Abstract of the 2013 Semi-annual Report of BOE TECHNOLOGY GROUP CO., LTD.
Stock code: 200725 Stock abbreviation: BOE B Announcement No.:2013-051
BOE TECHNOLOGY GROUP CO., LTD.
Abstract of the 2013 Semi-annual Report
1. Important reminders
（1）
This abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read the full text
disclosed at the same time with this abstract on http://www.cninfo.com.cn, the website of Shenzhen Stock Exchange or any other
website designated by CSRC.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version
shall prevail.
（2）Company profile
Stock abbreviation JDFA, JDFB Stock code 000725, 200725
Stock exchange listed with Shenzhen Stock Exchange
For contact Company Secretary Securities Affairs Representative
Name Liu Hongfeng Xiao Zhaoxiong
Tel. 010－64318888 ext. 010－64318888 ext.
Fax 010－64366264 010－64366264
E-mail liuhongfeng@boe.com.cn xiaozhaoxiong@boe.com.cn
2. Financial highlights and change of shareholders
（1）Financial highlights
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
□ Yes √ No
Iterms Reporting period Same period of last year YoY +/-（％）
Operating revenues (RMB Yuan) 16,254,326,067.00 9,608,882,013.00 69.16%
Net profit attributable to shareholders of
859,288,893.00 -786,882,196.00 Inapplicable
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and 767,426,780.00 -907,917,180.00 Inapplicable
losses (RMB Yuan)
Net cash flows from operating activities
3,727,889,361.00 121,827,560.00 2,959.97%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.064 -0.058 Inapplicable
Diluted EPS (RMB Yuan/share) 0.064 -0.058 Inapplicable
Weighted average ROE (%) 3.26% -3.12% Inapplicable
As at the end of the
Iterms As at the end of last year YoY +/-（％）
reporting period
Total assets (RMB Yuan) 88,374,577,534.00 67,105,360,865.00 31.7%
Net assets attributable to shareholders of
26,755,768,815.00 25,886,959,650.00 3.36%
the Company (RMB Yuan)
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Abstract of the 2013 Semi-annual Report of BOE TECHNOLOGY GROUP CO., LTD.
（2） Shareholdings of the top 10 shareholders
Total number of shareholders at
382,411 （Including A share：345,482；B share：36,929）
the end of the reporting period
Shareholdings of the top 10 shareholders
Shareholdi Pledged or frozen shares
Number of
Nature of ng Total shares held
Name of shareholder restricted Status of Number of
shareholder percentage at the period-end
shares held shares shares
(%)
Being E-TOWN International Investment & State-owned
10.98% 1,484,159,406 594,059,405 Pledged 635,000,000
Development Co., Ltd. Corporation
Beijing BOE Investment & Development Co., State-owned
6.37% 860,981,080 0
Ltd. Corporation
Beijing Economic-Technological Investment & State-owned
6.27% 847,650,000 0 Pledged 423,825,000
Development Corp. Corporation
State-owned
Hefei Rongke Project Investment Co., Ltd. 4.99% 675,026,803 0
Corporation
Beijing BDA Technological Investment
Other 4.44% 600,000,000 0 Pledged 300,000,000
Development Co., Ltd.
China Construction Bank—Yinhua Core Value
Other 2.52% 340,445,825 0
Selected Stock Fund
Beijing Electronics Holdings Co., Ltd. State 2.04% 275,303,883 0 Frozen 2,000,000
Hefei Xincheng State-Owned Assets State-owned
2.03% 274,848,276 0
Management Co., Ltd. Corporation
State-owned
Hefei Lan Ke Investment Co., Ltd. 0.9% 122,369,283 0
Corporation
Sinotrans Air Transportation
Other 0.83% 111,600,000 0
Development Co., Ltd.
1. Beijing Electronics Holdings Co., Ltd. holds 66.25% shares of
Beijing BOE Investment & Development Co., Ltd. and is its
controlling shareholder.
2. When the Company completed private offering of shares in 2010,
Beijing E-TOWN International Investment & Development Co.,
Ltd. transferred all shares directly held to Beijing BOE Investment
& Development Co., Ltd. for management, then BOE Investment
acquired the attached rights of the shares attributable to other
shareholders in accordance with current effective laws and rules of
the Company excluding right of disposition such as transfer,
Explanation on associated relationship or/and persons acting donation, mortgage etc. and usufruct (including claim for profit
in concert among the above-mentioned shareholders: distribution and claim for retained assets distribution).
