The Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. Stock Code: 200725 Stock abbreviation: BOE B Announcement No. 2016-042 BOE TECHNOLOGY GROUP CO., LTD. The Abstract of the Report for the First Quarter of 2016 Section I Important Statements 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. The Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. Section II Financial Results and Changes in Shareholders I Financial results Whether the Company performed any retroactive adjustments to or restatement of its accounting data due to changes of accounting policies or correction of accounting errors □ Yes √ No Item January-March 2016 January-March 2015 +/- Operating revenues (RMB) 12,297,738,830.00 11,582,854,379.00 6.17% Net profit attributable to shareholders of 108,325,454.00 978,140,971.00 -88.93% the Company (RMB) Net profit attributable to shareholders of the Company after exceptional profit and -1,356,749,356.00 880,748,144.00 -254.05% loss (RMB) Net operating cash flow (RMB) 2,767,654,463.00 2,302,553,649.00 20.20% Basic earnings per share (RMB/share) 0.003 0.028 -89.29% Diluted earnings per share (RMB/share) 0.003 0.028 -89.29% Weighted average return on equity 0.14% 1.27% -1.13% Item 31 March 2016 31 December 2015 +/- Total assets (RMB) 162,807,233,819.00 152,592,894,442.00 6.69% Net assets attributable to shareholders of 77,552,636,290.00 77,485,275,564.00 0.09% the Company (RMB) Exceptional profit and loss √ Applicable □ Not applicable Unit: RMB Item January-March 2016 Note Gains/losses on the disposal of non-current assets (including the -178,441.00 - offset part of asset impairment provisions) Tax rebates, reductions or exemptions due to approval beyond 0.00 - authority or 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 1,434,844,783.00 - certain quotas or amounts according to the country’s unified standards Capital occupation charges on non-financial enterprises that 0.00 - recorded into current gains and losses Gains due to that the investment costs for the Company to obtain 0.00 - subsidiaries, associates and joint ventures are lower than the 1 The Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. enjoyable fair value of the 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 0.00 - management Asset impairment provisions due to acts of God such as natural 0.00 - disasters Gain/loss on debt restructuring 0.00 - Expenses for business reorganization, such as expenses for 0.00 - staffing, reorganization etc. Gain/loss on the part over the fair value due to transactions with 0.00 - distinctly unfair prices Current gains and losses of subsidies acquired from business combination under the same control as from period-begin to 0.00 - combination date Gain/loss on contingent events irrelevant to the Company’s 0.00 - normal business 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 37,683,600.00 - financial liabilities and financial assets available for sales, except for effective hedging related with normal businesses of the Company Reversal of impairment provisions for the accounts receivable on 0.00 - which 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 subsequent measurement is carried out adopting the fair 0.00 - value method Effect on current gains/losses when a one-off adjustment is made to current gains/losses according to requirements of taxation, 0.00 - accounting and other relevant laws and regulations Custody fee income when entrusted with operation 0.00 - Non-operating incomes and expenses other than the above 0.00 - Other gain/loss items that meet the definition of an extraordinary 7,105,977.00 - gain/loss Less: Income tax effects 9,064,919.00 Minority interests effects (after tax) 5,316,190.00 Total 1,465,074,810.00 -- 2 The Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. Explain the reasons if the Company classifies an item as exceptional profit/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Profit and Loss, or classifies any exceptional profit/loss item mentioned in the said explanatory announcement as recurrent profit/loss □ Applicable √ Not applicable No such cases in the Reporting Period. II Total number of shareholders at the period-end and shareholdings of top ten shareholders 1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as shareholdings of top ten shareholders Unit: share Total number of common 1,455,885 (including: 1,408,069 A-shareholders and 47,816 B-shareholders) shareholders at the period-end Shareholdings of top ten shareholders Shareholdin Number of Pledged or frozen shares Nature of Number of shares Name of shareholder g percentage restricted shares Status of Number of shareholder held (%) held shares shares Beijing State-owned Capital State-owned 11.56% 4,063,333,333 0 Management Center Corporation Chongqing Capital Photoelectricity State-owned 8.53% 3,000,000,000 Pledged 955,000,000 Investment Co., Ltd. Corporation Hefei Jianxiang Investment Co., State-owned 8.13% 2,857,142,857 0 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 2.49% 876,935,991 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 0 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. 