Turnover
736,507.00 6,057.00 0.00 647,279.00 0.00 95,285.00
materials
Consumptive
0.00 0.00 0.00 0.00 0.00 0.00
biological assets
Finished but
unsettled assets
generated from, 0.00 0.00 0.00 0.00 0.00 0.00
construction
contract
Total 1,989,915,833.00 847,101,142.00 0.00 990,942,481.00 0.00 1,846,074,494.00
(3) Notes of the Ending Balance of the Inventory which Includes Capitalized Borrowing Expenses
Naught
(4) Completed but Unsettled Assets Resulting from Construction Contracts at the End of the Period
Unit: RMB
Item Amount
Completed but unsettled assets resulting from construction
0.00
contracts at the end of the period
Other notes:
Naught
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BOE Technology Group Co., Ltd. Interim Report 2018
10. Non-current Assets Due within One Year
Unit: RMB
Item Ending balance Beginning balance
Long-term accounts receivable due within
0.00 17,303,152.00
one year
Total 0.00 17,303,152.00
Other notes:
Naught
11. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
VAT retained 5,242,918,603.00 4,847,422,522.00
Input tax to be verified and deducted 2,089,392,625.00 1,198,408,412.00
Financial products 11,375,421,041.00 9,791,137,808.00
Other 222,296,108.00 87,465,236.00
Total 18,930,028,377.00 15,924,433,978.00
Other notes:
Naught
12. Available-for-sale Financial Assets
(1) List of Available-for-sale Financial Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserves amount reserves
Available-for-sale debt
11,553,581.00 0.00 11,553,581.00 14,912,146.00 0.00 14,912,146.00
instruments:
Available-for-sale equity
915,749,687.00 150,279,655.00 765,470,032.00 995,266,865.00 150,279,655.00 844,987,210.00
instruments:
Measured at fair
567,486,122.00 150,099,655.00 417,386,467.00 662,938,045.00 150,099,655.00 512,838,390.00
value
Measured at cost 348,263,565.00 180,000.00 348,083,565.00 332,328,820.00 180,000.00 332,148,820.00
1,010,179,011.0
Total 927,303,268.00 150,279,655.00 777,023,613.00 150,279,655.00 859,899,356.00
0
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BOE Technology Group Co., Ltd. Interim Report 2018
(2) Available-for-sale Financial Assets at Fair Value at the Period-end
Unit: RMB
Available-for-sale equity Available-for-sale debt
Category Total
instrument instrument
Cost of the equity
instruments/amortized cost of 555,840,180.00 11,765,553.00 567,605,733.00
the liabilities instruments
Fair value 417,386,467.00 11,553,581.00 428,940,048.00
Changes amount of the fair
value accumulatively recorded 11,645,942.00 -211,972.00 11,433,970.00
in other comprehensive income
Withdrawn impairment amount 150,099,655.00 0.00 150,099,655.00
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BOE Technology Group Co., Ltd. Interim Report 2018
(3) Available-for-sale Financial Assets at Cost at the Period-end
Unit: RMB
Carrying amount Depreciation reserve Shareholding
proportion Current
Investee
Period-beginning Increase Decrease Period-end Period-beginning Increase Decrease Period-end among the cash bonus
investees
Teralane
Semiconductor 11,868,000.00 0.00 0.00 11,868,000.00 0.00 0.00 0.00 0.00 7.29% 0.00
Inc
Zhejiang BOE
Display
321,256.00 0.00 0.00 321,256.00 0.00 0.00 0.00 0.00 7.03% 0.00
Technology Co.,
Ltd.
Zhejiang
Qiusheng
Optoelectronics 248,776.00 0.00 0.00 248,776.00 0.00 0.00 0.00 0.00 5.09% 0.00
Technology Co.,
Ltd.
Meta Company 32,670,951.00 411,999.00 0.00 33,082,950.00 0.00 0.00 0.00 0.00 5.66% 0.00
Danhua Capital,
24,503,250.00 309,000.00 0.00 24,812,250.00 0.00 0.00 0.00 0.00 5.48% 0.00
L.P.
Danhua Capital
34,304,550.00 13,665,800.00 0.00 47,970,350.00 0.00 0.00 0.00 0.00 3.29% 0.00
II,L.P.
Beijing Digital
TV National
6,250,000.00 0.00 0.00 6,250,000.00 0.00 0.00 0.00 0.00 12.50% 0.00
Engineering
Laboratory Co.,
120
BOE Technology Group Co., Ltd. Interim Report 2018
Ltd.
Kateeva Inc. 78,051,019.00 984,268.00 0.00 79,035,287.00 0.00 0.00 0.00 0.00 3.51% 0.00
DEPICTINC. 13,068,400.00 164,800.00 0.00 13,233,200.00 0.00 0.00 0.00 0.00 22.20% 0.00
MOOVINC. 26,244,971.00 330,964.00 0.00 26,575,935.00 0.00 0.00 0.00 0.00 6.48% 0.00
ZGLUEINC. 9,801,289.00 123,600.00 0.00 9,924,889.00 0.00 0.00 0.00 0.00 6.00% 0.00
Nanosys INC 49,006,500.00 618,000.00 0.00 49,624,500.00 0.00 0.00 0.00 0.00 3.33% 0.00
Ceribell INC 8,494,453.00 107,120.00 0.00 8,601,573.00 0.00 0.00 0.00 0.00 3.81% 0.00
Baebies INC 28,709,230.00 362,039.00 0.00 29,071,269.00 0.00 0.00 0.00 0.00 11.59% 0.00
Illumina Fund,
5,605,265.00 1,857,168.00 0.00 7,462,433.00 0.00 0.00 0.00 0.00 2.14% 0.00
L.P.
Fabord Ltd. 910.00 0.00 13.00 897.00 0.00 0.00 0.00 0.00 10.30% 0.00
Hefei Xinjing 3,000,000.00 0.00
Electronic
3,000,000.00 0.00 0.00 0.00 0.00 0.00 15.00% 0.00
Materials Co.,
Ltd.
Other 180,000.00 0.00 0.00 180,000.00 180,000.00 0.00 0.00 180,000.00 0.00
Total 332,328,820.00 18,934,758.00 3,000,013.00 348,263,565.00 180,000.00 0.00 0.00 180,000.00 -- 0.00
(4) Changes of the Impairment of the Available-for-sale Financial Assets during the Reporting Period
Unit: RMB
Category Available-for-sale equity instruments Available-for-sale debt instruments Total
Withdrawn impairment balance at the
150,279,655.00 0.00 150,279,655.00
period-beginning
Withdrawn amount of the period 0.00 0.00 0.00
121
BOE Technology Group Co., Ltd. Interim Report 2018
Of which: transferred from other
0.00 0.00 0.00
comprehensive income
Decreased in the period 0.00 0.00 0.00
Of which: recovered and reversed amount of
0.00 0.00 0.00
the fair value after the period
Withdrawn impairment balance at the
150,279,655.00 0.00 150,279,655.00
period-end
(5) Explanations on Available-for-sale Equity Instruments with Serious or Non-transient Decline in Fair Value of the Period-end but without Provisions for
Impairment
Unit: RMB
Available-for-sale equity Decline ratio of fair value Duration of sustained Amount of provisions for Reason for no provisions
Investment cost Fair value of period-end
instrument to cost decline (month) impairment withdrawn for impairment
Naught
Other notes:
Naught
13. Held-to-maturity Investments
(1) List of Investment Held-to-maturity
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Depreciation reserves Carrying value Carrying amount Depreciation reserves Carrying value
Convertible bonds for
17,960,946.00 17,960,946.00 0.00 17,960,946.00 17,960,946.00 0.00
HYDIS Technology
122
BOE Technology Group Co., Ltd. Interim Report 2018
Total 17,960,946.00 17,960,946.00 0.00 17,960,946.00 17,960,946.00 0.00
(2) Significant Held-to-maturity Investments at the Period-end
Unit: RMB
Item Par value Coupon rate Actual interest rate Maturity date
None
(3) Held-to-maturity Investments Reclassified in the Reporting Period
Naught
Other notes:
Naught
14. Long-term Equity Investment
Unit: RMB
Increase/decrease
Gains and
Adjustment of Cash bonus Withdrawal Ending balance
Beginning losses
Investees Additional Reduced other Changes of or profits of Ending balance of depreciation
balance recognized Other
investment investment comprehensive other equity announced to impairment reserve
under the
income issue provision
equity method
I. Joint ventures
Beijing BOE
Yiyun
3,763,783.00 0.00 0.00 -2,943,687.00 0.00 0.00 0.00 0.00 0.00 820,096.00 0.00
Technology
Co., Ltd.
123
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Wuhan BOE
Optoelectronics 91,590,309.00 750,000,000.00 0.00 569,162.00 0.00 0.00 0.00 0.00 0.00 842,159,471.00 0.00
Co., Ltd.
Mianyang BOE
Optoelectronics 2,698,378,093.00 0.00 0.00 -1,526,010.00 0.00 0.00 0.00 0.00 -2,696,852,083.00 0.00 0.00
Co., Ltd.
Subtotal 2,793,732,185.00 750,000,000.00 0.00 -3,900,535.00 0.00 0.00 0.00 0.00 -2,696,852,083.00 842,979,567.00 0.00
II. Associated enterprises
Beijing Nissin
Electronics
Precision 0.00 0.00 0.00 780,003.00 0.00 2,424,598.00 0.00 0.00 0.00 3,204,601.00 0.00
Component
Co., Ltd.
Beijing Nittan
Electronics 53,786,835.00 0.00 0.00 4,982,517.00 0.00 0.00 -3,000,000.00 0.00 0.00 55,769,352.00 0.00
Co., Ltd.
Beijing Yingfei
Hailin Venture
Capital 373,361.00 0.00 0.00 -338,738.00 0.00 0.00 0.00 0.00 0.00 34,623.00 0.00
Management
Co., Ltd.
Ordos BOE
Energy
Investment
907,458,312.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 907,458,312.00 537,136,972.00
Co., Ltd. (BOE
Energy
Investment)
Beijing Fly 137,448,451.00 0.00 0.00 24,387.00 0.00 0.00 0.00 0.00 0.00 137,472,838.00 0.00
124
BOE Technology Group Co., Ltd. Interim Report 2018
Hailin
Investment
Center
TPV Display
Technology
27,190,533.00 0.00 0.00 -1,304,414.00 0.00 0.00 0.00 0.00 0.00 25,886,119.00 0.00
(China) Co.,
Ltd.
Beijing
Xindong Neng
Investment 1,472,249,231.00 150,000,000.00 0.00 -5,997,801.00 0.00 0.00 0.00 0.00 0.00 1,616,251,430.00 0.00
Fund (limited
partnership)
Beijing
Xindong Neng
Investment 4,861,735.00 0.00 0.00 806,640.00 0.00 0.00 -2,000,000.00 0.00 0.00 3,668,375.00 0.00
Management
Co., Ltd.
Shenzhen
Yunyinggu
35,483,897.00 0.00 0.00 -11,959,303.00 0.00 0.00 0.00 0.00 0.00 23,524,594.00 0.00
Technology
Co., Ltd.
Beijing
Xiaolong
23,981,997.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23,981,997.00 0.00
Technology
Co., Ltd.
NewOn
Technology 3,708,174.00 0.00 0.00 0.00 31,942.00 0.00 0.00 0.00 0.00 3,740,116.00 0.00
Co., Ltd.
125
BOE Technology Group Co., Ltd. Interim Report 2018
CnogaMedical
326,710,000.00 0.00 0.00 0.00 4,120,000.00 0.00 0.00 0.00 0.00 330,830,000.00 0.00
Ltd.
SES-imagotag 1,675,160,676.00 0.00 0.00 -11,976,016.00 0.00 0.00 0.00 0.00 -1,663,184,660.00 0.00 0.00
Chongqing
BOE Display
3,846,000.00 0.00 0.00 -695,319.00 0.00 0.00 0.00 0.00 0.00 3,150,681.00 0.00
Technology
Co., Ltd.
Hefei Xinjing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,000,000.00 3,000,000.00 0.00
Electronic
Materials Co.,
Ltd.