3. BEIJING ECONOMIC-TECHNOLOGICAL INVESTMENT &
DEVELOPMENT CORP. holds 49% shares of BEIJING BDA
TECHNOLOGICAL INVESTMENT DEVELOPMENT CO., LTD..
Both of them are under the control of the Administration Committee
of Beijing Economic and Technological Development Zone, which
makes them parties acting in concert.
4. 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 taking part in margin financing and securities
Naught
lending (if any)
（3）Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
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Abstract of the 2013 Semi-annual Report of BOE TECHNOLOGY GROUP CO., LTD.
Change of the actual controller in the reporting period
□ Applicable √ Inapplicable
3. Discussion and analysis by the management
1）Overview
In face of the complex industrial and market environments in the first half of 2013, all business divisions and core
departments closely followed the annual operational policy of the Group and carried forward all work step by step
with priorities. As a result, breakthroughs were made. The transformation towards smaller and unique products
with higher added value accelerated; the customer structure kept improving; and the development of new
technologies, products and processes was beefed up, with key projects proceeding smoothly. The capability of
technology, patent and risk avoidance kept increasing, the competitveness and market position rose at a marked
pace and all production lines operated at full capacity to profit thoroughly. For the first half of 2013, the Group
achieved operating revenues of RMB 162.5 billion, up 69% over the same period of last year, with net profit being
RMB 859 million. The indicators of profitability such as the gross profit rate, the turnover rate and cash flows
ranked among the top of the industry.
In the first six months of the year, BOE won the “Golden Roundtable Excellent BOD”, the “65-inch Oxide
Ultra-HD Display” developed by BOE won the “CITE 2013 Innovation Gold Prize”, and the “110-inch Ultra-HD
Display” was included in the Guiness Book of World Records as the “world’s biggest LCD TV”.
Operation of specific divisions:
(1) Display device division:
Medium-and large-sized panel division: 19.06 million pieces were sold in the first half of the year, generating an
income of RMB 8.5 billion. 19 new products and 13 new technologies were developed. In terms of management,
externally, the Company enhanced the close cooperation with its suppliers to optimize materials and ensure supply;
internally, all departments worked together on planning and developing to realize the initial dualization of new
products, which produced noticeable achievements.
The 55-inch Zhizhen 3D display screen (the first in the world to realize full-view 3D display), the 110-inch
ultra-HD display screen and the 46-inch transparent display made their apprearance at the First China Electronic
Information Exposition, creating a visual shock and attracting a lot of attention.
Medium-and small-sized panel division: 120 million pieces were sold in the first half of the year, generating an
income of RMB 5.6 billion. The Company continued to optimize the product structure. It launched 10 new
products and put them into the market right away, with the shipment ratio of intelligent cellphones over 85%.
Meanwhile, it vigorously pushed forward development of products with high added value. As a result, it planned
and developed 25 new products and derivatives and 14 new technologies. On Cell was ready for mass production
and development of the In Cell technology proceeded in an orderly manner. At the same time, it stepped up
transformation of its cellphones to the 6G and promoted them in the market, which enhanced the supply capability
of the Group in mobile and application products.
(2) CTO division: Breakthroughs were made in new oxide, low power consumption GOA, high lens transmission
efficiency pixel design, and narrow frame and In Cell Touch projects. Mass production of the 55-inch
UHD+naked eye 3D TV has started. In the first half of the year, the Company applied for over 1,600 new patents
and took the lead in formulating/amending 4 international/national industry technical specifications.
(3) Display system brand division/ OEM for complete machines: The sales income generated by the display
system brand division in the first half of the year increased 190% over the same period of last year. The capability
of planning and developing products kept increasing. It developed the 65” all-in-one TV on its own and realized
its mass production. Also, it became more responsive to the market and more capable of dealing with market
changes. The BiTV 1.0 product was proceeding as planned.
In terms of the OEM for complete machines, more sales came from the major clients. The first half of the year
saw a sales volume of 1.69 million units, up 61% over the same period of last year. And the sales income
increased 54% on the year-on-year basis.
(4) Other businss divisions:
Light technology division: Operation was good in the first half of the year and stable profit was achieved. The
capability of planning and developing environment lighting products gradually increased and many of them have
been put on sale. It took its LED furniture lighting product series to Guangzhou International Lighting Ehxibition,
which rapidly increased its brand recognition.
