BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
Stock Code: 200725 Stock Name: BOE-B Announcement No. 2019-058
BOE TECHNOLOGY GROUP CO., LTD.
THIRD QUARTER REPORT 2019 (SUMMARY)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior manage ment 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 mate rial omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Mr. Chen Yanshun, the Company’s legal representative, Mr. Liu Xiaodong, 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 departme nt
(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
Reasons for the retrospective restatements:
Changes to the accounting policies.
31 December 2018 Change (%)
Item 30 September 2019
Before Restated Restated
Total assets (RMB) 324,400,678,094.00 304,028,491,385.00 304,028,491,385.00 6.70%
Equity attributable to the listed
86,762,736,301.00 85,856,748,703.00 85,856,748,703.00 1.06%
company’s shareholders (RM B)
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BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
Item Q3 2019 YoY change (%) Q1-Q3 2019 YoY change (%)
Operating revenue (RM B) 30,682,823,546.00 18.05% 85,722,032,233.00 23.40%
Net profit attributable to the listed
183,791,110.00 -54.49% 1,852,239,559.00 -45.18%
company’s shareholders (RM B)
Net profit attributable to the listed
company’s shareholders before -840,490,839.00 -332.16% -189,000,405.00 -110.13%
exceptional items (RM B)
Net cash generated from/used in
-- -- 16,526,989,409.00 -10.37%
operating activities (RM B)
Basic earnings per share (RM B/share) 0.005 -58.33% 0.053 -45.36%
Diluted earnings per share (RM B/share) 0.005 -58.33% 0.053 -45.36%
Weighted average return on equity (%) 0.21% -55.32% 2.14% -45.41%
Notes:
In the 2018 Annual Report, the net profit attributable to the listed company’s shareholders before exceptional gains and losses was
restated according to the audit results. According to the interpretations of the regulatory document CK [2018] No.15, government
subsidies received, whether related to assets or income, shall be presented as cash generated from operating activities” in the cash
flow statements. Above adjustment has no influence on total assets and equity attributable to the listed company ’s shareholders for
the end of last year.
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RM B
Item Q1-Q3 2019 Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance
-10,469,354.00 N/A
write-offs)
Tax rebates, reductions and exemptions with ultra vires approval or in lack of duly
0.00 N/A
approved document
Government subsidies charged to current profit and loss (exclusive of government
subsidies given in the Company’s ordinary course of business at fixed quotas or amounts 1,433,252,399.00 N/A
as per government’s uniform standards )
Capital occupation charges on non-financial enterprises that are charged to current gains
0.00 N/A
and losses
Income 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 0.00 N/A
value of identifiable net assets of investees when making investments
Gains and losses on non-monetary asset swap 0.00 N/A
Gains and losses on investment or asset management entrustments to other entities 0.00 N/A
Allowance for asset impairments due to acts of God such as natural disasters 0.00 N/A
Gains and losses on debt restructuring 0.00 N/A
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BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
Restructuring costs in staff arrangement, integration, etc. 0.00 N/A
Gains and losses on over-fair value amount as a result of transactions with distinctly
0.00 N/A
unfair prices
Current gains and losses on subsidiaries acquired through business mergers under same
0.00 N/A
control from period-beginning to merger dates, net
Gains and losses 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 and derivative
financial assets and liabilities & investment income from disposal of trading financial
assets and liabilities and derivative financial assets and liabilities, and other creditors’ 86,944,711.00 N/A
investment (exclusive of effective portion of hedges that arise in the Company’s ordinary
course of business)
Reversed portion of impairment allowance for accounts receivable and contract assets
393,516.00 N/A
which are tested individually for impairment
Gains and losses on loan entrustment 0.00 N/A
Gains and losses 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 gains and losses
Income from charges on entrusted management 0.00 N/A
Non-operating income and expense other than above 63,888,377.00 N/A
Other gains and losses that meet definition of nonrecurring gain/loss 795,126,980.00 N/A
Less: Income tax effects 87,489,641.00 N/A
Non-controlling interests effects (net of tax) 240,407,024.00 N/A
Total 2,041,239,964.00 --
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
Item Amount Reason
The Company undertook the transfer and share swap obligations for investments
from non-controlling interests of the Company ’s subsidiary Hefei Xinsheng
Optoelectronics Technology Co., Ltd. (hereinafter referred to as “Hefei
Other gains and losses that Xinsheng”), which was recorded into financial liabilities as applicable
meet definition of 795,126,980.00 accounting standards related to financial instruments. During the Reporting
nonrecurring gain/loss Period, the Company signed the Equity Transfer Agreement with Hefei Heping
Investment Company Limited (hereinafter referred to as “Hefei Heping”), in
which the Company was agreed to be transferred the 15.3846% shares in Hefei
Xinsheng held by Hefei Heping. Once upon completion of this transfer, Hefei
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BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
Xinsheng will be a wholly -owned subsidiary of the Company. The difference of
RM B795,126,980.00 between the cash payment and carrying financial liabilities
was recorded into the current profit or loss as required by standards.