Subtotal 4,672,259,202.00 150,000,000.00 0.00 -25,678,044.00 4,151,942.00 2,424,598.00 -5,000,000.00 0.00 -1,660,184,660.00 3,137,973,038.00 537,136,972.00
Total 7,465,991,387.00 900,000,000.00 0.00 -29,578,579.00 4,151,942.00 2,424,598.00 -5,000,000.00 0.00 -4,357,036,743.00 3,980,952,605.00 537,136,972.00
Other notes
126
BOE Technology Group Co., Ltd. Interim Report 2018
15. Investment Property
(1) Investment Property Adopted the Cost Measurement Mode
√ Applicable □ Not applicable
Unit: RMB
Item Houses and buildings Land use right Construction in progress Total
I. Original carrying value
1. Beginning balance 991,566,471.00 675,597,667.00 0.00 1,667,164,138.00
2. Increased amount of
599,382.00 3,548,681.00 0.00 4,148,063.00
the period
(1) Outsourcing 0.00 3,548,681.00 0.00 3,548,681.00
(2) Transfer from
inventory\fixed
599,382.00 0.00 0.00 599,382.00
assets\construction in
progress
(3) Enterprise
0.00 0.00 0.00 0.00
combination increase
3. Decreased amount of
0.00 0.00 0.00 0.00
the period
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 0.00 0.00 0.00 0.00
4. Ending balance 992,165,853.00 679,146,348.00 0.00 1,671,312,201.00
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 258,094,437.00 112,407,496.00 0.00 370,501,933.00
2. Increased amount of
9,703,810.00 13,035,688.00 0.00 22,739,498.00
the period
(1) Withdrawal or
9,703,810.00 13,035,688.00 0.00 22,739,498.00
amortization
3. Decreased amount of
0.00 0.00 0.00 0.00
the period
(1) Disposal 0.00 0.00 0.00 0.00
127
BOE Technology Group Co., Ltd. Interim Report 2018
(2) Other transfer 0.00 0.00 0.00 0.00
4. Ending balance 267,798,247.00 125,443,184.00 0.00 393,241,431.00
III. Depreciation reserves 0.00 0.00 0.00 0.00
1. Beginning balance 0.00 0.00 0.00 0.00
2. Increased amount of
0.00 0.00 0.00 0.00
the period
(1) Withdrawal 0.00 0.00 0.00 0.00
3. Decreased amount of
0.00 0.00 0.00 0.00
the period
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 0.00 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00 0.00
IV. Carrying value
1. Ending carrying value 724,367,606.00 553,703,164.00 0.00 1,278,070,770.00
2. Beginning carrying
733,472,034.00 563,190,171.00 0.00 1,296,662,205.00
value
(2) Investment Property Adopted the Fair Value Measurement Mode
√ Applicable □ Not applicable
(3) Investment Property with Certificate of Title Uncompleted
Unit: RMB
Item Carrying value Reason
None
Other notes
16. Fixed Assets
(1) List of Fixed Assets
Unit: RMB
Item Houses and buildings Equipment Other Total
I. Original carrying value
128
BOE Technology Group Co., Ltd. Interim Report 2018
1. Beginning balance 26,638,824,007.00 111,488,454,005.00 2,106,778,047.00 140,234,056,059.00
2. Increased amount of
241,344,874.00 2,381,177,426.00 461,551,131.00 3,084,073,431.00
the period
(1) Purchase 18,222,097.00 102,146,771.00 228,681,551.00 349,050,419.00
(2) Transfer from
224,370,903.00 1,690,650,461.00 233,020,902.00 2,148,042,266.00
construction in progress
(3) Enterprise
0.00 580,992,189.00 529,193.00 581,521,382.00
combination increase
(2) Differences arising
from translation of
foreign -1,248,126.00 7,388,005.00 -680,515.00 5,459,364.00
currency-denominated
financial statements
3. Decreased amount of
781,469.00 295,601,637.00 24,439,514.00 320,822,620.00
the period
(1) Disposal or Scrap 781,469.00 295,601,637.00 24,439,514.00 320,822,620.00
(2) off-set by government
0.00 0.00 0.00 0.00
discount
4. Ending balance 26,879,387,412.00 113,574,029,794.00 2,543,889,664.00 142,997,306,870.00
II. Accumulative
depreciation
1. Beginning balance 3,366,248,795.00 46,632,776,416.00 936,024,333.00 50,935,049,544.00
2. Increased amount of 418,984,868.00 5,894,219,444.00 288,728,682.00 6,601,932,994.00
the period
(1) Withdrawal 420,541,892.00 5,889,215,791.00 289,450,174.00 6,599,207,857.00
(2) Differences arising
from translation of
foreign -1,557,024.00 5,003,653.00 -721,492.00 2,725,137.00
currency-denominated
financial statements
3. Decreased amount of
559,485.00 162,194,944.00 18,646,921.00 181,401,350.00
the period
(1) Disposal or Scrap 559,485.00 162,194,944.00 18,646,921.00 181,401,350.00
4. Ending balance 3,784,674,178.00 52,364,800,916.00 1,206,106,094.00 57,355,581,188.00
III. Depreciation reserves
1. Beginning balance 1,085,094.00 663,639,306.00 8,985,354.00 673,709,754.00
2. Increased amount of 0.00 0.00 0.00 0.00
129
BOE Technology Group Co., Ltd. Interim Report 2018
the period
(1) Withdrawal 0.00 0.00 0.00 0.00
3. Decreased amount of
0.00 10,198,259.00 1,676,510.00 11,874,769.00
the period
(1) Disposal or Scrap 0.00 10,198,259.00 1,676,510.00 11,874,769.00
4. Ending balance 1,085,094.00 653,441,047.00 7,308,844.00 661,834,985.00
IV. Carrying value
1. Ending carrying value 23,093,628,140.00 60,555,787,831.00 1,330,474,726.00 84,979,890,697.00
2. Beginning carrying
23,271,490,118.00 64,192,038,283.00 1,161,768,360.00 88,625,296,761.00
value
(2) Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Provisions for
Item Carrying value Note
value depreciation impairment
None
(3)Fixed Assets Leased in by Financing Lease
Unit: RMB
Accumulated Provisions for
Item Original carrying value Carrying value
depreciation impairment
Workshops and buildings 11,291,665.00 4,230,161.00 0.00 7,061,504.00
(4) Fixed Assets Leased out by Operating Lease
Unit: RMB
Item Ending carrying value
None
(5) List of Fixed Assets with Certificate of Title Uncompleted
Unit: RMB
Item Carrying value Reason
None
Other notes:Naught
130
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17. Construction in Progress
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
The 6th Generation
LTPS/AMOLED Production 4,190,946,691.00 0.00 4,190,946,691.00 0.00 0.00 0.00
Line Project of Mianyang
The 8.5th Generation TFT-LCD
Project of Hefei Xinsheng and 760,569,417.00 0.00 760,569,417.00 638,162,030.00 0.00 638,162,030.00
the touch screen project
AM-OLED Project of
7,860,174,016.00 0.00 7,860,174,016.00 7,412,766,659.00 0.00 7,412,766,659.00
Yuansheng Optoelectronics
The 8.5th Generation New
Type Semiconductor Display 299,298,447.00 0.00 299,298,447.00 390,652,498.00 0.00 390,652,498.00
Device Project of Fuzhou
The 6th Generation
LTPS/AMOLED Production 27,664,755,269.00 0.00 27,664,755,269.00 19,099,729,823.00 0.00 19,099,729,823.00
Line Project of Chengdu
The 10.5th Generation TFT-LCD
28,640,758,854.00 0.00 28,640,758,854.00 19,778,218,499.00 0.00 19,778,218,499.00
Project of Hefei BOE Display
Other 4,486,652,617.00 0.00 4,486,652,617.00 3,441,720,917.00 0.00 3,441,720,917.00
Total 73,903,155,311.00 0.00 73,903,155,311.00 50,761,250,426.00 0.00 50,761,250,426.00
131
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(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Proportion of Of which: Capitalization
Other accumulated Accumulated amount of rate of interests
Transferred in fixed Job Capital
Item Budget Beginning balance Increased amount decreased Ending balance investment in amount of interest capitalized for the
assets schedule resources
amount constructions capitalization interests for the Reporting
to budget Reporting Period Period
The 6th Generation
LTPS/AMOLED Self-owned
Production Line 44,700,000,000.00 0.00 4,430,742,562.00 239,795,871.00 0.00 4,190,946,691.00 9.91% 9.91% 0.00 0.00 0.00% capital,
Project of borrowings
Mianyang
The 8.5th
Generation
TFT-LCD Project Self-owned
30,987,000,000.00 638,162,030.00 723,205,123.00 600,797,736.00 0.00 760,569,417.00 85.43% 85.43% 0.00 0.00 0.00%
of Hefei Xinsheng capital
and the touch
screen project
Self-owned
AM-OLED
capital,
Project of
20,020,000,000.00 7,412,766,659.00 447,407,357.00 0.00 0.00 7,860,174,016.00 88.61% 88.61% 319,929,732.00 102,873,663.00 4.94% borrowings
Yuansheng
and raised
Optoelectronics
funds
The 8.5th
Generation New
Self-owned
Type 26,985,000,000.00 390,652,498.00 508,512,696.00 599,866,747.00 0.00 299,298,447.00 80.37% 80.37% 0.00 0.00 0.00%
capital
Semiconductor
Display Device
132
BOE Technology Group Co., Ltd. Interim Report 2018
Project of
Fuzhou
The 6th Generation
LTPS/AMOLED Self-owned
Production Line 44,800,000,000.00 19,099,729,823.00 8,660,745,968.00 95,720,522.00 0.00 27,664,755,269.00 62.46% 62.46% 442,436,715.00 270,474,016.00 3.72% capital,
Project of borrowings
Chengdu
The 10.5th
Generation Self-owned
TFT-LCD Project 42,937,000,000.00 19,778,218,499.00 8,990,684,297.00 128,118,404.00 25,538.00 28,640,758,854.00 68.62% 68.62% 476,479,986.00 298,107,826.00 4.95% capital,
of Hefei BOE borrowings
Display
Other 4,000,000,000.00 3,441,720,917.00 1,875,870,880.00 570,209,063.00 260,730,117.00 4,486,652,617.00 0.00% 0.00% 0.00 0.00 0.00% --
Total 214,429,000,000.00 50,761,250,426.00 25,637,168,883.00 2,234,508,343.00 260,755,655.00 73,903,155,311.00 -- -- 1,238,846,433.00 671,455,505.00 0.00% --
(3) Provisions for Impairment of Construction in Progress during the Reporting Period
Unit: RMB
Item Withdrawal amount Withdrawal reason
None
Other notes
Naught
133
BOE Technology Group Co., Ltd. Interim Report 2018
18. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent Patent right and
Item Land use right Patent right Computer software Other Total
technologies proprietary technology
I. Original carrying value
1. Beginning balance 1,822,280,424.00 0.00 0.00 776,387,468.00 1,744,517,311.00 343,837,159.00 4,687,022,362.00
2. Increased amount of the
334,175,304.00 0.00 0.00 397,944,051.00 1,037,199,599.00 1,006,105,571.00 2,775,424,525.00
period
(1) Purchase 298,264,724.00 0.00 0.00 40,663,685.00 0.00 5,306,700.00 344,235,109.00
(2) Internal R&D 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Business combination
0.00 0.00 0.00 331,589,412.00 1,037,199,599.00 1,000,798,871.00 2,369,587,882.00
increase
(4) Transferred from
35,910,580.00 0.00 0.00 25,690,954.00 0.00 0.00 61,601,534.00
construction in progress
3. Decreased amount of the
0.00 0.00 0.00 2,852,819.00 3,222,600.00 96,525.00 6,171,944.00
period
(1) Disposal 0.00 0.00 0.00 2,852,819.00 2,682,847.00 96,525.00 5,632,191.00
(2) Off-set by government
0.00 0.00 0.00 0.00 539,753.00 0.00 539,753.00
discount
4. Ending balance 2,156,455,728.00 0.00 0.00 1,171,478,700.00 2,778,494,310.00 1,349,846,205.00 7,456,274,943.00
II. Accumulated
amortization
1. Beginning balance 178,337,119.00 0.00 0.00 443,322,429.00 1,024,064,866.00 58,633,640.00 1,704,358,054.00
134
BOE Technology Group Co., Ltd. Interim Report 2018
2. Increased amount of the
27,420,368.00 0.00 0.00 45,191,498.00 159,598,355.00 30,893,191.00 263,103,412.00
period
(1) Withdrawal 27,420,368.00 0.00 0.00 45,191,498.00 159,598,355.00 30,893,191.00 263,103,412.00
3. Decreased amount of the 1,467,304.00 1,510,740.00
0.00 0.00 0.00 0.00 43,436.00
period
(1) Disposal 0.00 0.00 0.00 1,467,304.00 0.00 43,436.00 1,510,740.00
4. Ending balance 205,757,487.00 0.00 0.00 487,046,623.00 1,183,663,221.00 89,483,395.00 1,965,950,726.0000
III. Depreciation reserves
1. Beginning balance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Increased amount of the
0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
(1) Withdrawal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Decreased amount of the
0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
(1) Disposal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV. Carrying value
1. Ending carrying value 1,950,698,241.00 0.00 0.00 684,432,077.00 1,594,831,089.00 1,260,362,810.00 5,490,324,217.00
2. Beginning carrying value 1,643,943,305.00 0.00 0.00 333,065,039.00 720,452,445.00 285,203,519.00 2,982,664,308.00
The proportion of intangible assets generated from the internal R&D of the Company to the balance of intangible assets at the period-end:
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BOE Technology Group Co., Ltd. Interim Report 2018
(2) Land Use Right with Certificate of Title Uncompleted
Unit: RMB
Item Carrying value Reason
None
Other notes:
Naught
19. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the invested units or
Beginning balance Increase Decrease Ending balance
events generating goodwill
Beijing Yinghe Century Co., Ltd. 42,940,434.00 0.00 0.00 42,940,434.00
Gaochuang (Suzhou) Electronics
8,562,464.00 0.00 0.00 8,562,464.00
Co., Ltd.
Beijing BOE Optoelectronics
4,423,876.00 0.00 0.00 4,423,876.00
Technology Co., Ltd.
BOE Health Investment
Management Co., Ltd. 146,460,790.00 0.00 0.00 146,460,790.00
SES-imagotag SA 0.00 643,515,357.00 0.00 643,515,357.00
Total 202,387,564.00 643,515,357.00 0.00 845,902,921.00
(2) Provisions for Impairment of Goodwill
Unit: RMB
Name of the invested units or events
Beginning balance Increase Decrease Ending balance
generating goodwill
Beijing BOE Optoelectronics
4,423,876.00 0.00 0.00 4,423,876.00
Technology Co., Ltd.
Total 4,423,876.00 0.00 0.00 4,423,876.00
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses: refer to
V-22.
Other notes
Naught
136
BOE Technology Group Co., Ltd. Interim Report 2018
20. Long-term Prepaid Expense
Unit: RMB
Amortization Other decreased
Item Beginning balance Increased amount Ending balance
amount of the period amount
Cost of construction
and use of public 113,443,013.00 0.00 7,685,112.00 0.00 105,757,901.00
facilities
Cost of operating
lease assets 18,931,332.00 814,786.00 3,063,656.00 1,235,810.00 15,446,652.00
improvement
Other 247,455,085.00 59,239,067.00 41,274,523.00 3,409,075.00 262,010,554.00
Total 379,829,430.00 60,053,853.00 52,023,291.00 4,644,885.00 383,215,107.00
Other notes
Naught
21. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for impairment
392,411,066.00 69,770,938.00 404,563,258.00 72,783,228.00
of assets
Internal unrealized profit 0.00 0.00 0.00 0.00
Deductable losses 49,169,587.00 8,112,982.00 48,749,683.00 8,043,698.00
Differences of
depreciation and 80,006,688.00 12,068,128.00 79,460,328.00 11,970,733.00
amortization
Evaluation increment of
investment in
144,887,737.00 36,221,934.00 147,664,660.00 36,916,165.00
subsidiaries with
immovable property
Other 247,726,069.00 76,197,949.00 34,900,387.00 8,725,096.00
Total 914,201,147.00 202,371,931.00 715,338,316.00 138,438,920.00
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BOE Technology Group Co., Ltd. Interim Report 2018
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Asset evaluation
increment of business
2,978,929,592.00 905,698,017.00 1,099,980,193.00 272,308,392.00
combination not under
the same control
Changes in fair value of
available-for-sale 63,006,116.00 10,173,377.00 104,026,120.00 16,326,379.00
financial assets
Depreciation of fixed
1,562,028,347.00 278,957,792.00 1,246,406,521.00 213,674,259.00
assets
Changes in fair value of
26,036,062.00 6,265,152.00 41,137,810.00 9,457,398.00
financial products
Long-term equity
360,863,027.00 54,129,454.00 360,863,027.00 54,129,454.00
investment
Bond interest 71,532,513.00 10,729,877.00 71,532,514.00 10,729,877.00
Other 207,416,470.00 47,202,488.00 204,034,820.00 18,860,414.00
Total 5,269,812,127.00 1,313,156,157.00 3,127,981,005.00 595,486,173.00
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off amount of Ending balance of Mutual set-off amount of Beginning balance of
deferred income tax deferred income tax deferred income tax deferred income tax
Item
assets and liabilities at assets or liabilities after assets and liabilities at assets or liabilities after
the period-end off-set the period-begin off-set
Deferred income tax
26,030,262.00 176,341,669.00 32,183,263.00 106,255,657.00
assets
Deferred income tax
26,030,262.00 1,287,125,895.00 32,183,263.00 563,302,910.00
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary difference 8,120,859,667.00 7,974,238,271.00
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BOE Technology Group Co., Ltd. Interim Report 2018
Deductible losses 2,938,053,910.00 1,888,693,158.00
Total 11,058,913,577.00 9,862,931,429.00
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Years Ending amount Beginning amount Notes
Y2018 0.00 113,247,077.00 Naught
Y2019 38,076,038.00 173,165,457.00 Naught
Y2020 254,477,362.00 643,475,666.00 Naught
Y2021 72,140,922.00 307,160,037.00 Naught
Y2022 624,985,743.00 651,644,921.00 Naught
Y2023 1,229,143,452.00 0.00 Naught
Y2024 125,649,690.00 0.00 Naught
Y2025 270,633,391.00 0.00 Naught
Y2026 151,127,450.00 0.00 Naught
Y2027 33,987,260.00 0.00 Naught
Y2028 137,832,602.00 0.00 Naught
Total 2,938,053,910.00 1,888,693,158.00 --
Other notes:
Naught
22. Other Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Prepayment for construction 412,367,194.00 289,231,537.00
Prepayment for procurement of fixed
1,123,338,,342.00 2,062,240,060.00
assets
Excess VAT paid 678,221,399.00 321,022,343.00
The VAT collection of imported equipment 2,760,599,110.00 1,401,435,788.00
Other 146,018,681.00 115,837,526.00
Total 5,120,544,726.00 4,189,767,254.00
Other notes:
Naught
139
BOE Technology Group Co., Ltd. Interim Report 2018
23. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledge loans 321,065,277.00 2,480,485,209.00
Mortgage loans 503,864,760.00 0.00
Guaranteed loans 0.00 0.00
Credit loans 1,388,501,417.00 769,251,221.00
Total 2,213,431,454.00 3,249,736,430.00
Notes:
Naught
(2) Overdue and Outstanding Short-term Borrowings
The total overdue and outstanding short-term borrowings was RMB 0.00, of which, the significant ones were listed as follows:
Unit: RMB
Unit Ending balance Loan interest rate Overdue time Overdue charge rate
None
Other notes:
Naught
24. Derivative Financial Assets
□ Applicable √ not applicable
25. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
Trade acceptance 60,854,120.00 61,946,524.00
Bank’s acceptance bill 777,953,997.00 481,852,311.00
Total 838,808,117.00 543,798,835.00
The total overdue and outstanding notes payable at the period-end were RMB0.00.
