BOE TECHNOLOGY GROUP CO., LTD.
REPORT FOR THE FIRST QUARTER OF 2012
§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”) guarantee that this report does not contain any false
information, misleading statement or material omission and will take individual
and/or joint liabilities for the factuality, accuracy and completeness of this report.
1.2 Financial statements for the first quarter of 2012 have not been audited by an
accounting firm.
1.3 Mr. Wang Dongsheng, Chairman of the Board, Mr. Chen Yanshun, President of
the Company, Ms. Sun Yun, Chief Financial Officer of the Company, as well as Ms.
Yang Xiaoping who is in charge of the Planning & Financing Department, hereby
confirm that the financial statements enclosed in the quarterly report are factual and
complete.
[English Translation for Reference Only. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.]
§2 Company Profile
2.1 Main accounting data and financial indices
Unit: RMB Yuan
Increase/decrease
31 Mar. 2012 31 Dec. 2011
(%)
Total assets (Yuan) 66,199,967,494 68,769,415,646.00 -3.74%
Owners’ equity attributable to shareholders of the
25,074,364,454 25,585,892,264.00 -2.00%
Company (Yuan)
Share capital (share) 13,521,542,341 13,521,542,341.00 -
Net assets per share attributable to shareholders
1.89 -2.12%
of the Company (Yuan/share) 1.85
Increase/decrease
Jan.-Mar. 2012 Jan.-Mar. 2011
(%)
Gross revenue (Yuan) 4,147,641,280 1,969,646,222.00 110.58%
Net profit attributable to shareholders of the
-494,562,773 -674,781,964.00 26.71%
Company (Yuan)
Net cash flows from operating activities (Yuan) -44,245,959.00 -366,268,678.00 87.92%
Net cash flows per share from operating
-0.003 -0.033 90.91%
activities (Yuan/share)
Basic EPS (Yuan/share) -0.037 -0.050 26.00%
Diluted EPS (Yuan/share) -0.037 -0.050 26.00%
Weighted average ROE (%) -1.95% -2.74% 0.79%
Weighted average ROE after deducting
-2.13% -2.81% 0.68%
non-recurring gains and losses (%)
Note: Due to the Company implemented the Plan on Capitalization of Capital
Reserves in Jun. 2011, the basic EPS and diluted EPS for the same period of last year
shall be restated with the same range in accordance with relevant regulations.
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Amount from 1 Jan. 2012 Notes (if
Items of non-recurring gains and losses
to 31 Mar. 2012 applicable)
Gains and losses from disposal of non-current assets 136,303.00
Government subsidies recorded into current gains and losses, 56,865,424.00
1
excluding those related closely to the routine business of the Company
and continuously enjoyed by the Company at fixed amounts or ratios
according to state policies and regulations
Other non-operating incomes and expenses 2,598,853.00
Total 59,600,580 .00 -
2.2 Total number of shareholders and shares held by the top ten shareholders not
subject to trading moratorium at the end of the reporting period
Unit: share
Total number of shareholders at the end of the 486,752, of which 446,254 were A-share holders and 40,498 were
reporting period B-share holders
Shares held by the top ten shareholders not subject to trading moratorium
Shares not subject to trading moratorium
Full name of shareholder Type of share
held at the period-end
Beijing BOE Investment & Development Co.,
860,981,080 RMB ordinary shares
Ltd.
Beijing Economic-Technological Investment &
847,650,000 RMB ordinary shares
Development Corp.
Hefei Rongke Project Investment Co., Ltd. 792,000,000 RMB ordinary shares
Beijing E-TOWN International Investment &
700,000,001 RMB ordinary shares
Development Co., Ltd.
Beijing Jiahui Dexin Investment Center (limited
600,000,000 RMB ordinary shares
partnership)
Beijing Industry Development & Investment
442,016,711 RMB ordinary shares
Management Co., Ltd.
