Abstract of the 2013 Third Quarter Report of BOE TECHNOLOGY GROUP CO., LTD.
Stock code: 200725 Stock abbreviation: BOE B Announcement No.:2013-055
Abstract of the Report for the Third Quarter of 2013
Section I. Important Reminders
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of BOE Technology Group Co., Ltd. (hereinafter referred to as “the Company”)
warrant that this report is factual, accurate and complete without any false record, misleading
statement or material omission. And they shall be jointly and severally liable for that.
Except for the following director, all the other directors have attended in person the board session
for reviewing this report.
Reason for not
Name Position attending the session in Name of the proxy
person
Yu Ning Independent Director For the reason of work Ji Guoping
Mr. Wang Dongsheng, company principal, Mr. Chen Yanshun, President of the Company, Ms. Sun
Yun, chief of the accounting work, and Ms. Yang Xiaoping, chief of the accounting organ (chief of
accounting), hereby confirm that the financial statements enclosed in this report are factual,
accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
Section II. Financial Highlights & Change of Shareholders
I. Major accounting data and financial indexes
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
Item 30 Sept. 2013 31 Dec. 2012 Increase/decrease (%)
Total assets (RMB Yuan) 90,614,581,894.00 67,105,360,865.00 35.03%
Net assets attributable to shareholders
27,250,068,430.00 25,886,959,650.00 5.27%
of the Company (RMB Yuan)
YoY increase/decrease YoY increase/decrease
Item Jul.-Sept. 2013 Jan.-Sept. 2013
(%) (%)
Operating revenues (RMB Yuan) 8,519,445,647.00 13.38% 24,773,771,714.00 44.68%
Net profit attributable to shareholders
499,824,938.00 229.68% 1,359,113,831.00 Inapplicable
of the Company (RMB Yuan)
1
Abstract of the 2013 Third Quarter Report of BOE TECHNOLOGY GROUP CO., LTD.
Net profit attributable to shareholders
of the Company after extraordinary 442,855,029.00 Inapplicable 1,210,281,809.00 Inapplicable
gains and losses (RMB Yuan)
Net cash flows from operating
-- -- 4,329,984,046 974.78%
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.037 236.36% 0.101 Inapplicable
Diluted EPS (RMB Yuan/share) 0.037 236.36% 0.101 Inapplicable
Weighted average ROE (%) 1.85% 203.28% 5.12% Inapplicable
Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Item Amount as of Jan.-Sept. 2013 Note
Gains/losses on the disposal of non-current assets (including the offset part of
-86,709,983.00 --
asset impairment provisions)
Tax rebates, reductions or exemptions due to approval beyond authority or the
0.00 --
lack of official approval documents
Government grants recognized in the current period, except for those acquired
in the ordinary course of business or granted at certain quotas or amounts 260,187,319.00 --
according to the country’s unified standards
Capital occupation charges on non-financial enterprises that recorded into
0.00 --
current gains and losses
Gains due to that the investment costs for the Company to obtain subsidiaries,
associates and joint ventures are lower than the enjoyable fair value of the 0.00 --
identifiable net assets of the investees when making the investments
Gain/loss on non-monetary asset swap 0.00 --
Gain/loss on entrusting others with investments or asset management 0.00 --
Asset impairment provisions due to acts of God such as natural disasters 0.00 --
Gain/loss on debt restructuring 0.00 --
Expenses for business reorganization, such as expenses for staffing,
0.00 --
reorganization etc.
Gain/loss on the part over the fair value due to transactions with distinctly
0.00 --
unfair prices
Current gains and losses of subsidies acquired from business combination
0.00 --
under the same control as from period-begin to combination date
Gain/loss on contingent events irrelevant to the Company’s normal business 0.00 --
Gains and losses on change in fair value from tradable financial assets and
tradable financial liabilities, as well as investment income from disposal of
tradable financial assets and tradable financial liabilities and financial assets 0.00 --
available for sales, except for effective hedging related with normal businesses
of the Company
Reversal of impairment provisions for the accounts receivable on which
0.00 --
impairment tests were carried out separately
Gain/loss on external entrustment loans 0.00 --
Gain/loss on change of the fair value of investing real estate of which the
0.00 --
subsequent measurement is carried out adopting the fair value method
Effect on current gains/losses when a one-off adjustment is made to current
gains/losses according to requirements of taxation, accounting and other 0.00 --
relevant laws and regulations
Custody fee income when entrusted with operation 0.00 --
Other non-operating income and expenses other than the above 41,409,026.00 --
Other gain/loss items that meet the definition of an extraordinary gain/loss 0.00 --
Less: Income tax effects 22,027,329.00 --
Minority interests effects (after tax) 44,027,011.00 --
2
Abstract of the 2013 Third Quarter Report of BOE TECHNOLOGY GROUP CO., LTD.