140
BOE Technology Group Co., Ltd. Interim Report 2018
26. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Accounts payable of connected parties 37,815,960.00 14,532,494.00
Accounts payable of the Third-party 18,965,802,782.00 16,191,256,204.00
Total 19,003,618,742.00 16,205,788,698.00
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
None
Other notes:Naught
27. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Advances from customers of connected
94,816.00 141,921.00
parties
Advances from customers of the 991,253,718.00
781,182,601.00
third-party
Total 991,348,534.00 781,324,522.00
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
None
(3) Uncompleted but Settled Items Resulting from Construction Contracts at the Period-end
Unit: RMB
Item Amount
Accumulated incurred cost 0.00
141
BOE Technology Group Co., Ltd. Interim Report 2018
Accumulated recognized gross margin 0.00
Less: estimated losses 0.00
Settlement amount 0.00
Completed but unsettled items resulting from construction
0.00
contracts
Other notes:
Naught
28. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 2,167,235,414.00 4,761,856,668.00 5,749,073,849.00 1,180,018,233.00
II. Post-employment
benefit-defined 34,854,644.00 392,413,685.00 401,421,513.00 25,846,816.00
contribution plans
III. Termination benefits 14,976,886.00 2,771,149.00 2,944,569.00 14,803,466.00
IV. Other benefits due
0.00 0.00 0.00 0.00
within one year
Total 2,217,066,944.00 5,157,041,502.00 6,153,439,931.00 1,220,668,515.00
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus, 3,931,820,440.00 4,899,453,759.00 873,290,231.00
1,840,923,550.00
allowance, subsidy
2. Employee welfare 0.00 312,141,173.00 312,141,173.00 0.00
3. Social insurance 33,561,796.00 193,457,969.00 200,523,654.00 26,496,111.00
Of which: 1. Medical
30,110,821.00 168,629,565.00 175,539,320.00 23,201,066.00
insurance premiums
Work-related injury
1,419,661.00 15,662,530.00 15,542,326.00 1,539,865.00
insurance
Maternity insurance 2,031,314.00 9,165,874.00 9,442,008.00 1,755,180.00
4. Housing fund 17,201,305.00 183,010,929.00 189,955,571.00 10,256,663.00
5. Labor union budget 246,372,990.00 112,330,790.00 110,790,450.00 247,913,330.00
142
BOE Technology Group Co., Ltd. Interim Report 2018
and employee education
budget
6. Short-term
0.00 0.00 0.00 0.00
compensated absence
7. Short-term
0.00 0.00 0.00 0.00
profit-sharing plan
8. Employee bonus and
7,282,591.00 0.00 0.00 7,282,591.00
welfare fund
9. Other short-term
21,893,182.00 29,095,367.00 36,209,242.00 14,779,307.00
salary
Total 2,167,235,414.00 4,761,856,668.00 5,749,073,849.00 1,180,018,233.00
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 28,831,475.00 377,209,161.00 381,297,440.00 24,743,196.00
2. Unemployment
1,155,250.00 10,573,264.00 10,962,175.00 766,339.00
insurance
3. Annuity 4,867,919.00 4,631,260.00 9,161,898.00 337,281.00
Total 34,854,644.00 392,413,685.00 401,421,513.00 25,846,816.00
Other notes:
Naught
29. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 10,636,352.00 7,384,437.00
Consumption tax 0.00 0.00
Corporate income tax 242,884,069.00 501,685,626.00
Personal income tax 36,679,115.00 41,968,486.00
Urban maintenance and construction tax 100,515,062.00 84,932,308.00
Education surcharge and local education
72,548,497.00 61,375,167.00
surcharge
Other 75,143,130.00 78,275,122.00
Total 538,406,225.00 775,621,146.00
Other notes:Naught
143
BOE Technology Group Co., Ltd. Interim Report 2018
30. Interest Payable
Unit: RMB
Item Ending balance Beginning balance
Long-term loan interest of installment
payment of interest and repay the due 715,968,277.00 588,644,439.00
capital
Enterprise bond interest 88,027,397.00 10,196,348.00
Interest paid for short-term borrowings 17,960,400.00 248,914,285.00
Interest of preferred shares/perpetual bonds
0.00 0.00
classified as financial liabilities
Other 48,414.00 200,114.00
Total 822,004,488.00 847,955,186.00
Significant overdue and outstanding interests:
Unit: RMB
Entity Overdue amount Overdue reason
None
Other notes:Naught
31. Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 12,477,033.00 9,651,170.00
Dividends of preferred shares/perpetual
0.00 0.00
bonds classified as equity instruments
Other 0.00 0.00
Total 12,477,033.00 9,651,170.00
Other notes, including the reason for unpayment of significant dividends payable unpaid for over one year:
There was no significant dividends payable unpaid for over one year for the Company at the period-end.
32. Other Accounts Payable
(1) Other Accounts Payable Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Engineering and equipment 12,850,648,032.00 12,772,388,210.00
144
BOE Technology Group Co., Ltd. Interim Report 2018
The VAT collection of imported equipment 1,173,528,620.00 675,815,849.00
Margin 477,601,296.00 380,789,096.00
Pre-withdrawal water and electricity &
577,875,154.00 430,803,905.00
logistics freight
External agency fee 30,752,046.00 34,108,132.00
Other 815,039,255.00 970,901,582.00
Total 15,925,444,403.00 15,264,806,774.00
(2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
None
Other notes:Naught
33. Non-current Liabilities Due within 1 Year
Unit: RMB
Item Ending balance Beginning balance
Long-term loans due within 1 year 6,112,967,339.00 8,930,400,434.00
Bonds payable due within 1 year 0.00 0.00
Long-term accounts payable due within 1
289,805,557.00 179,308,077.00
year
Total 6,402,772,896.00 9,109,708,511.00
Other notes :Naught
34. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Short-term bonds payable 0.00 0.00
Quality assurance deposit 989,909,665.00 716,491,628.00
Other 39,616,637.00 14,217,962.00
Total 1,029,526,302.00 730,709,590.00
145
BOE Technology Group Co., Ltd. Interim Report 2018
Increase or decrease in short-term bonds payable:
Unit: RMB
Issued in Withdrawal Amortization Repayment
Bond Issuing Issuing Beginning the of interest of premium in the Ending
Par value Duration
name date amount balance Current by par and Reporting balance
Period value depreciation Period
None
Other notes :
Naught
35. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledge loan 1,011,995,075.00 1,607,709,300.00
Mortgage loan 59,910,293,799.00 52,708,750,433.00
Guaranteed loan 1,248,852,510.00 0.00
Credit loan 21,090,502,830.00 24,657,173,277.00
Total 83,261,644,214.00 78,973,633,010.00
Notes of the category of long-term borrowings:
Naught
Other notes, including the interest rate range:
Naught
36. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item Ending balance Beginning balance
In 2016, BOE Technology Group Co., Ltd.
public issued Corporate bond to the qualify 9,971,424,165.00 9,966,467,496.00
investors (Phase I)
Total 9,971,424,165.00 9,966,467,496.00
146
BOE Technology Group Co., Ltd. Interim Report 2018
(2) Increase/Decrease of Bonds Payable (Excluding Other Financial Instruments Classified as Financial Liabilities such as Preferred Shares and Perpetual
Bonds)
Unit: RMB
本期发 按面值计提利
债券名称 面值 发行日期 债券期限 发行金额 期初余额 溢折价摊销 本期偿还 期末余额
行 息
In 2016, BOE
5 years (Attached end
Technology Group
of 3 years, the issuer
Co., Ltd. public
100.00 2016.03.21 increase coupon rate 10,000,000,000.00 9,966,467,496.00 0.00 0.00 4,956,669.00 0.00 9,971,424,165.00
issued Corporate
option and investors
bond to the qualify
selling back options
investors (Phase I)
Total -- -- -- 10,000,000,000.00 9,966,467,496.00 0.00 0.00 4,956,669.00 0.00 9,971,424,165.00
37. Long-term Accounts Payable
(1) Long-term Accounts Payable Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Financing lease 1,717,181,735.00 1,355,559,059.00
Less: financing lease due within one year 289,805,557.00 179,308,077.00
Total 1,427,376,178.00 1,176,250,982.00
Other notes
Naught
147
BOE Technology Group Co., Ltd. Interim Report 2018
38. Provisions
Unit: RMB
Item Ending balance Beginning balance Formed reason
External guaranty 0.00 0.00 Naught
Pending litigation 0.00 0.00 Naught
Product quality assurance 0.00 0.00 Naught
Restructuring obligations 0.00 0.00 Naught
Onerous contracts to be executed 0.00 0.00 Naught
In 2009, the Group ceased producing several products and stopped
fulfilling the purchase contract related to production. Due to the indemnity
Other 16,457,010.00 16,457,010.00
incurred accordingly, the Group withdrew the relevant estimated liabilities
according to reasonable estimation of losses.
Total 16,457,010.00 16,457,010.00 --
Other notes, including significant assumptions and estimation related to significant provisions:
Naught
39. Deferred Income
Unit: RMB
Item Beginning balance Increase Decrease Ending balance Formed reason
Government subsidies 2,261,955,307.00 6,778,832,385.00 863,384,188.00 8,177,403,504.00 Government subsidies
Total 2,261,955,307.00 6,778,832,385.00 863,384,188.00 8,177,403,504.00 --
Item involving government subsidies:
Unit: RMB
Item Beginning balance Amount of newly Amount recorded Amount recorded Amount offset cost Other changes Ending balance Related to
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BOE Technology Group Co., Ltd. Interim Report 2018
subsidy into non-operating into other income in in the Reporting assets/related
income in the Reporting Period Period income
Reporting Period
The 6th Generation
LTPS/AMOLED
125,930,000.00 0.00 0.00 0.00 0.00 0.00 125,930,000.00 Related to assets
Production Line
Project of Chengdu
The 8.5th Generation
TFT-LCD Project of
Hefei Xinsheng and 152,182,718.00 0.00 0.00 18,385,701.00 0.00 0.00 133,797,017.00 Related to assets
the touch screen
project
The 5.5th Generation
LTPS and
AMOLED Project 181,111,113.00 0.00 0.00 6,666,665.00 0.00 0.00 174,444,448.00 Related to assets
of Yuansheng
Optoelectronics
The 10.5th
Generation
369,744,100.00 0.00 0.00 0.00 0.00 0.00 369,744,100.00 Related to assets
TFT-LCD Project of
Hefei BOE Display
The 6th Generation
TFT-LCD Project of 14,285,715.00 0.00 0.00 3,571,429.00 0.00 0.00 10,714,286.00 Related to assets
Hefei BOE Display
The 8.5th Generation
TFT-LCD Project of
139,190,696.00 0.00 0.00 8,368,821.00 0.00 0.00 130,821,875.00 Related to assets
Chongqing BOE
Display
149
BOE Technology Group Co., Ltd. Interim Report 2018
The 8.5th Generation
TFT-LCD Project of 93,761,903.00 0.00 0.00 51,142,855.00 0.00 0.00 42,619,048.00 Related to assets
BOE Display
Other asset-related
government 952,120,708.00 6,617,402,803.00 620,589.00 645,935,878.00 0.00 5,259,286.00 6,917,707,758.00 Related to assets
subsidies
Other
income-related
233,628,354.00 161,429,582.00 2,919,695.00 120,513,269.00 0.00 0.00 271,624,972.00 Related to income
government
subsidies
Total 2,261,955,307.00 6,778,832,385.00 3,540,284.00 854,584,618.00 0.00 5,259,286.00 8,177,403,504.00 --
Other notes:
Naught
40. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Convertible creditor's right 4,080,403,620.00 3,985,192,661.00
Equity investment with redemption items 3,670,971,836.00 3,629,616,046.00
The VAT collection of imported equipment 2,760,599,110.00 1,401,435,788.00
Other 186,467,258.00 114,000,000.00
Total 10,698,441,824.00 9,130,244,495.00
Other notes:
Naught
150
BOE Technology Group Co., Ltd. Interim Report 2018
41. Share Capital
Unit: RMB
Increase/decrease (+/-)
Item Beginning balance Bonus issue from Ending balance
New shares issued Bonus shares Other Subtotal
profit
The sum of shares 34,798,398,763.00 0.00 0.00 0.00 0.00 0.00 34,798,398,763.00
Other notes:
Naught
42. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium (premium on stock) 37,546,517,053.00 0.00 0.00 37,546,517,053.00
Other capital reserves 1,038,998,069.00 2,424,598.00 343,178,364.00 698,244,303.00
Total 38,585,515,122.00 2,424,598.00 343,178,364.00 38,244,761,356.00
Other notes, including notes to increase and decrease during the Reporting Period and the reasons for changes:
Naught
43. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
None
Total 0.00 0.00
Other notes, including notes to increase and decrease during the Reporting Period and the reasons for changes: Naught
151
BOE Technology Group Co., Ltd. Interim Report 2018
44. Other Comprehensive Income
Unit: RMB
Reporting Period
Less: recorded in
other comprehensive Attributable to
Income before Attributable to
Item Beginning balance income in prior period Less: Income tax owners of the Ending balance
taxation in the non-controlling
and transferred in expense Company as the
Current Period interests after tax
profit or loss in the parent after tax
Current Period
I. Other comprehensive income that will not be
0.00 0.00 0.00 0.00 0.00 0.00 0.00
reclassified to profit or loss
Of which: Changes in net liabilities or assets caused by
0.00 0.00 0.00 0.00 0.00 0.00 0.00
remeasurements on defined benefit pension schemes
Share of other comprehensive income of
investees that will not be reclassified to profit or loss 0.00 0.00 0.00 0.00 0.00 0.00 0.00
under equity method
II. Other comprehensive income that may subsequently
150,602,933.00 -38,975,590.00 194,426,731.00 -10,132,925.00 -238,286,517.00 15,017,121.00 -87,683,584.00
be reclassified to profit or loss
Of which: Share of other comprehensive income of
investees that will be reclassified to profit or loss under 144,614,667.00 0.00 0.00 0.00 0.00 0.00 144,614,667.00
equity method
Gain/Loss on changes in fair value of
120,396,369.00 77,993,404.00 182,208,434.00 -10,132,925.00 -91,055,052.00 -3,027,053.00 29,341,317.00
available-for-sale financial assets
Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale 0.00 0.00 0.00 0.00 0.00 0.00 0.00
financial assets
152
BOE Technology Group Co., Ltd. Interim Report 2018
Effective gain/loss on cash flow hedges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Differences arising from translation of foreign
-114,408,103.00 -116,968,994.00 12,218,297.00 0.00 -147,231,465.00 18,044,174.00 -261,639,568.00
currency-denominated financial statements
Total other comprehensive income 150,602,933.00 -38,975,590.00 194,426,731.00 -10,132,925.00 -238,286,517.00 15,017,121.00 -87,683,584.00
Other notes, including the note to the adjustment of the initial recognition amount of hedged item transferred from the effective gain/loss on cash flow hedges:
Naught
45. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus reserves 599,969,166.00 0.00 0.00 599,969,166.00
Discretionary surplus reserves 289,671,309.00 0.00 0.00 289,671,309.00
Reserve fund 0.00 0.00 0.00 0.00
Enterprise expansion fund 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00
Total 889,640,475.00 0.00 0.00 889,640,475.00
Notes to surplus reserves, including the note to increase and decrease in the Reporting Period and the reason for changes:
Naught
153
BOE Technology Group Co., Ltd. Interim Report 2018
46. Retained Profits
Unit: RMB
Item Reporting Period Same period of last year
Opening balance of retained profits before
10,385,659,084.00 4,011,055,487.00
adjustments
Total beginning balance of retained profits before
0.00 0.00
adjustments (Increase+，decrease-)
Beginning balance of retained profits after
10,385,659,084.00 4,011,055,487.00
adjustments
Add: Net profit attributable to owners of the
2,975,206,500.00 4,302,605,600.00
Company as the parent
Less: Withdrawal of statutory surplus reserves 0.00 0.00
Withdrawal of discretional surplus reserves 0.00 0.00
Withdrawal of general reserve 0.00 0.00
Dividend of ordinary shares payable 1,740,789,879.00 1,046,578,276.00
Dividend of common stock transfer into share
0.00 0.00
capital
11,620,075,705.00
Ending retained profits 7,267,082,811.00
List of adjustment of beginning retained profits:
(1) RMB0.00 beginning retained profits was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained profits was affected by changes in accounting policies.