Beijing Electronics Holdings Co.,Ltd. 275,303,883 RMB ordinary shares
Southwest Securities Co., Ltd. 241,012,010 RMB ordinary shares
Sinotrans Air Transportation
120,000,000 RMB ordinary shares
Development Co., Ltd.
Ke Xiping 86,144,458 RMB ordinary shares
§3 Significant Events
3.1 Significant changes in main accounting statement items and financial indicators as
well as reasons for these changes
√Applicable □Non-applicable
1. Notes receivable increased 64% over the end of last year, which was mainly
because some receivables from customers were paid with notes.
2. Interest receivable decreased 35% over the end of last year, which was mainly
because fixed term deposits decreased.
3. Other current assets increased 233% over the end of last year, which was mainly
because the deductible amount of VAT increased.
4. Other current liabilities decreased 40% over the end of last year, which was mainly
because the product quality guarantee deposits pre-withdrawn in previous years were
written off as the products were sold.
5. Operating revenue increased 111% over the same period of last year, which was
mainly because the new project realized phasic mass production and the capacity of
production lines increased.
6. Operating cost increased 88% over the same period of last year, which was mainly
because the operating revenue increased.
7. Selling expense increased 70% over the same period of last year, which was mainly
because the sales increased.
8. Financial expense increased 54% over the same period of last year, which was
mainly because interest expense increased.
9. Asset impairment loss increased 249% over the same period of last year, which was
mainly because the Company made impairment provisions for inventories and other
2
assets according to the smaller amount between the cost and the net realizable value.
10. Non-operating income increased 219% over the same period of last year, which
was mainly because deferred income was transferred to non-operating income in
stages according to the progress of projects.
11. Net cash flows from operating activities increased 88% over the same period of
last year, which was mainly because the product structure was adjusted and the
production & sales increased.
12. Net cash flows from investing activities increased 70% over the same period of
last year, which was mainly because the new project proceeded from the construction
stage to the operation stage and the expense on construction and equipment purchase
decreased.
13. Net cash flows from financing activities decreased 87% over the same period of
last year, which was mainly because the new project proceeded from the construction
stage to the operation stage and the financing cash inflows from special borrowings
decreased.
3.2 Progress of significant events as well as their influence and solutions
3.2.1 Non-standard audit opinion
□Applicable √Inapplicable
3.2.2 The Company provides funds for the controlling shareholder or its related
parties or provides external guarantees in violation of the prescribed procedure
□Applicable √Inapplicable
3.2.3 Significant contracts signed and executed concerning routine operation
□Applicable √Inapplicable
3.2.4 Other
□Applicable √Inapplicable
3.3 Fulfillment of commitments made by the Company, its shareholders and actual
controller
Commitments made by the Company, its directors, supervisors, senior executives,
shareholders holding over 5% of the Company’s shares, actual controller and other
related parties in the reporting period, or such commitments carried down into the
reporting period
□Applicable √Inapplicable
3.4 Warnings of possible losses or large-margin year-on-year change of the
accumulative net profit made during the period from the beginning of the year to the
end of the next reporting period according to prediction, as well as explanations on the
reasons
√Applicable □Inapplicable
Business performance forecast Loss
From the year-begin to the end Same period of last
Increase/decrease (%)
of the next reporting period year
Expected accumulative net
-90,000 -- -80,000 -121,548 -- --
profit (RMB Ten thousand)
Basic EPS (RMB Yuan/share) -0.07 -- -0.06 -0.09 -- --
1、The prices of main products has been rebounding a little bit but still low since the
arrival of 2012; The G8.5 TFT-LCD line will cause certain losses as its capacity is still
in the climbing period;
Explanation about the
performance forecast 2、the adjustment of products structure and raw materials cost control have shown
positive results, and the marketing competitiveness of products have been
significantly improved. It is estimated that the operation performance of the first half
year of 2012 will continue ameliorate year-to-year.
