Abstract of the 2015 Semi-annual Report of BOE Technology Group Co., Ltd.
Stock code: 200725 Stock abbreviation: BOE B Announcement No.: 2015-066
BOE TECHNOLOGY GROUP CO., LTD.
Abstract of the 2015 Semi-annual Report
1. Important reminders
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.
Company profile
Stock abbreviation BOE A, BOE B Stock code 000725, 200725
Stock exchange listed with Shenzhen Stock Exchange
Contact information Company Secretary Securities Affairs Representative
Name Liu Hongfeng -
Tel. 010－64318888 ext. -
Fax 010－64366264 -
E-mail liuhongfeng@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
Reporting period Same period of last year YoY +/-（％）
Operating revenues (RMB Yuan) 22,970,848,112.00 16,113,171,584.00 42.56%
Net profit attributable to shareholders of
1,951,170,852.00 1,041,635,714.00 87.32%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and 1,576,397,937.00 550,289,218.00 186.47%
losses (RMB Yuan)
Net cash flows from operating activities
5,453,391,488.00 3,253,640,502.00 67.61%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.055 0.050 10.00%
Diluted EPS (RMB Yuan/share) 0.055 0.050 10.00%
Weighted average ROE (%) 2.53% 2.38% 0.15%
As at the end of the reporting
As at the end of last year +/-（％）
period
Total assets (RMB Yuan) 140,855,989,366.00 136,240,283,477.00 3.39%
Net assets attributable to shareholders of
78,096,913,076.00 76,155,071,579.00 2.55%
the Company (RMB Yuan)
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Abstract of the 2015 Semi-annual Report of BOE Technology Group Co., Ltd.
（2） Shareholdings of the top 10 common shareholders
Unit: share
Total number of common shareholders
1,674,791 shareholders (including 1,629,450 A-share holders and 45,341 B-share holders)
at the end of the reporting period
Shareholdings of the top 10 common shareholders
Number of Pledged or frozen shares
Shareholding Total common
Nature of restricted
Name of shareholder percentage shares held at
shareholder common shares Status of Number of
(%) the period-end shares shares
held
Beijing State-owned Capital Management State-owned
11.51% 4,063,333,333 4,063,333,333
Center corporation
Chongqing Capital Photoelectricity State-owned
8.50% 3,000,000,000 3,000,000,000 Pledged 1,414,150,000
Investment Co., Ltd. corporation
State-owned
Hefei Jianxiang Investment Co., Ltd. 8.10% 2,857,142,857 2,857,142,857
corporation
Hua An Fund － ICBC － Zhongrong
International Trust－Zhongrong－RJ No. Other 4.43% 1,564,126,904 0
1 Assembled Funds Trust Plan
Beijing BOE Investment & State-owned
2.31% 815,781,080 0
Development Co., Ltd. corporation
Beijing Economic-technological State-owned
1.92% 677,423,641 0 Pledged 423,825,000
Investment & Development Corp corporation
Hefei Rongke Project Investment Co., State-owned
1.91% 675,026,803 675,026,803
Ltd. corporation
Beijing BDA Technological Investment
Other 1.60% 564,000,000 0
Development Co., Ltd.
Beijing Electronics Holding Co. Ltd. Nation 0.78% 273,503,883 0
CSOP Asset Management Limited － Foreign
0.34% 120,101,700 0
CSOP A50 ETF corporation
1. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing
BOE Investment & Development Co., Ltd. and was its controlling
shareholder.
2. Beijing Economic-technological Investment & Development Corp held
49% equities of Beijing BDA Technological Investment Development Co.,
Ltd., and the above two companies were both controlled by Beijing
Economic and Technological Development Zone Management Committee
as well as were persons acting in concert.
3. After the non-public issuing of the Company in 2014, Hefei Jianxiang
Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment
Co., Ltd. agreed to maintain unanimous when executing the voting rights
of the shareholders of the Company with the whole shareholdings
according to the declaration of intention of Beijing BOE Investment &
Explanation on associated relationship or persons acting
Development Co., Ltd. through the Implementation Protocol of Voting
in concert among the above-mentioned shareholders
Right.
4. After the non-public issuing of the Company in 2014, Beijing
State-owned Capital Operation and Management Center handed over its
70% shares to Beijing Electronics Holdings Co., Ltd. for management
through Stock Management 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 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 securities margin trading None
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Abstract of the 2015 Semi-annual Report of BOE Technology Group Co., Ltd.
