BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
Stock Code: 200725 Stock Name: BOE B Announcement No. 2018-052
BOE TECHNOLOGY GROUP CO., LTD.
THIRD QUARTER REPORT 2018 (SUMMARY)
Part I Important Notes
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.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
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.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Item 30 September 2018 31 December 2017 Change (%)
Total assets (RMB) 289,680,059,305.00 256,108,741,849.00 13.11%
Equity attributable to the listed 85,818,805,445.00 84,809,816,377.00 1.19%
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
company’s shareholders (RMB)
Item Q3 2018 YoY change (%) Q1-Q3 2018 YoY change (%)
Operating revenue (RMB) 25,990,508,323.00 4.79% 69,464,413,289.00 0.08%
Net profit attributable to the listed
403,860,235.00 -81.42% 3,379,066,735.00 -47.82%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 119,979,875.00 -93.68% 1,098,848,634.00 -81.43%
exceptional items (RMB)
Net cash generated from/used in
-- -- 18,297,602,412.00 -1.05%
operating activities (RMB)
Basic earnings per share (RMB/share) 0.012 -80.65% 0.097 -47.57%
Diluted earnings per share (RMB/share) 0.012 -80.65% 0.097 -47.57%
Weighted average return on equity (%) 0.47% -82.33% 3.92% -50.75%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2018 Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance
-17,906,941.00 N/A
write-offs)
Tax rebates, reductions and exemptions given with ultra vires approval or in lack of
0.00 N/A
official 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 2,431,679,361.00 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 9,317,244.00 N/A
value of 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
0.00 N/A
prices
Current profit or loss on subsidiaries obtained in business combinations involving 0.00 N/A
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
enterprises 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
0.00 N/A
business
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
273,977,796.00 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
0.00 N/A
measurement 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 48,197,584.00 N/A
Other gains and losses that meet definition of exceptional gain/loss 0.00 N/A
Less: Income tax effects 313,681,228.00 N/A
Non-controlling interests effects (net of tax) 151,518,950.00 N/A
Total 2,280,218,101.00 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2018
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders 1,423,472 (including 1,384,020 A-shareholders and 39,452 B-shareholders)
Top 10 shareholders
Nature of Shareholding Number of Restricted Shares in pledge or frozen
Name of shareholder
shareholder percentage shares shares Status Shares
Beijing State-owned Capital
State-owned
Operation and Management 11.68% 4,063,333,333 0 N/A 0
legal person
Center
Chongqing Ezcapital
State-owned
Opto-electronics Industry 7.62% 2,653,000,041 0 N/A 0
legal person
Investment Co., Ltd.
Hefei Jianxiang Investment State-owned
7.21% 2,510,142,953 0 N/A 0
Co., Ltd. legal person
Beijing Yizhuang Investment State-owned
3.57% 1,241,423,641 0 N/A 0
Holdings Co., Ltd legal person
Beijing BOE Investment & State-owned
2.36% 822,092,180 0 N/A 0
Development Co., Ltd. legal person
Hong Kong Securities Foreign
1.42% 493,694,620 0 N/A 0
Clearing Company Ltd. legal person
National Social Security Fund
Other 1.07% 371,014,227 0 N/A 0
Portfolio 108
Beijing Electronics Holdings State-owned
0.79% 273,735,583 0 N/A 0
Co., Ltd. legal person
Central Huijin Assets State-owned
0.71% 248,305,300 0 N/A 0
Management Co., Ltd legal person
China Securities Finance
Other 0.38% 132,480,249 0 N/A 0
Corporation Limited
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares
Type Shares
Beijing State-owned Capital Operation and RMB-denominated
4,063,333,333 4,063,333,333
Management Center ordinary stock
Chongqing Ezcapital Opto-electronics 2,653,000,041 RMB-denominated 2,653,000,041
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
Industry Investment Co., Ltd. ordinary stock
RMB-denominated
Hefei Jianxiang Investment Co., Ltd. 2,510,142,953 2,510,142,953
ordinary stock
Beijing Yizhuang Investment Holdings Co., RMB-denominated
1,241,423,641 1,241,423,641
Ltd ordinary stock
Beijing BOE Investment & Development RMB-denominated
822,092,180 822,092,180
Co., Ltd. ordinary stock
Hong Kong Securities Clearing Company RMB-denominated
493,694,620 493,694,620
Ltd. ordinary stock
National Social Security Fund Portfolio RMB-denominated
371,014,227 371,014,227
108 ordinary stock
RMB-denominated
Beijing Electronics Holdings Co., Ltd. 273,735,583 273,735,583
ordinary stock
RMB-denominated
Central Huijin Assets Management Co., Ltd 248,305,300 248,305,300
ordinary stock
China Securities Finance Corporation RMB-denominated
132,480,249 132,480,249
Limited ordinary stock
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 Co., Ltd., by entering into
Implementation Protocol of Voting Right respectively, agreed to maintain all of the
shares held by them respectively unanimous with Beijing BOE Investment &
Related or acting-in-concert parties among Development Co., Ltd. when executing the voting rights of the shareholders.