3
3.5 Other significant events that need to be explained
3.5.1 Securities investments
□Applicable √Inapplicable
3.5.2 Researches, interviews and visits received in the reporting period
Main discussion and
information
Time Place Way of reception Type of visitor Visitor
provided by the
Company
Conference Room
9 Jan. 2012 Field research Institution Azentus Capital
of the Company
Longzhong
Conference Room
11 Jan. 2012 Field research Institution Investment, CITIC
of the Company
Securities Co., Ltd.
Daiwa Securities Main discussion:
Co., Ltd., Daiwa 1. Operation of the
18 Jan. 2012 By phone By phone Institution
Securities (H.K.) Company and its
Co., Ltd. future development
BOC International strategy;
7 Feb. 2012 By phone By phone Institution
(China) Limited 2. Current status and
YCT Investment development trends
16 Feb. 2012 By phone By phone Institution Management Co., in the industry;
Ltd. 3. Particulars about
Daiwa Securities the Chengdu 4.5G
Conference Room Co., Ltd., Beijing Production Line,
24 Feb. 2012 Field research Institution
of the Company Office of Daiwa Beijing 5G
Securities Co., Ltd. Production Line,
2 Mar. 2012 By phone By phone Institution Citibank Hongkong Hefei 6G Production
6 Mar. 2012 By phone By phone Institution Huatai Securities Line, Beijing 8.5G
Conference Room Fino wave Production Line and
7 Mar. 2012 Field research Institution
of the Company investments Ordos 5.5G
Conference Room AMOLED
8 Mar. 2012 Field research Institution Dacheng Fund
of the Company Production Line;
Conference Room
9 Mar. 2012 Field research Institution Yinhua Fund Materials provided:
of the Company
Shanghai Office of The 2010 Annual
Merrill Lynch Report, the brochure
Securities Co., Ltd., of the Company and
16 Mar. 2012 Ritz-Carlton Hotel Field research Institution Merrill Lynch (Asia other materials
Pacific) Limited, available for public
Cephei capital 、 access
Mitsubishi UFJ
Conference Room Everbright
19 Mar. 2012 Field research Institution
of the Company Securities Co., Ltd.
Sylebra Capital
20 Mar. 2012 By phone By phone Institution
Management
3.6 Derivatives investments
□Applicable √Inapplicable
3.6.1 Derivatives investments held at the end of the reporting period
□Applicable √Inapplicable
§4 Attachments
4.1 Balance Sheet
Prepared by BOE Technology Group Co., Ltd. 31 Mar. 2012 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 15,956,853,365.00 2,363,021,729.00 20,325,469,116.00 3,043,542,028.00
Settlement reserves
Lendings to banks and other
financial institutions
4
Transactional financial assets
Notes receivable 558,795,142.00 1,700,000.00 340,293,997.00 3,863,762.00
Accounts receivable 2,846,814,720.00 59,498,569.00 2,560,795,545.00 55,112,379.00
Accounts paid in advance 81,254,356.00 3,182,375.00 64,799,585.00 2,982,710.00
Premiums receivable
Reinsurance premiums
receivable
Receivable reinsurance
contract reserves
Interest receivable 67,999,851.00 13,769,911.00 105,243,519.00 9,141,082.00
Dividend receivable 8,204,147.00 8,204,147.00
Other accounts receivable 1,750,219,654.00 373,150,742.00 1,735,824,884.00 389,156,441.00
Financial assets purchased
under agreements to resell
Inventories 2,411,386,287.00 1,583,186.00 2,116,218,705.00 1,306,051.00
Non-current assets due within
1 year
Other current assets 2,320,588,059.00 37,247,919.00 696,796,503.00 28,797,744.00
Total current assets 25,993,911,434.00 2,861,358,578.00 27,945,441,854.00 3,542,106,344.00
Non-current assets:
Entrusted loans and advances
granted
Available-for-sale financial
57,211,342.00 57,211,342.00 74,718,931.00 74,718,931.00
assets
