Stock Code: 200725 Short form of stock: BOE B Announcement No.: 2010-021
BOE TECHNOLOGY GROUP CO., LTD.
THE FIRST QUARTERLY REPORT FOR YEAR 2010
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee, as well as directors,
supervisors and senior executives of BOE Technology Group Co., Ltd. (hereinafter
referred to as “the Company”) warrant that this report does not contain any false or
misleading statements or omit any material facts, and will take all responsibilities,
individual and joint, for the authenticity, accuracy and completeness of this report.
1.2 The Financial Report for First Quarter of 2010 has not been audited by an
accounting firm.
1.3 Mr. Wang Dongsheng, Chairman of the Board of Directors, Mr. Chen Yanshun,
CEO, Ms. Sun Yun, CFO, and Ms. Yang Xiaoping, Person-in-charge of the Financial
Planning Department, hereby declare that they guarantee the reality and completeness
of the financial report enclosed in this quarterly report.
§2 Company Profile
2.1 Main accounting data and financial indicators
Unit: RMB Yuan
As at 31 Mar. 2010 As at 31 Dec. 2009 Increase/decrease (%)
Total assets (Yuan) 32,279,034,322.00 30,613,980,480.00 5.44%
Owner’s equity attributable to shareholders of
listed company (Yuan)
17,738,455,110.00 18,022,804,672.00 -1.58%
Share capital (share) 8,282,902,447.00 8,282,902,447.00 0.00%
Net assets per share attributable to shareholders
of listed company (Yuan/share)
2.14 2.18 -1.83%
Jan.-Mar. 2010 Jan.-Mar. 2009 Increase/decrease (%)
Total operating income (Yuan) 1,893,639,353.00 720,895,076.00 162.68%
Net profit attributable to shareholders of listed
company (Yuan)
-296,853,336.00 -410,758,569.00 27.73%
Net cash flows from operating activities (Yuan) 33,675,569.00 -147,403,907.00 122.85%
Net cash flows per share from operating activities
(Yuan/share)
0.004 -0.02 120.00%
Basic earnings per share (Yuan/share) -0.04 -0.13 69.23%
Diluted earnings per share (Yuan/share) -0.04 -0.13 69.23%
Weighted average ROE (%) -1.66% -7.43% 5.77%
Weighted average ROE (%) after deducting
non-recurring gains and losses
-1.75% -7.51% 5.76%Items of extraordinary gains and losses
Amount from year-begin to
period-end
Gains and losses from disposal of non-current assets 2,929,269.00
Government subsidies recorded into current gains and losses, except for those closely related to normal
operation of the Company and enjoyed by the Company at certain amounts according to state policies
14,730,190.00
Other non-business incomes and expenses except for items above 1,308,552.00
Effect on income tax -26,729.00
Effect on minority interests -2,606,013.00
Total 16,335,269.00
Notes to important items of extraordinary gains and losses
None
2.2 Number of total shareholders at period-end and top ten shareholders holding
shares not subject to trading moratorium
Unit: Share
Number of total shareholders at period-end 193,236 (including 153,274 A-share holders and 39,962 B-share holders)
Shareholding of top ten shareholders holding shares not subject to trading moratorium
Full name of shareholder
Shares not subject to moratorium held at
period-end
Type of shares
BEIJING BOE INVESTMENT-DEVELOPMENT CO., LTD. 717,484,233 RMB ordinary shares
BEIJING ELECTRONICS HOLDING CO., LTD. 254,837,863 RMB ordinary shares
FIELDS PACIFIC LIMITED 53,165,462 Domestically listed foreign shares
BEIJING STATE-OWNED ASSETS MANAGEMENT CO., LTD. 47,079,309 RMB ordinary shares
BEIJING INDUSTRY DEVELOPMENT & INVESTMENT
MANAGEMENT CO., LTD.