shareholders above 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 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 10 ordinary shareholders involved in
Naught
securities margin trading
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
Part III Significant Events
I Changes in Selected Consolidated Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
Unit: RMB
30 September 2018 31 December 2017 (or Change
Item Explanation of why
(or Q1~Q3 2018) Q1~Q3 2017) (%)
Mass production on new production lines and
Inventories 12,178,965,256.00 8,957,719,381.00 36%
additions to the consolidation scope
Long-term equity Shift of associate to subsidiary during the
4,036,661,192.00 6,928,854,415.00 -42%
investments current period
Construction in Rise in investments in new constructions in the
67,442,708,371.00 50,761,250,426.00 33%
progress current period
Rise in material purchases as a result of the
Notes and accounts
22,096,470,048.00 16,749,587,533.00 32% production and sales ramp-up in the current
payable
period
Current portion of
6,068,813,097.00 9,109,708,511.00 -33% Repayment of bank loans in the current period
non-current liabilities
Finance costs 2,242,661,339.00 1,413,361,041.00 59% Greater exchange loss and interest expenditure
Decline in inventory valuation allowances,
Asset impairment loss 783,454,658.00 1,757,042,642.00 -55% which were recorded at the lower of the cost
and the net realizable value
Rise in government subsidies in the current
Other investment 2,261,274,910.00 458,317,281.00 393%
period
Higher gains on wealth management products
Investment income 258,565,775.00 61,147,940.00 323%
during the current period
Net cash generated
Rise in bank loan repayments in the current
from/used in financing 11,681,695,994.00 27,057,943,017.00 -57%
period
activities
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
1. 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”
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
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. On 29 June 2018, the Supreme People's Court issued the final verdict to dismiss Letv
Mobile’s appeal and sustain the original ruling. 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.
index to disclosure website for
Overview of significant events Disclosure date
interim report
Announcement on Connected Transaction regarding Participation in
31 July 2018 www.cninfo.com.cn
Beijing Electronic Control Industrial Investment Co., Ltd.
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV 2018 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in net profit for year 2018, as well as explanation of why:
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
V Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/Lo
ss on
Purcha
fair-valu Accumulated Fundin
Security Security Initial Measure sed in Sold in Gain/loss in
Beginning e fair-value Ending carrying Accountin
Security type ment Report Reporting Reporting g
code name investment cost method carrying amount changes changes charged ing Period Period
amount g title
in to equity source
Period
Reportin
g Period
Available-f
Domestically/ Fair
TPV or-sale Self-fu
Overseas HK00903 134,658,158.00 value 21,584,703.00 0.00 -13,251,799.00 0.00 0.00 196,070.00 14,791,508.00
Technology financial nded
listed stock method
assets
Available-f
Domestically/ Fair
Electronic or-sale Self-fu
Overseas SH600658 90,160,428.00 value 108,996,372.00 0.00 23,298,083.00 0.00 0.00 1,875,523.00 69,973,707.00
Zone financial nded
listed stock method
assets
Available-f
Domestically/ Fair
Bank of or-sale Self-fu
Overseas HK01963 120,084,375.00 value 130,968,760.00 0.00 -15,895,655.00 0.00 0.00 3,033,233.00 104,188,720.00
Chongqing financial nded
listed stock method
assets
BlackRock
Available-f
Global Fair
or-sale Self-fu
Funds BLK Allocation 0.00 value 6,347,799.00 0.00 2,081,841.00 0.00 6,179,429.00 2,570,403.00 0.00
financial nded
Fund (USD) method
assets
A2
Domestically/ China Fair Available-f Self-fu
HK06066 70,041,364.00 65,856,319.00 0.00 -24,453,603.00 0.00 0.00 0.00 45,587,761.00
Overseas Securities value or-sale nded
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
listed stock method financial
assets
Available-f
Domestically/ New century Fair
or-sale Self-fu
Overseas HK01518 medical 140,895,855.00 value 178,837,871.00 0.00 605,921.00 0.00 662,426.00 1,127,547.00 141,501,776.00
financial nded
listed stock treatment method
assets
Available-f
Domestically/ Z-Obee Fair
or-sale Self-fu
Overseas HK00948 Holdings 0.00 value 246,566.00 0.00 305,200.00 0.00 290,658.00 299,797.00 0.00
financial nded
listed stock Ltd. method
assets
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 -27,310,012.00 0.00 7,132,513.00 9,102,573.00 376,043,472.00 -- --
Disclosure date of announcement on
Board’s consent for securities N/A
investments
Disclosure date of announcement on
general meeting’s consent for securities N/A
investments
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
VI Wealth Management Entrustment
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Outstanding amount
Type of wealth management Funding source Principal Overdue amount
before maturity
Wealth management product
Self-funded 1,257,000 583,200 0
purchased from bank
Total 1,257,000 583,200 0
High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or no
protection of the principal:
□ Applicable √ Not applicable
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
VII Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
3 July 2018 By one-on-one meeting Institution
4 July 2018 By one-on-one meeting Institution
5 July 2018 By one-on-one meeting Institution
Performance of the Company for the first
12 July 2018 By one-on-one meeting Institution
half of the year and industrial situation;
17 July 2018 By one-on-one meeting Institution Main operating information of the
18 July 2018 By one-on-one meeting Institution Company;
Technology and product innovation;
26 July 2018 By one-on-one meeting Institution
Future strategic layout.
29 August 2018 By one-on-one meeting Institution
13 September 2018 By one-on-one meeting Institution
20 September 2018 By one-on-one meeting Institution
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BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
IX Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by Controlling Shareholder or Its Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Chairman of the Board (signature)：
Wang Dongsheng
Date of the Board’s approval of this Report: 26 October 2018
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