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BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
II Total Numbe r of Shareholde rs and Holdings of Top 10 Shareholde rs at 30 September 2019
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 1,434,390 (including 1,394,366 A-shareholders and 40,024 B-shareholders）
Top 10 shareholders
Shares in pledge or
Nature of Shareholding Number of Restricted
Name of shareholder frozen
shareholder percentage shares shares
Status Shares
Beijing State-owned Capital State-owned legal
11.68% 4,063,333,333 0 N/A 0
Operation and M anagement Center person
Chongqing Capital Opto-electronic State-owned legal
7.60% 2,643,863,541 0 N/A 0
Industry Investment Co., Ltd. person
Hefei Jianxiang Investment Co., State-owned legal
7.21% 2,510,142,953 0 N/A 0
Ltd. person
Beijing Yizhuang Investment State-owned legal
3.36% 1,168,209,006 0 N/A 0
Holdings Co., Ltd person
Beijing BOE Investment & State-owned legal
2.36% 822,092,180 0 N/A 0
Development Co., Ltd. person
Hong Kong Securities Clearing Foreign legal
1.37% 477,597,769 0 N/A 0
Company Ltd. person
Beijing Electronics Holdings Co., State-owned legal
0.79% 273,735,583 0 N/A 0
Ltd. person
Central Huijin Assets M anagement State-owned legal
0.71% 248,305,300 0 N/A 0
Co., Ltd person
Domestic
Xiamen Hengxing Group Co., Ltd. non-state-owned 0.47% 163,345,478 0 N/A 0
legal person
Domestic
China Securities Finance
non-state-owned 0.38% 132,480,249 0 N/A 0
Corporation Limited
legal person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares
Type Shares
Beijing State-owned Capital
4,063,333,333 RM B-denominated ordinary stock 4,063,333,333
Operation and M anagement Center
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BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
Chongqing Capital Opto-electronic
2,643,863,541 RM B-denominated ordinary stock 2,643,863,541
Industry Investment Co., Ltd.
Hefei Jianxiang Investment Co.,
2,510,142,953 RM B-denominated ordinary stock 2,510,142,953
Ltd.
Beijing Yizhuang Investment
1,168,209,006 RM B-denominated ordinary stock 1,168,209,006
Holdings Co., Ltd
Beijing BOE Investment &
822,092,180 RM B-denominated ordinary stock 822,092,180
Development Co., Ltd.
Hong Kong Securities Clearing
477,597,769 RM B-denominated ordinary stock 477,597,769
Company Ltd.
Beijing Electronics Holdings Co.,
273,735,583 RM B-denominated ordinary stock 273,735,583
Ltd.
Central Huijin Assets M anagement
248,305,300 RM B-denominated ordinary stock 248,305,300
Co., Ltd
Xiamen Hengxing Group Co., Ltd. 163,345,478 RM B-denominated ordinary stock 163,345,478
China Securities Finance
132,480,249 RM B-denominated ordinary stock 132,480,249
Corporation Limited
1. Beijing State-owned Capital Operation and M anagement 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 Opto-electronic 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.
Related or acting-in-concert parties when executing the voting rights of the shareholders.
among shareholders above 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital
Operation and M anagement Center handed over 70% of the shares directly held by it to
Beijing Electronics Holdings Co., Ltd. for management through Stock M anagement 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.
The Company’s shareholder Beijing Yizhuang Investment Holdings Co., Ltd. decreased its
Top 10 ordinary shareholders
shareholding in the Company of 30,709,600 shares for involved in refinancing business.
involved in securities margin
The Company’s shareholder Xiamen Hengxing Group Co., Ltd. holds 42,926,898 shares
trading
through the securities margin trading account.
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.
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BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
Part III Significant Events
I Changes in Key Financial State ment Line Items and Explanation of why
√ Applicable □ Not applicable
1. The Construction in progress as at 30 September 2019 rose 35% compared to 31 December 2018, primarily driven by increase
with the progress of new projects in the Reporting Period.
2. Short-term borrowings as at 30 September 2019 rose 75% compared to 31 December 2018, primarily driven by optimization of
debt structure and reduction of finance costs in the Reporting Period.
3. The current portion of non-current liabilities as at 30 September 2019 rose 88% compared to 31 December 2018, primarily driven
by the transfer of the current portion of long-term borrowings into this item in the Reporting Period.
4. Bonds payable as at 30 September 2019 declined 96% compared to 31 December 2018, primarily driven by the advance cashing of
corporate bonds in the Reporting period.
5. R&D expense went up 75% during the Reporting Period compared to the same period of last year, primarily driven by a higher
amount of R&D investment in the Reporting Period.
6. Finance costs went down 38% during the Reporting Period compared to the same period of last year, primarily driven by reduction
of finance costs arising from repayments of carrying convertible creditor’s rights by the Company during the Reporting Period.