(3) RMB0.00 beginning retained profits was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained profits was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained profits was affected totally by other adjustments.
47. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same Period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 42,373,062,968.00 34,334,111,314.00 43,423,735,624.00 31,382,589,960.00
Other operations 1,100,841,998.00 810,470,817.00 1,181,292,371.00 852,676,629.00
Total 43,473,904,966.00 35,144,582,131.00 44,605,027,995.00 32,235,266,589.00
154
BOE Technology Group Co., Ltd. Interim Report 2018
48. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same Period of last year
Consumption tax 0.00 0.00
Urban maintenance and construction tax 56,823,610.00 101,059,387.00
Education Surcharge 35,602,048.00 73,037,501.00
Resource tax 0.00 0.00
Property tax 148,231,522.00 110,136,739.00
Land use tax 15,009,812.00 20,626,843.00
Vehicles and vessels use tax 70,807.00 68,666.00
Stamp duty 41,039,849.00 38,902,335.00
Other 5,788,106.00 11,869,521.00
Total 302,565,754.00 355,700,992.00
Other notes: Naught
49. Selling Expense
Unit: RMB
Item Reporting Period Same Period of last year
Labor cost 234,613,824.00 224,486,520.00
Logistic transport fees 200,968,268.00 173,832,751.00
Product quality assurance 600,466,512.00 591,844,446.00
Other 258,733,990.00 238,397,146.00
Total 1,294,782,594.00 1,228,560,863.00
Other notes: Naught
50. Administrative Expense
Unit: RMB
Item Reporting Period Same Period of last year
R&D expenses 1,600,194,723.00 951,137,953.00
Labor cost 993,219,826.00 939,585,805.00
Maintenance cost 438,011,265.00 412,714,741.00
Depreciation and amortization 293,524,665.00 217,075,708.00
Other 418,952,794.00 532,147,368.00
Total 3,743,903,273.00 3,052,661,575.00
155
BOE Technology Group Co., Ltd. Interim Report 2018
51. Finance Costs
Unit: RMB
Item Reporting Period Same Period of last year
Interest expense 1,427,741,240.00 1,231,529,637.00
Interest income -345,988,686.00 -376,820,432.00
Foreign exchange gains or losses 55,074,145.00 180,783,689.00
Other finance costs 64,346,956.00 63,620,288.00
Total 1,201,173,655.00 1,099,113,182.00
Other notes:
Naught
52. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same Period of last year
I. Bad debt loss 358,199.00 214,709,584.00
II. Inventory falling price loss 457,791,061.00 1,208,736,546.00
III. Impairment losses on available-for-sale
0.00 0.00
financial assets
IV. Impairment losses on held-to-maturity
0.00 0.00
investment
V. impairment losses on long-term equity
0.00 0.00
investment
VI. Impairment losses on investment
0.00 0.00
property
VII. Fixed assets impairment losses 0.00 0.00
VIII. Impairment losses on engineering
0.00 0.00
materials
IX. Impairment losses on construction in
0.00 0.00
progress
X. Impairment losses on productive living
0.00 0.00
assets
XI. Impairment losses on oil and gas assets 0.00 0.00
XII. Impairment losses on intangible assets 0.00 0.00
XIII. Goodwill Impairment losses 0.00 0.00
XIV. Other 0.00 0.00
Total 458,149,260.00 1,423,446,130.00
156
BOE Technology Group Co., Ltd. Interim Report 2018
Other notes:
Naught
53. Investment Income
Unit: RMB
Item Reporting Period Same Period of last year
Investment income from long-term equity
-29,578,579.00 -13,690,555.00
investment accounted by equity method
Investment income from disposal of long-term
9,317,244.00 0.00
equity investment
Investment income from holding of financial
0.00 0.00
assets at fair value through profit or loss
Investment income from disposal of financial
0.00 0.00
assets at fair value through profit or loss
Investment income from holding of
0.00 0.00
held-to-maturity investment
Investment income from holding of
6,735,339.00 12,148,223.00
available-for-sale financial assets
Investment income from disposal of
180,450,009.00 20,704,483.00
available-for-sale financial assets
Gains from re-measurement of residual equity
0.00 0.00
at fair value after losing the control power
Total 166,924,013.00 19,162,151.00
Other notes:
Naught
54. Asset Disposal Income
Unit: RMB
Sources Reporting Period Same Period of last year
Fixed assets disposal lost -158,511.00 -3,120,539.00
55. Other Income
Unit: RMB
Sources Reporting Period Same Period of last year
Government subsidy related to daily
1,904,160,159.00 275,302,864.00
activities of enterprises
157
BOE Technology Group Co., Ltd. Interim Report 2018
56. Non-operating Income
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Income from debt restructuring 0.00 0.00 0.00
Income from non-monetary
0.00 0.00 0.00
assets exchange
Donations accepted 0.00 0.00 0.00
Government subsidies 61,057,457.00 31,062,835.00 61,057,457.00
Other 35,584,411.00 22,468,148.00 35,584,411.00
Total 96,641,868.00 53,530,983.00 96,641,868.00
Government subsidies recorded into current profit or loss:
Unit: RMB
Whether
subsidies Special Related to
Distribution Distributio Reporting Same period
Item Nature influence the subsidy or assets/related
entity n reason Period of last year
current profit not income
or loss
Due to engaged
in special
industry that the
Municipal
state encouraged
Other People’s
and supported,
non-recurring Government, Related to
Subsidy gained subsidy No No 61,057,457.00 31,062,835.00
government NDRC, income
(obtaining in
subsidies Finance
line with the law
Bureau etc.
and the
regulations of
national policy)
Total -- -- -- -- -- 61,057,457.00 31,062,835.00 --
Other notes:Naught
57. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Losses from debt reconstruction 0.00 0.00 0.00
Non-monetary asset exchange 0.00 0.00 0.00
158
BOE Technology Group Co., Ltd. Interim Report 2018
losses
Donation 1,383,000.00 1,184,940.00 1,383,000.00
Other 6,270,811.00 19,145,563.00 6,270,811.00
Total 7,653,811.00 20,330,503.00 7,653,811.00
Other notes:
Naught
58. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same Period of last year
Current income tax expense 600,652,106.00 923,414,609.00
Deferred income tax expense 58,916,454.00 16,847,006.00
Total 659,568,560.00 940,261,615.00
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 3,488,662,017.00
Current income tax expense accounted at statutory/applicable tax
523,299,303.00
rate
Influence of applying different tax rates by subsidiaries 4,939,173.00
Influence of income tax before adjustment 0.00
Influence of non-taxable income -25,038,602.00
Influence of not deductable costs, expenses and losses 1,617,490.00
Influence of deductable loss of unrecognized deferred income tax
-54,978,892.00
assets in prior period
Influence of deductable temporary difference or deductable loss
of unrecognized deferred income tax assets in the Reporting 190,417,590.00
Period
Other 19,312,498.00
Income tax expense 659,568,560
Other notes:
Naught
159
BOE Technology Group Co., Ltd. Interim Report 2018
59. Other Comprehensive Income
Refer to Note 44 for details.
60. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same Period of last year
Interest income 307,740,752.00 248,295,788.00
Government subsidies related to income 1,428,105,509.00 243,760,365.00
Cash received from recycling waste and
72,288,700.00 80,220,554.00
waste water
Bid bond/performance bond received 166,693,021.00 38,191,239.00
Deposit returned 28,455,367.00 20,121,331.00
Foreign exchange gain from carry-forward
20,430,024.00 187,772.00
and purchase of foreign exchange
Recovery of restricted deposits in financial
640,087,321.00 0.00
institutions
Other 228,813,028.00 138,176,021.00
Total 2,892,613,722.00 768,953,070.00
Notes:
Naught
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same Period of last year
Daily spending paid 2,497,720,088.00 2,496,459,880.00
Increase of restricted deposits in financial
5,015,188.00 200,676,652.00
institutions
Margin & Cash deposit 66,648,490.00 74,682,666.00
Handling charge for banks 62,327,573.00 24,698,890.00
Other 170,667,148.00 24,351,220.00
Total 2,802,378,487.00 2,820,869,308.00
Notes:
Naught
160
BOE Technology Group Co., Ltd. Interim Report 2018
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Recovery of restricted deposits in financial
747,033,118.00 1,419,977,569.00
institutions
Interest income 106,639,088.00 111,642,364.00
Cash inflow from combination of
2,726,820,652.00 51,553,545.00
subsidiaries
Bid price/bid bond 291,772,664.00 33,986,781.00
Government subsidies related to assets 144,065,828.00 24,491,476.00
Other 3,763,663.00 10,185,865.00
Total 4,020,095,013.00 1,651,837,600.00
Notes:
Naught
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Refund on bid/performance bond / safety
1,704,020,339.00 399,110,178.00
construction bond
Other 25,726,420.00 18,883,785.00
Total 1,729,746,759.00 417,993,963.00
Notes:
Naught
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Bill discounting 0.00 98,452,460.00
Scrappy interest of dividends 0.00 19.00
Recovery of restricted deposits in financial
1,726,033,053.00 0.00
institutions
Other 10,155,210.00 0.00
Total 1,736,188,263.00 98,452,479.00
Notes:
Naught
161
BOE Technology Group Co., Ltd. Interim Report 2018
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Payment for repurchase of stocks 0.00 351,381,074.00
Recovery of restricted deposits in financial
0.00 157,510,760.00
institutions
Guarantee fees paid 41,943,012.00 120,000,000.00
Handling charge for banks 675,811.00 20,421,484.00
Administrative charge for bank consortium 146,060,000.00 0.00
Total 188,678,823.00 649,313,318.00
Notes:
Naught
61. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit 2,829,093,457.00 4,594,562,005.00
Add: Provision for impairment of assets 458,149,260.00 1,423,446,130.00
Depreciation of fixed assets, oil-gas assets,
6,556,160,630.00 5,464,374,990.00
and productive living assets
Amortization of intangible assets 258,521,192.00 143,041,546.00
Amortization of long-term prepaid expenses 49,953,934.00 42,667,113.00
Losses on disposal of fixed assets, intangible
assets and other long-lived assets (gains: 421,587.00 -9,952,741.00
negative)
Losses on scrap of fixed assets (gains:
329,303.00 -294,151.00
negative)
Losses from variation of fair value (gains:
0.00 0.00
negative)
Finance costs (gains: negative) 1,330,319,892.00 1,472,353,270.00
Investment loss (gains: negative) -166,924,013.00 -19,162,151.00
Decrease in deferred income tax assets -70,086,012.00 -3,403,943.00
162
BOE Technology Group Co., Ltd. Interim Report 2018
(gains: negative)
Increase in deferred income tax liabilities
723,822,985.00 20,250,949.00
(“-” means decrease)
Decrease in inventory (gains: negative) -2,381,077,971.00 -2,985,235,404.00
Decrease in accounts receivable generated
-1,795,552,371.00 -4,224,525,906.00
from operating activities (gains: negative)
Increase in accounts payable used in
4,521,622,519.00 4,919,933,010.00
operating activities (decrease: negative)
Others -875,148,546.00 -199,463,451.00
Net cash generated from/used in operating
11,439,605,846.00 10,638,591,266.00
activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
Transfer of debt to capital 0.00 0.00
Convertible corporate bonds due within one
0.00 0.00
year
Fixed assets leased in through financing 0.00 0.00
3. Net increase/decrease of cash and cash
-- --
equivalent:
Ending balance of cash 43,089,999,591.00 42,798,317,023.00
Less: beginning balance of cash 47,913,287,583.00 49,354,810,388.00
Add: Ending balance of cash equivalents 0.00 0.00
Less: Beginning balance of cash equivalents 0.00 0.00
Net increase in cash and cash equivalents -4,823,287,992.00 -6,556,493,365.00
(2) Net Cash Used in Acquisition of Subsidiaries during the Reporting Period
Unit: RMB
Item Amount
Cash or cash equivalents paid for the current business combinations 2,564,763,000.00
Of which: --
Less: cash and cash equivalents held by subsidiary on purchase date 5,291,583,652.00
Net cash used in acquisition of subsidiaries -2,726,820,652.00
Other notes:Naught
163
BOE Technology Group Co., Ltd. Interim Report 2018
(3) Net Cash Received from Disposal of Subsidiaries during the Reporting Period
Unit: RMB
Item Amount
Cash or cash equivalents received from the current disposal of
0.00
subsidiaries during the Reporting Period
Of which: --
Less: cash and cash equivalents held by subsidiaries on the date of
0.00
losing control power
Of which: --
Add: cash or cash equivalents received from previous disposal of
0.00
subsidiaries during the Reporting Period
Of which: --
Net cash generated from disposal of subsidiaries 0.00
Other notes:Naught
(4) Cash and Cash Equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 43,089,999,591.00 47,913,287,583.00
Including: Cash on hand 729,517.00 526,764.00
Bank deposit on demand 43,048,946,319.00 47,912,760,611.00
Other monetary funds on demand 40,323,755.00 208.00
Central bank deposit on demand 0.00 0.00
Deposits in other banks 0.00 0.00
Call loans to banks 0.00 0.00
II. Cash equivalents 0.00 0.00
Of which: bond investment due within three
0.00 0.00
months
III. Ending balance of cash and cash
43,089,999,591.00 47,913,287,583.00
equivalents
Of which: cash and cash equivalents with
restricted use by the Company as the parent 40,323,755.00 276,176,580.00
and its subsidiaries
Other notes:Naught
164
BOE Technology Group Co., Ltd. Interim Report 2018
62. Notes to Items in Statements of Changes in Owners’ Equity
Notes to names under the item of “Other” in the adjusted ending balance for the same period of last year and the corresponding
amount: Naught
63. Assets with Restricted Ownership or Right to Use
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary capital 7,491,910,832.00 Pledged for guarantee and as cash deposit
Discounted transfer with recourse attached,
Notes receivable 337,614,015.00 negotiability with recourse attached and
pledged for issuing notes payable
Inventories 0.00 Naught
Fixed assets 58,386,289,547.00 Mortgaged for guarantee
Intangible assets 919,408,714.00 Mortgaged for guarantee
Investment property 202,627,706.00 Mortgaged for guarantee
Construction in progress 8,516,973,161.00 Mortgaged for guarantee
Total 75,854,823,975.00 --
Other notes:
Naught
64. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary capital -- -- 23,568,500,377.00
Including: USD 3,437,058,144.00 6.6166 22,741,638,918.00
EUR 104,410,058.00 7.6515 798,893,561.00
HKD 33,172,694.00 0.8431 27,967,898.00
Accounts receivable -- -- 12,559,344,002.00
Including: USD 1,871,351,669.00 6.6166 12,381,985,455.00
EUR 23,178,911.00 7.6515 177,353,441.00
HKD 6,056.00 0.8431 5,106.00
Long-term borrowings -- -- 38,801,386,244.00
165
BOE Technology Group Co., Ltd. Interim Report 2018
Including: USD 5,557,751,340.00 6.6166 36,773,417,517.00
EUR 265,043,157.00 7.6515 2,027,968,727.00
HKD 0.00 0.00 0
Other notes:
Naught
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, Recording
Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, Relevant
Reasons Shall Be Disclosed.