Total 148,832,022.00 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
II. Total number of shareholders at the period-end and shares held by the top ten
shareholders
Unit: share
Total number of shareholders at the
396,374 shareholders, including 359,091 A-share holders and 37,283 B-share holders
period-end
Shares held by the top ten shareholders
Shareholding Number of the Pledged or frozen shares
Nature of Number of the
Name of shareholder percentage restricted shares Status of Number of
shareholder shares held
(%) held shares shares
Being E-TOWN International
State-owned
Investment & Development Co., 10.98% 1,484,159,406 594,059,405 Pledged 635,000,000
Corporation
Ltd.
Beijing BOE Investment & State-owned
6.37% 860,981,080 0 -- --
Development Co., Ltd. Corporation
Beijing
Economic-Technological State-owned
6.27% 847,650,000 0 Pledged 423,825,000
Investment & Development Corporation
Corp.
Hefei Rongke Project State-owned
4.99% 675,026,803 0 -- --
Investment Co., Ltd. Corporation
Beijing BDA Technological
Investment Development Co., Other 4.44% 600,000,000 0 Pledged 300,000,000
Ltd.
China Construction
Bank—Yinhua Core Value Other 2.22% 300,000,000 0 -- --
Selected Stock Fund
Beijing Electronics Holdings
State 2.04% 275,303,883 0 Frozen 2,000,000
Co., Ltd.
Hefei Xincheng State-Owned State-owned
2.03% 274,848,276 0 -- --
Assets Management Co., Ltd. Corporation
Hefei Lan Ke Investment Co., State-owned
0.9% 122,369,283 0 -- --
Ltd. Corporation
Sinotrans Air Transportation
Other 0.83% 111,600,000 0 -- --
Development Co., Ltd.
Shares held by the top ten non-restricted share holders
Type of shares
Name of shareholder Number of non-restricted shares held
Type Number
Being E-TOWN International Investment & RMB ordinary
890,100,001 890,100,001
Development Co., Ltd. shares
RMB ordinary
Beijing BOE Investment & Development Co., Ltd. 860,981,080 860,981,080
shares
Beijing Economic-Technological Investment & RMB ordinary
847,650,000 847,650,000
Development Corp. shares
RMB ordinary
Hefei Rongke Project Investment Co., Ltd. 675,026,803 675,026,803
shares
Beijing BDA Technological Investment Development 600,000,000 RMB ordinary 600,000,000
3
Abstract of the 2013 Third Quarter Report of BOE TECHNOLOGY GROUP CO., LTD.
Co., Ltd. shares
China Construction Bank—Yinhua Core Value RMB ordinary
300,000,000 300,000,000
Selected Stock Fund shares
RMB ordinary
Beijing Electronics Holdings Co., Ltd. 275,303,883 275,303,883
shares
Hefei Xincheng State-Owned Assets Management RMB ordinary
274,848,276 274,848,276
Co., Ltd. shares
RMB ordinary
Hefei Lan Ke Investment Co., Ltd. 122,369,283 122,369,283
shares
RMB ordinary
Sinotrans Air Transportation Development Co., Ltd. 111,600,000 111,600,000
shares
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
Explanation on associated relationship or persons transfer, donation, mortgage etc. and usufruct (including claim for profit
acting in concert among the above-mentioned distribution and claim for retained assets distribution).
shareholders 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 the relationship above, it is unknown whether the other top ten
shareholders are related parties or not, or they are persons acting in concert
or not.