Real estate: The business mode and services were innovated and marked achievements were made in the park
brand building. And breakthroughs were made with the demonstration projects. Energy technology: The business
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Abstract of the 2013 Semi-annual Report of BOE TECHNOLOGY GROUP CO., LTD.
mode was innovated and all work was pushed forward steadily. Breakthroughs were made in the EPC, EMC and
photovoltaic product projects. Vacuum electrical appliances: New progress was made in new product
development and vacuum switch seriation. Eletronic materials: The Company optimized the product structure
and adjusted its focus, with all projects proceeding smoothly.
2）Main business analysis
Overview
The operating revenues increased 69% from a year earlier, which was mainly because the main production lines
operated at full capacity and the products were almost sold out, boosting the sales income. Costs, expense, R&D
input, etc. increased along with the expansion of the Company’s business scale. At the same time, as the sales
income increased and the profitability improved, the cash flows from operating activities increased as well.
YoY change of major financial data:
Unit: RMB Yuan
Same period of
Iterm Reporting period YoY +/-% Main reasons for change
last year
New projects operated at full capacity and the
Operating revenues 16,254,326,067.00 9,608,882,013.00 69.16%
production capacity increased.
Operating costs increased as operating
Operating costs 12,461,334,555.00 9,502,396,703.00 31.14%
revenues increased.
Selling expenses 516,250,043.00 254,457,109.00 102.88% Operating revenues increased.
New projects operated at full capacity and the
Administrative expenses 1,449,893,803.00 950,037,835.00 52.61%
Company worked harder on R&D.
Financial expenses 193,412,657.00 121,301,724.00 59.45% Interest expenses increased.
Income tax expenses 23,290,836.00 8,253,509.00 182.19% The enterprise income tax increased.
Product structure optimization and worked
R&D input 885,524,040.00 583,107,532.00 51.86%
harder on R&D;
Production lines operated at full capacity and
Net cash flows from the products were almost sold out. As a result,
3,727,889,361.00 121,827,560.00 2,959.97%
operating activities operating revenues improved considerably
from a year earlier.
Net cash flows from
-7,512,653,893.00 -2,198,154,329.00 -242% Input for new projects increased.
investing activities
Net cash flows from Financing cash inflows from borrowings
12,752,152,132.00 237,770,563.00 5,263.22%
financing activities increased for new projects.
Net increase in cash and Mainly because the cash flows from operating
8,854,254,635.00 -1,820,431,737.00 Inapplicable
cash equivalents and financing activities increased.
Major changes to the profit structure or sources of the Company during the reporting period:
□ Applicable √ Inapplicable
No major changes occurred to the profit structure or sources of the Company during the reporting period.
Reporting period progress of the future development planning in the disclosed documents of the Company such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Inapplicable
The Company did not mention any future planning for the reporting period in its disclosed documents such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.
Review the progress of the previously disclosed business plan in the reporting period:
1. Hefei 8.5G Line: Decoration of clean rooms completed and equipment was being moved in. It’s expected to go into production by
the end of 2013.
2. Erdos 5.5G Line AM-OLED Project: Interior decoration successfully completed and equipment was being moved in. It’s expected
to go into production by the end of 2013.
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Abstract of the 2013 Semi-annual Report of BOE TECHNOLOGY GROUP CO., LTD.
3）Breakdown of main business
Unit: RMB Yuan
Increase/decrease Increase/decrease Increase/decrease
of operating of operating costs of gross profit
Operating Gross profit rate
Operating costs revenues over the over the same rate over the same
revenues (%)
same period of period of last year period of last year
last year (%) (%) (%)
Classified by industry:
TFT-LCD 14,122,237,495.00 10,811,045,284.00 23.45% 71.68% 30.54% 24.13%
Display light
835,761,531.00 758,224,637.00 9.28% -17.60% -20.69% 3.53%
source
Display
1,514,162,402.00 1,414,995,125.00 6.55% 76.74% 71.99% 2.58%
system
Other 453,855,631.00 291,415,984.00 35.79% 3.30% -2.50% 3.82%
Offset -1,480,217,991.00 -1,427,821,059.00 3.54% 22.55% 19.47% 2.49%
Classified by product:
TFT-LCD 14,122,237,495.00 10,811,045,284.00 23.45% 71.68% 30.54% 24.13%
Display light
835,761,531.00 758,224,637.00 9.28% -17.60% -20.69% 3.53%
source
Display
1,514,162,402.00 1,414,995,125.00 6.55% 76.74% 71.99% 2.58%
system
Other 453,855,631.00 291,415,984.00 35.79% 3.30% -2.50% 3.82%
Offset -1,480,217,991.00 -1,427,821,059.00 3.54% 22.55% 19.47% 2.49%
Classified by region:
China 8,198,906,192.00 5,968,460,723.00 27.2% 61.73% 20.04% 25.28%
Other Asian
countries 5,837,465,382.00 4,602,665,798.00 21.15% 82.74% 46.63% 19.42%
and regions
Europe 562,045,856.00 530,269,729.00 5.65% -10.18% -14.71% 5.01%
America 790,992,756.00 696,225,457.00 11.98% 165.41% 126.9% 14.94%
Other
56,388,882.00 50,238,264.00 10.91% -60.01% -59.76% -0.55%
countries
4）Core competitiveness analysis
（1）With the innovation and enterprise spirit, the Company has further increased its independent
innovation capability in terms of product and technology.