Held-to-maturity investments
Long-term accounts
receivable
Long-term equity investment 957,524,281.00 27,655,180,335.00 958,879,205.00 27,656,535,260.00
Investing property 1,338,208,579.00 181,449,349.00 1,340,984,989.00 172,908,765.00
Fixed assets 27,695,890,805.00 364,166,838.00 28,388,863,004.00 393,096,085.00
Construction in progress 8,528,247,537.00 80,222,482.00 8,412,921,608.00 26,832,993.00
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 1,429,158,183.00 99,237,387.00 1,454,669,394.00 99,478,210.00
R&D expense
Goodwill 51,502,898.00 51,502,898.00
Long-term deferred expenses 26,388,701.00 3,303,129.00 22,860,526.00 3,586,980.00
Deferred income tax assets 49,355,084.00 47,892,088.00
Other non-current assets 72,568,650.00 5,019,059.00 70,681,149.00 4,457,280.00
Total of non-current assets 40,206,056,060.00 28,445,789,921.00 40,823,973,792.00 28,431,614,504.00
Total assets 66,199,967,494.00 31,307,148,499.00 68,769,415,646.00 31,973,720,848.00
Current liabilities:
Short-term borrowings 4,896,218,228.00 6,487,193,510.00 34,663,422.00
Borrowings from Central
Bank
Customer bank deposits and
due to banks and other financial
institutions
Borrowings from banks and
other financial institutions
5
Transactional financial
liabilities
Notes payable 25,093,824.00 27,918,268.00
Accounts payable 4,086,851,090.00 10,860,067.00 3,630,464,475.00 13,236,221.00
Accounts received in advance 198,423,333.00 286,011,140.00 186,069,735.00 287,038,716.00
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
276,466,213.00 36,282,915.00 368,442,775.00 61,693,468.00
payable
Tax payable 39,215,097.00 28,045,375.00 47,338,545.00 21,739,121.00
Interest payable 81,677,753.00 110,964,115.00 1,088,911.00
Dividend payable 6,451,170.00 6,451,170.00 6,451,170.00 6,451,170.00
Other accounts payable 3,454,849,187.00 2,309,719,994.00 4,285,822,157.00 2,893,384,484.00
Reinsurance premiums
payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting
underwriting of securities
Non-current liabilities due
1,322,303,938.00 100,000,000.00 1,716,776,716.00 100,000,000.00
within 1 year
Other current liabilities 52,978,964.00 88,652,956.00
Total current liabilities 14,440,528,797.00 2,777,370,661.00 16,956,094,422.00 3,419,295,513.00
Non-current liabilities:
Long-term borrowings 15,426,481,985.00 100,000,000.00 14,700,018,374.00 100,000,000.00
Bonds payable
Long-term payables
Specific payables
Estimated liabilities 28,274,319.00 30,080,844.00
Deferred income tax
412,745,804.00 414,561,354.00
liabilities
Other non-current liabilities 1,573,905,202.00 49,700,466.00 1,623,176,746.00 60,063,972.00
Total non-current liabilities 17,441,407,310.00 149,700,466.00 16,767,837,318.00 160,063,972.00
Total liabilities 31,881,936,107.00 2,927,071,127.00 33,723,931,740.00 3,579,359,485.00
Owners’ equity (or
shareholders’ equity)
Paid-up capital (or share
13,521,542,341.00 13,521,542,341.00 13,521,542,341.00 13,521,542,341.00
capital)
Capital reserves 15,285,441,357.00 15,077,085,956.00 15,302,948,946.00 15,094,593,545.00
Less: Treasury stock
Specific reserves
Surplus reserves 499,092,613.00 499,092,613.00 499,092,613.00 499,092,613.00
Provisions for general risks
Retained profits -4,228,868,766.00 -717,643,538.00 -3,734,305,993.00 -720,867,136.00
Foreign exchange difference -2,843,091.00 -3,385,643.00
Total equity attributable to
25,074,364,454.00 28,380,077,372.00 25,585,892,264.00 28,394,361,363.00
owners of the Company
Minority interests 9,243,666,933.00 9,459,591,642.00
Total owners’ equity 34,318,031,387.00 28,380,077,372.00 35,045,483,906.00 28,394,361,363.00