42,276,259 RMB ordinary shares
CHENGDU HI-TECH INVESTMENT GROUP CO., LTD. 33,971,362 RMB ordinary shares
CHENGDU INDUSTRIAL INVESTMENT GROUP CO., LTD. 33,088,747 RMB ordinary shares
UBS CUSTODY SERVICES SINGAPORE PTE. LTD. 30,312,315 Domestically listed foreign shares
HUANG YINGBIN 28,547,711 Domestically listed foreign shares
CHINA LIFE INSURANCE (GROUP)
COMPANY—TRADITIONAL—COMMON INSURANCE
PRODUCT
18,999,924 RMB ordinary shares
§3 Significant Events
3.1 Considerable changes in main accounting statement items and financial indicators,
as well as reasons for such changes
√Applicable □Inapplicable
1. Prepayment increased by 107.1% as compared with that at the end of last year, which was mainly because: The
Company prepaid to suppliers for material purchase;
2. Other current assets increased by 45.77% as compared with that at the end of last year, which was mainlybecause: Overpaid VAT increased in the first quarter of 2010;
3. Construction in process increased by 52.91% as compared with that at the end of last year, which was mainly
because: Construction projects and equipment purchase increased;
4. Other non-current assets increased by 112.66% as compared with that at the end of last year, which was mainly
because: The Company prepaid for construction projects and technology contracts;
5. Interest payable increased by 220.76% as compared with that at the end of last year, which was mainly because:
The Company withdrew borrowing interest in the first quarter of 2010;
6. Other current liabilities increased by 37.6% as compared with that at the end of last year, which was mainly
because: Deposits for products within the maintenance period were withdrawn;
7. Other non-current liabilities increased by 99.73% as compared with that at the end of last year, which was
mainly because: Government subsidies related to assets were received;
8. Operating income increased by 162.68% from the same period of last year, which was mainly because: In the
same period of last year, market demand and prices for main products of the Company decreased due to the
financial crisis while in the report period, prices and sales of main products were on the rise because of recovery of
the market environment;
9. Operating cost increased by 126.52% from the same period of last year, which was mainly because: Due to
market recovery in the report period, operating cost rose along with increasing sales of main products;
10、Asset impairment loss increased by 284.13%, which was mainly because: At the same period of last year,
prices rose along with recovery of the TFT-LCD industry and impairment reserves withdrawn previously were
offset.
11. Selling expenses increased by 99.85% from the same period of last year, which was mainly because: Due to
market recovery in the report period, selling expenses rose along with increasing sales of main products;
12. Financial expenses decreased by 111.56% from the same period of last year, which was mainly because:
Monetary funds increased due to the private A-stock offering, which resulted in more interest of bank deposits;
13. Investment income increased by 86.3% from the same period of last year, which was mainly because:
Matsushita Color CRT was included in the consolidation scope on 31 Dec. 2009 and measurement of the long-term
equity investment in Matsushita Color CRT was shifted from the equity method to the cost method;
14. Non-business income increased by 277.1% from the same period of last year, which was mainly because: More
government subsidies related to incomes were recognized in the report period;
15. Income tax expenses decreased by 180.55% from the same period of last year, which was mainly because:
Deferred income tax liabilities recognized in 2009 were transferred back in the report period;
16. Net cash flows from operating activities increased by 122.85% from the same period of last year, which was
mainly because: Due to market recovery, as well as increase in production and sales, cash inflows from operating
activities increased significantly from the same period of last year;
17. Net cash flows from investing activities decreased by 70.91% from the same period of last year, which was
mainly because: New projects were launched one by one, which resulted in more cash outflows from investing
activities as compared with that in the same period of last year;18. Net cash flows from financing activities increased by 83.00% from the same period of last year, which was
mainly because: Registered capital of project enterprises was increased.
3.2 Progress of significant events, as well as analysis and explanation on relevant
influence and solutions
√Applicable □Inapplicable
1. Private A-stock offering project: With authorization from the Shareholders’ General Meeting, the Board of
Directors actively carried forward the private A-stock offering project for raising equity funds for the Beijing 8G
TFT-LCD Production Line Project. Currently, the private A-stock offering project is in great progress;
2. Beijing 8G TFT-LCD production line project: Currently, factory building is in process. And equipment purchase,
personnel preparation, product and customer development, business invitation for the up-stream and down-stream
industrial chain are being carried forward as scheduled;
3. Hefei 6G TFT-LCD production line project: Roof-sealing of main construction was successfully accomplished
at the end of Dec. 2009 with a top-grade construction speed and quality. Currently, equipment carry-in, installation
and testing are in process. And mass production is expected to be realized in the fourth quarter of 2010;
4. National engineering lab project for TFT-LCD technique: Currently, equipment carry-in, installation and testing
are in process. And the lab is expected to go into operation in the third quarter of 2010;
5. Syndicated loan affairs: Organization of syndicated loans for the Hefei 6G Production Line Project and the
Beijing 8G Production Line Project is being actively carried forward.