□ Applicable √ Not applicable
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control
Unit: RMB
Income of the Net profit of the
Way of
Date of Cost of Determination acquiree from acquiree from
Name of the Proportion of equity
equity equity Purchase date basis for the the purchase the purchase
acquiree equity acquired acquisiti
acquisition acquisition purchase date date to the date to the
on
period-end period-end
Mianyang Actual control is
BOE materialized by
Optoelectroni amending the
30 April 2018 N/A N/A N/A 30 April 2018 2,160,966.00 -29,877,124.00
cs articles of
Technology association.
Co., Ltd.
Holding director
SES 6 February 6 February position in the
N/A N/A N/A 580,917,653.00 -12,075,109.00
Imagotag SA 2018 2018 acquiree enables
actual control
Other notes:
Naught
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost Mianyang BOE Optoelectronics SES Imagotag SA
166
BOE Technology Group Co., Ltd. Interim Report 2018
Technology Co., Ltd.
--Cash 0.00 0.00
--Fair value of non-cash assets 0.00 0.00
--Fair value of debt issued or undertaken 0.00 0.00
--Fair value of equity securities issued 0.00 0.00
--Fair value of contingent consideration 0.00 0.00
--Fair value on the purchase date of equity held before
5,096,852,083.00 1,684,264,952.00
the purchase date
--Other 0.00 0.00
Total combination cost 5,096,852,083.00 1,684,264,952.00
Less: Share of fair value of net identifiable assets
5,096,852,083.00 1,040,749,595.00
acquired
Difference between goodwill/combination cost and
0.00 643,515,357.00
share of fair value of net identifiable assets acquired
Notes to the method of determining the fair value of combination cost, contingent consideration and changes:
Naught
Main reason for the formation of large amount goodwill:
Naught
Other notes:
Naught
(3) Identifiable Assets and Liabilities of the Acquiree on the Purchase Date
Unit: RMB
Mianyang BOE Optoelectronics Technology
Item SES Imagotag SA
Co., Ltd.
Fair value on the Carrying value on the Carrying value on the purchase
Fair value on the purchase date
purchase date purchase date date
Assets: 8,611,283,542.00 8,611,283,542.00 3,642,654,626.00 1,604,702,897.00
Monetary
5,077,088,102.00 5,077,088,102.00 177,550,092.00 177,550,092.00
capital
Accounts
23,905,024.00 23,905,024.00 267,885,852.00 267,885,852.00
receivable
Inventories 0.00 0.00 583,631,953.00 583,631,953.00
Fixed assets 3,577,015.00 3,577,015.00 89,664,932.00 89,664,932.00
Intangible
282,573,282.00 282,573,282.00 2,359,287,597.00 321,335,868.00
assets
Liabilities: 328,897,967.00 328,897,967.00 1,709,572,956.00 1,030,308,065.00
167
BOE Technology Group Co., Ltd. Interim Report 2018
Borrowings 0.00 0.00 394,087,746.00 394,087,746.00
Accounts
218,856,788.00 218,856,788.00 381,180,346.00 381,180,346.00
payable
Deferred
income tax 0.00 0.00 688,332,624.00 9,067,734.00
liabilities
Net assets 8,282,385,575.00 8,282,385,575.00 1,933,081,670.00 574,394,832.00
Less:
non-controlling 3,185,533,492.00 3,185,533,492.00 892,332,075.00 265,140,654.00
interests
Net assets
5,096,852,083.00 5,096,852,083.00 1,040,749,595.00 309,254,178.00
acquired
Method of determining the fair value of identifiable assets and liabilities:
For the above identifiable assets existing in the active market, the fair value was determined based on the quotation in the active
market; for those not existing but with similar assets existing in the active market, the fair value was determined by reference to the
market price of the similar assets; for those not existing and without similar assets existing in the active market, the fair value was
determined by valuation technique.
For the above identifiable liabilities, taking the amount payable or the present value of the amount payable as the fair value.
Contingent liabilities of the acquire born in the business combination:
Naught
Other notes:
Naught
(4) Gains or Losses from Re-measurement of Equity at Fair Value Held before the Purchase Date
Was there a transaction achieving business combination through two or more transactions and achieving the control power during the
Reporting Period
□ Yes √ No
(5) Notes to Failure of Reasonably Determining the Consolidated Consideration or the Fair Value of the
Acquiree’s Identifiable Assets and Liabilities on the Purchase Date or the Period-end
Naught
(6) Other Notes
Naught
2. Changes in the Scope of Combination for Other Reasons
Notes to changes in the scope of combination for other reasons (such as set up new subsidiaries, liquidation of subsidiaries, etc.) and
related information:
168
BOE Technology Group Co., Ltd. Interim Report 2018
The Company set up one wholly-owned subsidiary in 2018 that was Beijing BOE Sensor Technology Co., Ltd.
3. Other
Naught
169
BOE Technology Group Co., Ltd. Interim Report 2018
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Holding percentage (%)
Name Main operating place Registration place Nature of business Way of gaining
Directly Indirectly
Research, development,
Beijing BOE Optoelectronics
Beijing, China Beijing, China design and manufacture 82.49% 17.51% Investment
Technology Co., Ltd.
of TFT-LCD
R&D, design,
Chengdu BOE Optoelectronics production and sales of Business combination
Technology Co., Ltd. (“Chengdu Chengdu, China Chengdu, China new display devices and 100.00% 0.00% not under the same
Optoelectronics”) modules and other control
electronic components
Investment,
construction, R&D,
production and sales of Business combination
Hefei BOE Optoelectronics
Hefei, China Hefei, China the relevant products of 100.00% 0.00% not under the same
Technology Co., Ltd.
thin film transistor LCD control
and its auxiliary
products
Development of
Beijing BOE Display Technology Co.,
Beijing, China Beijing, China TFT-LCD, manufacture 97.17% 2.83% Investment
Ltd. (“Beijing BOE Display”)
and sale of LCD
Hefei Xinsheng Optoelectronics Hefei, China Hefei, China Investment, 84.59% 0.03% Business combination
170
BOE Technology Group Co., Ltd. Interim Report 2018
Technology Co., Ltd. construction, R&D, not under the same
production and sales of control
the relevant products of
thin film transistor LCD
and its auxiliary
products
Ordos Yuansheng Optoelectronics Manufacture and sales
Co., Ltd. (“Yuansheng Ordos, China Ordos, China of AM-OLED products 100.00% 0.00% Investment
Optoelectronics”) and auxiliary products
R&D, production and
sales of semi-conducting
display devices,
Chongqing BOE Optoelectronics Business combination
complete machine and
Technology Co., Ltd. (“Chongqing Chongqing, China Chongqing, China 100.00% 0.00% not under the same
related products;
BOE”) control
import&export of goods
and technology
consulting
Investment,
construction, R&D,
Fuzhou BOE Optoelectronic production and sales of Business combination
Technology Co., Ltd. (“Fuzhou Fuzhou, China Fuzhou, China the relevant products of 80.96% 0.00% not under the same
BOE”) thin film transistor LCD control
and its auxiliary
products
Manufacture of LCD
TV, LCD; technology
Beijing BOE Video Technology Co.,
Beijing, China Beijing, China development of terminal 100.00% 0.00% Investment
Ltd. (“BOE Video”)
products and systems
such as TFT-LCD
171
BOE Technology Group Co., Ltd. Interim Report 2018
display and TV
Manufacture and sale of
Beijing BOE Vacuum Electronics Co.,
Beijing, China Beijing, China vacuum electronic 55.00% 0.00% Investment
Ltd.
products
Beijing BOE Vacuum Technology Manufacture and sale of
Beijing, China Beijing, China 100.00% 0.00% Investment
Co., Ltd. electronic tubes
Beijing BOE Special Display Development of display
Technology Co., Ltd. (“Special Beijing, China Beijing, China products and sale of 100.00% 0.00% Investment
Display”) electronic products
Management of
engineering projects;
real estate development;
Beijing Yinghe Century Co., Ltd. Beijing, China Beijing, China 100.00% 0.00% Investment
public parking lot for
motor vehicles service;
office lease
R&D, production and
BOE Optical Science and Technology
sales of LCD, back light
Co., Ltd. (“Optical Science and Suzhou, China Suzhou, China 95.17% 0.00% Investment
for display and related
Technology”)
components
Development,
BOE Hyundai LCD (Beijing) Display manufacture and sale of
Beijing, China Beijing, China 75.00% 0.00% Investment
Technology Co., Ltd. liquid display for mobile
termination
Manufacture and sale of
mobile flat screen
BOE (Hebei) Mobile Technology Co.,
Langfang, China Langfang, China display technical 100.00% 0.00% Investment
Ltd. (“BOE Hebei”)
products and related
services
172
BOE Technology Group Co., Ltd. Interim Report 2018
Sale of computer
software and hardware,
Beijing BOE Multimedia Technology Beijing, China Beijing, China the numeral regards the 100.00% 0.00% Investment
Co. Ltd. (“BOE Multimedia”) audio frequency
technology
Design, consultancy and
service of solar cell,
photovoltaic system,
Beijing BOE Energy Technology Co., wind power system and
Beijing, China Beijing, China 100.00% 0.00% Investment
Ltd. (“BOE Energy”) solar thermal system as
well as the assembly
units; energy-saving
service
Technology promotion,
Beijing BOE Smart Commerce Co., property management,
Beijing, China Beijing, China 100.00% 0.00% Investment
Ltd. (“BOE Smart Commerce”) and sales of electronic
products
Technology promotion,
Beijing Zhongxiangying Technology property management,
Beijing, China Beijing, China 100.00% 0.00% Investment
Co., Ltd. (“Zhongxiangying”) and sales of electronic
products
Erdos Haosheng Energy Investment
Ordos, China Ordos, China Energy investment 20.00% 80.00% Investment
Co., Ltd. (“Haosheng Energy”)
Processing,
manufacturing and sales
Beijing BOE Semi-conductor Co., of precision electronic
Beijing, China Beijing, China 80.77% 0.00% Investment
Ltd. components,
semi-conductor devices,
micro modules,
173
BOE Technology Group Co., Ltd. Interim Report 2018
microelectronic devices
and electronic materials;
import&export of goods
Design, manufacturing
and sales of
BOE Optoelectronics Holding Co., Virgin Islands, electronic-information
Hong Kong, China 100.00% 0.00% Investment
Ltd (“Optoelectronics Holding”) British industry related
products, investment and
financing businesses
Sales of TV bracket
Business combination
Beijing Asahi Electronic Materials glass rod and CTV
Beijing, China Beijing, China 100.00% 0.00% not under the same
Co., Ltd. low-melting-point solder
control
glass
Business combination
BOE Health Investment Management Investment management
Beijing, China Beijing, China 100.00% 0.00% not under the same
Co., Ltd. (“Health Investment”) and project investment
control
Color TV set, Display
tube, color RPTV
projection tube and Business combination
BeijingMatsushita Color CRT Co.,
Beijing, China Beijing, China materials of electronic 88.80% 0.00% not under the same
Ltd. (“Matsushita Color CRT”)
components; property control
management and
parking services, etc.
Investment, R & D and
Business combination
Hefei BOE Display Technology Co., production of products
Hefei, China Hefei, China 8.33% 0.00% not under the same
Ltd. (“Hefei Technology”) related to TFT-LCD and
control
the supporting facility
Beijing BOE Technology Beijing, China Beijing, China Development, transfer, 100.00% 0.00% Investment
174
BOE Technology Group Co., Ltd. Interim Report 2018
Development Co., Ltd. (“Technology consulting and service
Development”) of technology
Development, transfer,
BOE Intelligent Technology Co., Ltd.
