Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
Stock code: 200725 Stock abbreviation: BOE B Announcement No.: 2015-072
BOE TECHNOLOGY GROUP CO., LTD.
Abstract of the Report for the Third Quarter of 2015
Section I. Important Reminders
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management staff of BOE
Technology Group Co., Ltd. (hereinafter referred to as “the Company”) warrant that the contents carried in this
report are without any false record, misleading statement or material omission. And they shall be severally and
jointly liable for the authenticity, accuracy and completeness.
Mr. Wang Dongsheng, company principal, Mr. Chen Yanshun, company president, 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 Report enclosed in this report is factual, accurate and complete.
All directors have attended the board session for reviewing this report.
This report is prepared in both Chinese and English. Should there be any understanding 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. 2015 31 Dec. 2014 Increase/decrease (%)
Total assets (RMB Yuan) 146,687,506,706.00 136,240,283,477.00 7.67%
Net assets attributable to shareholders
78,016,645,611.00 76,155,071,579.00 2.44%
of the Company (RMB Yuan)
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
YoY increase/decrease YoY increase/decrease
Item Jul.-Sept. 2015 Jan.-Sept. 2015
(%) (%)
Operating revenues (RMB Yuan) 13,449,597,930.00 46.59% 36,420,446,042.00 44.02%
Net profit attributable to shareholders
41,216,719.00 -94.93% 1,992,387,571.00 7.42%
of the Company (RMB Yuan)
Net profit attributable to shareholders
of the Company after extraordinary -168,061,110.00 -124.10% 1,408,336,827.00 12.89%
gains and losses (RMB Yuan)
Net cash flows from operating
-- -- 7,833,611,103.00 68.68%
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.001 -95.65% 0.057 -20.83%
Diluted EPS (RMB Yuan/share) 0.001 -95.65% 0.057 -20.83%
Weighted average ROE (%) 0.05% -1.03% 2.59% -0.83%
Notes:
The net profits attributable to the shareholders of the Company dropped 94.93% year on year in the third quarter of 2015 mainly
because the Company recorded an exchange loss about RMB 728 million in the third quarter of 2015 due to the depreciation of the
RMB. Speaking without the exchange effects, the Company maintained a steady growth in operating profits for Jan.-Sept. 2015. The
Company will try to increase its overall profitability through a further adjustment to increase the weight of high value-added products
in its product mix. I
Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Item Amount as of Jan.-Sept. 2015 Note
Gains/losses on the disposal of non-current assets (including the offset part
-8,938,883.00 Naught
of asset impairment provisions)
Tax rebates, reductions or exemptions due to approval beyond authority or
0.00 Naught
the 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 630,413,083.00 Naught
amounts according to the country’s unified standards
Capital occupation charges on non-financial enterprises that recorded into
0.00 Naught
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
0.00 Naught
value of the identifiable net assets of the investees when making the
investments
Gain/loss on non-monetary asset swap 0.00 Naught
Gain/loss on entrusting others with investments or asset management 0.00 Naught
Asset impairment provisions due to acts of God such as natural disasters 0.00 Naught
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
Gain/loss on debt restructuring 0.00 Naught
Expenses for business reorganization, such as expenses for staffing,
0.00 Naught
reorganization etc.
Gain/loss on the part over the fair value due to transactions with distinctly
0.00 Naught
unfair prices
Current gains and losses of subsidies acquired from business combination
0.00 Naught
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 Naught
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 Naught
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 Naught
impairment tests were carried out separately
Gain/loss on external entrustment loans 0.00 Naught
Gain/loss on change of the fair value of investing real estate of which the
0.00 Naught
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 Naught
relevant laws and regulations
Custody fee income when entrusted with operation 0.00 Naught
Non-operating incomes and expenses other than the above 18,125,944.00 Naught
Other gain/loss items that meet the definition of an extraordinary gain/loss 0.00 Naught
Less: Income tax effects 50,566,462.00 Naught
Minority interests effects (after tax) 4,982,938.00 Naught
Total 584,050,744.00 --
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
There was no such situation of the Company during the reporting period.