（3）Shareholdings of the top 10 preference shareholders
□ Applicable √ Inapplicable
No preference shares in the reporting period.
（4）Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
√ Applicable □ Inapplicable
Name of new controlling shareholder Beijing Electronics Holding Co. Ltd.
Date of change 2015/03/10
Designated website for information http://www.cninfo.com.cn
Date of disclosure on designated website 2015/03/12
Change of the actual controller in the reporting period
□ Applicable √ Inapplicable
The actual controller did not change in the reporting period.
3. Discussion and analysis by the management
(1) Overview
In the first half of 2015, the battle field of competition for the semi-conductor display industry moved from
technology, production capacity and prices to customer experience, product application expansion, industrial
eco-chain, business model innovation, etc. The traditional five major fields saw falling product prices because of
low market demands. Meanwhile, along with the hardware and software fusion, the application integration and the
service-oriented transformation, the display industry embraced a fifth application tide with the application of the
Internet of Things as its core. New technology, new markets and new applications arising from the fast growth in
the eight major new application markets brought new opportunities for the display industry. Despite the
complicated economic and market environments, our total assets exceeded RMB 140 billion and our net assets
surpassed RMB 78 billion as at the end of the reporting period. For the first half of 2015, we achieved operating
revenues of RMB 22.971 billion, up 42.56% year on year, and net profit attributable to shareholders of the
Company of RMB 1.951 billion, representing a rise of 87.32% from the same period of last year. And our
aggregate value at the capital market reached RMB 180 billion, up 54% from last year. In the reporting period, we
applied for 3,250 new patents and launched a series of world-leading innovative products, with which we went to
important exhibitions at home and abroad such as CeBIT in Hannover, Germany, FINETECH in Japan, SID and
Cine Gear in the US and CITE in Shenzhen, China. Our global influence kept growing. Operation in specific
business divisions is as follows:
1) Display business
The marketizing transformation and disruptive innovation were promoted in display business.
For the display system business，the Company deepened customer orientation, confirmed the first supplier,
promoted the marketing strategy of “protection and attack”, positively exploited new marketing area and new
strategic clients, and enhanced customer satisfaction. As a result, the total share of strategic customers for main
products were raised, the market share of mid-and-small size products kept ranking the first, and the market share
of TV products went up to 11%, ranking up as the fourth in the world. The Company carried forward disruptive
product innovation, and obtained good results in technology R&D, product development, market promotion, and
innovation management for new products and high-end products, such as the 1st 10K UHD display in the world,
the 1st color vision correction display, and the 941PPI4K-level mobile display with the highest resolution ratio in
the world. Meanwhile, the Company established interactive R&D and design platform with high efficiency to
realize technology sharing and process innovation. The Company pushed strategic transformation of product lines,
dug out the capacity of product lines, optimized product structure, and raised competitive power. The Company
also strengthened training on capability of process engineering, improved obstinate bad products, and increased
yield rate of product lines. The Company intensified the strategic partnership with suppliers to ensure stable
supply and lower cost, and provided support for annual operating goal by adjustment on dualization,
domestication, and structuralization. The Company intensified quality sense, and improved quick response to
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Abstract of the 2015 Semi-annual Report of BOE Technology Group Co., Ltd.
quality issues by perfecting quality management system, promoting construction of standardization and process,
as well as well handling obstinate bad products. The Company propelled the process of key projects. The climbing
output and yield rate of Chongqing Generation 8.5 line were improved. As at the end of June, the production line
realized its full capacity production in the 1st period with general yield rate up to 80%. As scheduled, the
Company shall quickly and efficiently carry forward the early-stage preparation and process engineering
demonstration for projects of Chengdu Generation 6 line, Hefei Generation 10.5 line, and Fuzhou Generation 8.5
line. And Chengdu Generation 6 line has been put into operation on 8 May.
2) Smart system business
For the smart system business, the Company further strengthened on market insight and identification of new
products, new applications, and new channels, optimized planning process for disruptively innovative products
and channel structures, and carried forward key consumption and commercial projects.