Beijing, China Beijing, China consulting, service and 100.00% 0.00% Investment
(“Intelligent Technology”)
promotion of technology
Investment,
construction, R&D,
Hefei BOE Zhuoyin Technology Co., production and sales of
Hefei, China Hefei, China 75.05% 0.00% Investment
Ltd. (“Zhuoyin Technology”) products related to
OLED display device
and auxiliary products
Development,
construction, property
management and
supporting service of
industrial plants and
supporting facilities;
information consulting
Beijing BOE Real Estate Co., Ltd. Beijing, China Beijing, China 70.00% 0.00% Investment
of real estate; lease of
commercial facilities,
commercial attendants
and the supporting
service facilities; motor
vehicles public parking
service
Sales of communication
equipment,
Beijing BOE Marketing Co., Ltd. Beijing, China Beijing, China 100.00% 0.00% Investment
hardward&software of
computer and peripheral
175
BOE Technology Group Co., Ltd. Interim Report 2018
units, electronic
products, equipment
maintenance;
development, transfer,
consulting and service
providing of
technologies;
import&export of goods
and technologies,
agency of
import&export;
manufacturing
consignment of
electronic products and
LCD devices
Development, spread,
transfer, consulting and
service providing of
display technology;
service providing of
computer
software/hardware and
Kunming BOE Display Technology
Kunming, China Kunming, China network systems; 81.25% 0.00% Investment
Co., Ltd.
construction, operation
and management of
e-commerce platforms;
service providing of
conferences;
undertaking of
exhibitions; computer
176
BOE Technology Group Co., Ltd. Interim Report 2018
animation design;
production, R7D and
sales of OLED micro
display devices and
AR/VR complete
machine; storage
services; project
investment and
corresponding
management;
import&export of goods
and technologies; lease
of houses and
mechanical equipment
Production of display
panel for high-end smart
Business combination
Mianyang BOE Optoelectronic phones, folding laptops
Mianyang, China Mianyang, China 61.54% 0.00% not under the same
Technology Co., Ltd. etc. and R&D,
control
production and sales of
modules
Development, testing,
consulting, service and
transfer of technologies
in X-ray sensors, micro
Beijing BOE Senor Technology Co., fluidic chips,
Beijing, China Beijing, China 100.00% 0.00% Investment
Ltd. biochemical chips, gene
chips, security sensors,
microwave antenna,
biological sensors,
internet of things, and
177
BOE Technology Group Co., Ltd. Interim Report 2018
modules, systems and
equipment of other
semiconducting sensors
Explanations that the shareholding percentage is different from the voting right percentage in subsidiaries:
Naught
Basis for the control over the investees with half or less voting right and for not controlling the investees with over half voting right:
The Company held 8.33% shares of Hefei BOE Display but had control power over it owing to the signing of acting in concert agreement with Hefei Construction Investment and Holding Co.,
Ltd. and Hefei Xinping Industrial Investment Fund (limited partnership) in November 2016.
Basis for the control over the significant structured entities included in the scope of combination:
Naught
Basis for the determining the Company as the agent or the trustor:
Naught
Other notes:
Naught
178
BOE Technology Group Co., Ltd. Interim Report 2018
(2) Significant Not Wholly-owned Subsidiary
Unit: RMB
Shareholding proportion The profit or loss Declaring dividends
Ending balance of
Name of non-controlling attributable to distributed to
non-controlling interests
interests non-controlling interests non-controlling interests
None
Notes that the shareholding percentage is different from the voting right percentage of non-controlling shareholders in subsidiaries:
Naught
Other notes:
Naught
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Non-curr Non-curr Non-curr Non-curr
Name Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liability assets liability
None
Unit: RMB
Reporting Period Same period of last year
Cash flows Cash flows
Total Total
Name Operating from Operating from
Net profit comprehensi Net profit comprehensi
revenue operating revenue operating
ve income ve income
activities activities
None
Other notes: naught
(4) Significant Limitation on the Use of Assets and Liquidation of Debts of the Company
Naught
(5) Financial Support or Other Support Provided for Structured Entities Included in the Scope of
Consolidated Financial Statements
Naught
Other notes: naught
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BOE Technology Group Co., Ltd. Interim Report 2018
2. The Transaction Resulting in Changes in Owner’s Equity of Subsidiary but Still Controlling the
Subsidiary
(1) Explanations on Changes in Owner’s Equity of Subsidiary
The Company increased its investment in Hefei BOE Display of RMB448,000,000 in April 2018; Hefei Xinping Industrial
Investment Fund (limited partnership) increased its investment in Hefei BOE Display of RMB4,000,000,000 in April 2018. The
Company held 7.94% shares of Hefei BOE Display before the capital increase and 8.33% shares after the capital increase.
(2) The Effects of the Transaction on Non-controlling Interests and Equity Attributable to Owners of the
Company as the Parent
Unit: RMB
Hefei BOE Display
Purchase cost/disposal consideration 448,000,000.00
--Cash 448,000,000.00
-Fair value of non-cash assets 0.00
Total of purchase cost /disposal consideration 448,000,000.00
Less: subsidiary net assets proportion calculated by share
446,511,954.20
proportion obtained/disposal
Difference 1,488,045.80
Of which: Adjustment of capital reserves 1,488,045.80
Surplus reserves adjustments 0.00
Retained profits adjustments 0.00
Other notes
Naught
3. Equity in Joint Ventures or Associated Enterprises
(1) Summary Financial Information of Insignificant Joint Ventures and Associated Enterprises
Unit: RMB
Item Ending balance/Reporting Period Beginning balance/same period of last year
Joint ventures: -- --
Total carrying value of investment 842,979,567.00 2,793,732,185.00
Total of the following items calculated by
-- --
shareholding proportion
--net profit -3,900,535.00 -23,677,815.00
--other comprehensive income 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2018
--total comprehensive income -3,900,535.00 -23,677,815.00
Associated enterprise: -- --
Total carrying value of investment 2,600,836,066.00 4,672,259,202.00
Total of the following items calculated by
-- --
shareholding proportion
--net profit -25,678,044.00 23,846,849.00
--other comprehensive income 4,151,942.00 76,051,151.00
--total comprehensive income -21,526,102.00 99,898,000.00
Other notes
Naught
(2) Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
Accumulated recognized losses
The current unrecognized losses Accumulated unrecognized
Name in the prior period of
(the current net profit shared) losses at the period-end
unrecognization
N/A 0.00 0.00 0.00
Other notes
Naught
4. Other
X. The Risk Related to Financial Instruments
Risks related to financial instruments in daily activities for the Group include:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign exchange risk
- Other price risks
The risk exposure and causes, changes in this year, risk management objectives, policies and procedures, methods of measuring risks
and changes in this year will be discussed below.
Risk management objective of the Company is to balance the risks and profits, minimize the negative effects to business performance
and maximize the profits for stockholders and other equity investors. On the basis of risk management objectives, basic strategies of
risk management are to determine and analyze all possible risks, establish appropriate risk baseline, control and manage risks and
monitor all risks timely and reliably within defined scope. The Group will regularly review the risk management policies and internal
control system to adapt to the market and changes of operating activities. The Internal Audit Department will regularly review or
randomly inspect whether implementation of internal control system satisfies risk management policies.
(1) Credit Risk
Credit risk is the possibility of financial loss to one party of financial instruments from unfulfillment of obligations of the other party.
181
BOE Technology Group Co., Ltd. Interim Report 2018
Credit risk of the Group mainly comes from accounts receivable. The management of this group will monitor the credit risk
exposure.
Except that the monetary capital (other than cash) is deposited in financing institution with good credit, the management does not
believe that other important credit risks exist or losses are not expected to be made to the group due to the other party’s breach.
For the accounts receivable, the board of directors has formulated the credit policies according to actual conditions to determine the
credit sale limit and credit term by credit assessment. Credit assessment is performed according to customer s’ financial situation,
external ratings and transaction history. Relevant accounts receivable will expire within 15-120 days after billing date. Debtor of
accounts receivable overdue will be required to pay off the outstanding balance to obtain the credit line.
In order to monitor the credit risk, this group will analyze the customer data by aging, maturity date and other factors.
Credit risk of this group is affected by the customer characteristics, but not the industry, country or region. Therefore, concentration
of important credit risk is relied on the important accounts receivable of individual customers. On balance sheet date, accounts
receivable of the Group and top 5 customers account for 46% and1.7% respectively of all receivables (37% and 0.2% in 2017).
Furthermore, accounts receivable without expiry or decrease in value are most related to customers without arrears recently.
The largest credit risk exposure of this group is the book amount of each financial asset on the balance sheet. Until 30 June 2018, the
group did not provide any guaranty that may cause credit risk.
(2) Liquidity Risk
Liquidity risk refers to that with capital shortage when the Company is fulfilling obligations of cash payment or payment by other
financial assets methods. The Company and its subsidiaries are responsible for its own cash management, including short-term
investment of cash surplus and loan financing to satisfy prospective cash needs (if the borrowing exceeds preauthorized upper limit,
it shall be approved by the board of directors). It is the group’s policy to regularly monitor short-term and long-term circulating
capital needs and confirm whether it satisfies loan agreement in order to keep sufficient cash reserve and negotiable securities
available for realization and obtain sufficient reserve fund as promised by financing institution to satisfy the demands of short-term
and long-term circulating capital.
(3) Interest Rate Risk
Interest bearing financial instruments of fixed interest rate and floating interest rate will impose interest rate risks of fair value and
cash flow on the Group. Proportion of fixed interest rate and floating interest rate instruments is decided by marketing environment.
The Group will regularly review and maintain the combination of fixed and floating interest rate instruments. The Group will not
hedge interest rate risk by derivative financial instruments.
Until 30 June 2018, under the circumstance without changes of other variables，it is supposed that the rising/ falling interest rate at
100 base points will result in reduction/ increase of RMB426.29 million (RMB123.36 million in 2017) for net profits and
stockholders’ equity.
Until balance sheet date, the group has not held any financial instruments that may impose fair value interest rate risk on the Group.
For the floating interest rate but not derivative instruments held by the Group and imposing the Group with interest rate risk of cash
flow on balance sheet date, the net profits and owners’ equity in the above sensitivity analysis will affect the annual interest expenses
or income due to above variation of interest rate.
(4) Foreign Exchange Risk
For the monetary capital, accounts receivable and payable, short-term borrowing and other foreign currency assets and liabilities not
valued by bookkeeping base currency, if short-term unbalance occurs, the Group will buy or sell the foreign currencies at market
exchange rate to maintain net risk exposure at an acceptable level.
(a) On 30 June 2018, the foreign assets liabilities item with significant risk exposure settled by USD, the total net assets exposure of
USD item risk exposure was USD2,287,326,359 (net liabilities exposure USD2,282,216,777 in 2017) discounted into RMB was
RMB15,134,323,588 (RMB14,912,460,861 in 2017) at spot rate on balance sheet date. The Differences arising from translation of
foreign currency-denominated financial statements was excluded.
(b) Under the circumstance without changes of other variables, 5% fluctuation in exchange rate of RMB against USD will result in
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BOE Technology Group Co., Ltd. Interim Report 2018
reduction / increase of RMB42,476,534 (RMB199,436,178 in 2017) for stockholders’ equity and net profits.
Above sensitivity analysis is performed based on changes of exchange rate on balance sheet date and re-measurement of financial
instruments of foreign exchange risk according to changed exchange rate held by the Group on balance sheet date. Above analysis
excludes differences of the foreign currency conversion. Analysis of the last year is based on similar assumption and methods.
(5) Other Price Risks
Other price risks include equity price risk, commodity price risk, etc.
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
(I) Financial assets at fair
value through profit or 0.00 0.00 0.00 0.00
loss
1. Trading financial assets 0.00 0.00 0.00 0.00
(1) Debt instruments
0.00 0.00 0.00 0.00
investment
(2) Equity instruments
0.00 0.00 0.00 0.00
investment
(3) Derivative financial
0.00 0.00 0.00 0.00
assets
2. Financial assets
assigned measured by fair
value and the changes be 0.00 0.00 0.00 0.00
included in the current
gains and losses
(1) Debt instruments
0.00 0.00 0.00 0.00
investment
(2) Equity instruments
0.00 0.00 0.00 0.00
investment
(II) Available-for-sale
417,386,467.00 0.00 11,386,974,622.00 11,804,361,089.00
financial assets
(1) Debt instruments
0.00 0.00 11,553,581.00 11,553,581.00
investment
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BOE Technology Group Co., Ltd. Interim Report 2018
(2) Equity instruments
417,386,467.00 0.00 0.00 417,386,467.00
investment
(3) Other 0.00 0.00 11,375,421,041.00 11,375,421,041.00
(III)Investment property 0.00 0.00 0.00 0.00
1. Lease the land use right 0.00 0.00 0.00 0.00
2. Rental buildings 0.00 0.00 0.00 0.00
3. Land use right held and
prepared to transfer after 0.00 0.00 0.00 0.00
appreciation
(IV)Biological assets 0.00 0.00 0.00 0.00
1.Consumable biological
0.00 0.00 0.00 0.00
assets
2. Productive living assets 0.00 0.00 0.00 0.00
Total assets of consistent
417,386,467.00 0.00 11,386,974,622.00 11,804,361,089.00
fair value measurement
(V)Trading financial
0.00 0.00 0.00 0.00
liabilities
Of which: tradable bond
0.00 0.00 0.00 0.00
issued
Derivative
0.00 0.00 0.00 0.00
financial liabilities
Others 0.00 0.00 0.00 0.00
(VI) Refer as financial
liabilities measured by fair
value and the changes 0.00 0.00 0.00 0.00
included in the current
gains and losses
Total liabilities of
consistent fair value 0.00 0.00 0.00 0.00
measurement
II. Inconsistent fair value
-- -- -- --
measurement
(I) Held-to-maturity assets 0.00 0.00 0.00 0.00
Total assets inconsistently
0.00 0.00 0.00 0.00
measured at fair value
Total liabilities
inconsistent measured at 0.00 0.00 0.00 0.00
fair value
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BOE Technology Group Co., Ltd. Interim Report 2018
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
1
The unadjusted offer in active market obtaining same assets or liabilities on calculation date
3. Consistent and Inconsistent Fair value Measurement Items at Level 2, Valuation Techniques Adopted,
the Qualitative and Quantitative Information of Important Parameters
Observable input value of related assets or liabilities except level 1 input value
4. Consistent and Inconsistent Fair Value Measurement Items at Level 3, Valuation Techniques Adopted,
the Qualitative and Quantitative Information of Important Parameters
The unobservable input value of related assets or liabilities
5. Consistent Fair Value Measurement Items at Level 3, Adjustment between the Beginning Carrying
Value and the Ending Carrying Value and Sensitivity Analysis on Unobservable Parameters
Naught
6. Explain the Reason for Conversion and the Policy Governing when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
Naught
7. Changes in Valuation Techniques in the Reporting Period and Reasons for the Changes
Naught
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
Naught
9. Other
Naught
XII. Connected Party and Connected Transaction
1. Information on the Company as the Parent
Proportion of share Proportion of voting
held by the rights owned by the
Name Registration place Nature of business Registered capital
Company as the Company as the
parent against the parent against the
185
BOE Technology Group Co., Ltd. Interim Report 2018
Company (%) Company (%)
Operation and
No.12 Jiuxian
management of RMB
Electronics Holding Bridge, Zhaoyang 0.79% 11.32%
state-owned assets 2,418,350,000.00
District, Beijing
within authorization
Notes to the Company as the parent:
Naught
The final controller of the Company is Beijing Electronics Holding Co., Ltd.
Other notes:
Naught
2. Subsidiaries of the Company
Refer to Note IX.-1 for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
For information of significant joint ventures or associated enterprises of the Company, please refer to Note IX-3.