Total liabilities and owners’
66,199,967,494.00 31,307,148,499.00 68,769,415,646.00 31,973,720,848.00
equity
6
4.2 Income Statement
Prepared by BOE Technology Group Co., Ltd. Jan.-Mar. 2012 Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 4,147,641,280.00 77,049,315.00 1,969,646,222.00 47,030,268.00
Including: Sales income 4,147,641,280.00 77,049,315.00 1,969,646,222.00 47,030,268.00
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 4,914,498,673.00 77,182,752.00 2,719,468,666.00 69,399,404.00
Including: Cost of sales 4,187,777,170.00 25,086,807.00 2,225,369,739.00 21,198,211.00
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate
7,702,861.00 2,000,122.00 4,430,424.00 1,437,591.00
charges
Selling and distribution
122,244,706.00 335,231.00 71,767,816.00
expenses
Administrative expenses 469,276,557.00 72,575,419.00 465,049,868.00 69,997,747.00
Financial expenses -43,866,488.00 -22,863,402.00 -96,207,662.00 -23,280,862.00
Asset impairment loss 171,363,867.00 48,575.00 49,058,481.00 46,717.00
Add: Gain/(loss) from change in
-8,670,137.00
fair value (“-” means loss)
Gain/(loss) from investment
-1,354,925.00 -1,354,925.00 -1,283,192.00 -1,198,993.00
(“-” means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means
-768,212,318.00 -1,488,362.00 -759,775,773.00 -23,568,129.00
loss)
Add: non-operating income 60,403,765.00 4,711,960.00 18,919,093.00 589,882.00
Less: non-operating expense 803,185.00 816,270.00 4,526.00
Including: loss from non-current
517,436.00 342,281.00 4,526.00
asset disposal
IV. Total profit (“-” means loss) -708,611,738.00 3,223,598.00 -741,672,950.00 -22,982,773.00
Less: Income tax expense 1,921,950.00 -818,944.00
V. Net profit (“-” means loss) -710,533,688.00 3,223,598.00 -740,854,006.00 -22,982,773.00
Attributable to owners of the
-494,562,773.00 3,223,598.00 -674,781,964.00 -22,982,773.00
Company
Minority shareholders’
-215,970,915.00 -66,072,042.00
income
VI. Earnings per share
(I) basic earnings per share -0.037 0.0002 -0.060 -0.0020
(II) diluted earnings per
-0.037 0.0002 -0.060 -0.0020
share
Ⅶ. Other comprehensive incomes -16,965,037.00 -17,507,589.00 -6,497,673.00 -6,497,673.00
7
Ⅷ. Total comprehensive incomes -727,498,725.00 -14,283,991.00 -747,351,679.00 -29,480,446.00
Attributable to owners of the
-511,527,810.00 -14,283,991.00 -681,279,637.00 -29,480,446.00
Company
Attributable to minority
-215,970,915.00 -66,072,042.00
shareholders
4.3 Cash Flow Statement
Prepared by BOE Technology Group Co., Ltd. Jan.-Mar. 2012 Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating
activities:
Cash received from sale of
commodities and rendering of 3,777,236,834.00 30,553,895.00 1,951,481,717.00 18,446,230.00
service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the
central bank
Net increase of funds borrowed
from other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from
reinsurance business
Net increase of deposits of
policy holders and investment
fund
Net increase of disposal of
tradable financial assets
Cash received from interest,
handling charges and
commissions
Net increase of borrowings
from banks and other financial
institutions
Net increase of funds in
repurchase business
Tax refunds received 50,483,943.00 208,854,987.00 71,071.00
Other cash received relating to
124,401,105.00 89,540,015.00 174,819,796.00 24,502,392.00
operating activities
Subtotal of cash inflows from
3,952,121,882.00 120,093,910.00 2,335,156,500.00 43,019,693.00
operating activities
Cash paid for goods and
3,169,018,349.00 17,308,364.00 1,946,823,979.00 33,186,195.00