3 The Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. Shareholdings of top ten non-restricted shareholders Variety of shares Name of shareholder Number of non-restricted shares held Variety Number Hua An Fund – ICBC - Zhongrong International RMB ordinary Trust - Zhongrong - RJ No. 1 Assembled Funds 1,564,126,904 1,564,126,904 shares Trust Plan RMB ordinary China Securities Finance Corporation Limited 876,935,991 876,935,991 shares Beijing BOE Investment & Development Co., RMB ordinary 822,092,180 822,092,180 Ltd. shares Beijing Economic-Technological Investment & RMB ordinary 677,423,641 677,423,641 Development Corp. shares RMB ordinary Hefei Raycom Projects Investment Co., Ltd. 675,026,803 675,026,803 shares Beijing BDA Technological Investment RMB ordinary 564,000,000 564,000,000 Development 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 Chongqing Jiangbeizui CBD Investment Group RMB ordinary 107,095,238 107,095,238 Co., Ltd. shares Sinotrans Air Transportation Development Co., RMB ordinary 78,200,000 78,200,000 Ltd. shares 1. Beijing State-owned Capital Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd.. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% shares of Beijing BOE Investment & Development Co., Ltd., which was the controlling shareholder of the latter. 3. Beijing Economic-Technological Investment & Development Corp. held 49% shares of Beijing BDA Technological Investment Development Co., Ltd., the Explanation on associated relationship or persons above mentioned companies were both controlled by the Beijing Economic - acting in concert among the above-mentioned Technological Development Area Administration Committee and were the shareholders persons acting in concert 4. When the Company completed private offering of shares in 2014, Hefei Jianxiang Investment Co., Ltd., Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. maintained unanimous according to the 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 The Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. 5. 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 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. 6. 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. Top ten common shareholders conducting N/A securities margin trading (if any) Did any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conduct any promissory repo during the Reporting Period? □ Yea √ No No such cases in the Reporting Period. 2. Total number of preference shareholders and shareholdings of the top ten of them □ Applicable √ Not applicable 5 The Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. Section III Significant Events I Changes in major accounting statement items and financial indicators for the Reporting Period, as well as reasons for such changes √ Applicable □ Not applicable 1. Financial costs increased 116% from the same period of last year, mainly due to the increase in exchange loss and interest expenditure. 2. Non-operating revenue increased 1125% from the same period of last year, mainly due to the increase in governmental subsidies. 3. Corporate income tax decreased 94% from the same period of last year, mainly due to the decreased profit on display devices. 4. Notes receivable increased 74% from the opening amount, mainly because some deals were settled using notes. 5. Accounts paid in advance decreased 35% from the opening amount, mainly because the prepayments to suppliers decreased. 6. Long-term equity investments increased 34% from the opening amount, mainly due to the increased investments in associates. 7. Other non-current assets increased 368% from the opening amount, mainly because the prepayments for acquisition of long-term assets and the deferred import VAT increased. 8. Short-term borrowings decreased 82% from the opening amount, mainly because more bank loans were repaid as the projects proceeded. 9. Notes payable increased 89% from the opening amount, mainly because some deals were settled using notes. 10. Interest payable decreased 77% from the opening amount, mainly because borrowing interest was paid. 11. Bonds payable increased by RMB9.952 billion from the opening amount, mainly due to the bonds issued in the Reporting Period. 12. Net investment cash outflow decreased 70% from the same period of last year, mainly because the expenses on construction of new projects decreased. 13. Net financing cash outflow increased 345% from the same period of last year, mainly because more bank loans were repaid as the projects proceeded. II Progress of significant events and analysis & explanations on their influence and solutions √ Applicable □ Not applicable Index to the relevant Overview of the significant event Date of disclosure announcement disclosed on the website China Development Fund Co., Ltd. appended investment of RMB1.6 billion on Fuzhou BOE Optoelectronics Technology Co., Ltd. and the event had been 13 Mar. 2016 www.cninfo.com.cn reviewed and approved by 2016 2nd Extraordinary General Meeting of the Company. In 2016, the Company executed the public offering of the corporate bonds (Phase I) to the qualified investors (called “16BOE01” for short with the code 23 Mar. 2016 www.cninfo.com.cn of “112358”), which was of 10 billion with the final nominal interest rate of 3.15%. 