Shareholders taking part in margin financing and
Naught
securities lending (if any)
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting
period, as well as reasons for the changes
1. Monetary funds increased 54% on the year-on-year basis mainly because of the new borrowings for new
projects and the operating cash inflows.
2. Prepayments increased 111% on the year-on-year basis mainly because the prepayments to suppliers increased.
3. Interest receivable increased 212% on the year-on-year basis mainly because the monetary funds increased.
4. Construction in process increased 688% on the year-on-year basis mainly because the consolidation scope
expanded and some new projects were in the stage of construction, bringing up engineering construction and
equipment procurement.
5. Other non-current assets increased 389% on the year-on-year basis mainly because the new project company
was newly consolidated and the prepayments for engineering equipment increased.
6. Short-term borrowings increased 1605% on the year-on-year basis mainly because of the new borrowings for
new projects and the expanded consolidation scope.
7. Notes payable increased 179% on the year-on-year basis mainly because some payments were made with notes.
8. Accounts received in advance decreased 51% on the year-on-year basis mainly because the advances from
4
Abstract of the 2013 Third Quarter Report of BOE TECHNOLOGY GROUP CO., LTD.
customers decreased.
9. Taxes and fares payable increased 110% on the year-on-year basis mainly because the operating results
improved and the enterprise income tax increased accordingly.
10. Interest payable increased 88% on the year-on-year basis mainly because the short-term borrowings increased.
11. Other payables increased 63% on the year-on-year basis mainly because some new projects were in the stage
of construction and the payables for engineering equipment increased.
12. Other current liabilities increased 176% on the year-on-year basis mainly because our company provisioned
quality guarantee money according to a fixed proportion of revenue, the pre-withdrawn product quality guarantee
money increased as the operating revenues increased.
13. Operating revenues increased 45% on the year-on-year basis mainly because the new projects operated at full
capacity, lifting the overall production capacity.
14. Selling expenses increased 97% on the year-on-year basis mainly because it increased as the operating
revenues increased.
15. Administrative expenses increased 48% on the year-on-year basis mainly because the new projects operated at
full capacity and R&D efforts were enhanced.
16. Financial expenses increased 35% on the year-on-year basis mainly because the interest expenses increased.
17. Asset impairment loss increased 1046% on the year-on-year basis mainly because the inventory impairment
provision was made in the display device division at the lower between the cost and the net realizable value.
18. Investment gains (“-” for loss) increased 122% on the year-on-year basis mainly because the operation of
associates improved.
19. Non-operating expenses increased 552% on the year-on-year basis mainly because the loss on disposal of
fixed assets was recognized.
20. Net cash flows from operating activities increased 975% on the year-on-year basis mainly because the main
business improved.
21. Net cash flows from investing activities decreased 520% on the year-on-year basis mainly because the
investment expenses on new projects increased.
22. Net cash flows from financing activities increased 4107% on the year-on-year basis mainly because the cash
inflows from new project borrowings increased.
II. Progress and influence of significant events, as well as the analysis and explanation on
solutions
The Company’s plan for a private offering of A-shares for 2013 was officially accepted on 23 Aug. 2013 by CSRC for review.
Currently, the project is being reviewed and approved.
Index to the relevant announcement
Overview of the significant event Date of disclosure
disclosed on the website
The issues concerning the private offing of A-shares were reviewed and
25 Jul. 2013 http://www.cninfo.com.cn/
approved at the 2nd Session of the 7th Board of Directors.（2013-042）
The issues concerning the private offing of A-shares and the relevant
3 Aug. 2013 http://www.cninfo.com.cn/
asset assessment report were approved by SASAC.（2013-047）
The supplementary agreement and the transfer agreement about the
10 Aug. 2013 http://www.cninfo.com.cn/
private offing of A-shares were signed.（2013-049）
The issues concerning the private offing of A-shares were reviewed and
approved at the 3rd Special Shareholders’ General Meeting for 2013. 13 Aug. 2013 http://www.cninfo.com.cn/
（2013-050）
The Voting Right Exercise Agreement and the Stock Management
Agreement about the private offing of A-shares were signed. 20 Aug. 2013 http://www.cninfo.com.cn/
（2013-053）
III. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period or such commitments carried down into the reporting period
Commitment Commitment Contents Time of making Period of Fulfillment
5
Abstract of the 2013 Third Quarter Report of BOE TECHNOLOGY GROUP CO., LTD.