3.3 Implementation of commitments made by the Company, shareholders and actual
controller
□Applicable √Inapplicable
3.4 Warnings of possible loss or large-margin change of the accumulated net profit
made during the period from the beginning of the year to the end of the next report
period compared with the same period of the last year according to prediction, as well
as explanations on the reasons
√Applicable □Inapplicable
Performance forecast Loss
1 Jan.-30 Jun. 2010 Same period of last year Increase/decrease (%)
Estimated accumulative net
profit (RMB Ten thousand)
-50000.00 -74943.00 - -
Basic EPS (RMB Yuan/share) -0.06 -0.18 - -
Explanation on performance
forecast
The TFT-LCD industry has begun to recover at the beginning of 2009. And prices of the Company’s
main products rose but still remained at a low level. The product structure of the Company’s 5G
TFT-LCD Production Line is being actively adjusted and the 4.5G TFT-LCD Production Line is
expected to reach the designed production capacity in the second quarter of 2010. The first half of
2010 is expected to see a loss of the Company but with a better performance than the same period of
last year.
3.5 Other significant events
3.5.1 Securities investment
□Applicable √Inapplicable
3.5.2 Researches, interviews and visits received in report period.3.5.3 Other significant events
√Applicable □Inapplicable
(1) In the report period, the Company did not offer funds to the controlling
shareholder or its related parties or provide external guarantees in violation of the
prescribed procedure;
(2) In the report period, shareholders holding 30% of the Company’s shares had no
plans of shareholding increase;
(3) In the report period, there existed no significant contract matters that should be
disclosed;
3.6 Investments in financial derivative products
□Applicable √Inapplicable
3.6.1 Positions of financial derivative products held at period-end
Time Place Way of reception Visitor
Main discussion and materials provided by the
Company
12 Jan. 2010
Conference Room of the
Company
Field research Industrial Securities Co., Ltd.
13 Jan. 2010
Conference Room of the
Company
Field research
New Times Securities Co., Ltd., Harvest Fund
Management Co., Ltd. and Huatai Securities
Co., Ltd.
14 Jan. 2010
Conference Room of the
Company
Field research GF Fund Management Co., Ltd.
19 Jan. 2010
Conference Room of the
Company
Field research
Aerospace Science & Technology Finance
Co., Ltd.
20 Jan. 2010
Conference Room of the
Company
Field research Industrial Securities Co., Ltd.
21 Jan. 2010
Conference Room of the
Company
Field research
Yinhua Fund Management Co., Ltd., TX
Investment Consulting Co., Ltd., Changsheng
Fund Management Co., Ltd. and HXFB
(Shanghai) Asset Management Co., Ltd.
5 Feb. 2010
Conference Room of the
Company
Field research
Bohai Securities Co., Ltd., Invesco Great
Wall Fund Management Co., Ltd., China
Merchants Securities, Xinjiang Hongtai
Mining Industry Co., Ltd. and ICBC Credit
Suisse Asset Management Co., Ltd.
25 Feb. 2010
Conference Room of the
Company
Field research
Rixin Securities Co., Ltd., Citic Securities
Co., Ltd., Yinhua Fund Management Co.,
Ltd., TX Investment Consulting Co., Ltd. and
China Securities Co., Ltd.
1 Mar. 2010
Conference Room of the
Company
Field research Wedge MKI LLC and Wedge partners Corp.
19 Mar. 2010
Conference Room of the
Company
Field research
Merrill Lynch Securities (Taiwan) Ltd., Bank
of America Merrill Lynch and UG invest
Main discussion:
1. Operation of the Company and its future
development strategy;
2. Current status and development trends in the
industry;
3. Chengdu 4.5G Production Line, Hefei 6G
Production Line and Beijing 8G Production Line;
4. Particulars about the private A-stock offering;
Materials provided:
The 2008 Annual Report, the brochure of the
Company and other materials available for public
access□Applicable √Inapplicable
Chairman of the Board: Wang Dongsheng (signature)
Board of Directors
BOE Technology Group Co., Ltd.
28 April 2010