6 Abstract of the Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. III Commitments of the Company, its shareholders, actual controller, acquirer, directors, supervisors, senior management or other related parties fulfilled in the Reporting Period or ongoing at the period-end √ Applicable □ Not applicable Date of Type of Term of Commitment Commitment maker Contents commitment Fulfillment commitment commitment making Commitments made in share reform Commitments made in acquisition documents or shareholding alteration documents Commitments made in time of asset restructuring Beijing State-owned Capital The shares acquired from this subscription shall Operation and Management Center, Commitment not be transferred within 36 months from the Hefei Jianxiang Investment Co., Ltd., concerning 8 Apr. 2014 36 months In execution first trading date of these newly increased Commitments made in time of IPO or Chongqing Capital Photoelectricity restricted shares shares in the private placement by the issuer. refinancing Investment Co., Ltd. Commitment Voluntarily committed to lock up the whole Hefei Raycom Projects Investment concerning held shares of the Company of 24 months since 9 Jan. 2014 24 months Fulfilled Co., Ltd. restricted shares 9 January 2014. Commitments concerning stock ownership incentive Committed not to decrease the shareholding Commitment during the shareholding increase execution Other commitments made to minority Beijing Electronics Holdings Co., Ltd. concerning period and within 6 months after the completion 31 Jul. 2015 6 months Fulfilled shareholders others of the execution of 231,700 unrestricted RMB ordinary shares increased by the directional 7 Abstract of the Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. asset plan. Committed not to decrease the shareholding during the shareholding increase execution Commitment Beijing BOE Investment period and within 6 months after the completion concerning 24 Aug, 2015 6 months Fulfilled Development Co., Ltd. of the execution of 6,311,100unrestricted RMB others ordinary shares increased by the directional asset plan. Commitment Committed not to decrease the shareholding of Whole Directors, Supervisors and concerning the Company’s shares within the future 6 11 Jul. 2015 6 months Fulfilled Senior Executives others months since 11 July 2015. Beijing Electronics Holdings Co., Commitment Committed not to decrease the shareholding of Ltd., Beijing BOE Investment concerning the Company’s shares within the future 6 28 Jan. 2016 6 months In execution Development Co., Ltd., Hefei others months since 28 Jan 2016. Raycom Projects Investment Co., ltd. Commitment Committed not to decrease the shareholding of Beijing BDA Technological concerning the Company’s shares within the future 6 14 Feb. 2016 6 months In execution Investment Development Co., Ltd. others months since 14 February 2016. Executed on time Yes Specific reasons for failing to fulfill commitments on time and plans for N/A next step IV Operating result forecast for January-June 2016 Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-beginning to the end of the next reporting period according to prediction, as well as explanations on the reasons: □ Applicable √ Not applicable 8 Abstract of the Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. V Securities investments √ Applicable □ Not applicable Variety of Code of Name of Opening Opening Closing Closing Profit/loss in Source of Initial Closing book number of shareholding number of shareholding the Reporting Accounting title securities securities securities value securities investment cost shares held percentage shares held percentage Period TPV Financial assets Stock HK00903 134,658,158.00 24,360,191 1.04% 24,360,191 1.04% 20,705,334.00 0.00 Subscribe Technology available-for-sale Electronic Financial assets Stock SH600658 90,160,428.00 9,819,493 1.69% 9,819,493 1.69% 111,942,220.00 0.00 Stock-for-stock Zone available-for-sale Bank of Financial assets Stock HK01963 120,084,375.00 25,195,000 0.93% 25,195,000 0.93% 132,089,380.00 0.00 Subscribe Chongqing available-for-sale Other securities investment held at the 0.00 0 -- 0 -- 0.00 0.00 -- -- period-end Total 344,902,961.00 59,374,684 -- 59,374,684 -- 264,736,934.00 0.00 -- -- Disclosure date of the board announcement N/A on approval of the securities investment Disclosure date of the general meeting announcement on approval of the securities N/A investment (if any) VI Investments in derivative financial instruments □ Applicable √ Not applicable No such cases in the Reporting Period. 9 Abstract of the Report for the First Quarter of 2016 of BOE Technology Group Co., Ltd. VII Visits paid to the Company in the Reporting Period for purposes of research, communication, interview, etc. √ Applicable □ Not applicable Date of visit Way of visit Type of visitor Index to main inquiry information 2016-01-07 Teleconference Institution Main discussion: 2016-01-12 Field research Institution 1. The operating situation, the future development strategy of the Company; 2016-01-15 Field research Institution 2. Industry conditions and development 2016-01-25 Field research Institution trend; 2016-02-18 Field research Institution 3. Situation of the several production 2016-02-19 Teleconference Institution lines of the Company; 2016-02-24 Teleconference Institution Materials provided by the Company: the company brochure and other public 2016-03-07 Field research Institution information. 2016-03-17 Teleconference Institution VIII Illegal provision of guarantees for external parties □ Applicable √ Not applicable No such cases in the Reporting Period. IX Occupation of the Company’s funds by the controlling shareholder or its related parties for non-operating purposes □ Applicable √ Not applicable No such cases in the Reporting Period. Board Chairman (signature): Wang Dongsheng Date of the Board’s approval: 25 April 2016 10