Abstract of 2016Semi-annual Report of BOE Technology Group Co., Ltd.
Stock code: 200725 Stock name: BOE B Announcement No. 2016-062
BOE Technology Group Co., Ltd.
Abstract of Semi-annual Report 2016
1. Important notes
The 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 the Abstract on http://www.cninfo.com.cn, the website of the Shenzhen Stock Exchange or any other
websites designated by the CSRC.
The Abstract has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the
two versions, the Chinese version shall prevail.
Corporate profile
Stock name BOE A, BOE B Stock code 000725, 200725
Stock exchange Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Liu Hongfeng Cui Zhiyong
Tel. 010－64318888 ext. 010－64318888 ext.
Fax 010－64366264 010－64366264
E-mail liuhongfeng@boe.com.cn cuizhiyong@boe.com.cn
2. Financial highlights and shareholder changes
(1) Financial highlights
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in
accounting policies or correction of accounting errors
□ Yes √ No
Item Reporting Period Same period of last year YoY +/- (%)
Operating revenues (RMB Yuan) 26,448,310,717.00 22,970,848,112.00 15.14%
Net profit attributable to shareholders of
-516,472,418.00 1,951,170,852.00 -126.47%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after excluding exceptional -2,309,697,388.00 1,576,397,937.00 -246.52%
profit and loss (RMB Yuan)
Net cash flows from operating activities
2,734,086,955.00 5,453,391,488.00 -49.86%
(RMB Yuan)
Basic earnings per share (RMB Yuan
-0.015 0.055 -127.27%
/share)
Diluted earnings per share (RMB Yuan
-0.015 0.055 -127.27%
/share)
Weighted average return on equity (%) -0.67% 2.53% -3.20%
Item As at the end of the
As at the end of last year YoY +/- (%)
Reporting Period
Total assets (RMB Yuan) 170,275,785,022.00 152,592,894,442.00 11.59%
Net assets attributable to shareholders of
76,601,140,771.00 77,485,275,564.00 -1.14%
the Company (RMB Yuan)
1
Abstract of 2016Semi-annual Report of BOE Technology Group Co., Ltd.
(2) Shareholdings of the top 10 ordinary shareholders
Unit: share
Total number of ordinary
shareholders at the end of the 1,395,044 (including 1,347,444 A-shareholders and 47,600 B-shareholders)
Reporting Period
Shareholdings of the top 10 ordinary shareholders
Number of Pledged or frozen shares
Shareholdi Number of
Nature of restricted
Name of shareholder ng ordinary shares
shareholder ordinary shares Status Number
percentage held
held
Beijing State-owned Capital State-owned
11.56% 4,063,333,333 4,063,333,333
Management Center corporation
Chongqing Capital
State-owned
Photoelectricity Investment Co., 8.53% 3,000,000,000 3,000,000,000 Pledged 955,000,000
corporation
Ltd.
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－
Other 4.45% 1,564,126,904 0
Zhongrong－RJ No. 1 Assembled
Funds Trust Plan
China Securities Finance
Other 2.74% 963,281,982 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 Rongke Project Investment State-owned
1.92% 675,026,803 0
Co., Ltd. corporation
Beijing BDA Technological
Investment Development Co., Other 1.60% 564,000,000 0
Ltd.
Beijing Electronics Holding Co. On behalf of the
0.78% 273,735,583 0
Ltd. government
1. Beijing State-owned Capital Management Center held 100% equities of
Beijing Electronics Holding Co. Ltd..
2 Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE
Investment & Development Co., Ltd. and was its controlling shareholder.
3. 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.
4. After the non-public issuing of the Company in 2014, Hefei Jianxiang
Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment Co.,
Related or act-in-concert parties among the Ltd. agreed to maintain unanimous when executing the voting rights of the
shareholders above shareholders of the Company with the whole shareholdings according to the
declaration of intention of Beijing BOE Investment & Development Co., Ltd.
through the Implementation Protocol of Voting Right.
5. 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.
6. Except for relationship among the above shareholders, the Company is not
2
Abstract of 2016Semi-annual Report of BOE Technology Group Co., Ltd.
aware of whether the other top ten shareholders exist associated relationship
or not, or they are persons acting in concert or not.
