BOE Technology Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
Stock Code: 200725 Stock Name: BOE B Announcement No.: 2017-049
BOE TECHNOLOGY GROUP CO., LTD.
SEMI-ANNUAL REPORT 2017 (ABSTRACT)
I Important Notes
This Abstract is based on the full text of the Semi-Annual Report. In order for a full understanding of the operating results, financial
condition and future development planning of the Company, investors are kindly reminded to read the full text carefully on the media
designated by the China Securities Regulatory Commission (the “CSRC”).
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) as well as the directors, supervisors and senior
management of BOE Technology Group Co., Ltd. (the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report, and shall be jointly and severally liable for any false representation, misleading statements or material
omissions in this Report.
Mr. Wang Dongsheng, head of the Company, Mr. Chen Yanshun, president of the Execution Committee (chief executive officer) of
the Company, Ms. Sun Yun, accounting head for this Report, and Ms. Yang Xiaoping, head of the accounting department (head of
accounting), hereby guarantee that the Financial Report carried in this Report is factual, accurate and complete.
All the directors attended the board meeting for the review of this Report.
Modified auditor’s opinion:
□ Applicable √ Not applicable
Proposal for profit distribution to or converting capital reserve into share capital for common shareholders for the Reporting Period,
which has been considered and approved by the Board:
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.
Proposal for profit distribution to preference shareholders for the Reporting Period, which has been considered and approved by the
Board:
□ Applicable √ Not applicable
This Abstract has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the
two versions, the Chinese version shall prevail.
II Company Profile
1. Stock Profile
Stock name BOE A, BOE B Stock code 000725, 200725
Stock exchange Shenzhen Stock Exchange
Changed stock name (if any) N/A
Contact information Board Secretary Securities Representative
Name Liu Hongfeng Cui Zhiyong
12 Xihuan Middle Road, Beijing 12 Xihuan Middle Road, Beijing
Office address Economic-Technological Development Area, Economic-Technological Development Area,
P.R.China P.R.China
Tel. 010－64318888 ext. 010－64318888 ext.
E-mail liuhongfeng@boe.com.cn cuizhiyong@boe.com.cn
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BOE Technology Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
2. Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √ No
Item Reporting Period Same period of last year +/- (%)
Operating revenue (RMB Yuan) 44,605,027,995.00 26,448,310,717.00 68.65%
Net profit attributable to shareholders of the
4,302,605,600.00 -516,472,418.00 -
Company (RMB Yuan)
Net profit attributable to shareholders of the
Company before exceptional gains and losses 4,017,844,109.00 -2,309,697,388.00 -
(RMB Yuan)
Net cash from operating activities (RMB
10,638,591,266.00 2,734,086,955.00 289.11%
Yuan )
Basic earnings per share (RMB Yuan /share) 0.123 -0.015 -
Diluted earnings per share (RMB Yuan /share) 0.123 -0.015 -
Weighted average return on equity (%) 4.48% -0.67% -
Item End of Reporting Period End of last year +/- (%)
Total assets (RMB Yuan) 225,472,484,104.00 205,135,011,042.00 9.91%
Net assets attributable to shareholders of the
81,811,299,775.00 78,699,988,493.00 3.95%
Company (RMB Yuan)
3. Shareholders and Their Holdings at Period-End
Unit: share
Total number of common
1,034,884 (including 995,012 A-shareholders and 39,872 B-shareholders)
shareholders at period-end
Top 10 shareholders
Nature of Shareholding Restricted shares Pledged or frozen shares
Name of shareholder Total shares held
shareholder percentage held Status Number
Beijing State-owned
State-owned
Capital Operation and 11.56% 4,063,333,333 0 Naught 0
Corporation
Management Center
Chongqing Ezcapital
Opto-electronics State-owned
8.53% 3,000,000,000 0 Naught 0
Industry Investment Corporation
Co., Ltd.
Hefei Jianxiang State-owned
8.13% 2,857,142,857 0 Naught 0
Investment Co., Ltd. Corporation
Beijing
Economic-Technologic State-owned
3.53% 1,241,423,641 0 Naught 0
al Investment & Corporation
Development Corp.
Beijing BOE
State-owned
Investment & 2.34% 822,092,180 0 Naught 0
Corporation
Development Co., Ltd.