maker commitment commitment
Commitments made in a share reform -- -- -- -- --
Commitments made in an acquisition report
-- -- -- -- --
or a report on equity changes
Commitments made in asset reorganization -- -- -- -- --
The shares
subscribed in the
Being E-TOWN
private offering of
International
Commitments made in the first public the Company in In
Investment & 13 Dec. 2010 3 years
offering or refinancing. 2010 are subject execution
Development
to a trading
Co., Ltd.
moratorium of 3
years.
Other commitments made to minority
-- -- -- -- --
shareholders
Executed in time or not? Yes
Detailed reason for failing to execute and the
Inapplicable
plan for the next step (If any)
IV. Predict the 2013 annual operating results
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 reporting period compared with the same period of the last year
according to prediction, as well as explanations on the reasons
√Applicable □Inapplicable
Prediction: significant increase in the same direction
Type of the predicted data: Interval data
Jan.-Dec. 2013 Jan.-Dec. 2012 Increase/decrease (%)
Estimated accumulative net
180,000 -- 200,000 25,813 Increase 597% -- 675%
profit (RMB Ten thousand)
Basic EPS (RMB Yuan/share) 0.133 -- 0.148 0.019 Increase 597% -- 675%
1. The average price of panels in 2013 is expected to be steadier than 2012. In the second half of the
year, the prices of the large-sized panels may drop considerably while the prices of medium-and
small-sized panels will not change significantly;
2. The layout of the Company’s production lines will gradually improve, with a production capacity
much larger than the same period of last year and the continuous effects of scale operation. All
Explanation about the production lines of the Company keep running at full capacity on good sales. The production
predictions capacity of medium-and small-sized panels is further increased through further promoting the
adjustment of the product structure. What the Beijing 5G Line produces are all medium-and
small-sized panels. Mobile products have accounted for over 50% of the production of the Hefei 6G
Line. And the Beijing 8.5G Line has started the mass production of panels for tablet computers. The
further optimization of the product structure ensures the profitability of the Company in the weak
market and notably improves its ability to resist market fluctuations.
V. Securities investment
Shareholdings in other listed companies
√Applicable □Inapplicable
Percentage Closing book Gain/loss for Changes in the
of the value (RMB report period equity of the
Initial
Code of Name of Company’s Yuan) (RMB Yuan) owners in the Source of
investment cost Accounting title
securities securities equity (%) reporting stock
(RMB Yuan)
period (RMB
Yuan)
6
Abstract of the 2013 Third Quarter Report of BOE TECHNOLOGY GROUP CO., LTD.
HK00903 TPV 134,658,158.00 1.04% 30,711,161.00 0.00 -10,574,028.00 Financial assets Subscribe
Technology available-for-sale
SH600658 Electronic 90,160,428.00 1.69% 92,205,039.00 2,170,108.00 16,889,528.00 Financial assets Stock-for-s
City available-for-sale tock
Total 224,818,586.00 -- 122,916,200.00 2,170,108.00 6,315,500.00 -- --
7
Abstract of the 2013 Third Quarter Report of BOE TECHNOLOGY GROUP CO., LTD.
VI. Researches, visits and interviews received in the reporting period
Time of Place of Way of Visitor Main discussion and
Visitor
reception reception reception type materials provided by the Company
Fubon Investment Trust Companies, Main content discussed:
Yuanta Investment Trust Companies, 1.the operating situation, the future
Telephone development strategy of the Company;
2 Jul. 2013 Teleconference Institution Jih Sun Securities Investment Trust Companies, Unified Asset Management
communication Investment Trust Companies, Schroder Investment Trust Companies, Desheng 2. Industry conditions and development
Allianz Investment Trust Companies, Hontai Life Insurance (shares) Company, KGI trend;
Securities Co., Ltd. 3. Situation of the several production lines
of the Company;
Xiangcai Securities Co., Ltd.