Shareholders conducting securities margin trading
Not applicable
(if any)
(3) Shareholdings of the top 10 preference shareholders
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(4) Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Discussion and analysis by the management
(1) Overview
For the first half of 2016, we expectedly achieved operating revenues of approximately RMB26.4 billion Yuan, up 15.14% from
the same period of last year. Meanwhile, our percentages of the segment markets have risen steadily, our strength in technology and
product innovation have further improved, and In-Cell Touch, LTPS AMOLED and some other new technology have been
productized and breakthroughs have been made in the mass production of these products. Our 2.8” LTPS 1600 PPI, 7” FHD LTPS
heteromorphic display, 82” 10K curved screen, Alta Max, etc. were spoken highly of in the SID Display Week, the most influential
event across the global display sector in US.. In addition, we applied for over 4,000 patents in the first half of the year, a 25%
increase from a year earlier.Affected by financial volatility and some non-economic factors, the first half of 2016 saw weak demand
and growth in the global market. As for the domestic economy, there were no signs of stabilization but mounting downward pressure,
and the RMB volatility caused a harsh environment for companies. In terms of the industry, the slowing-down growth in demand and
the sharply falling prices in the five major application markets led to loss across the industry, but the markets for products with high
added value, new technology and new applications still maintained a fast growth; meanwhile, the emerging new technology &
materials, faster market penetration, increasingly fierce competition of patents and reforming business models were producing an
oversetting effect through cross-field competition. In face of such a harsh market environment, we managed to do a good job in
keeping a low stock of products, increasing our shares in the segment markets and the touch modularized percentage of our products,
strengthening our capabilities of technical innovation and product development, making breakthroughs in intelligent manufacturing,
pushing forward our major projects, trying to minimize the impact of currency volatility on our business performance, etc.. Up to the
end of the Reporting Period, our operating revenues maintained a growing trend. Details about our performance by business division
are given as follows:
（1） Display device division
The market share kept increasing in market segments. According to IHS data, as at the end of the 2nd quarter, the market share of
LCD smart phone and TPC nabbed the top spot in the world, the market share of MNT and TV ranked up to the 2 nd place in the
world, and the market share of NB took the 4th place in the globe. With continuous enlargement of new market areas and new
strategic clients, the enhancement of cooperation with brand clients and the whole-machine factory industry chain, as well as the
expansion of client coverage, the Company has become the 1st supplier for plenty of brand clients. The capacity set a record high, the
added value kept rising, the bottleneck-procedures were optimized, and the technique capability was improved, which promoted the
increase of capacity and yield rate. The Beijing 8.5 Generation Line input-output touched new highs, and the capacity of the
Chongqing 8.5 Generation Line was rapidly improved. The integrated completion rate of production plans of all production lines
reached above 98%, which satisfied customers’ demands. The Company pushed forward the launch of projects of the touch-control
modules, the high resolution ratio products, and the new applications, so as to increase the ratio of products with high added-value,
and increase the contribution margin of the single baseplates. While focusing on market and customer demands, the Company kept
strengthening its technology capability. 130 new product models and 42 kinds of technologies were developed. The product
development was mainly based on the touch-control modules and high resolution ratio products. The technology of high resolution
ratio for middle and small size products was developed as planned, and was extended to VR/AR area. The Company optimized
intelligent integration technology, developed technologies of narrow frame, ultra-thin and ultra-light models, hook face, and
heteromorphism into production, and won high praises during the SID exhibition. As for supply system, the Company ensured its
stability, introduced new materials and new suppliers, and achieved the goal of cutting down BOM cost through strategic cooperation.
The Company applied homemade key materials, equipment, spare products and spare parts, and thus improved the dualization and
3
Abstract of 2016Semi-annual Report of BOE Technology Group Co., Ltd.
localization ratio. The Company intensified the tractive efforts brought by new materials and new technologies, emphasized more on
cooperation with core suppliers, so that the development of new technologies and the massive production of new products can be
stably processed.
（2） Smart system division
With Internet and artificial intelligence as the main direction, building mobile health, wisdom, screen couplet, intelligence,
wisdom, energy and five business intelligent manufacturing system. As for smart manufacturing division, the Company captured
market opportunities, and made breakthroughs in capacity and yield, reaching the planned target for the division. Among them, the
big SBU production and sales for one month hit historical high. The Company intensified more on procurement ratio of externally
purchased panels, as well as on dualistic introduction of materials, so as to cut down cost and improve efficiency. The Company
promoted project manager mechanism, and motivated the vigor and creative power of organizations. As for the mobile SBU unit, the
Company developed the industry’s leading technologies and products while cooperating with clients, and stabilized mass production.