services
Net increase of customer
lendings and advances
Net increase of funds deposited
in the central bank and amount
due from banks
Cash for paying claims of the
original insurance contracts
Cash for paying interest,
handling charges and
commissions
Cash for paying policy
dividends
Cash paid to and for employees 525,852,372.00 69,807,870.00 360,383,125.00 44,055,669.00
Various taxes paid 43,105,083.00 4,384,186.00 139,459,883.00 9,920,371.00
Other cash payment relating to
258,392,037.00 615,454,249.00 254,758,191.00 34,563,010.00
operating activities
Subtotal of cash outflows from
3,996,367,841.00 706,954,669.00 2,701,425,178.00 121,725,245.00
operating activities
8
Net cash flows from operating
-44,245,959.00 -586,860,759.00 -366,268,678.00 -78,705,552.00
activities
II. Cash flows from investing
activities:
Cash received from disposal of
investments
Cash received from return on
investments
Net cash received from disposal
of fixed assets, intangible assets 86,500.00 992,000.00 969,167.00
and other long-term assets
Net cash received from disposal
of subsidiaries or other business
units
Other cash received relating
132,480,714.00 13,570,631.00 367,873,074.00 22,973,826.00
to investing activities
Subtotal of cash inflows
132,567,214.00 13,570,631.00 368,865,074.00 23,942,993.00
from investing activities
Cash paid to acquire fixed
assets, intangible assets and other 2,498,938,550.00 71,890,482.00 6,213,351,370.00 12,294,410.00
long-term assets
8,660,000,000.0
Cash paid for investment
0
Net increase of pledged loans
Net cash paid to acquire
subsidiaries and other business 15,306,439.00
units
Other cash payments relating to
7,370,726.00 2,080,624,905.00
investing activities
Subtotal of cash outflows from 8,672,294,410.0
2,506,309,276.00 71,890,482.00 8,309,282,714.00
investing activities 0
Net cash flows from investing -8,648,351,417.
-2,373,742,062.00 -58,319,851.00 -7,940,417,640.00
activities 00
III. Cash flows from financing
activities:
Cash received from absorbing
investment
Including: Cash received from
minority shareholder investments
by subsidiaries
Cash received from
1,939,588,837.00 5,029,205,308.00
borrowings
Cash received from issuance
of bonds
Other cash received relating to
1,860,423,368.00 83,385,627.00 684,792,609.00 47,500,000.00
financing activities
Subtotal of cash inflows from
3,800,012,205.00 83,385,627.00 5,713,997,917.00 47,500,000.00
financing activities
Repayment of borrowings 3,005,378,302.00 34,021,667.00 1,822,557,682.00 40,147,677.00
Cash paid for interest
expenses and distribution of 291,848,940.00 1,315,665.00 127,226,927.00 1,127,867.00
dividends or profit
Including: dividends or profit
paid by subsidiaries to minority
shareholders
Other cash payments relating
3,904,395.00 29,305,182.00 7,476,924.00
to financing activities
Sub-total of cash outflows from
3,301,131,637.00 35,337,332.00 1,979,089,791.00 48,752,468.00
financing activities
Net cash flows from financing
498,880,568.00 48,048,295.00 3,734,908,126.00 -1,252,468.00
activities
IV. Effect of foreign exchange
rate changes on cash and cash 5,246,049.00 -2,357.00 8,753,397.00 -19,200.00
equivalents
9
V. Net increase in cash and cash -8,728,328,637.
-1,913,861,404.00 -597,134,672.00 -4,563,024,795.00
equivalents 00
Add: Cash and cash 11,478,796,269.
12,959,533,670.00 2,951,867,533.00 19,097,948,638.00
equivalents at the period-begin 00
VI. Cash and cash 2,750,467,632.0
11,045,672,266.00 2,354,732,861.00 14,534,923,843.00
equivalents at the period-end 0
4.4 Auditor’s report
Auditor’s opinion: un-audited
10