Following the philosophy of innovation creating value, the Company keeps improving the technical
innovation mechanism, focuses on development of the patent obtaining mechanism, takes an active part in
formulating technical standards for the industry, develops new techniques and products in a forward-looking
manner and thoroughly increases its core competitiveness in terms of product and technology. Through
constant efforts in innovation, the Company applied for over 1,600 new patents in the first half of 2013, up
84% from a year earlier. The Company now owns over 10,000 valid patents. By way of independent
innovation and global cooperation, new breakthroughs were made in AMOLED, with the large-sized
AMOLED technology reaching the advanced level in the industry.
（2）The Company adheres to the customer-oriented strategy and keeps enhancing customer expansion
and services.
The Company adheres to a customer-oriented mechanism featuring joint value with customers and win-win
cooperation. It solidifies and expands the business with strategic customers, enhances cooperation with brand
customers and promotes a closer cooperation with its strategic partners with the stable product quality and a
proactive and sincere cooperation attitude. The first half of 2013 saw marked results in solidifying and
expanding strategic customers. Over 10 new products of medium and small sizes were successfully
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Abstract of the 2013 Semi-annual Report of BOE TECHNOLOGY GROUP CO., LTD.
introduced to customers, 7 new strategic customers of large-and medium-sized TV were attracted and export
expanded steadily.
（3）The position in segment markets rose steadily.
When developing and producing product series, the Company pays attention to working on segment markets.
Relying on its technological advantages, the Company vigorously expands high-end segment markets of
broad-view, high resolution and low power consumption TVs, with its competitiveness in segment market
increasing further.
（4）The Company cultivates and introduces high-end talent to keep enhancing its personnel strength.
Flat panel display is a technology-intensive industry, with fierce competition over high-end R&D and
managerial talent. High-end talent is in different extents of shortage. The Company adheres to a talent
development mode of independent cultivation as the main way and new employment as a support, enhances
development of the talent ladder and develops talent in a progressive and fast manner. As a result, a sound
talent development mechanism has taken shape. In the first half of 2013, the Company successfully employed
over 20 senior R&D personnel with a working experience of 5-15 years, as well as over 10 senior production
management personnel, which further optimized the high-end technical and managerial talent.
（5）The Company plans rationally to keep improving its business layout.
The Company enhanced lean management in the supply chain and the production and operation, pursued
high-efficient operation with overall budgetary management as its core, controlled costs and increased the gross
profit rate. As a result, the operating gross profit rate for the first half of the year maintained at a good level
among the top of the industry. The Company has successfully built up and operated Chengdu 4.5G Line, Beijing
5G Line, Hefei 6G Line and Beijing 8.5G Line. It has also maintained a good yield rate in the industry for all the
time. The Hefei 8.5G oxide TFT-LCD production line and the Erdos 5.5G AM-OLED production line (a second
production line of such kind in the world) will be put into production by the end of 2013. Construction of the
Chongqing 8.5G oxide TFT-LCD production line has started. As a result, a business layout with Beijing as the
center and covering the whole country has taken shape, including the pan Bohai sea industrial base with Beijing as
the center, the pan Yangtze River Dealta industrial base with Hefei as the center and the southwest industrial base
with Chengdu as the center.
4. Matters related to financial reporting
(1) Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year
N/A
(2) Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
N/A
(3) Explain change of the consolidation scope as compared with the financial reporting of last year
According to the “Announcement of BOE Technology Group Co., Ltd. on Investing in the Hefei 8.5G TFT-LCD Production Line
Project” (No. 2013-009) disclosed by the Company on 3 Apr. 2013, up to 30 Jun. 2013, the Company had accomplished an
investment of RMB 4 billion to Hefei Xinsheng Optoelectronics Technology Co., Ltd.. After the investment increase, the Company
held a 50.65% stake in Xinsheng Optoelectronics, making it the controlling shareholder of Xinsheng Optoelectronics. And Xinsheng
Optoelectronics was thus consolidated.
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