The Company also developed new strategic clients while focusing on markets of the vehicle-mounted products, the industrial
automatic controlling products, medical products, and mobile payment products. The yield rate of module products was continuously
being improved. As for smart panel division, the Company pushed forward the transformation of business model to “providing
consumers with integrated solutions” through five big innovation projects, accomplished strategic source seeking for key projects, as
well as the development paths and cooperation module planning for all projects. The Company launched online/offline marketing
plans for high end production lines, such as 110”4K、98”4K, etc.,, which enlarged sales channels. The Company built the
entrepreneurial culture for internal staffs, optimized organization structures and business processes, and thus motived innovation
vigor and cohesion force. As for the mobile health division, the Company transformed thinking trains and constructed platforms
through strategic source seeking, strategic investment and cooperation, and as a result, provided health products and services to target
groups. The Company cleared up thoughts on the basis of big data analysis, constructed service and management module in a
membership system, and founded the basis of the Company’s development of public health service platform. As for smart energy
division, the Company carried forward projects of EPC, EMC, and photovoltaic power stations as scheduled, implemented the
incentive system, and encouraged whole-staff sales. The environmental lighting business reached the planned net profit index, the
engineering projects progressed well, and the promotion of plant factories made efforts. As for smart vehicle connection division, the
Company purchased VARITRONIX, a HK listed company, and perfected the business layout of vehicle-mounted display business
and vehicle connection net system based on the plat form of VARITRONIX.
（3）Health service division
With medical information and big data as the basic characteristics, strive to build O2O health care services, O2O health
insurance services, park three main business system solutions .As for OASIS Hospital, the Company strengthened more force on
department development, enlarged market, and refined management to improve business performance. The Company expanded B2B
clients, and gained sharp year-on-year increase in revenue, outpatient amount, and new client amount. As for Hefei Digital Hospital,
the project progressed well, the architecture design and medical planning were finished, and the system establishment and talents
introduction were being promoted as scheduled. As for the professional park, the Company gained surplus in revenue, and introduced
globally well-known enterprise for UBP/UCP divisions, stably implemented in-construction projects, and made smooth progress in
project of integration solutions. As for health insurance division, the Company confirmed the cooperate shareholders and signed
founder agreement, and submitted company preparation documents to the CIRC for review and approval.
(2) Analysis of main business
YoY movements in major financial data
Unit: RMB Yuan
Item Reporting Period Same period of last YoY +/-% Main reason for movement
year
Operating revenues 26,448,310,717.00 22,970,848,112.00 15.14% -
Operating costs 23,987,091,158.00 17,509,610,448.00 36.99% Increased as the sales volume
increased
Selling expenses 696,216,454.00 532,688,703.00 30.70% Increased as the sales volume
increased
Administrative expenses 2,311,090,435.00 2,252,419,046.00 2.60% -
Finance costs 1,234,879,010.00 176,341,089.00 600.28% Increase in exchange loss and
expensed interest
Corporate income tax 56,258,311.00 411,060,664.00 -86.31% Lower earnings of the display
device division due to a declining
market
R&D expenses 1,944,443,159.00 1,414,269,610.00 37.49% R&D enhancement
Net cash flows from operating Considerable drop in our main
2,734,086,955.00 5,453,391,488.00 -49.86%
activities product prices
Net cash flows from investing -
-12,633,262,404.00 -11,570,264,006.00 9.19%
activities
4
Abstract of 2016Semi-annual Report of BOE Technology Group Co., Ltd.
Net cash flows from financing Arrival of the funds raised
13,870,080,988.00 1,699,283,524.00 716.23%
activities through floating bonds
Net increase in cash and cash Arrival of the funds raised
3,853,303,396.00 -4,495,264,852.00 -185.72%
equivalents through floating bonds
Non-operating revenue 1,793,732,882.00 424,771,458.00 322.28% Increase in government subsidies
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 √ Not applicable
No such cases in the Reporting Period.
(2) Explain any retroactive restatements due to correction of significant accounting errors in the Reporting
Period
□ Applicable √ Not applicable
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 □ Not applicable
1、The Company had completed the equity subscription delivery process of VARITRONIX on 28 April 2016. After which, the
Company held 0.4 billion shares of VARITRONIX, which covered bout 54.70% of the total shares capital and became the controlling
shareholder of the latter. As for the details,
2、The Company's subsidiary Beijing Yinghe Century Co., Ltd completed the equity subscription delivery process of Beijing
Shangjun Properties Development Co., Ltd.
3、The Company's subsidiary BOE Optoelectronics Holding Co., Ltd. (Optoelectronics Holding)set up BOE India Co., Ltd.;
4、The Company set up BOE Intelligent technology Co., Ltd. (Intelligent Technology) .
(4) Explanation of the Board of Directors and the Board of Supervisors concerning the “non-standard”
auditor’s report issued by the CPAs firm for the Reporting Period
□ Applicable √ Not applicable
Chairman of the Board: Mr. Wang Dongsheng (signature)
Date of the Board of Directors approving to report: 26Aug 2016
5