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
II. Total number of shareholders and shareholdings of the top ten shareholders at the
period-end
1. Total number of common shareholders and shareholdings of the top ten common shareholders at the
period-end
Unit: share
Total number of common
1,635,628 (including: 1,587,866 A-shareholders and 47,762 B-shareholders)
shareholders at the period-end
Shareholdings of the top ten common shareholders
Shareholding Number of 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
Beijing State-owned Capital State-owned
11.56% 4,063,333,333 4,063,333,333
Management Center Corporation
Chongqing Capital Photoelectricity State-owned
8.53% 3,000,000,000 3,000,000,000 Pledged 1,414,150,000
Investment Co., Ltd. Corporation
Hefei Jianxiang Investment Co., State-owned
8.13% 2,857,142,857 2,857,142,857
Ltd. Corporation
Hua An Fund – ICBC - Zhongrong
International Trust – Zhongrong -
Other 4.45% 1,564,126,904 0
RJ No. 1 Assembled Funds Trust
Plan
China Securities Finance
Other 2.99% 1,051,078,931 0
Corporation Limited
Beijing BOE Investment & State-owned
2.34% 822,092,180 0
Development Co., Ltd. Corporation
Beijing Economic-Technological State-owned
1.93% 677,423,641 0
Investment & Development Corp. Corporation
Hefei Raycom Projects Investment State-owned
1.92% 675,026,803 675,026,803
Co., Ltd. Corporation
Beijing BDA Technological
Other 1.60% 564,000,000 0
Investment Development Co., Ltd.
Beijing Electronics Holdings Co.,
Nation 0.78% 273,735,583 0
Ltd.
Shareholdings of the top ten non-restricted common shareholders
Number of non-restricted common Type of shares
Name of shareholder
shares held at the period-end Type Number
Hua An Fund – ICBC - Zhongrong International Trust - 1,564,126,904 RMB ordinary 1,564,126,904
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
Zhongrong - RJ No. 1 Assembled Funds Trust Plan shares
RMB ordinary
China Securities Finance Corporation Limited 1,051,078,931 1,051,078,931
shares
RMB ordinary
Beijing BOE Investment & Development Co., Ltd. 822,092,180 822,092,180
shares
Beijing Economic-Technological Investment & RMB ordinary
677,423,641 677,423,641
Development Corp. shares
Beijing BDA Technological Investment Development RMB ordinary
564,000,000 564,000,000
Co., Ltd. shares
RMB ordinary
Beijing Electronics Holdings Co., Ltd. 273,735,583 273,735,583
shares
RMB ordinary
Central Huijin Investment Ltd. 248,305,300 248,305,300
shares
CSOP Asset Management - CSOP FTSE China RMB ordinary
113,965,902 113,965,902
A50ETF shares
Chongqing Jiangbeizui CBD Investment Group Co., RMB ordinary
107,095,238 107,095,238
Ltd. shares
RMB ordinary
Sinotrans Air Transportation Development Co., Ltd. 78,200,000 78,200,000
shares
1. Beijing Electronics Holdings Co., Ltd. held 66.25% shares of Beijing
BOE Investment & Development Co., Ltd., which was the controlling
shareholder of the latter.
2. Beijing Economic-Technological Investment & Development Corp.
held 49% shares of Beijing BDA Technological Investment Development
Co., Ltd., the above mentioned companies were both controlled by the
Beijing Economic - Technological Development Area Administration
Committee and were the persons acting in concert
3. When the Company completed private offering of shares in 2014, Hefei
Jianxiang Investment Co., Ltd., Chongqing Ezcapital Opto-electronics
Explanation on associated relationship or persons acting Industry Investment Co., Ltd. maintained unanimous according to the
in concert among the above-mentioned shareholders declaration of intention from Beijing BOE Investment & Development
Co., Ltd. when executing the voting rights of the shareholders of the
Company through the agreement of the Voting Rights Exercising
Agreement
4. When the Company completed private offering of shares in 2014,
Beijing State-owned Capital Operation and Management Center
transferred the 70% shares directly held to Beijing Electronic
Shareholding Co., Ltd. for managing through Shares Management
Protocol, and Beijing Electronic Shareholding Co., Ltd. acquired the
shareholders rights except for the disposition rights and equity rights
attached to the equities; Beijing State-owned Capital Operation and
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
Management Center maintained its voting rights of the rest 30% equity
directly held by itself in accordance with Beijing Electronic Shareholding
Co., Ltd. through the agreement of the Voting Rights Exercising
Agreement.
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.
Did any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conduct any buy-back upon
agreement in the reporting period?
□ Yes √ No
No such cases in the reporting period.
2. Total number of preferred shareholders at the period-end and shares held by the top ten preferred
shareholders
□ Applicable √ Inapplicable
Section III. Significant Events
I. Major movements in the main accounting statement items and financial indicators in the
reporting period, as well as the reasons for the movements
√ Applicable □Inapplicable
Period-beginning/
Period-end/
Item Same period of +/-% Main reasons for the change
Current period
last year
Notes receivable 244,458,507 501,172,383 -51% Notes were adopted less often in settlement.