The Company’s Materials provided: Annual report of
17 Jul. 2013 Field research Institution , AJ Securities Co., Ltd., TX Investment Consulting Co., Ltd., Huatai Securities Co.,
meeting room the Company of 2011 and 2012,
Ltd., Founder Securities Co., Ltd. brochure and other public information.
Guohai Franklin Fund Management Co., Ltd., Guotai Junan Assets Management
Corporation, New China Life Insurance Co., Ltd., Yingda Asset Management Co.,
The Company’s
22 Aug. 2013 Field research Institution Ltd., GF Fund Management Co., Ltd., GTIA Allianz Fund Management Co., Ltd.,
meeting room
Generale Securities asset management company, Gfund Management Co., Ltd.,
Minsheng Life Insurance Co., Ltd., Hua An Property Insurance Co., Ltd.
The Company’s
23 Aug. 2013 Field research Institution Guotai Junan Securities Asset Management Corporation
meeting room
Yingda Asset Management Co., Ltd., Zhongzhi Enterprise Group Co., Ltd., Main content discussed:
Zhongshan Securities Co., Ltd., China Minsheng Bank, Shenzhen Mingda Capital 1.the operating situation, the future
Management Co., Ltd., Everbright Yongming Asset Management Co., Ltd., Xinan development strategy of the Company;
Securities Co., Ltd., Orient Securities Co., Ltd., Cinda Securities Co., Ltd., Beijing 2. Industry conditions and development
Tulip Capital Co., Ltd., Haitong Securities Co., Ltd., China Life Insurance Co., Ltd., trend;
The Company’s
27 Aug. 2013 Field research Institution Zju Jiuzhi Investment Management Co., Ltd., Minsheng Securities Co., Ltd., All 3. Situation of the several production lines
meeting room
View Consulting, Bohai Securities Co., Ltd., Eastern Spring Equity Investment Fund of the Company;
Management Co., Ltd., BOCI Securities Co., Ltd., Beijing Jingfu Rongyuan
Investment Management Co., Ltd., Yimin Asset Management Co., Ltd., CICC, China Materials provided: Annual report of
Post & Capital Fund Management Co., Ltd., SWS Research Co., Ltd., Fortune the Company of 2011 and 2012,
Securities Co., Ltd., Guosen Securities CO., Ltd. semi-annual report of 2013, brochure
and other public information.
The Company’s
27 Aug. 2013 Field research Individual Zhang Dingqiang
meeting room
The Company’s
17 Sep. 2013 Field research Institution Hong Yuan Securities Co., Ltd.
meeting room
Capital Investment Trust Corporation, Central Reinsurance Corporation, PineBridge
Telephone
27 Sep. 2013 Teleconference Institution Investments, CTBC Bank, Nan Shan Life Insurance, Ontario Investment Trust
communication
Corporation, Prudential Investment Trust Corporation, Cathay Securities.
8
Abstract of the 2013 Third Quarter Report of BOE TECHNOLOGY GROUP CO., LTD.
VII、 Subsequent Events
On 23 Oct. 2013, the subordinate subsidiary Hefei Xinsheng Optoelectronics Technology Co., Ltd.
(hereinafter referred to as “Hefei Xinsheng”) received the Notice of the Ministry of Finance and the
General Administration of Customs Concerning the Third Batch of New Flat Panel Display Devices
Enjoying the Policy of Tax Paying by Installments (CGS [2013] No. 63) (hereinafter referred to as
the “Notice”). According to the Notice, as approved by the State of Council, the unpaid import VAT
of RMB 3 billion on the production equipment imported by Hefei Xinsheng for the 8.5G TFT-LCD
project might be paid by installments from Mar. 2013 to Feb. 2019, i.e. to withhold the import VAT
from Mar. 2013 to Feb. 2014; and to paid an import VAT of at least RMB 0.15 billion to the local
customs office of the project in the last 15 days of every quarter from Mar. 2014 to Feb. 2019. This
policy will produce a positive effect on the cash flows of the Company.
9
Abstract of the 2013 Third Quarter Report of BOE TECHNOLOGY GROUP CO., LTD.
Chairman of the Board: Mr. Wang Dongsheng (signature)
Date of the Board of Directors approving to report:
10