Smart system business: The Company clearly defined product strategies and product roadmaps, and tentatively set
up high-end product systems around the core of Alta series, as well as the interactive online and offline marketing
model. The Alta product won 2 international awards, the iF Gold Award and the Red Dot Award, gradually
building its high-end brand image. Complete machine OEM business: the Company reinforced on enlarging new
clients and introducing product certification, optimized R&D process, developed new products, raised
competitiveness, overfulfilled the business index plan, and obtained stable profit growth. Backlight module
business: the Company positively expanded external markets and gained obvious effects, advanced outstanding
operation management, raised operating efficiency, overfulfilled the business index plan, and realized the demand
of “half more assignments accomplished after half more time passed”. Smart wearing business: The Company,
based on internet thinking, researched on combination of wearing technology and finance service, and smoothly
planned the 1st BOE smart wearing product combined with mobile finance application.
3) Health service business
The Company finished strategic planning and target setting, and clearly planned the strategic execution roadmap
and action plan on health service business in future 5 years.
Health medical care business: With the plan of purchasing OASIS International Hospital going well as scheduled,
the health medical care business successfully launched. The Company established strategic cooperation with
Dignity Health, the globally well-known medical care company, and received strong support in aspects of
management and operation, talents training, technology innovation, long-distance medical care cooperation, as
well as resources sharing. The cloud platform project of health medical care went well. The IBM health big-data
cooperation project officially started, aiming at establishing a big-data platform for BOE health management on
the basis of cognitive computing, and offering support for the development of smart health medical care. The
Company planned the layout of smart health science and technology industry park, which gained support from
government resource, and won periodic breakthrough. Industry park business: Under the commercial module of
light-asset operation, the Company positively promoted business enlargement and project implementation, and
improved profit and cash flow.
(2) Main business analysis
YoY movements in major financial data:
Unit: RMB Yuan
Same period of last
Item Reporting period YoY +/-% Main reasons for movements
year
The new production lines were running
Operating revenues 22,970,848,112.00 16,113,171,584.00 42.56% at full capacity and the yields were sold
out.
Increased along with the growth in
Operating costs 17,509,610,448.00 12,630,118,473.00 38.63%
operating revenues
Selling expenses 532,688,703.00 481,663,833.00 10.59% -
The new projects went into operation and
Administrative expenses 2,252,419,046.00 1,698,855,995.00 32.58%
the R&D inputs increased.
Financial expenses 176,341,089.00 106,739,572.00 65.21% Expensed interest cost increased.
The main business generated more
Income tax expenses 411,060,664.00 156,020,200.00 163.47%
profits.
R&D inputs 1,414,269,610.00 934,158,103.00 51.40% R&D was enhanced.
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Abstract of the 2015 Semi-annual Report of BOE Technology Group Co., Ltd.
Net cash flows from
5,453,391,488.00 3,253,640,502.00 67.61% Operating results saw growth.
operating activities
Net cash flows from
-11,570,264,006.00 -9,406,248,514.00 23.01% -
investing activities
The arrival of raised funds generated
Net cash flows from
1,699,283,524.00 30,604,020,368.00 -94.45% some cash inflows in the same period of
financing activities
last year.
The arrival of raised funds generated
Net increase in cash and
-4,495,264,852.00 24,494,958,224.00 -118.35% some cash inflows in the same period of
cash equivalents
last year.
4. Matters related to financial reporting
(1) Explain any changes in the accounting policies, accounting estimates and measurement methods as
compared with the financial reporting of last year
□ Applicable √ Inapplicable
No such cases in the reporting period.
(2) Explain any retrospective restatement due to correction of significant accounting errors in the reporting
period
□ Applicable √ Inapplicable
No such cases in the reporting period.
(3) Explain any changes in the consolidation scope as compared with the financial reporting of last year
√ Applicable □ Inapplicable
In the current period, BOE Optoelectronics Holding Co., Ltd., a wholly-funded subsidiary of the Company, acquired the 100% equity
interests of BOE Technology Europe GmbH. In addition, BOE Optical Science and Technology Co., Ltd. (BOEOST), a subsidiary of
the Company, incorporated sub-subsidiary Chongqing BOE Display Lighting Co., Ltd. and the Company indirectly held a stake of
90.51% in the new sub-subsidiary at the time. In April, the Company increased its investment in BOEOST, which consequently
increased the Company’s indirect stake in the new sub-subsidiary to 91.2%.
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard
audit report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
Chairman of the Board: Mr. Wang Dongsheng (signature)
Date of the Board of Directors approving to report: 21 Aug 2015
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