Accounts receivable 8,417,046,247 6,615,762,122 27% The sales volume increased.
Inventories 5,969,882,176 4,163,304,029 43% The increased sales volume
Other current assets 9,449,645,244 6,085,764,454 55% Financial products and the over-paid VAT increased.
The construction of the new production lines was
Other non-current assets 523,999,668 1,420,564,369 -63% finished and the relevant prepayments for construction
decreased.
Accounts payable 10,532,204,776 6,691,237,683 57% The new production lines went into operation.
Accounts received in
458,150,377 314,712,632 46% Advances from customers increased.
advance
Interest payable 98,100,212 219,407,964 -55% Some interest was paid.
Non-current liabilities Some long-term borrowings were transferred into this
800,360,276 15,000,000 5236%
due within 1 year item.
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
Product quality guarantee deposits increased as the
Other current liabilities 448,664,313 290,588,570 54%
sales volume increased.
More production lines were put into operation and the
Operating revenues 36,420,446,042 25,288,069,384 44%
income increased as a result.
Operating costs 28,386,284,793 19,643,200,578 45% The sales volume increased.
Business tax and
170,970,012 70,514,559 142% The tax credit in export tax rebates increased.
surtaxes
The new projects were put into operation and R&D
Administrative expenses 3,512,957,536 2,632,839,349 33%
was enhanced.
The exchange losses increased considerably due to the
Financial expenses 1,049,846,691 -48,134,640 -2281%
adjustments to the foreign exchange policy.
Investment gains 133,698,468 13,643,650 880% Financial products generated more investment gains.
Income tax 495,093,867 284,689,438 74% The main business continued to profit.
II. Progress, influence and solutions of significant events
√ Applicable □ Inapplicable
1. The Company disclosed the Share Buyback Long-effective Mechanism of BOE Technology Group Co., Ltd (2014-2016) on 22
Apr. 2014 and the Pre-Plan for Buyback of Some Public Shares of BOE Technology Group Co., Ltd on 29 Jul. 2014, which has been
reviewed and approved by the 2nd Special General Meeting in 2014. As the buyback period came to an end on 13 Aug. 2015, a total
of 136,569,831 B-shares were bought back this time, which have been written off on 18 Aug. 2015. For details, please refer to the
Announcement No. 2015-061 of BOE Technology Group Co., Ltd on the Completion of Writing off the Shares Bought back & the
Relevant Changes in the Shares disclosed on 20 Aug. 2015.
2. On 19 Jun. 2015, the Company disclosed the Announcement No. 2015-041 of BOE Technology Group Co., Ltd. on the
Acquisition of All Equity Interests of Mingde Investment Co., Ltd. and the Increase of Its Registered Capital. So far, the Company
has gone through all the settlement procedures and formalities to change the information registered with the relevant industry and
commerce administration regarding the Acquisition. For details, please refer to the Announcement No. 2015-068 of BOE
Technology Group Co., Ltd. on the Progress of the Acquisition of Mingde Investment Co., Ltd. disclosed on 31 Aug. 2015.
3. According to the Announcement No. 2015-049 of BOE Technology Group Co., Ltd. on the Resolutions of the 2nd Special General
Meeting in 2015 disclosed on 7 Jul. 2015, Mr. Zhang Jinsong has been elected as a non-independent director for the 7th Board of
Directors, Mr. Wang Huacheng an independent director for the 7th Board of Directors and Mr. Chen Ming and Ms. Shi Hong
supervisors for the 7th Supervisory Committee.
4. According to the Announcement No. 2015-055 of BOE Technology Group Co., Ltd. on the Resolutions of the 26th Meeting of the
7th Board of Directors disclosed on 30 Jul. 2015, Mr. Xie Xiaoming has been elected as a vice chairman for the 7 th Board of
Directors.
5. According to the Announcement No. 2015-056 of BOE Technology Group Co., Ltd. on the Resolutions of the 11th Meeting of the
7th Supervisory Committee disclosed on 30 Jul. 2015, Mr. Chen Ming has been elected as the chairman for the 7th Supervisory
Committee.
6. Up to 9 Jul. 2015, Chongqing BOE had cumulatively received RMB 100 million as special funds from the budget of the
Administration of the Liangjiang New District, Chongqing, which would be used for Chongqing BOE’s 8.5G New-type
Semi-conductor Display Devices and System Project.
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
7. The Fuzhou 8.5G Production Line has started construction on 11 Oct. 2015.
8. On 15 Sept. 2015, the Company disclosed the Announcement No. 2015-070 of BOE Technology Group Co., Ltd. on the Resolutions
of the Third Special General Meeting in 2015, at which the 2015 Interim Profit Distribution Pre-Plan was reviewed and approved.