List of other joint ventures and associated enterprises that made connected transactions with the Company generating balance during
or before the Reporting Period:
Name Relationship with the Company
Beijing Nittan Electronic Co., Ltd. Associated enterprise of the Group and the Company
Beijing Nissin Electronics Precision Component Co., Ltd. Associated enterprise of the Group and the Company
TPV Display Technology (China) Limited Associated enterprise of the Group and the Company
Beijing Xindongneng Investment Management Co., Ltd. Associated enterprise of the Group and the Company
Shenzhen Yunyinggu Technology Co., Ltd. Associated enterprise of the Group and the Company
CnogaMedical Ltd. Associated enterprise of the Group and the Company
Beijing BOE Yiyun Technology Co., Ltd. Joint venture of the Group and the Company
Chongqing BOE Display Technology Co., Ltd. Associated enterprise of the Group and the Company
Wuhan BOE Optoelectronics Technology Co., Ltd. Joint venture of the Group and the Company
Other notes
Naught
4. Information on Other Connected Parties
Name Relationship with the Company
Beijing BOE Investment Development Co., Ltd. Controlled by the same ultimate holding company
NAURA Technology Group Co., Ltd. Controlled by the same ultimate holding company
Beijing BBEF Science & Technology Co., Ltd. Controlled by the same ultimate holding company
186
BOE Technology Group Co., Ltd. Interim Report 2018
Beijing Zhengdong Electronic Power Group Co., Ltd. Controlled by the same ultimate holding company
Beijing Yandong Microelectronic Co., Ltd., Controlled by the same ultimate holding company
Beijing Dongdian Industrial Development Co., Ltd. Controlled by the same ultimate holding company
Beijing Sevenstar Huadian Technology Group Co., Ltd. Controlled by the same ultimate holding company
Beijing Sevenstar Integrated Circuit Co., Ltd. Controlled by the same ultimate holding company
Beijing Zhaowei Technology Development Co., Ltd. Controlled by the same ultimate holding company
Beijing Zhaowei Intelligent Equipment Co., Ltd. Controlled by the same ultimate holding company
Xin Xiang Microelectronic (Hong Kong) Co., Ltd. Controlled by the same ultimate holding company
Beijing Ether Electronics Group Co., Ltd. Controlled by the same ultimate holding company
Beijing North Microelectronics Co., Ltd. Controlled by the same ultimate holding company
Beijing Zhaowei Electronic Group Co., Ltd. Controlled by the same ultimate holding company
Beijing PCB Square Corporation Controlled by the same ultimate holding company
Beijing Yansong Trading Co., Ltd. Controlled by the same ultimate holding company
BAIC BJEV Other connected party
Other notesNaught
5. List of Connected Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service (Unit: Ten Thousand Yuan)
Information on acquisition of goods and reception of labor service
Unit: RMB
The approval trade Whether exceed trade Same period of last
Connected party Content Reporting Period
credit credit or not year
Beijing Electronics
Holding Co., Ltd
Purchase of goods 226,147,968.00 890,000,000.00 No 158,505,273.00
and its affiliated
companies
Beijing Electronics
Holding Co., Ltd Accepting labor
1,887,192.00 4,000,000.00 No 1,640,754.00
and its affiliated service
companies
Other connected
Purchase of goods 7,719,867.00 450,000,000.00 No 5,847,243.00
party
Information of sales of goods and provision of labor service
Unit: RMB
Connected party Content Reporting Period Same period of last year
Beijing Electronics Holding Sales of goods 403,808.00 1,718,201.00
187
BOE Technology Group Co., Ltd. Interim Report 2018
Co., Ltd and its affiliated
companies
Beijing Electronics Holding
Co., Ltd and its affiliated Providing labor service 45,745.00 48,192.00
companies
Other connected party Sales of goods 3,239,373.00 44,248,480.00
Other connected party Providing labor service 6,253,228.00 223,757.00
Notes:
Naught
(2) Connected Trusteeship/Contract and Entrust/Contractee
Lists of connected trusteeship/contract:
Unit: RMB
Name of the Name of the Income
entruster/contract entrustee/ Type Start date Due date Pricing basis recognized in the
ee contractor Reporting Period
Naught
Notes:Naught
Lists of entrust/contractee
Unit: RMB
Name of the Name of the Income
entruster/contract entrustee/ Type Start date Due date Pricing basis recognized in the
ee contractor Reporting Period
Naught
Notes:Naught
(3) Information on Connected Lease
The Company served as the lessor:
Unit: RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
the Reporting Period the same period of last year
Beijing Electronics Holding
Co., Ltd and its affiliated Investment property 757,937.00 639,813.00
companies
Other connected party Investment property 692,573.00 1,767,383.00
The Company served as the lessee:
Unit: RMB
188
BOE Technology Group Co., Ltd. Interim Report 2018
The lease income confirmed in The lease income confirmed in
Name of lessor Category of leased assets
the Reporting Period the same period of last year
Beijing Electronics Holding
Co., Ltd and its affiliated Fixed assets 1,218,031.00 18,239.00
companies
Notes to connected lease
Naught
(4) Connected Guarantee
The Company served as the guarantee
Unit: RMB
Whether completely
Secured party Amount Start date Due date
performed
Naught
The Company served as the secured party
Unit: RMB
Whether completely
Guarantee Amount Start date Due date
performed
Naught
Notes to connected guarantee
Naught
(5) Interbank Borrowing and Lending of Capital by Connected Party
Unit: RMB
Connected party Amount Start date Due date Note
Borrowings
Naught
Lending
Naught
(6) Assets Transfer and Debt Restructuring of Connected Party
Unit: RMB
Connected party Content Reporting Period Same period of last year
Naught
189
BOE Technology Group Co., Ltd. Interim Report 2018
(7) Remuneration for Key Management Personnel
Unit: RMB
Item Reporting Period Same period of last year
Remuneration for key management
50,069,577.00 28,603,916.00
personnel
(8) Other Connected Transactions
Naught
6. Accounts Receivable and Payable of Connected Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Connected party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Beijing Electronics
Holding Co., Ltd and
Accounts receivable 634,412.00 0.00 23,518.00 0.00
its affiliated
companies
Other connected
Accounts receivable 28,871,587.00 0.00 9,577,206.00 0.00
parties
Beijing Electronics
Other accounts Holding Co., Ltd and
6,500.00 0.00 6,500.00 0.00
receivable its affiliated
companies
Other accounts Other connected
4,676,079.00 0.00 27,584,817.00 0.00
receivable parties
(2) Accounts Payable
Unit: RMB
Item Connected party Ending carrying balance Beginning carrying balance
Beijing Electronics Holding
Accounts payable Co., Ltd and its affiliated 24,642,268.00 4,775,947.00
companies
Accounts payable Other connected parties 13,173,692.00 9,756,547.00
Beijing Electronics Holding
Other accounts payable 104,973,788.00 132,845,171.00
Co., Ltd and its affiliated
190
BOE Technology Group Co., Ltd. Interim Report 2018
companies
Other accounts payable Other connected parties 918,874.00 976,392.00
7. Commitments of Connected Party
8. Other
XIII. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
(1) Capital Commitments
The Group 30 June 2018 31 December 2017
Investment contracts entered into but not
67,111,933,917.00 51,309,042,746.00
performed or performed partially
Investment contracts authorized but not
43,313,486,071.00 37,485,065,035.00
entered into
Total 110,425,419,988.00 88,794,107,781.00
The Group 30 June 2018 31 December 2017
Investment contracts entered into but not
38,492,643,013.00 40,532,322,288.00
performed or performed partially
Investment contracts authorized but not
0.00 0.00
entered into
Total 38,492,643,013.00 40,532,322,288.00
(2) Operating Commitments
The Group 30 June 2018 31 December 2017
Within 1 year (including 1 year) 59,848,792.00 31,054,096.00
Over 1 year and within 2 years (including 2
35,019,468.00 27,481,454.00
year)
Over 2 year and within 3 years (including 3
20,585,027.00 20,499,253.00
year)
Over 3 years 76,595,062.00 87,810,970.00
Total 192,048,349.00 166,845,773.00
191
BOE Technology Group Co., Ltd. Interim Report 2018
2. Contingency
(1) Significant Contingency on the Balance Sheet Date
There was no significant contingency on the balance sheet date.
(2) Explanations Should Also Be Given when there Was No Significant Contingency to Disclose
There was no significant contingency to disclose.
3. Other
Naught
XIV. Other Significant Events
1. Segment Information
(1) Recognition Basis and Accounting Policies of Reportable Segment
(1) Segment Reporting Considerations
The Group principal decision-makers review the operation performance and distribute resources in accordance to the business
segments below.
(a) Display and Sensor Device – divided into the display and sensor device sub-division and the sensor and application solution
sub-division.
(b) IoT-Based Smart System –divided into the smart manufacturing service sub-division, the IoT solution sub-division and the
digital art IoT platform sub-division.
(c)Smart healthcare service division –divided into the mobile healthcare IoT platform sub-division and the smart healthcare service
sub-division.
(d) Others - other service mainly includes technical development service and patent maintenance service
The main reason to separate the segments is that the Group independently manages the intelligent interface device and solution
division, the smart system and solution division, the smart healthcare service division and the other businesses. Because the business
segments manufacture and distribute different products, apply to different manufacturing processes and specify in gross profit, the
business segments are managed independently. The management evaluates the performance and allocates resources according to the
profit of each business segment and does not take financing cost and investment income into account.
(2) Accounting Policy for the Measurements of Segment Profit or Loss, Assets and Liabilities
For the purposes of assessing segment performance and allocating resources between segments, the Group’s management regularly
reviews the assets, liabilities, revenue, cost and results of operations, attributable to each reportable segment on the following bases:
Segment assets include all tangible, intangible, other non-current and current assets, such as accounts receivable, with the exception
of deferred tax assets and other unallocated corporate assets. Segment liabilities include payables, bank borrowings and other
non-current liabilities attributable to the individual segments, but exclude deferred tax liabilities and other unallocated corporate
liabilities.
Financial performance is operating income (including operating income from external customers and inter-segment operating income)
192
BOE Technology Group Co., Ltd. Interim Report 2018
after deducting expenses, depreciation, amortization, impairment losses, gains or losses from changes in fair value, investment gain,
non-operating income and expenses and income tax expenses attributable to the individual segments. Inter-segment sales are
determined with reference to prices charged to external parties for similar orders.
(2) The Financial Information of Reportable Segment
Unit: RMB
Smart healthcare Offset among
Item Display and Sensor IoT Smart system Others Total
service segment
Operation
39,168,994,378.00 7,347,282,083.00 526,401,626.00 2,536,686,461.00 -6,105,459,582.00 43,473,904,966.00
revenue
Cost of sales 32,151,300,891.00 6,738,168,128.00 245,030,759.00 5,086,300.00 -3,995,003,947.00 35,144,582,131.00
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each Reportable
Segment Could not Be Reported, Relevant Reasons Shall Be Clearly Stated
Naught
(4)Other Notes
Naught
2. Other Significant Transactions with Influence on Investors’ Decision-making
Naught
3. Other
Naught
193
BOE Technology Group Co., Ltd. Interim Report 2018
XV. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category
Withdrawal Carrying value Withdrawal Carrying value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts receivable with
significant single amount for
0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
which bad debt provision
separately accrued
Accounts receivable withdrawal
of bad debt provision of by 26,564,467.00 60.43% 0.00 0.00% 26,564,467.00 25,391,284.00 59.00% 0.00 0.00% 25,391,284.00
credit risks characteristics:
Accounts receivable with
insignificant single amount for
17,395,967.00 39.57% 2,889,866.00 16.61% 14,506,101.00 17,395,967.00 41.00% 2,889,866.00 17.00% 14,506,101.00
which bad debt provision
separately accrued
Total 43,960,434.00 100.00% 2,889,866.00 6.57% 41,070,568.00 42,787,251.00 100.00% 2,889,866.00 7.00% 39,897,385.00
Accounts receivable with single significant amount for which bad debt provision separately accrued at the end of the period
□ Applicable √ Not applicable
In the groups, accounts receivable adopted aging analysis method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
194
BOE Technology Group Co., Ltd. Interim Report 2018
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
In the credit risk groups, bad debt provision was withdrawn in line with the lower one between the estimated recoverable amount and the carrying value, there was no bad debt provision in the
groups.
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB0.00; the amount of the reversed or collected part during the Reporting Period was of RMB0.00.
Of which the bad debt provision reversed or recovered with significant amount in the Reporting Period:
Unit: RMB
Name Amount reversed or recovered Way of recovery
Naught
Naught
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount
Naught
Of which the verification of significant accounts receivable:
Unit: RMB
Nature of the account Verification procedures Whether generated from
Name Amount verified Reason for verification
receivable performed connected transaction
Naught
Notes to the verification of accounts receivable:
Naught
195
BOE Technology Group Co., Ltd. Interim Report 2018
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
The total Top 5 accounts receivable in ending balance was RMB41,386,958.00, accounting for 94.15% of the total ending balance of accounts receivable. The total ending balance of bad debt
provision correspondingly withdrawn was RMB473,228.00.
(5) Accounts Receivable Derecognized Due to the Transfer of Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continued Involvement of Accounts Receivable
Naught
Other notes: Naught
2. Other Accounts Receivable
(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category
Withdrawal Carrying value Withdrawal Carrying value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Other accounts receivable
with significant single amount
0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
for which bad debt provision
separately accrued
Other accounts receivable
1,565,138,570.00 100.00% 0.00 0.00% 1,565,138,570.00 1,824,727,573.00 100.00% 0.00 0.00% 1,824,727,573.00
withdrawn bad debt provision
196
BOE Technology Group Co., Ltd. Interim Report 2018
according to credit risks
characteristics
Other accounts receivable
with insignificant single
0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
amount for which bad debt
provision separately accrued
Total 1,565,138,570.00 100.00% 0.00 0.00% 1,565,138,570.00 1,824,727,573.00 100.00% 0.00 0.00% 1,824,727,573.00
Other receivable with single significant amount for which bad debt provision separately accrued at the end of the period：
□ Applicable √ Not applicable
In the groups, other accounts receivable adopted aging analysis method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopted balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopted other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB0.00; the amount of the reversed or collected part during the Reporting Period was of RMB0.00.
Of which the bad debt provision with significant amount:
Unit: RMB
Name Amount reversed or recovered Way of recovery
Naught
Naught
197
BOE Technology Group Co., Ltd. Interim Report 2018
(3) Other Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
Naught
Of which the verification of significant accounts receivable:
Unit: RMB
Verification Whether generated
Nature of other Reason for
Name Amount verified procedures from connected
accounts receivable verification
performed transaction
Naught
Notes to the verification of other accounts receivable:
Naught
(4) Other Account Receivable Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Intercourse funds 751,663,989.00 702,635,642.00
Royalty receivable 788,827,959.00 878,653,588.00
Others 24,646,622.00 243,438,343.00
Total 1,565,138,570.00 1,824,727,573.00
(5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Aging
other accounts bad debt provision
receivable
Customer 1 Royalty receivable 628,876,298.00 Within 1 year 40.18% 0.00
Customer 2 Intercourse funds 189,718,128.00 Over 3 years 12.12% 0.00
Within 1 year, 1 to 2
Customer 3 Intercourse funds 162,801,366.00 10.40% 0.00
years, over 3 years
Customer 4 Intercourse funds 117,021,568.00 Within 1 year 7.48% 0.00
Within 1 year, 1 to 2
Customer 5 Intercourse funds 88,498,912.00 5.65% 0.00
years
Total -- 1,186,916,272.00 -- 75.83% 0.00
198
BOE Technology Group Co., Ltd. Interim Report 2018
(6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Ending aging
subsidies time, amount and basis
Naught
Naught
(7) Other Accounts Receivable Derecognized Due to the Transfer of Financial Assets
Naught
(8) Amount of Assets and Liabilities Due to the Transfer of Other Account Receivable and Continued
Involvement
Naught
Other notes:
Naught
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserve reserve
Investment to
128,354,979,137.00 60,000,000.00 128,294,979,137.00 116,691,267,854.00 60,000,000.00 116,631,267,854.00
subsidiaries
Investment to
joint ventures
2,745,382,489.00 0.00 2,745,382,489.00 4,562,412,537.00 0.00 4,562,412,537.00
and associated
enterprises
Total 131,100,361,626.00 60,000,000.00 131,040,361,626.00 121,253,680,391.00 60,000,000.00 121,193,680,391.00
(1) Investment to Subsidiaries
Unit: RMB
Depreciation Ending balance
Investee Beginning balance Increase Decrease Ending balance reserve of depreciation
withdrawn reserve
Beijing BOE
9,450,000.00 0.00 0.00 9,450,000.00 0.00 0.00
Semi-conductor
199
BOE Technology Group Co., Ltd. Interim Report 2018
Co., Ltd.