7. Asset impairment loss went up 51% during the Reporting Period compared to the same period of last year, primarily driven by an
increase in the inventory valuation allowance recorded in the Reporting Period according to the lower of cost and net realizable
value.
8. Return on investment went down 71% during the Reporting Period compared to the same period of last year, primarily driven by a
decrease in mature wealth management products in the Reporting Period.
9. Net cash generated from/used in financing activities went up 38% during the Reporting Period compared to the same period of last
year, primarily driven by the putting in place of the project company ’s investment funds as the progress of the new project.
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
1. The wholly-owned subsidiary, BOE Technology (Hong Kong) Co., Ltd., filed lawsuits to Beijing M unicipal Higher People's Court
against following Defendants: Letv M obile Intelligent Information Technology (Beijing) Co., Ltd. (referred to as “Letv M obile
hereinafter”) , TV Plus Holdings (Beijing) Limited, Leseil M obile Technology (Beijing) Co., Ltd. and Jia Yueting, with the total
amount of claims being about US$41.84 million. Beijing M unicipal 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 M obile raised the jurisdiction
objection to Beijing M unicipal Higher People's Court, which was rejected, and also instituted an appeal to the Supreme People's
Court for verdict on jurisdiction objection. The final verdict of the Supreme People's Court is that the appeal of Letv M obile is
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BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
rejected and the original verdict is maintained. On 8 M arch 2019, the case was first heard in the Beijing M unicipal Higher People’s
Court and the next step for the Company is to wait for notice or judgment from the 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.
Index to the related
Summary of the significant event Disclosure date
announcement
Announcement on Signing Supplementary Agreement of Cooperation
8 September 2019 www.cninfo.com.cn
Agreement on Life Science and Technology Industrial Base Project (II)
Progress of any share repurchases:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
IV Securities Investments
√ Applicable □ Not applicable
Unit: RM B
Gain/loss of
Accumulative Purchased Sold in
Accounting changes in fair Gain/loss in
Variety of Symbol of Name of Initial Beginning changes in fair in the the Ending Accounting Capital
measurement value in the Reporting
security security security investment cost carrying value value recorded into Reporting Reporting carrying value title source
model Reporting Period
equities Period Period
Period
Domestic
Other equity
and TPV Fair value Self-owned
HK00903 134,658,158.00 25,613,279.00 -24,470,177.00 -133,515,055.00 0.00 0.00 471,354.00 1,143,103.00 instruments
overseas Technology method funds
investment
stock
Domestic
Other equity
and Electronic Fair value Self-owned
SH600658 90,160,428.00 83,995,943.00 56,125,880.00 49,961,395.00 0.00 0.00 1,883,379.00 140,121,823.00 instruments
overseas Zone method funds
investment
stock
Domestic
Other equity
and Bank of Fair value Self-owned
HK01963 120,084,375.00 98,705,065.00 -4,000,184.00 -40,472,517.00 0.00 0.00 3,859,812.00 98,835,126.00 instruments
overseas Chongqing method funds
investment
stock
Domestic
Other equity
and China Fair value Self-owned
HK06066 70,041,364.00 44,412,577.00 12,415,268.00 -12,468,379.00 0.00 0.00 2,044,411.00 58,945,138.00 instruments
overseas Securities method funds
investment
stock
Domestic New Fair value Other equity Self-owned
HK01518 140,848,850.00 125,909,253.00 -72,588,144.00 -87,705,450.00 0.00 0.00 0.00 57,630,071.00
and Century method instruments funds
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BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
overseas Healthcare investment
stock
Other securities investments held
0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
at the period-end
Total 555,793,175.00 -- 378,636,117.00 -32,517,357.00 -224,200,006.00 0.00 0.00 8,258,956.00 356,675,261.00 -- --
Disclosure date of the
announcement about the board’s
N/A
consent for the securities
investment
Disclosure date of the
announcement about the general
N/A
meeting’s consent for the
securities investment (if any)
V Wealth Manage ment Entrustment
√ Applicable □ Not applicable
Unit: RM B’0,000 (in RM B ten thousand yuan)
Type of wealth management Funding source Principal Outstanding amount before maturity Overdue amount
Wealth management product purchased from bank and
Self-funded 674,150 455,750 0
structural deposits
total 674,150 455,750 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
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BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Communications with the Investment Community such as Researches, Inquiries and
Inte rvie ws during the Reporting Period
√ Applicable □ Not applicable
Index to main information
Date Way of communication Type of communication party
communicated
24 July 2019 One-on-one meeting Institution
1. the main situations of the industry
27 August 2019 By phone Institution
2. main operating information of the
4 September 2019 One-on-one meeting Institution Company
12 September 2019 One-on-one meeting Institution 3. innovations of technology and
products
25 September 2019 One-on-one meeting Institution
4. future strategy layout
25 September 2019 One-on-one meeting Institution
For details, see www.cninfo.com.cn
26 September 2019 One-on-one meeting Individual
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the 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)：Chen Yanshun
th
Date of the Board’s approval of this Report:30 October 2019
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