Tianan Property
Insurance Co., Ltd- Other 2.09% 733,544,020 0 Naught 0
Baoying No.1
National Social
Security Fund Portfolio Other 1.39% 490,038,723 0 Naught 0
108
Hefei Rongke Project State-owned
0.92% 324,026,893 0 Naught 0
Investment Co., Ltd. Corporation
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BOE Technology Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
Beijing Electronics On behalf of
0.78% 273,735,583 0 Naught 0
Holdings Co., Ltd. government
Central Huijin Assets
Other 0.71% 248,305,300 0 Naught 0
Management Co., Ltd
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 Ezcapital Opto-electronics Industry 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 &
Development Co., Ltd. when executing the voting rights of the shareholders.
Related or acting-in-concert parties
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital
among shareholders above
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 relationship among the above shareholders, the Company is not aware of
whether the other top ten shareholders exist associated relationship or not, or they are
persons acting in concert or not.
Shareholders conducting securities
N/A
margin trading (if any)
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preference shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have 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.
(1) Bond Profile
Balance
Bond name Abbr. Bond code Due date Interest rate
(RMB’0,000 Yuan)
2016 Public offering of the
corporation bonds for the qualified
16BOE01 112358 03/21/2021 1,000,000 3.15%
investors of BOE Technology Group
Co., Ltd. (Phase I)
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BOE Technology Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
(2) Selected Financial Information as of End of Reporting Period
Item End of Reporting Period End of last year +/-
Debt-to-assets ratio 56.77% 55.14% 1.63%
Liquidity ratio 1.74 2.20 -0.46
Quick ratio 1.55 2.01 -0.46
Item Reporting Period Same period of last year +/-
EBITDA-to-interest coverage ratio 8.43 5.34 3.09
Loan repayment rate 1.00 1.00 0.00%
Interest coverage ratio 1.00 1.00 0.00%
III Performance Discussion and Analysis
1. Performance Review for Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
In order to seize opportunities arising from the shift from the post-Internet era to the Fourth Industrial Revolution across the world,
embrace new technologies and make a new leap to a globally-advanced company in the sector of the Internet of Things, the Company
has further positioned itself as an “Internet of Things company that offers smart interface products and professional services for
information interaction and mankind’s health”.
The first half of 2017 saw a slow recovery in the global economy and a pickup in China’s economy. With balanced supply and
demand, the display market was stable. Under such circumstances, the Company continued to unwaveringly follow the DSH (Display,
Smart systems and Healthcare services) strategy, and work on new business responsively, with the purpose of solidifying and
increasing its global competitiveness. As a result, the Reporting Period has seen a larger market share and an improving ability in
market expansion of the Company. In this period, the Company applied for 4,363 new patents. Technological and product
innovations were springing up. The Company has listed among TOP 50 enterprises in terms of the number of 2016 USA licensing
patents issued by IFI in January and among TOP 10 enterprises in terms of the number of 2016 international patent applications
issued by World Intellectual Property Organization (WIPO) in February. Meanwhile, it beefed up channel expansion across the world.
Subsidiaries in Russia, Brazil and the Middle East have started operation. The first half of the year has seen more distribution
channels and a stronger branding ability of the Company. In addition, the Company has furthered its lean management, which has
produced better energy consumption and earnings results. Meanwhile, its major construction projects went on smoothly and all its
substantial plans are well underway. For the Reporting Period, the Company achieved, on a consolidated basis, operating revenues of
RMB 44.6 billion Yuan, up 69% compared to the same period of last year; and net profit of RMB 4.3 billion Yuan, representing a
significant year-on-year growth. Details about the Company’s business divisions in the Reporting Period are given as follows:
(1) Display and Sensor Business Group (DBG)
The overall market share of semiconductor display products increased stably. The market share of main products in subdivided
markets was in the leading position in the industry. The market share of LCD display screen of smart phones, display of tablets, and
display of laptops kept ranking as the world number 1, the market share of display screen leaped to the 2nd place in the world, and the
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BOE Technology Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
market share of TV display ranked in the 2nd place in the world. Products representing the globally frontier technologies, which
included 1.5-inch FIC OLED, 2.1-inch VR with high pixel density of 2300PPI, 5-inch ink-jet printing AMQLED, 5.2-inch
eye-protective display, 5.5-inch QHD human-eye-tracking 3D, were firstly launched in the world and won the SID “Best in Show”
Award. Multiple Flexible OLED products were successfully lightened in new production line. 8K ultrahigh resolution series, TDDI
products, MLOC active pen were successfully put into market. The potential dig-out of capacity was deepened through continuous
reinforcement of lean management and optimization of bottle-neck techniques. Capacity of the Beijing, Hefei, Chongqing 8.5th
Generation Line set a new record. Yield rate of key projects distinctly rose up. The result of optimization of product structure was
remarkable. The Company’s competitive power made continuous enhancement. Projects in key production lines in Chengdu, Hefei,
Fuzhou, Mianyang, etc. were smoothly boosted, of which some production lines realized lightening or mass production in advance.