Beijing Yinghe
333,037,433.00 0.00 0.00 333,037,433.00 0.00 0.00
Century Co., Ltd.
Beijing BOE Land
7,731,474.00 0.00 0.00 7,731,474.00 0.00 0.00
Co., Ltd.
BOE (Hebei)
Mobile
1,053,651,020.00 0.00 0.00 1,053,651,020.00 0.00 0.00
Technology Co.,
Ltd.
BOE Hyundai
LCD (Beijing)
Display 31,038,525.00 0.00 0.00 31,038,525.00 0.00 0.00
Technology Co.,
Ltd.
Beijing BOE
Vacuum
19,250,000.00 0.00 0.00 19,250,000.00 0.00 0.00
Electronics Co.,
Ltd.
Beijing BOE
Vacuum
32,000,000.00 0.00 0.00 32,000,000.00 0.00 0.00
Technology Co.,
Ltd.
Beijing BOE
Optoelectronics
4,172,288,084.00 0.00 0.00 4,172,288,084.00 0.00 0.00
Technology Co.,
Ltd.
Beijing BOE
Special Display
100,000,000.00 0.00 0.00 100,000,000.00 0.00 60,000,000.00
Technology Co.,
Ltd.
BOE
Optoelectronics
658,961,914.00 0.00 0.00 658,961,914.00 0.00 0.00
Technology Co.,
Ltd.
BOE Marketing
20,500,000.00 0.00 0.00 20,500,000.00 0.00 0.00
Co., Ltd.
Chengdu BOE
Optoelectronics
14,733,149,991.00 2,750,000,000.00 0.00 17,483,149,991.00 0.00 0.00
Technology Co.,
Ltd.
Beijing Asahi 30,888,470.00 0.00 0.00 30,888,470.00 0.00 0.00
200
BOE Technology Group Co., Ltd. Interim Report 2018
Electronic
Material Co., Ltd.
BOE (Korea) Co.,
788,450.00 0.00 0.00 788,450.00 0.00 0.00
Ltd.
Beijing BOE
Optoelectronics 1,743,602,824.00 1,025,059,200.00 0.00 2,768,662,024.00 0.00 0.00
Holding Co., Ltd.
Beijing BOE
Display
17,418,713,599.00 0.00 0.00 17,418,713,599.00 0.00 0.00
Technology Co.,
Ltd.
Beijing BOE
Energy
850,000,000.00 0.00 0.00 850,000,000.00 0.00 0.00
Technology Co.,
Ltd.
Beijing BOE
Multimedia
400,000,000.00 0.00 0.00 400,000,000.00 0.00 0.00
Technology Co.
Ltd.
Hefei BOE
Optoelectronics
9,000,000,000.00 0.00 0.00 9,000,000,000.00 0.00 0.00
Technology Co.,
Ltd.
BeijingMatsushita
Color CRT Co., 0.00 0.00 0.00 0.00 0.00 0.00
Ltd.
Beijing BOE
Video Technology 2,170,000,000.00 400,000,000.00 0.00 2,570,000,000.00 0.00 0.00
Co., Ltd.
Beijing BOE
Smart Commerce 10,000,000.00 0.00 0.00 10,000,000.00 0.00 0.00
Co., Ltd.
Beijing
Zhongxiangying
10,000,000.00 0.00 0.00 10,000,000.00 0.00 0.00
Technology Co.,
Ltd.
Ordos Yuansheng
Optoelectronics 11,804,000,000.00 0.00 0.00 11,804,000,000.00 0.00 0.00
Co., Ltd.
Erdos Haosheng
2,000,000.00 0.00 0.00 2,000,000.00 0.00 0.00
Energy Investment
201
BOE Technology Group Co., Ltd. Interim Report 2018
Co., Ltd.
Hefei Xinsheng
Optoelectronics
16,575,150,000.00 0.00 0.00 16,575,150,000.00 0.00 0.00
Technology Co.,
Ltd.
Chongqing BOE
Optoelectronics
19,565,354,599.00 0.00 0.00 19,565,354,599.00 0.00 0.00
Technology Co.,
Ltd.
Hefei BOE
Display
1,550,765,323.00 448,000,000.00 0.00 1,998,765,323.00 0.00 0.00
Technology Co.,
Ltd.
Fuzhou BOE
Optoelectronic
12,666,042,079.00 1,367,000,000.00 0.00 14,033,042,079.00 0.00 0.00
Technology Co.,
Ltd.
BOE Healthcare
1,193,154,069.00 480,000,000.00 0.00 1,673,154,069.00 0.00 0.00
Co., Ltd.
Intelligent
50,000,000.00 0.00 0.00 50,000,000.00 0.00 0.00
Technology
Hefei BOE
Zhuoyin
400,750,000.00 0.00 0.00 400,750,000.00 0.00 0.00
Technology Co.,
Ltd.
Beijing BOE
Technology
1,000,000.00 0.00 0.00 1,000,000.00 0.00 0.00
Development Co.,
Ltd.
Kunming BOE
Display
78,000,000.00 46,800,000.00 0.00 124,800,000.00 0.00 0.00
Technology Co.,
Ltd.
Beijing BOE
Sensor Technology 0.00 50,000,000.00 0.00 50,000,000.00 0.00 0.00
Co., Ltd.
Mianyang BOE
Optoelectronics
0.00 5,096,852,083.00 0.00 5,096,852,083.00 0.00 0.00
Technology Co.,
Ltd.
Total 116,691,267,854.00 11,663,711,283.00 0.00 128,354,979,137.00 0.00 60,000,000.00
202
BOE Technology Group Co., Ltd. Interim Report 2018
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Profit and loss Cash, Ending
Adjustment of
Beginning on investments dividends and balance for
The investor Additional Reduced other Changes in Impairment Ending balance
balance confirmed profits Others impairment
investments investments comprehensive other equity provisions
according to declared to provisions
income
equity law issue
I. Joint ventures
Wuhan BOE
Optoelectronic
91,590,309.00 750,000,000.00 0.00 569,162.00 0.00 0.00 0.00 0.00 0.00 842,159,471.00 0.00
Technology
Co., Ltd.
Beijing BOE
Yiyun
3,763,783.00 0.00 0.00 -2,943,687.00 0.00 0.00 0.00 0.00 0.00 820,096.00 0.00
Technology
Co., Ltd.
Mianyang BOE
Optoelectronics
2,698,378,093.00 0.00 0.00 -1,526,010.00 0.00 0.00 0.00 0.00 -2,696,852,083.00 0.00 0.00
Technology
Co., Ltd.
Subtotal 2,793,732,185.00 750,000,000.00 0.00 -3,900,535.00 0.00 0.00 0.00 0.00 -2,696,852,083.00 842,979,567.00 0.00
II. Associated enterprises
Beijing Nissin
Electronics
0.00 0.00 0.00 780,003.00 0.00 2,424,598.00 0.00 0.00 0.00 3,204,601.00 0.00
Precision
Component
203
BOE Technology Group Co., Ltd. Interim Report 2018
Co., Ltd.
(Nissin
Electronics )
Beijing Nittan
Electronic Co.,
53,786,835.00 0.00 0.00 4,982,517.00 0.00 0.00 -3,000,000.00 0.00 0.00 55,769,352.00 0.00
Ltd. (Nittan
Electronics)
Beijing
Yingfei Hailin
Venture Capital
Management 373,361.00 0.00 0.00 -338,738.00 0.00 0.00 0.00 0.00 0.00 34,623.00 0.00
Co., Ltd.
(Yingfei
Hailin)
Ordos BOE
Energy
Investment
9,458,312.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,458,312.00 0.00
Co., Ltd. (BOE
Energy
Investment)
Beijing Fly
Hailin
137,448,451.00 0.00 0.00 24,387.00 0.00 0.00 0.00 0.00 0.00 137,472,838.00 0.00
Investment
Center
TPV Display
Technology
27,190,533.00 0.00 0.00 -1,304,414.00 0.00 0.00 0.00 0.00 0.00 25,886,119.00 0.00
(China)
Limited
204
BOE Technology Group Co., Ltd. Interim Report 2018
Beijing
Xindongneng
1,472,249,231.00 150,000,000.00 0.00 -5,997,801.00 0.00 0.00 0.00 0.00 0.00 1,616,251,430.00 0.00
Investment
Fund (LLP)
Beijing
Xindongneng
Investment 4,861,735.00 0.00 0.00 806,640.00 0.00 0.00 -2,000,000.00 0.00 0.00 3,668,375.00 0.00
Management
Co., Ltd.
Shenzhen
Yunyinggu
35,483,897.00 0.00 0.00 -11,959,303.00 0.00 0.00 0.00 0.00 0.00 23,524,594.00 0.00
Technology
Co., Ltd.
Beijing
XLOONG
23,981,997.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23,981,997.00 0.00
Technology
Co., Ltd.
Chongqing
BOE Display
3,846,000.00 0.00 0.00 -695,319.00 0.00 0.00 0.00 0.00 0.00 3,150,681.00 0.00
Technology
Co., Ltd.
Subtotal 1,768,680,352.00 150,000,000.00 0.00 -13,702,028.00 0.00 2,424,598.00 -5,000,000.00 0.00 0.00 1,902,402,922.00 0.00
Total 4,562,412,537.00 900,000,000.00 0.00 -17,602,563.00 0.00 2,424,598.00 -5,000,000.00 0.00 -2,696,852,083.00 2,745,382,489.00 0.00
(3) Other Notes
Naught
205
BOE Technology Group Co., Ltd. Interim Report 2018
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 0.00 0.00 0.00 0.00
Other operations 2,146,860,956.00 12,786,733.00 705,463,015.00 5,670,598.00
Total 2,146,860,956.00 12,786,733.00 705,463,015.00 5,670,598.00
Other notes:
Naught
206
BOE Technology Group Co., Ltd. Interim Report 2018
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
900,000,000.00 607,278,350.00
accounted by cost method
Long-term equity investment income
-17,602,562.00 -13,690,555.00
accounted by equity method
Investment income arising from disposal of
0.00 0.00
long-term equity investments
Investment income received from financial
assets at fair value through profit or loss 0.00 0.00
during holding period
Investment income received from disposal of
financial assets measured at fair value 0.00 0.00
through profit or loss
Investment income of held to maturity
0.00 0.00
investment during holding period
Investment income received from holding of
2,071,592.00 930,175.00
available-for-sale financial assets
Investment income received from disposal of
0.00 0.00
available-for-sale financial assets
After losing control, gains from
re-measurement of residual shares at fair 0.00 0.00
value
Total 884,469,030.00 594,517,970.00
6. Other
Naught
XVI. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Explanation
Gains/losses on the disposal of non-current assets -3,451,236.00 Naught
Tax rebates, reductions or exemptions due to approval beyond authority or the lack 0.00 Naught
207
BOE Technology Group Co., Ltd. Interim Report 2018
of official approval documents
Government grants recognized in the current period, except for those acquired in
the ordinary course of business or granted at certain quotas or amounts according to 2,051,849,769.00 Naught
the government’s unified standards
Capital occupation charges on non-financial enterprises that are recorded into
0.00 Naught
current gains and losses
Gains due to that the investment costs for the Company to obtain subsidiaries,
associates and joint ventures are lower than the enjoyable fair value of the 9,317,244.00 Naught
identifiable net assets of the investees when making the investments
Gain/loss on non-monetary asset swap 0.00 Naught
Gain/loss on entrusting others with investments or asset management 0.00 Naught
Asset impairment provisions due to acts of God such as natural disasters 0.00 Naught
Gains and losses from debt restructuring 0.00 Naught
Expenses on business reorganization, such as expenses on staff arrangements,
0.00 Naught
integration, etc.
Gain/loss on the part over the fair value due to transactions with distinctly unfair
0.00 Naught
prices
Current net gains and losses of subsidiaries acquired in business combination under
0.00 Naught
the same control from period-begin to combination date
Profit and loss from contingencies irrelative to the normal business operations of
0.00 Naught
company
Gain/loss from change of fair value of trading assets and liabilities, and investment
gains from disposal of trading financial assets and liabilities and available-for-sale
180,450,008.00 Naught
financial assets, other than valid hedging related to the Company’s common
businesses
Depreciation reserves returns of receivables with separate depreciation test 153,235.00 Naught
Gain/loss on entrustment loans 0.00 Naught
Gain/loss on change of the fair value of investing real estate of which the
0.00 Naught
subsequent measurement is carried out adopting the fair value method
Effect on current gains/losses when a one-off adjustment is made to current
gains/losses according to requirements of taxation, accounting and other relevant 0.00 Naught
laws and regulations
Custody fee income when entrusted with operation 0.00 Naught
Other non-operating income and expense other than the above 31,223,326.00 Naught
Project confirmed with the definition of non-recurring gains and losses and losses 0.00 Naught
Less: Income tax effects 182,968,012.00 Naught
Non-controlling interests effects 90,236,593.00 Naught
Total 1,996,337,741.00 --
208
BOE Technology Group Co., Ltd. Interim Report 2018
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Profit or
Loss, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.
□ Applicable √ Not applicable
2. Return on Equity and Earnings Per Share
Weighted average EPS (Yuan/share)
Profit as of Reporting Period
ROE (%) EPS-basic EPS-diluted
Net profit attributable to ordinary shareholders of the
3.45% 0.085 0.085
Company
Net profit attributable to ordinary shareholders of the
1.14% 0.028 0.028
Company after deduction of non-recurring profit and loss
3. Other
Naught
209
BOE Technology Group Co., Ltd. Interim Report 2018
Part XI Documents Available for Reference
(I) The financial statements signed and sealed by the Company’s legal representative, president of the Execution Committee (Chief
Executive Officer), Chief Financial Officer and head of the financial department (equivalent to financial manager); and
(II) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the Reporting
Period.
All the above mentioned documents are available at the Board Secretary’s Office of the Company.
Chairman of the Board (signature): Mr. Wang Dongsheng
Date of the Board’s approval of this Report: 24 August 2018
210