Index to the relevant announcement
Overview of the significant event Date of disclosure
disclosed on the website
Announcement of BOE Technology Group Co., Ltd. on Investment in
18 Aug. 2015 www.cninfo.com.cn
an Integrated Circuit Fund and the Fund Management Company
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
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
√ Applicable □ Inapplicable
Time of
Commitment Commitment maker Contents commitment Period of commitment Fulfillment
making
Commitments of share reform
Commitments made in acquisition
report or in report on changes of equity
Commitments made at the time of assets
reorganization
Beijing State-owned Capital
Operation and Management The shares acquired from this subscription shall not be
Commitments made in the first public Center, Hefei Jianxiang transferred within 36 months from the first trading date of
8 Apr. 2014 36 months In execution
offering or refinancing. Investment Co., Ltd., Chongqing these newly increased shares in the private placement by
Capital Photoelectricity the issuer.
Investment Co., Ltd.
It shall not sell the 231,700 non-restricted RMB ordinary
shares that it has newly obtained through a directional
Beijing Electronics Holdings Co.,
asset plan during the implementation of the shareholding 31 Jul. 2015 Six months In execution
Ltd.
increase and the six months after the completion of the
Other commitments made to the
shareholding increase.
minority shareholders of the Company
It shall not sell the 6,311,100 non-restricted RMB
Beijing BOE Investment & ordinary shares that it has newly obtained through a
24 Aug. 2015 Six months In execution
Development Co., Ltd. directional asset plan during the implementation of the
shareholding increase and the six months after the
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
completion of the shareholding increase.
Fulfilled in time or not Yes
Detailed reasons for failing to fulfill the
commitment and the plan for the next Inapplicable
step (if any)
IV. Predict the 2015 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
V. Securities investment
□Applicable √Inapplicable
No such cases in the reporting period.
VI. Shareholdings in other listed companies
√ Applicable □ Inapplicable
The Company’s
Initial investment Closing book Gain/loss for Change of owner’s
shareholding Source of
Stock code Stock abbr. amount (RMB value (RMB reporting period equity in the reporting Accounting title
percentage in the stock
Yuan) Yuan) (RMB Yuan) period (RMB Yuan)
investee (%)
Available-for-sale
HK00903 TPV Technology 134,658,158 1.04% 23,196,846 193,252.00 -9,088,982 Subscription
financial assets
Available-for-sale
SH600658 Electronic Zone 90,160,428 1.69% 86,804,318 2,553,068.00 -28,280,140 Share swap
financial assets
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
Available-for-sale
HK01963 Bank of Chongqing 120,084,375 0.93% 110,612,379 0 -8,442,342 Subscription
financial assets
Total 344,902,961 -- 220,613,543 2,746,320 -45,811,464 -- --
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
VII. Investments in derivatives
□Applicable √Inapplicable
No such cases in the reporting period.
VIII. Researches, visits and interviews received in the reporting period
√Applicable □Inapplicable
Way of Visitor Main discussion and materials
Time Place Visitor
reception type provided by the Company
Shenwan Hongyuan, Northeast Main content discussed:
The Company’s Securities, Hua Chuang Securities, 1. The operating situation, the
2 Jul. 2015 Field research Institution
meeting room Dongxing Securities, Industrial future development strategy of
Securities the Company; 2. Industry
conditions and development
trend;
3. Situation of the several
Cathay Life Insurance, Capital production lines of the
Investment Trust, Yuanta Funds. Company;
13 Jul. 2015 Teleconference By phone Institution
Tongyi Investment Trust, Union Materials provided:
Securities Investment Trust Annual report of the Company
of 2014, Report of the First
Quarter of 2015, brochure and
other public information.
KTB Investment & Securities Co., Main content discussed:
The Company’s
28 Aug. 2015 Field research Institution Ltd、Franklin Templeton Investments, 1. The operating situation, the
meeting room
Samsung Asset Management future development strategy of
the Company; 2. Industry
conditions and development
trend;
3. Situation of the several
production lines of the
The Company’s Bank of America Merrill Lynch, JP
1 Sep. 2015 Field research Institution Company;
meeting room Morgan
Materials provided:
Annual report of the Company
of 2014, Report of the First
Quarter of 2015, brochure and
other public information.
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Abstract of the Report for the Third Quarter of 2015 of BOE Technology Group Co., Ltd.
Board Chairman (signature）:
Wang Dongsheng
Date of the approval of this report by the board: 23 October 2015
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