Innovation and transform were accelerated for the sensor business. The photoelectric sensor was developed. Projects of physical and
chemical testing, molecular antenna, and security were stably advanced. Samples for glass-based fingerprint identification were made
out. Cooperation intention with the 1st class clients in domestic and overseas market was agreed for gene sequencing.
(2) Smart Business Group (SBG)
The globally well-known branded clients were successfully developed. The shipment of whole machines with smart-manufacturing
service continuously increased. The project construction for smart factories was stably carried forward. Integrated planning for the
1st -phase smart logistics of Hefei smart factory was accomplished, which substantially saved human labors and realized smooth
mass production. Structure capping of main plant of Chongqing smart factory was finished 43 days in advance. Smart
vehicle-connection business was being constantly and deeply integrated. The Chengdu vehicle-mounted base smoothly won client’s
authentication. In terms of smart retail, the Company stared the acquisition of the French SES company, worked out retail solutions
for shops and supermarkets, preliminarily formed production lines of iGallery painted-screen art retail business, the system of RFID
Internet-of-Things for physical retail stores, and the system of financial retail Internet-of-Things. The reservation of electricity
generation by smart power was sustainably improved.
(3) Healthcare Business Group (HBG)
In terms of health service business, business structure of synergetic development of mobile health, digital hospital, regenerative
medicine, and health park was formed. As for mobile health, the noninvasive multiparameter detector (MTX) and mobile health
management platform (APP) were promoted. The noninvasive combined glucometer (COG) was recognized by CFDA (China Food
and Drug Administration) authentication. Business performance of the OASIS Hospital kept a year-on-year growth. The construction
of Hefei Digital Hospital was steadily advanced. Projects in Beijing, Chengdu, and etc. were being positively planned. As for
regenerative medicine, the construction of research institute for trinity regenerative medicine was started up, and domestically
initiative cell sheets, such as myocardium and cornea were brought out. License application for the insurance company was steadily
advanced. Capacity of the health park was constantly strengthened. On the basis of stable operation of the existing park, the
Company developed TS project and promoted its actual operation.
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BOE Technology Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
2. Matters Related to Financial Report
(1) Changes in Accounting Policies, Accounting Estimations and Measurement Methods Compared to Last
Accounting Period
√ Applicable □ Not applicable
The Ministry of Finance issued The Accounting Standards for Enterprises No. 16 - Governmental Subsidies on May 2017, which
implemented from June 12, 2017. The Company revised financial statement according to it. Governmental subsidies related to
routine activities of enterprises were recorded into other incomes or offset related costs in line with the essence of economic business.
At the same time, item “other gains” is added above the item of “operating profits” in the income statement, and governmental
subsidies recorded into other gains was reflected in this item. This change didn’t have an influence on financial conditions, operating
results, and cash flow of the Company. Except the above-mentioned items, other changes of accounting policies due to the
implementation of new criteria didn’t have an impact on items and amounts of financial statement, and there was also no need of
retroactive adjustment.
(2) Retroactive Restatements due to Correction of Significant Accounting Errors in Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period
√ Applicable □ Not applicable
In the Reporting Period, BOE has incorporated five new subsidiaries: Mianyang BOE Optoelectronics Co., Ltd., Beijing BOE Yiyun
Technology Co., Ltd., BOE Brazil Consulting Service Co., Ltd., BOE Regenerative Medical Technologies Co. Ltd. and Beijing BOE
Health Technology Co., Ltd. BOE holds 62.5%, 51%, 100%, 100% and 100% of their shares respectively.
In the Reporting Period, to strengthen the smart energy system business,BOE has taken over Huanda Trading (Hebei) Co., Ltd., Juhui
New Energy (Pinghu) Co., Ltd., Juhui New Energy (Shaoxing) Co., Ltd. and Dinghui New Energy (Zhuji) Co., Ltd. BOE holds 100%
of their shares.
Board Chairman’s signature: Mr. Wang Dongsheng
Date of the Board’s approval of this Report’s submission: August 28, 2017
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